Supply Chain Management Integration

Supply Chain Management focuses on time-efficient movement of resources and on the integration of the various functions and pressures that play on those resources. In this section we will focus on the integration. 

Cycle time and response time as the key strategic issue 

Strategically, managing the supply chain requires looking at management from a broader perspective. In Chart 2.13 we see how an ever broadening supply chain 

Supplier s Supplier Manufacturer Customer Customer s Supplier Customer 

Traditional Supply Management Supp Chain Management 

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Figure 1 Supply Chain Management Integrating and Managing Business Processes across the Supply Chain. (From D. M. Lambert, M. C. Cooper, and J. D. Pagh, Supply Chain Management Implementation Issues and Research Opportunities, International Journal of Logistics Management, Vol. 9, No. 2, 1998, pp. 1-19. Reprinted with permission)...

Guillen, G., Badell, M., and Puigjaner, L. A holistic framework for short-term supply chain management integrating production and corporate financial planning. International Journal of Production Economics, 106(l) 288-306, 2007. 

Chan, L.M.A., A. Muriel, and D. Simchi-Levi, Supply-chain management Integrating inventory and transportation . Working Paper, (1997), Department of Industrial Engineering and Management Sciences, Northwestern University. 

In order to assess the AS-IS configuration of the supply chain holistically, aspects of customer and supplier segmentation, supply chain strategy, manufacturing-related aspects, supply chain processes, supply chain governance, and the efficiency of supply chain management integration are covered. The contents of these topics are briefly summarized below in Fig. 9.2. 

Supply chain management integrates the functions planning of all customer orders and/or target figures , materials dispatching as well as the complete control of the manufacturing process. Your SCM puts the efficiency rule to work for your business. This means ... 

Supply Chain Management Integrated Supply Chain and Logistics syslems... 

Supply Chain Management Integrated supply chain and logistics... 

Leeman, J. (2007) Supply Chain Management integrate ketenaansturing. The Hague Pearson... 

Finally, an interesting trend in supply-chain management is improving business practices by providing capabilities to improve service for customers. One such concept is capability to promise. The idea is not just to ensure that the product is available, but that the supply chain is capable of delivering the product. This involves, for instance, capability to rapidly change the schedule to accommodate the customer order and interact with the active plant schedule. Such a system was developed at Celanese Fibers, which is integrated with a Customer Order System and enabled via a Web browser. 

The first question targets an enhancement of supply chain management towards value chain management with integrated volumes and value planning. The second question is related to a specific industry type as basis to... 

Some authors already postulate to extend the focus of supply chain management towards integration with demand management and in some parts with value management... 

Concluding, existing definitions use value chain management as alternative term for supply chain management focusing on supply volume decisions to fulfil a given demand and minimize costs. Especially, value and sales decisions are not covered in an integrated framework. 

The framework is mainly based on the supply chain management framework of Rohde et al. (2000). Rohde s work is gradually enhanced to address the aspects of synchronized decision making within the value chain and the integration of supply, demand and value management concepts as shown in fig. 17. The framework is structured into the areas value chain, processes and methods. 

Value planning and the integration of company s profit and loss structure with supply chain management is not addressed often artificial penalty costs are applied in models to steer results instead of actual cost parameters from controlling... 

In literature simulation and simulation-based optimization is focused on supply chain management areas such as production (Smith 2003 Wullink et al. 2004), inventory (Siprelle et al. 2003), transportation or integrated supply chain networks (Preusser et al. 2005). 

Global profit optimization consistent with profit and loss statements demonstrates how to integrate the value and volume views in controlling, sales marketing, supply chain management, production and procurement. 

Alvarado UY, Kotzab H (2001) Supply Chain Management The Integration of Logistics in Marketing. Industrial Marketing Management 30 (2) 183-198... 

This comprehensive approach allows for efficient integration between processes, different phases of product life cycle, and integration between different sites in the supply chain. This integration provides opportunity for efficiency in that process owners are integrated with each other s needs and expectations. Duplication of effort is avoided and efficiencies gained. Quality outputs from one process become reliable inputs into the next process. Management and leadership will have access and insight into compliance, infrastructure, and performance metrics of all processes on a comparable basis. This provides leadership the opportunity for risk-based resource allocation to appropriate areas of the enterprise. 

Regulators and customers require assurance in consistency of pharmaceutical and biopharmaceutical manufacturing operations. Today s manufacturing supply chains require multiple sites in varying locations to produce a product. Quality systems must be perceived as an integral part of the value chain. This requires that all sites be compliant in their operations and systems. Strong areas in one location do not make up for weak or absent systems in another location. Fines are levied and business is made or lost based on the individual site or weakest link in the supply chain. Management must have a mechanism to measure its processes, and a comprehensive QMS is the mechanism to demonstrate capability. 

Following the rationale of Shi and Gregory (1998, p. 199) that a company should first optimize the elements of a supply chain under its own control, issues related to the inter-organizational integration and coordination of supply chains will generally not be covered in this work. For an overview of specific inter-organizational supply chain management tasks... 

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