Supply chain
management
Supply chain:
the physical and organizational
transfer
of materials, components, and products from their sources to
processing to manufacturing and distribution to points of sale and
final use.
Supply chain management
(SCM): policies and practices undertaken by each
organization in the chain in an attempt to minimize its costs of
procurement, transportation, and holding inventory -- while maintaining
an inventory sufficient for its needs. Each separate organization
must make a profit: what are the influences
on
how much profit each organization makes?
Bowen
[2008: 379]: "SCM integrates the previously fragmented
activities associated with materials management and physical
distribution, including
demand forecasting
purchasing
inventory management
warehousing,
materials handling,
packaging,
order processing, and
transportation.
"All of these activities have been tied together through the use of
information technology (IT) to enable SCM decision-making based on
real-time information about demand, production, and the location of raw
materials and finished goods in transit."
Decisions in SCM:
- Procure from outside organizations, or own the
previous stage in the chain?
- Procure from whom?
- Procure under what terms?
- Procure when?
- Maintain inventory where?
- Deliver?
- Sell to outside organizations, or own the next stage
in the chain?
Questions from the reading
Bowen, J.T. 2008. Moving places: the geography of
warehousing in the US. Journal
of Transport Geography 16: 379-87.
- How does Bowen contrast warehouses and distribution
centers (DCs)?
- Why has there been such an increase in DCs?
- What seem to be the major influences on the location
of warehouses and DCs? On the location of large warehouses and DCs?
Basker, E. 2007. The causes and consequences of Wal-Mart's
growth. Journal of Economic
Perspectives 21(3): 177-98.
- What does Basker list as the sources of Wal-Mart's
advantages over other retailers?
- What are the impacts of a Wal-Mart on local labor
markets, local competitors, local consumers, and suppliers?
- Wal-Mart relies heavily on huge DCs. What can
other retailers do to compete?
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