Please start the discussion around below subjects ;

- what do you think about the concept of supply chain management ? Why do we
need it? What is the difference between logistics and supply chain management ?

- what/who are the participants in any supply chain ?

- if any of you work in a company, how can you align your supply chain with your
business strategy ?

Hi Aly, You defined supply chain participants " with a long pipeline full of
complexity and details depending on the product's service and nature, which might
require several countries and companies and sectors to be involved." I agree with
your statement. In today's fiercely competitive global market, a supply chain is the
combined network of individuals, organizations, resources, activities, and
technologies associated with the manufacture and sale of a final product or
services. It started with delivering raw materials from a supplier to a manufacturer
and ended up with the delivery of the finished product or service to the final
customer. According to Chopra Meindl, a supply chain includes manufacturers and
suppliers and transporters, warehouses, retailers, and even customers themselves.
Within each organization, such as a manufacturer, the supply chain consists of all
functions involved in receiving and filling a customer request. These roles include
but are not limited to, new product development, marketing, operations,
distribution, finance, and customer services. In a typical supply chain, suppliers
supply raw materials or parts that can be manufactured into finished products, and
with given materials, manufacturers can make parts or final products. Logistics
service providers are responsible for transporting and storing goods as they move
through the supply chain. Again wholesalers are engaged in Purchasing goods for
onward distribution to stores or other sales outlets. Finally, retailers sell finished
products to end customers.
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Thread:Discussion 1 - AnnaSPost:RE: Discussion 1 - AnnaSAuthor: Sohrab

Khurshid HaiderPosted Date:September 9, 2020 3:52 AMStatus:Published

Hi Anna,

I like how you differentiated the concept of logistics and supply chain management
for any firm. Although many entities define logistics and supply chains
interchangeably in their business processes, there are many differences between
their functions, capabilities, inputs, and outputs.

The quickest distinction is that supply chains are responsible for the overall
sourcing, processing, and delivery of goods to the end customer. In contrast,
logistics focuses explicitly on moving and storing goods between different supply
chain organizations. Logistics is a substantial part of the supply chain and is crucial
to excelling through supply chain performances. While the overall supply chain is
liable for marketplace success and profit-making, logistics plays a critical, central
role in ensuring raw materials, parts, and finished products flow smoothly through
the global supply chain.

A supply chain may have many different aspects of logistics and logistics
companies, and all committed to helping the supply chains run smoothly. However,
each logistics enterprise is only responsible for a unique and self-contained part of
the supply chain. The underlying logistics associated with sending, receiving,
moving, and storing goods in a timely and cost-effective manner is critical for
businesses' success.

The Council of Supply Chain Management Professionals explained logistics

function as: "part of the supply chain process that plans, implements and controls
the efficient, effective forward and reverse flow and storage of goods, services and
related information between the point of origin and the point of consumption to
meet customer's requirements." Proper logistics management is all about efficient
transport and storage. Logistics providers use various land, air, and ocean segments
to transfer goods swiftly and efficiently. They benefit from containerization for
moving goods between transportation types, commonly known as "intermodal"
freight transportation services.

Once goods have arrived at their destination, logistics providers will put them in
warehouses or other facilities. They will retain products until they are necessitated
further down the supply chain, whether that's another supply chain organization or
for shipment to an end customer. Some logistics businesses specialize in
distribution—conveying goods to the final customer, typically known as "Last-
Mile Delivery."Many logistics businesses exist, such as in-house logistics,
Logistics Service Providers (LSPs), Third-party logistics (3PL), Reverse logistics,
etc.

On the other hand, supply chain management encompasses a much broader

concept for any business organization. In today's fiercely competitive global
markets, managing supply chains are essential to any business entity. The supply
chain draws the connections and collaborations between suppliers, producers,
logistics businesses, wholesalers, retailers, and end clients. The supply chain
process begins when an organization gets an order for a product or service and
finishes when it is successfully delivered to the end customer. It may work across
multiple organizations bringing together various partners to source, manufacture,
transport, store, supply, and sell goods.

Supply chain management often controls other aspects of the order, inventory, and
supply chain processes. An efficient supply chain promotes collaboration and
partnerships to work together and provide linkage for better business ways. It can
be designed to identify when the stock of particular products is falling and
therefore arrange replenishment swiftly. Orders can be raised and managed
efficiently with good collaboration among suppliers, manufacturers, and other
organizations in the supply chain. All flow of orders, goods, and other assets
through the global supply chain can be tracked and monitored using technology.
An excellent supply chain visibility helped ensure all authorized partners get
notified in real-time regarding shipment processes.

Good supply chains also help identify any troubles by information sharing and
resolving issues with the speed, cost, quality, or other aspects. Ultimately, a robust
supply chain provides a competitive advantage to every organization that's
involved.

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Thread:Concept of SCMPost:RE: Concept of SCMAuthor: Sohrab Khurshid

HaiderPosted Date:September 9, 2020 2:43 AMStatus:Published

Hi David,

I like how you mention, "The concept of supply chain management is the
synchronization of parties involved, directly or indirectly, in fulfilling a customer
request." Since there involve many parties in a typical supply chain, this
synchronization is crucial to fulfilling customers' demand. To align a shipping
company's supply chain with its business strategy, I like to address below an
example of Kline Ship management Japan that I have served a few years back.

As a marine merchant officer, I was serving onboard an 8000 series mega

containership. KLine Pvt Ltd Japan, being the KLine vessel owner, was interested
in looking after the commercial side, i.e., booking cargo, arranging shipment,
transporting across the ocean via their designated ships, and reaching destination
ports to offload cargo. For looking after ship technical operation, the shipowner
hired a Singapore based ship management company named KLSM. When the ship
arrived in Singapore and elsewhere when needed, the KLSM appointed
superintendents used to visit the vessel to provide all technical support. They
routinely take all critical decisions to run ship smoothly across the ocean and
deliver cargo in time. For crew hiring, Kline had various partners in a different
country specializing in hiring qualified seafarers. While serving onboard, all crew
had to undergo extensive on the job training and verification. The "SEATECH"
was a specialized company whose trainers routinely visit the ship for crew training
and validation.

When the ship visits any foreign port for customs, immigration, and other port
formalities, cargo booking, stevedoring services, and other husbandry jobs, ship
management companies need to employ specialized local agents for smooth ship
operation.

Again if the ship experiences any machinery breakdown, the company appointed a
repair facility at each port to provide all the needed support. Suppose the
machinery breakdown is a critical one or in case of hull damages, which affect ship
seaworthiness, a classification society surveyor ready to inspect the vessel and
provide all the needed guidelines. After successful repair, the ship can only proceed
to the sea, fulfilling all the criteria recommended by the surveyor. A ship also needs
various stores, spares, provision, freshwater, fuel oil bunkers, etc. Shipowner
nominated vendors at each port keep close contact with the shipmaster to fulfill
ship requirements.

In essence, managing the commercial voyage of an oceangoing cargo ship involve

many complexities. Many business entities work together for a common goal
carrying to and from cargo Asia to Europe in a seamless manner. The Shipowner
Kline Pvt ltd used to manage some core business functions like cargo booking and
shipment on their own. However, they also hire many other firms to manage
different activities needed by ship. It gives them competitive advantages after
reducing costs in organizing activities. With an extensive global network of offices
and companies at more than 70 locations worldwide, their managements and staff,
experienced professionals, are in a good team spirit and committed to assisting
customers in the best possible services and thus attaining a sustainable foothold the
shipping market.

Reference:

K-Line Logistics. (n.d.) Retrieved from

https://www.klinelogistics.com/en/aboutus/company/

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Thread:Concept of Supply Chain ManagementPost:RE: Concept of Supply Chain

ManagementAuthor: Sohrab Khurshid HaiderPosted Date:September 8, 2020 3:53
PMStatus:Published

Author: Sohrab Khurshid Haider Date: Tuesday, September 8, 2020 3:36:58 PM

EDT Subject: Concept of Supply Chain Management

Supply chain management is defined as the movement of goods and services that
include all processes for converting raw materials into final products. It depicts
suppliers' effort to develop and implement supply chains that are as effective and
economical as possible. Its success depends upon maximizing customer value and
gaining competitive edges over the competitors in the relevant market.

Simchi-Levi et al. (2003, p. 1) defined: "Supply chain management is a set of

approaches utilized to efficiently integrate suppliers, manufacturers, warehouses
and stores, so that merchandise is produced and distributed at the right quantities,
to the right locations, and at the right time, in order to minimize system-wide costs
while satisfying service level requirements."

Illustrating further supply chain management must consider every organization and
facility involved in making the product, and the costs inherent in doing so. It also
implies that the objective is to be cost-effective across the whole supply chain,
which requires a system-wide approach to optimization.

Typically, SCM strives to centrally direct or link the production, shipment, and
distribution of products and services. By managing the supply chain efficiently,
firms can cut excess costs and deliver products faster. It can be achieved by
keeping tighter control of product inventories, streamlining production processes,
distribution networks, sales, and managing nominated vendors' lists.

In the heart of supply chain management, it is based on the idea that nearly every
product comes to the market due to various organizations' efforts that make up a
supply chain. Although supply chains have existed for ages, only newer business
organizations start realizing their potential after introducing value-add activities in
many forms. In the past, single firms compete with each other, but in today's
fiercely competitive market environment, not individual firms but their network of
supply chains compete with others. According to Chopra & Meindl, "Supply chain
success should be measured in terms of supply chain profitability and not in terms
of the profits at an individual stage."

Supply chain managers should coordinate all logistics aspects of a supply chain,
from planning or strategy, sourcing raw materials or services, making processes,
distribution networks, logistics, reverse logistics for the defective items, future
development, etc. They should endeavor to minimize deficits and keep costs down.
They should correctly identify product development needs, quality control, and
effectiveness of operations.

Business sustainability can only be ensured through continuous improvement in

the production processes and coordinated efforts from all network partners. An
efficient supply network supervises each touchpoint of a firm's products or
services, from origin to end customer. With so many ways along a supply chain
that can add value through performances or drop worth due to increased expenses,
managing an efficient supply chain is critical for a firm's increased profits and
business sustainability.

References:

Chopra S. & Meindl P. Supply Chain Management. 5th Edn. P 1Simchi-Levi et al.
Design and Managing The Supply Chain Concepts Strategies and Case Studies.
(2003).

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Thread:Concept of Supply Chain ManagementPost:Concept of Supply Chain

ManagementAuthor: Sohrab Khurshid HaiderPosted Date:September 8, 2020 3:36
PMStatus:Published

Supply chain management is defined as the movement of goods and services that
include all processes for converting raw materials into final products. It depicts
suppliers' effort to develop and implement supply chains that are as effective and
economical as possible. Its success depends upon maximizing customer value and
gaining competitive edges over the competitors in the relevant market.

Simchi-Levi et al. (2003, p. 1) defined: "Supply chain management is a set of

approaches utilized to efficiently integrate suppliers, manufacturers, warehouses
and stores, so that merchandise is produced and distributed at the right quantities,
to the right locations, and at the right time, in order to minimize system-wide costs
while satisfying service level requirements."

Illustrating further supply chain management must consider every organization and
facility involved in making the product, and the costs inherent in doing so. It also
implies that the objective is to be cost-effective across the whole supply chain,
which requires a system-wide approach to optimization.

Typically, SCM strives to centrally direct or link the production, shipment, and
distribution of products and services. By managing the supply chain efficiently,
firms can cut excess costs and deliver products faster. It can be achieved by
keeping tighter control of product inventories, streamlining production processes,
distribution networks, sales, and managing nominated vendors' lists.

In the heart of supply chain management, it is based on the idea that nearly every
product comes to the market due to various organizations' efforts that make up a
supply chain. Although supply chains have existed for ages, only newer business
organizations start realizing their potential after introducing value-add activities in
many forms. In the past, single firms compete with each other, but in today's
fiercely competitive market environment, not individual firms but their network of
supply chains compete with others. According to Chopra & Meindl, "Supply chain
success should be measured in terms of supply chain profitability and not in terms
of the profits at an individual stage."

Supply chain managers should coordinate all logistics aspects of a supply chain,
from planning or strategy, sourcing raw materials or services, making processes,
distribution networks, logistics, reverse logistics for the defective items, future
development, etc. They should endeavor to minimize deficits and keep costs down.
They should correctly identify product development needs, quality control, and
effectiveness of operations.

Business sustainability can only be ensured through continuous improvement in

the production processes and coordinated efforts from all network partners. An
efficient supply network supervises each touchpoint of a firm's products or
services, from origin to end customer. With so many ways along a supply chain
that can add value through performances or drop worth due to increased expenses,
managing an efficient supply chain is critical for a firm's increased profits and
business sustainability

When you are ready, put up your response in the form of a "New Post" (button is at
the top left), then participate in the discussion, using the "Reply" button at the
bottom of each post. At leats 5 posts are required. Besides quantity, the quality of
posts are also important. Please make research, develop new ideas, and contribute
from yourselves. This will help you to get more points.

Also, the discussion takes only 5 days ! If you do not start sending posts on the
first day of the dicussion, it becomes impossible to develop discuss the topic. So,
attend regularly. Do not send all your posts in the same day - usually in the last
day- for the purpose of meeting the 5 posts requirement.

- what do you think about the concept of supply chain management ? Why do
we need it?

Supply chain management is the management of the movement of goods and

services that include all processes for converting raw materials into final products.
SCM depicts suppliers' effort to develop and implement supply chains that are as
effective and economical as possible. Its success depends upon maximizing
customer value and gaining competitive edges over the competitors in the relevant
market.

Typically, SCM strives to centrally direct or link the production, shipment, and
distribution of products and services. By managing the supply chain efficiently,
firms can cut excess costs and deliver products faster. It can be achieved by
keeping tighter control of product inventories, streamlining production processes,
distribution networks, sales, and managing nominated vendors' lists.

In the heart of SCM, it is based on the idea that nearly every product comes to the
market due to the efforts of various organizations that make up a supply chain.
Although supply chains have existed for ages, only newer business organizations
start realizing their potential after introducing value-add activities in many forms.
In the past, single firms compete with each other, but in today's fiercely
competitive market environment, not individual firms but their network of supply
chains compete with others. According to Chopra & Meindl "Supply chain success
should be measured in terms of supply chain profitability and not in terms of the
profits at an individual stage".

According to Simchi-Levi et al. (2003, p. 1): "Supply chain management is a set of

approaches utilized to efficiently integrate suppliers, manufacturers, warehouses
and stores, so that merchandise is produced and distributed at the right quantities,
to the right locations, and at the right time, in order to minimize system-wide costs
while satisfying service level requirements."

According to the above definition, supply chain management must consider every
organization and facility involved in making the product, and the costs inherent in
doing so. This also implies that the objective is to be cost-effective across the
whole supply chain, which requires a system-wide approach to optimization

Supply chain managers should try coordinate all logistics aspects of a supply chain,
from planning or strategy, sourcing of raw materials or services, making processes,
distribution networks and logistics, reverse logistics for the defective items, future
development, etc. They should endeavoured to minimize deficits and keep costs
down. They also recommend product development needs, quality control, and
effectiveness of operations.

Business sustainability can only be ensured through continuous improvement in

the production processes and coordinated efforts from all network partners. An
efficient supply network supervises each touchpoint of a firm's products or
services, from the point of origin to end customer. With so many ways along a
supply chain that can add value through performances or drop worth due to
increased expenses, managing an efficient supply chain, therefore, is critical for a
firm's increased profits and business sustainability.

What is the difference between logistics and supply chain management ?

Although many entities define logistics and supply chains interchangeably in their
business processes, there are many differences between their functions,
capabilities, inputs, and outputs.

The quickest distinction is that supply chains are responsible for the overall
sourcing, processing, and delivery of goods to the end customer. In contrast,
logistics focuses explicitly on moving and storing goods between different supply
chain organizations. Logistics is a definite part of the supply chain and is crucial to
excelling through supply chain performances. While the overall supply chain is
liable for marketplace success and profit-making, logistics plays a critical, central
role in ensuring raw materials, parts, and finished products flow smoothly through
the global supply chain.

A supply chain may have many different aspects of logistics and logistics
companies, and all committed to helping the supply chains run smoothly. However,
each logistics enterprise is only responsible for a unique and self-contained part of
the supply chain. The underlying logistics associated with sending, receiving,
moving, and storing goods in a timely and cost-effective manner is critical for the
success of businesses.

The Council of Supply Chain Management Professionals explained logistics

function as: "part of the supply chain process that plans, implements and controls
the efficient, effective forward and reverse flow and storage of goods, services and
related information between the point of origin and the point of consumption to
meet customer's requirements."

Proper logistics management is all about efficient transport and storage. Logistics
providers use various land, air, and ocean segments to transfer goods swiftly and
efficiently. They benefit from containerization for moving goods between types of
transportation, commonly known as "intermodal" freight transportation services.

Once goods have arrived at their destination, logistics providers will put them in
warehouses or other facilities. They will retain products until they are necessitated
further down the supply chain, whether that's another supply chain organization or
for shipment to an end customer.

Some logistics businesses specialize in distribution—conveying goods to the final

customer, typically known as "Last-Mile Delivery."

There are many logistics businesses, such as in-house logistics, Logistics Service
Providers (LSPs), Third-party logistics (3PL), Reverse logistics, etc.

On the other hand, supply chain management encompasses a much broader

concept for any business organization. In today's fiercely competitive global
markets, managing supply chains are essential to any business entity. The supply
chain draws the connections and collaborations between suppliers, producers,
logistics businesses, wholesalers, retailers, and end clients. The supply chain
process begins when an organization gets an order for a product or service and
finishes when it is successfully delivered to the end customer. It may work across
multiple organizations bringing together various partners to source, manufacture,
transport, store, supply, and sell goods.

Supply chain management often controls other aspects of the order, inventory, and
supply chain processes. An efficient supply chain promotes collaboration and
partnerships to work together, provide linkage for better ways of doing business. It
can be designed to identify when the stock of particular products is falling and
therefore arrange replenishment swiftly. Orders can be raised and managed
efficiently with good collaboration among suppliers, manufacturers, and other
organizations in the supply chain. All flow of orders, goods, and other assets
through the global supply chain can be tracked and monitored using technology.
An excellent supply chain visibility helped ensure all authorized partners get
notified in real-time regarding shipment processes.

Good supply chains also help identify any troubles by information sharing and
resolving issues with the speed, cost, quality, or other aspects. Ultimately, a robust
supply chain provides a competitive advantage to every organization that's
involved.

- what/who are the participants in any supply chain ?

A supply chain is the combined network of individuals, organizations, resources,

activities, and technologies associated with the manufacture and sale of a final
product or services. It started with the delivery of raw materials from a supplier to
a manufacturer and ended up with the delivery of the finished product or service to
the final customer.

According to Chopra Meindl, a supply chain includes manufacturers and suppliers

and transporters, warehouses, retailers, and even customers themselves. Within
each organization, such as a manufacturer, the supply chain consists of all
functions involved in receiving and filling a customer request. These roles include
but are not limited to, new product development, marketing, operations,
distribution, finance, and customer services.

In a typical supply chain suppliers are those who supply raw materials or parts that
can be manufactured into finished products. With supplied materials manufacturers
able to make parts or final products. Logistics service providers are responsible for
transporting and storeing goods as they move through the supply chain. Again
wholesalers are engaged in Purchasing goods for onward distribution to stores or
other sales outlets. Finally retailers sells finished products to end customers.

- if any of you work in a company, how can you align your supply chain with
your business strategy ?

Some managers believe that there are universal definitions of good or bad supply
chains. We often see companies attempt to build the most efficient supply chain,
regardless of whether their market strategy is to compete on price. Optimizing cost
and inventory may come at the expense of lead-times, flexibility and risk. Your
supply chain needs to compete the same way your company does. Supply chains
cannot be measured in absolutes or designed in isolation of the corporate strategy.
Here are six steps to align your supply chain with your corporate strategy:

1. Define and communicate a clear corporate strategy.

One of the biggest failure points in aligning strategy is when the supply chain
organization doesnt know what to align with. Strategies cannot be too limited and
fail to consider and prioritize all the market requirements and factors on which
participants compete (features, price, delivery, etc). And strategies cannot be
platitudes promising all things to all people. Corporate strategy needs to define
how you are going to be different and better than your competitors, and it needs to
set specific, measurable goals. Then the strategy needs to be communicated to the
organization thoroughly and repeatedly.
2. Identify the areas of your corporate strategy that are enabled by the supply
chain.

You need to connect the dots between your strategic goals and how those get
delivered by the company. This process defines what your supply chain needs to be
good at, and it allows you to prioritize supply chain objectives. Ask the question,
"What part of my core competence and competitive differentiation falls within or
derives from my supply chain activity?" This step is especially critical in making
in-house/outsource decisions.

3. Align supply chain performance metrics with the corporate strategy.

One of the most common issues we see is the belief that there are standard supply
chain performance measures, and the company should strive to maximize them all.
This belief fails to account for the fact that there are tradeoffs in optimizing
different goals. There are also no absolutes in competitive strategy. Goals should
be set based on your performance relative to your competitors.

We have a client who had operated their supply chain with the goal of shipping
product within one day after an order. But their mature market no longer needed
that level of performance. Relaxing that delivery requirement opened up a
significant opportunity for inventory improvement. It is important to note that they
didn't stop delivering in a timely manner or stop measuring delivery performance;
they just re-prioritized their goals to optimize a different objective.
4. Structure your supply chain to optimize the strategic goals.

This step is where you address the elements of supply chain design: Supply chain
network, locations, supplier selection and business terms, inventory and planning
policy, organizational structure. Supply chains that are optimized for cost
efficiency will look different than supply chains that are optimized for flexibility
and responsiveness. Your organization and the skill sets of your people will be
different, too.

5. Align incentives end to end.

Internal performance evaluations and bonus structures need to match the aligned
metrics that have been set. Supplier performance management and business models
should align the suppliers' incentives with yours. Don't forget that channel and
demand management are part of the supply chain, too. Build a robust S&OP
process and drive your sales and marketing teams with objectives that aren't at
odds with your supply chain objectives. One common failure is when sales and
marketing have no incentive to control inventory. They will overdrive the forecast
to guarantee availability and then the supply chain organization is left with the
excess inventory.

6. Keep refreshing the strategy and alignment process.

Most companies have strategic planning cycles of one to three years, but we have
seen companies that literally go decades without re-aligning their supply chain
strategy. Put your supply chain strategy on the same schedule as the rest of your
planning.
References:

Chopra S. & Meindl P. Supply Chain Management. 5th Edn. P 1

Wallingford J. Six Steps to Align Supply Chain with Corporate Strategy. Industry
Week. May 05, 2011. Retrived from
https://www.industryweek.com/leadership/article/21946086/six-steps-to-align-
supply-chain-with-corporate-strategy

Blume Global. The Differences Between the Supply Chain and Logistics. (n.d.)
Retrieved from: https://www.blumeglobal.com/learning/differences-between-
supply-chain-and-logistics/#:~:text=The%20quickest%20distinction%20to
%20make,between%20different%20supply%20chain%20organizations.

When you are ready, put up your response in the form of a "New Post" (button is at
the top left), then participate in the discussion, using the "Reply" button at the
bottom of each post. At leats 5 posts are required. Besides quantity, the quality of
posts are also important. Please make research, develop new ideas, and contribute
from yourselves. This will help you to get more points.

Also, the discussion takes only 5 days ! If you do not start sending posts on the
first day of the dicussion, it becomes impossible to develop discuss the topic. So,
attend regularly. Do not send all your posts in the same day - usually in the last
day- for the purpose of meeting the 5 posts requirement.