Supply Chain Management
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Supply Chain Management Paul Schönsleben Professur f€ ur Betriebswissenschaft, ETH Z€ urich, Z€urich, Switzerland
Synonyms Management of the extended enterprise
Definitions There are several definitions of this term, as there also are several definitions of the term “supply chain.” In 2014, two important professional organizations in the field, APICS (the Association for Operations Management, founded 1957; see also www.apics.org) and the Supply Chain Council (SCC, founded 1996; see also www.supplychain.org), merged. Together, they represent a (if not the) leading professional association for supply chain and operations management. Therefore, it seems adequate to refer to APICS and SCC definitions. According to APICS, a supply chain is “the global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical goods, and cash” (Blackstone 2013). Thus, a supply chain can include procurement networks,
production networks, distribution networks, logistics networks, and service networks. According to APICS, supply chain management (SCM) is “the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally” (Blackstone 2013). These definitions are generally applied to the comprehensive design, manufacturing, and delivery process of a product or a service within and across companies. In competitive markets, the underlying concept perceives a supply chain to be in competition with other supply chains in order to sell its products to potential end customers (users). Clearly, SCM principles can and should be applied to the other phases of the entire product life cycle, that is, also to the use phase (e.g., the after-sales service network), and also – as already the SCOR model suggests – to the return, recycling, and disposal phase (see Fig. 3 below).
Theory and Application Figure 1 shows one of the characteristic tasks handled by SCM, namely, the ongoing synchronization of supply with demand in the comprehensive supply chain. The organizational units (here called entities) involved can be legally
# CIRP 2016 The International Academy for Production Engineering et al. (eds.), CIRP Encyclopedia of Production Engineering, DOI 10.1007/978-3-642-35950-7_16796-2
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Supply Chain Management
Plan Supply Chain
Develop plan that aligns supply resources to meet demand
Aggregate all sources of supply
Aggregate all sources of demand
Entity A
Entity B
Entity C
Entity D
Entity E
Entity F
Deliver
Source
Make
Deliver
Source
Make
...
Supply Chain Management, Fig. 1 Ongoing synchronization of supply with demand in the comprehensive supply chain (Taken from SCOR (2004, p. 22). Copyright APICS Supply Chain Council. Used with permission)
independent companies, as well as profit or cost centers within a company. Figure 2 groups the tasks in which all organizationa
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