• Unit 4: Supply Chain Management (SCM)

    Supply chain management refers to the entire process of obtaining the raw goods from a supplier, converting those goods into products, shipping products, and placing them in front of customers. Operations management typically focuses on the production side of supply chain management, but a good manager is concerned with the entire process. In this unit, we will look at the management of firm resources on the supply side as well as the distribution of finished goods to the consumer.

    Many of the problems associated with supply chain management are closely related to the typical problems of operations management. Instead of the question: "How should we make this?", it becomes: "How should we get this from point A to B?" It may be best to ship the product straight from the factory to the customer, but it may be prohibitively expensive to do so. Many firms find it easier and cheaper to ship products to distribution warehouses first and distribute to customers on a more local level.

    Completing this unit should take you approximately 3 hours.

    • Upon successful completion of this unit, you will be able to:

      • apply the principles of supply chain management to various organizational settings;
      • explain the "bullwhip effect" and evaluate strategies to limit variation;
      • apply appropriate criteria in choosing suppliers; and
      • describe the two main areas of distribution management.

    • 4.1: Fluctuations in the Supply Chain

      • Introduction to Supply Chain Management File

        Review this introduction to supply chain management to explore the elements of the process, including suppliers, manufacturers, distributors, and retailers. Each of these is involved in getting goods to consumers when they want them and at a cost that is agreeable to all of the parties.

      • Critical Factors Affecting Supply Chain Management File

        Read sections 1 to 2.7.1 for an in-depth look at the supply chain management factors that impact a business' operations. These sections explore environmental factors, internal company issues, governmental factors, the role of IT, logistics, and suppliers, and more.

      • Causes of the Bullwhip Effect Page

        The bullwhip effect relates to supply chain inefficiencies and changes in inventory levels as they relate to changes in consumer demand. Factors include demand forecasting, order batching, price fluctuations, rationing and gaming.

    • 4.2: Supply Chain Procurement

      • Lean and Agile in Small- and Medium-sized Enterprises: Complementary or Incompatible? Page

        Read this real-world study that was conducted to determine if a company could have lean supply chain management, while also having the agility needed for a small business to flourish. The relationship between a company and their suppliers is explored and is considered to be an essential factor in the supply chain management process.

      • Managing the Production Process in a Manufacturing Company URL

        Read this section to explore the importance of managing materials from vendors to the process of manufacturing. This section is important because it focuses on the activities of an operations manager while managing the production process. Pay particular attention to the question that you need to answer when choosing a best supplier.

      • Enhancing Pharmaceutical Procurement File

        This presentation at Johns Hopkins' Bloomberg School of Public Health provides information related to the procurement of pharmaceuticals. Pay particular attention to the good procurement practices, impact of hidden procurement costs, the models of regional/country collaboration, and the common procurement challenges. 

      • Unit 4 Discussion URL

        After you review this unit, post and respond to this topic on the discussion forum.

        Choosing suppliers for your supply chain is often a challenge. Do you put all your eggs in one basket or look to fulfill your needs through multiple vendors? Using the information provided over choosing a good supplier, apply the criteria to the purchase of a new car. Discuss your answers to the following questions: Is the quality good, is the vendor reliable, does the vendor have a favorable reputation, is the company easy to work with? Based on your answers, which of the vendor would be your choice? Why? 

    • 4.3: Supply Chain Distribution

      • Investment in Operations Page

        Read this section to explore supply chain optimization. Supply chains must be fast, cheap and reliable for a good return-on-investment. This section is important because it focuses on how to focus on designing a supply chain that allows for the manufacturing and distribution of products and a low cost and high profit.

    • Unit 4 Assessment

      • Unit 4 Activity and Grading Rubric Page

        In this activity, you will continue working on your operations management plan. As part of your continuing development of your operations management plan, discuss the goal of supply chain management and its application within your business.

      • Unit 4 Assessment Quiz

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.