Managing Supply Chains and Operations

Name: Managing Supply Chains and Operations
Author: Debra Foland

Discover how supply chains and operations are managed

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Course: On-Demand

Managing supply chains and operations takes a well-orchestrated effort from multifunctional organizations. There are no clear-cut walls built around a supply chain, and operations don't function independently of their upstream and downstream processes. Let's explore the basic elements of both supply chain and operations management and how these two very different processes are related to one another. We'll also discuss how globalization impacts supply chain and operations management objectives and execution. So what exactly is supply chain management? There are four key elements that factor into a supply chain. They are integration, operations, purchasing, and distribution. Integration begins during all strategic planning phases, since the supply chain must meet the overarching business goals. Integration ensures seamless, transparent movement of goods and information throughout the entire supply chain while maintaining appropriate safeguards for customers, suppliers and the business. Operations is a critical element of overall supply chain in that it manages key functions within the supply chain regarding planning and executing production requirements, as well as managing all inventory requirements. Next is purchasing, which is more than just buying a product or service. Purchasing plays the vital role of strategic sourcing, which is integral to a robust supply chain. Distribution involves defining warehousing needs to meet demand. Distribution requires determining the most cost-effective pickup and delivery options that benefit both customer and supplier. Another key element of distribution is reverse logistics. How often have you bought an item online and had to return it to the seller? The process the seller created for you to return this item is part of its reverse logistics process. This has become much more important as online shopping grows in popularity. Companies had to develop effective methods for physically returning goods and documenting those returns while still making the process easy for the consumer to follow. Planning takes customer forecasts and converts them into supplier forecast information, which is used for capacity planning within the company, and at supplier locations. Planning also involves what's known as production planning. Supply chain management, or SCM, will work alongside operations staff to assist in creating the daily, weekly and monthly production plans that align capacity with optimized production schedules, reducing waste in the production area and supporting lean manufacturing principles. Sourcing is a function of SCM where the right suppliers are awarded business based on their ability to meet customer requirements. Sourcing involves not only the right part at the right time expectation but also after-sales support and documentation requirements. In addition, SCM sourcing activities create value by aligning the company's business objectives with the procurement activities through the sourcing process. As a function of SCM, customer and supplier management is tied to a company's commercial activities. Supply chain management will play a key role in managing transactional customer and supplier data, such as customer order management, supplier requirement releases and various transactional records from shipping and receiving. While the function of processing a customer order may be done within a sales organization, it's still a key contribution to SCM customer management. In some capacities, supply chain management leads to managing inventory. SCM relies heavily on software solutions, whether it be an on-the-shelf package or a custom-designed inventory management system to assist in accurate material movement and inventory management execution. Logistics is another key function found in SCM. Logistics includes establishing and managing shipping windows at the supplier location, as well as managing customer shipping windows based on established freight nodes and routes. Logistics includes managing lead times and in-transit inventory requirements to ensure gaps in production don't occur. Also, consider reverse logistics processes for customer returns, as well as returns of any reusable containers for serial production areas. Supply chain management encompasses these four key elements, as well as a vast reach of functions that connect to all areas of the company. In these ways, supply chain management is the first step of many processes for the business, its customers and its suppliers.

Intermediate Provider : Debra Foland 6 Lessons · 27m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

Managing supply chains and operations takes a well-orchestrated effort. These two processes are related but not the same. The four factors in a supply chain are integration, operations, purchasing, and distribution. Logistics and reverse logistics are other key functions that impact supply chain management, or SCM. While operations management plays a role in the SCM process, it has distinct functions. There are challenges that come about during the management process, especially in a global context. Understanding how supply chain and operations management work together is essential. So what is supply chain management? How is it different from operations management? How do they relate to each other to impact businesses?

In this course, you will learn the basic elements of supply chain and operations management and how these two processes are related. You’ll also learn how globalization impacts objectives and execution. By the end of this course, you will know how to align supply chain and operations management with the company’s objectives.

What You'll Learn

List the key elements of supply chain management and operations management
Identify the similarities and differences between supply chain and operations management
Explain how supply chain and operations management relate to and impact businesses
Apply budget management and facilities and assets management concepts
Assess how globalization affects supply chain and operations management
Align supply chain and operations management with a company's objectives

Key Takeaways

Supply chain management and operations management are related processes but are not the same.
The four factors in a supply chain are integration, operations, purchasing, and distribution.
Logistics and reverse logistics are key functions that impact supply chain management.
Operations management plays a role in the SCM process but has its own distinct functions.
Globalization impacts the objectives and execution of supply chain and operations management.

Frequently Asked Questions

What will I learn in this course?

You will learn the basic elements of supply chain and operations management, how the two processes are related, how globalization impacts their objectives and execution, and how to align supply chain and operations management with the company's objectives.

How is supply chain management different from operations management?

While operations management plays a role in the SCM process, it has distinct functions. The course covers the similarities and differences between supply chain management and operations management.

What topics are covered in the lessons?

The lessons cover a Supply Chain Management Overview, an Operations Management Overview, similarities in SCM and OM, differences in SCM and OM, their relationships, and supply chain and operations management in a global context.

Does this course address global supply chains?

Yes. The course covers challenges that arise during the management process in a global context and assesses how globalization has affected supply chain and operations management.