E6S-095 Jacob Talks Supply Chain - Part 2

Intro:  Welcome to the E6S-Methods podcast with Jacob and Aaron, brought to you by E6S Industries, your source for expert training, consulting, and leadership in business performance and continuous improvement methods, like Lean and Six Sigma. In this episode number 95 Jacob continues his instruction on supply chain fundamentals.  Here we go. http://bit.ly/E6S-095; http://bit.ly/E6S-iTunes

Determining Responsiveness vs Efficiency will be key driver is deciding how and which strategy will be used for each of these 5 critical areas.

Key activities or roles within the Supply Chain

Supply Chain Management is made up of many processes that must be performed within the supply chain. These form the foundational building blocks for the work to be done.

·         Forecasting: The process of estimating future demand using various techniques and methods.

·         Purchasing: The functions associated with buying the goods and services required by the firm.

·         Production Planning: The process that creates detailed plans and schedules to produce product, taking into account resource, material, and dependency constraints to meet deadlines.

·         Inventory Control: The process of ensuring the availability of products through inventory administration (accuracy, strategy & optimization).

·         Warehousing: The storing of goods and warehouse activities (receiving, put-away, picking, shipping, and inventory control).

·         Order Management: The planning, directing, monitoring, and controlling of the processes related to customer orders, manufacturing orders, and purchase orders.

·         Distribution: Outbound logistics, from the end of the production line to the end user. It includes all activities related to physical distribution, as well as the return of goods to the manufacturer.

·         Transportation: The movement of goods by land, sea, or air shipment. Activities, including managing shipment scheduling through inbound, out-bound, intra-company shipments, documentation management, and third party logistics management.


Who all are part of the Supply Chain?

Supply Chain Management is made up of many participants that must work together within the supply chain

·         Suppliers: Source of raw materials, component parts, semi-manufactured products, and other items that occur early in the supply chain - unfinished or non-consumable products.

·         Manufacturers: Makers of products. Many consider them to be the heart of the supply chain.

·         Distributors: Responsible for the packaging, storing, and handling of materials at receiving docks, warehouses, and retail outlets.

·         Retailers: These are the manufacturer's customers - the stores that buy the actual products. Retailers could also be simply referred as customers.

·         Consumers: This is the ultimate user - the person who goes into a store and buys the product.


Supply Chain Partners: Partners help participants by providing infrastructure, equipment and labor when needed.

·         Freight Companies (local and national) ƒ

·         Railroads ƒ

·         Ocean Cargo Companies ƒ

·         Package and Parcel Companies ƒ

·         3PL/4PLs ƒ

·         Brokers/Forwarders/Consolidators ƒ

·         Ports ƒ

·         Inland Drayage Companies ƒ

·         Air Cargo Companies


Benefits of Supply Chain Management:

·         Goal of SCM is to achieve greater profitability by adding value and creating efficiencies, thereby increasing customer satisfaction

·         Improvement of the supply chain translates to benefits for all supply chain members.

·         Costs decrease as a result of reduced redundancies

·         Lower inventory levels

·         Shorter lead time

·         Lessened demand uncertainties

·         Improved process performance result in enhanced product quality, customer service, market responsiveness

·         Performance is thus improved through better use of internal and external capabilities creating a seamlessly coordinated supply chain, elevating inter-company competition to inter-supply chain competition


There are several certification programs for SCM staff development:

·         Association for Operations Management (APICS),

·         International Purchasing and Supply Chain Management Institute (IPSCMI),

·         International Supply Chain Education Alliance (ISCEA),

·         Institute of Supply Chain Management (IOSCM).

·         Supply Chain Management Association (SCMA) – Canadian based organization

·         The APICS certification is called the Certified Supply Chain Professional (CSCP);

·         the ISCEA certification is called the Certified Supply Chain Manager (CSCM).

·         Additionally, the Institute for Supply Management is developing a certification called the Certified Professional in Supply Management (CPSM),[37] focused on procurement and sourcing, also called supply management.

·         The Supply Chain Management Association (SCMA) is the main Canadian certifying body; its designation has global reciprocity. The designation is the Supply Chain Management Professional (SCMP), with a focus on meeting the needs of employers with leadership and functional skills certification.


Outro: Thanks for listening to episode 95 of the E6S-Methods Podcast. Stay tuned for episode 96 where where, "Sam Strikes Back!"  Practioner Samuel Selay joins us to defendfends his post that Jacob and I debated in our "If the Tools Ruled" episodes 90 and 91. If you would like to defend yourself or be a guest on the podcast, contact us through our website.  Join our mailing list!  Subscribe to past and future episodes on iTunes or stream us on-demand with Stitcher Radio.  Don't forget to leave a review and share us with a friend.  Find outlines and graphics for all shows and more at www.E6S-Methods.com. “Journey Through Success”