MBA FPX 5016 Assessment 3 Supply Chain Management Plan

Student Name

Capella University

MBA-FPX5016 Operations Management for Leaders

Prof. Name:

Date

Supply Chain & Logistics

How do supply chain and logistics create value?

Supply Chain
The supply chain encompasses the processes involved in the production and logistics of any product, item, manufactured good, or other commodity.
Logistics
Logistics refers to the movement within the supply chain.

Inputs

Employees
Warehouses
Raw materials
Equipment
Information
Investments
Accounts receivable
Etc.

Operations

Manufacturing
Transportation
Etc.

Outputs

Commodities
Waste
Wages
Sales
Marketing
Other accounts payable
Etc.

What are our inputs and outputs?

Supply Chains & Logistics

Why is it important to focus on supply chains?

Lower cost of production
Form competitive advantages
Boost customer service
Time of production
Reduce costs
Decrease costs of raw materials
Decrease costs of production
Increase a business’s efficiency

Two Options:

Fast Model & Continuous Movement

Supply Chain Management Plans

What are they?
Supply chain management plans are strategies for implementing supply chain management within a business. They coordinate the flow of products through the supply chain and cover all aspects of supply chain operations. Different methods can be applied based on specific needs.

SPM Plan Example 1: Fast Model

Focuses on reducing the time between input and output.
This approach decreases time and increases sales, leading to more products and higher sales volumes.
It is best suited for rapidly changing markets or products with short life cycles.
Examples include fashion and food industries.

SCM Plan 1: Bottlenecks

Raw materials not sourced in time.
Complete forecasting in advance.
Provide vendors with sufficient notice.
Machinery malfunctions.
Implement routine checks and maintain up-to-date equipment.

SCM Plan 1: How does the plan intersect with logistics?

The fast model aims to minimize the time taken for any logistic step throughout the supply chain.

Example: The time from the end of production to delivery to retail.

SCM Plan 2: The Continuous Flow Model

Focuses on maintaining a continuous flow of input and output in relative amounts.
This model allows for easier forecasting of labor and materials.
Productivity techniques can be implemented effectively.
Raw materials must consistently flow in, while finished commodities must continuously flow out.

SCM Plan 2: Bottlenecks

There is a significant dependence on all components functioning smoothly.
This can be managed through rigorous maintenance, upkeep, and the addition of redundancy.

SCM Plan 2: How Does Plan 2 Intersect with Logistics?

Deliveries and movements occur continuously throughout the supply chain at regularly scheduled intervals.

Examples include product storage, backlog ready for sale, and raw material inventory.

How do they differ?

SCM Plan 1: Fast Model

Concentrates on reducing the time from input to output.
Aims to eliminate delays during logistics.
Ideal for rapidly changing markets with fluctuating demand for specific commodities.

SCM Plan 2: Continuous Movement Model

Focuses on optimizing all components within the supply chain to ensure a continuous flow of input and output.
Maintains specific timelines that are interrelated within logistics.
Suitable for long-term market players with stable, high-demand commodities.

Resources

Ballou, R. H. (2007). Business logistics/supply chain management: Planning, organizing, and controlling the supply chain. Pearson Education India.

Bozarth, C. C., & Handfield, R. B. (2019). Operations and supply chain management.

Chapman, R. L., & Corso, M. (2005). From continuous improvement to collaborative innovation: The next challenge in supply chain management. Production Planning & Control, 16(4), 339-344.

Volvo Cars. (2019). Retrieved from https://www.volvocars.com/us?utm_source=google&utm_medium=cpc&utm_campaign=Volvo_Core_Exact&utm_term=volvo&gclid=Cj0KCQiAjszhBRDgARIsAH8KgvfTaHL46u-mkR6QS9otJSz4n7dbJhlKRBLJCLwTl2qJJKVYvntEQwaAvv7EALw_wcB&gclsrc=aw.ds