C111 Supply Chain Management
- Course Code:
- C111
- Unit value:
Supply chain management (SCM) is an emerging field of study which aims to improve the business performance of individual firms and to generate collective benefits. Among the various business analysts around the world there are a number of different people and institutions supporting the development of SCM. Some are active business practitioners in firms that use or are developing, SCM approaches. Other contributors are management consultants and software firms who are asked to advise and support SCM initiatives. Academics working in business schools and universities are also involved, seeking evidence through research about the impacts of SCM, and what leads to success and failure. Finally, there is a policy perspective: government officials and, in agrifood sectors, farmer organisations are concerned about the full effects of SCM and who gains and loses through it.
Objectives and learning outcomes of the course
After completing the module you will be able to:
- Identify the competitive drivers and explain the growth of SCM
- analyse the revenue and cost changes through which SCM increases a firm’s profit
- understand the role of transaction costs, information, knowledge and people management in designing and implementing SCM
- explain the importance of customer relationship and customer service management as tools for achieving increased ‘value’
- explain the competitive advantages of SCM in planning, procurement and purchasing
- formulate a firm-level strategy that utilises SCM approaches to business management and monitoring
Scope and syllabus
Unit 1 SCM – a new paradigm
‘Logistics’ concerns the physical movement, storage and handling of goods. As supply chains evolve from open-market bargaining, logistics management becomes more complex. Supply chain management (SCM) has grown from these attempts to achieve greater efficiency and customer satisfaction through collaborative relationships.
Unit 2 SCM in context
In this unit we consider alternative models of SCM which emphasise the power distribution between buyers and suppliers the adoption of SCM to the level of prosperity in a country.
Unit 3 Aspects of SCM
This unit uses a classification of SCM according to the processes involved, and identifies how information, knowledge and people interact in SCM. We also consider financial aspects. A fundamental issue is the rationale for forming supply chains rather than relying on open-market bargaining. A fourth aspect is that of competition theory.
Unit 4 Consumers and SCM
Customer-relationship management (CRM) and customer-service management (CSM) are aspects of marketing and after-sales service that become part of the flow of information and knowledge between SCM partners that helps ‘glue’ the partners together. CRM and CSM are also ways of reducing cost and increasing efficiency.
Unit 5 Suppliers and SCM
We look at how firms obtain their supplies (procurement and purchasing) and the difference SCM makes to how they do this. Choosing the right partner to join in SCM is a big decision with major implications for profit.
Unit 6 Operations and SCM
The main cost reduction achieved through SCM is usually a significant reduction in inventories. We look at operations and how they are linked to SCM processes. A potential area of conflict is between keeping costs down by using ‘lean’ production methods and having an ‘agile’ system that can rapidly respond to new opportunities.
Unit 7 SCM and strategy
The goal of providing for customers better than competitors (Unit 4), finding better suppliers and supplier relationships (Unit 6) and reducing cost in operations (Unit 7) are all aspects of a strategic approach. We look at competitive advantage in this unit, and consider SCM strategies, most notably the strategic choice between ‘make or buy’.
Unit 8 Tools for SCM
The tools of SCM are still being developed. Software companies provide SCM packages that help with IT networks and information-sharing systems. Consultants with human resource skills can also help through training and psychological profiling of staff and advising on inter-firm teamwork.
Unit 9 Metrics and performance measures
‘Metrics’ refer to measurements that can be used as performance indicators. Such ‘benchmarks’ are commonly used in most areas of management. Tools known as ‘SCOR’ and ‘the balanced scorecard’ are used in management in various circumstances and also provide useful tools for SCM as well.
Unit 10 The use of accounts in SCM
Finally we consider how the accounts, both financial and management, can be used to provide metrics to help SCM.
