C L A S S   2

A SUMMARY ON CLASS 2 – BY Rev. Dennis McNamara

TOPIC COVERED            :            SUPPLY CHAIN MANAGEMENT

1.      Problems facing the Marketing today

-         Expensive products without profitable market

-         Upscale market without products

Ex. No technology for production to match the market

-         Markets and products but no profits

2.      To solve the problems facing the marketing today

-         Integration of Market and manufacturing through

à Linking production and marketing

à Shaping the institution of market

à The challenge of Global market standards ,ie. Language, social

** This is the concept of  Supply chain management  , which by its definition means :

-         Value-added ,ie. To add value to product to make it more valuable

-         Integration , ie. To integrate production and distribution together to achieve the cost control

The word “supply chain “ involves :-

-         Procurement à Sourcing (either locally or internationally sourcing), Sub-contracting

-         Inbound logistics à inventory management and transportation and warehousing , JIT

-         Operations à production management and quality control

-         Marketing and sales

-         Outbound logistics à distribution to final consumers

-         Customer services

-         Product Development à R&D, Marketing , Sales and Operation Manager

-         Service Development à consumer is the centre of the product

-         Pricing

However, supply chain involves so many complexity in integrating all the functions effectively.

Supply Chain is important because :-

-         New technology comes in so organizing information is necessary

-         The cost of production is high and so the cost of developing the new product and its distribution , that’s why you need to be more specialized

Talking about Supply Chain Management, there are certain activities that involve to achieve cost control , such as

•  Sub-contracting            - To gain vertical integration

•  J-I-T delivery system – which is more or less complexity to operate too

•  Quality and trust

The Premises are :-

-         Market

Since market is open , it’s sometimes difficult to manage and control.  Also in operating in certain market , there facing with the legal requirement of that country like local content needed in manufacturing certain products , especially in the heavy industry like auto-industry.

-         Network of marketing and production

Both upstream , midstream and low-stream to meet customers. Network can be created through :-

i)                    Having share in the local company to gain local government contract and deal

ii)                  Having a network in a company that can guarantee supply to your company “secure supply”

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