Summary of Demo Lecture - Supply Chain Management & Logistics | AIMS UK

00:00:00 - 00:10:00

The speaker in this video lecture discusses supply chain management, explaining the different stages that an enterprise's supply chain goes through. They note that the most advanced level of coordination and effectiveness is achieved in stage four, but that even at this stage, there may still be some dysfunction.

• 00:00:00 A supply chain is a global network used to deliver products and services from raw materials to end customers. A basic supply chain in this figure is made up of three entities: the seller (a supplier who provides goods or a person or organization with whom the buyer does business), the supplier (a who provides materials, energy, services, or components for a product or service), and the customer (the one who receives the finished product). There are three types of supply chain strategies: stable, reactive, and efficient. The stable supply chain strategy is appropriate for chains that are focused on execution efficiencies and cost performance. Reactive supply chain strategy works well when the chain acts to fulfill demand from trade partners, while the efficient reactive supply chain strategy focuses on the efficiency and cost management on the total delivered cost of finished goods.
• 00:05:00 The supply chain model is used in both manufacturing and services industries. In Stage 0, a company is only focused on its own products. In Stage 1, a company begins to improve its effectiveness and efficiency, but lacks coordination among its partners. In Stage 2, a company begins to improve its coordination and effectiveness, but still suffers from multiple dysfunction. In Stage 3, a company has improved coordination and effectiveness, but may still be facing stability issues. In Stage 4, a company has achieved the most advanced level of coordination and effectiveness, but may still be experiencing multiple dysfunction.
• 00:10:00 This lecture covers supply chain management, explaining the different stages of an enterprise's supply chain, and the benefits of stage four extended enterprise.