Management of flows of VALUES between and among supply chain stages to maximize total supply chain profitability.
All stages involved, directly or indirectly, in fulfilling a customer request.
Including all participants: manufacturers, suppliers, transporters, warehouses, retailers, and CUSTOMERS
Across all functions within each company as product development, marketing, operations, distribution, finance, customer service, etc.
Reduce inventory as a result of mismatch between supply and demand
Manufacturing methodology - product focused and process focused
Pricing strategies and sourcing decisions
Transportation to move the product between stages in the supply chain
Responsiveness as a strategic competitive priority
Time horizon is weekly or daily
Decisions regarding individual customer orders
Optimize supply chain configuration and operating policies
Allocate orders to inventory or production
Much less uncertainty (short time horizon)
Maximize overall value created
Customer becomes an integral part of the supply chain
Meet order due dates, set delivery schedules, place replenishment, allocate to a particular shipment
Increase profitability
Tailor the operating policies
Connection between the various stages in the supply chain
Allows coordination between stages: production scheduling, inventory levels
Reduce customer demand uncertainty for a product
Crucial to daily operation of each stage
TEQ Systems LLC d/b/a SHIP-AGENT