T1

1. **Supply Chain Management (SCM) Basics**: 

- SCM integrates product, information, and financial flows across the supply chain, from suppliers to customers. 

- Successful SCM requires collaboration and adaptability across a network of facilities, transportation, and inventory systems. 

2. **Six Major Change Drivers**: 

- **Globalization**: Increases risks, shortens product life cycles, and blurs boundaries between companies. 

- **Technology**: Facilitates process improvements and faster information sharing. 

- **Organizational Shifts**: Power shifted from manufacturers to retailers, leading to better service through collaboration. 

- **Consumer Empowerment**: Informed and demanding consumers drive the need for quality, flexibility, and convenience. 

- **Government Policy and Regulation**: Deregulation of transportation, finance, and communication impacts SCM efficiency. 

- **Sustainability**: Essential for risk management and long-term success, focusing on social, environmental, and economic goals. 

3. **Integrated Supply Chain Characteristics**: 

- **Networks**: Require flexibility and responsiveness to market changes. 

- **Complexity**: Needs simplification and constant evaluation. 

- **Inventory Management**: Collaboration to minimize inventory levels across firms. 

4. **Major Supply Chain Issues**: 

- **Information Sharing**: Crucial for data accuracy and integrity. 

- **Cost & Value Management**: Prevent sub-optimization by aligning with supply chain goals. 

- **Organizational Relationships**: Requires internal and external partnerships. 

- **Performance Measurement**: Linking metrics to company-wide goals. 

- **Technology and Transportation**: Adapting to rapid changes and logistical challenges. 

- **Security & Talent Management**: Protecting the supply chain and developing skilled professionals. 

5. **Summary**: 

- External forces like globalization, technology, and consumer demands drive changes in SCM. Effective supply chains are collaborative, resilient, and equipped to handle disruptions.  

T2 

1. **Global Trade and Commerce Basics**: 

- **Absolute Advantage**: Lower production costs or access to unique resources. 

- **Comparative Advantage**: Different production costs across countries, encouraging trade. 

2. **Factors Driving Global Supply Chains**: 

- **Population and Labor**: Larger, more urban populations drive demand. 

- **Urbanization**: Megacities pose challenges like pollution and resource needs. 

- **Land & Resources**: Scarcity requires efficient resource use. 

- **Technology**: Drives efficiency (internal) and new business models (external). 

- **Global Economy**: Increased trade flows and interdependence. 

3. **Global Supply Chains**: 

- **Trade Agreements**: Bilateral and regional agreements (e.g., NAFTA, USMCA) reduce trade barriers. 

- **Strategies for Success**: 

- **Supply Chain**: Global sourcing, location optimization, and transportation planning. 

- **Customer Service**: Standardization with some customization, and adapting to fast product cycles. 

4. **Security and Role of Ports**: 

- Security laws (e.g., Trade Act of 2002) enforce secure trade through container standards and port monitoring. 

- Ports handle 90% of U.S. international trade, crucial for both trade and security. 

5. **Free Trade Agreements**: 

- **NAFTA**: Enabled seamless North American trade; now evolved to **USMCA** (2020) to enhance NAFTA’s benefits. 

6. **Summary**: 

- Global supply chains grow with trade flows, requiring adaptive strategies and strong security. Agreements like USMCA support North American integration, with companies and governments collaboratively focusing on security and efficiency. 

T3 

1. **Sourcing and Procurement**: 

- **Purchasing**: Basic buying activity. 

- **Procurement**: Manages supplier selection, contract management, and performance. 

- **Strategic Sourcing**: Aligns procurement with supply chain goals, focuses on value, and enhances supplier relationships. 

2. **Strategic Sourcing Process**: 

- **Seven Steps**: 

- **Plan Development**: Set up a sourcing team. 

- **Understand Spend**: Analyze needs and current expenses. 

- **Supplier Screening**: Identify and assess suppliers. 

- **Strategy Finalization**: Decide on sourcing approach. 

- **Implementation**: Begin supplier engagement. 

- **Onboarding**: Transition new suppliers smoothly. 

- **Collaborative Improvement**: Ongoing feedback and savings analysis. 

3. **Total Landed Cost (TLC)**: 

- TLC considers all costs associated with sourcing options, not just purchase price, to optimize total value. 

4. **E-Sourcing and E-Procurement**: 

- **Tools and Benefits**: Automation, lower costs, improved efficiency, and easier supplier access. 

- **Concerns**: Cybersecurity, technology reliability, and limited face-to-face contact. 

5. **E-Commerce Models**: 

- **Sell-side** vs. **Buy-side**: Seller- or buyer-focused systems. 

- **B2B/B2C**: Business or consumer-oriented sales. 

- **Marketplaces**: Multi-vendor platforms (e.g., Amazon). 

- **Trading Communities**: Platforms for structured trading (e.g., eBay). 

6. **Summary**: 

- Sourcing requires customized strategies based on product risk and value. 

- Strategic sourcing and TLC are essential for efficient procurement. 

- E-sourcing offers cost advantages and new opportunities through digital models. 

T3(add) 

1. **Role in Supply Chain Management (SCM)**: 

- Production operations connect supply chain stages by balancing production with demand, aligning with the overall SCM strategy. 

2. **Production Tradeoffs**: 

- **Volume vs. Variety**: High-volume (economies of scale) lowers unit costs, while low-volume (economies of scope) allows diverse products. 

- **Responsiveness vs. Efficiency**: Centralized (efficiency) vs. regional (responsiveness) facilities; large vs. small; product-focused vs. process-focused. 

- **In-house vs. Outsource**: In-house offers control and quality visibility, while outsourcing lowers costs but may complicate quality and coordination. 

3. **Operations Strategy and Planning**: 

- Production has evolved from mass to adaptive and smart manufacturing, focusing on flexibility, lean operations, and resilience. 

- Production strategies include **make-to-stock** (MTS), **make-to-order** (MTO), and variants like **assemble-to-order** (ATO). 

4. **Production Execution Decisions**: 

- **Assembly and Layout**: Aligns with product types and demand; packaging optimizes handling, space, and customer experience. 

5. **Production Metrics**: 

- Key metrics are limited to critical goals like customer responsiveness, quality, efficiency, inventory, compliance, and cost. 

6. **Production Technology**: 

- **Manufacturing Execution System (MES)** integrates factory data, scheduling, and tracking, improving efficiency and quality over time. 

7. **Summary**: 

- Production strategies and tradeoffs create a competitive edge in cost, quality, flexibility, and reliability, meeting diverse demand effectively. 

T4 

1. **Supply Chain Relationships**: 

- Types range from transactional (basic) to strategic (integrated partnerships). 

- Successful relationships require strategic alignment, shared goals, and mutual benefits. 

2. **Process Model for Developing Supply Chain Relationships**: 

- **Steps**: 

- **Step 1**: Perform a strategic assessment of logistics and supply chain needs. 

- **Step 2**: Decide on the relationship type (in-house or outsourced). 

- **Step 3**: Evaluate potential partners based on needs and capabilities. 

- **Step 4**: Select partner(s) with aligned goals. 

- **Step 5**: Structure an operating model for planning, communication, and risk-sharing. 

- **Step 6**: Implement the partnership with a focus on continuous improvement. 

3. **Collaborative Relationships**: 

- Benefits include increased responsiveness, shared information, and competitive advantage. 

- Barriers can be resistance to change, lack of trust, conflicting goals, and information sharing issues. 

4. **The Third-Party Logistics (3PL) Industry**: 

- **3PL Types**: 

- Transportation-based (e.g., FedEx, DHL) 

- Contract logistics (warehousing and distribution) 

- Freight forwarding 

- Financial-based (tracking, cost control) 

- Information-based (digital logistics platforms) 

- **Customer Expectations**: Service excellence, trust, technology support, and strategic alignment. 

- **3PL Trends**: Global expansion, new tech adoption, service diversification, and strong relationship focus. 

T5 

1. **Logistics Definition and Types**: 

- Logistics manages the flow and storage of goods, services, and information. 

- Types include business, military, event, and service logistics. 

2. **Value-Added Roles of Logistics**: 

- Logistics adds **time, place, and quantity** utility, enhancing manufacturing (form utility) and marketing (possession utility). 

3. **Key Logistics Activities**: 

- Essential activities include transportation, storage, packaging, inventory control, and customer service, among others. 

4. **Macro Perspective**: 

- Logistics costs impact the national economy, contributing to economic competitiveness. 

5. **Micro Dimensions of Logistics**: 

- **Interfaces with Other Areas**: Logistics affects manufacturing, marketing, finance, and accounting. 

- **Cost Factors**: Influenced by order cycles, inventory, transportation, product characteristics (e.g., value, density), and spatial relationships. 

6. **Logistics Systems Analysis**: 

- **Short-Run**: Focuses on specific time points. 

- **Long-Run**: Evaluates logistics over time. 

- **Approaches**: Includes materials management vs. physical distribution, cost centers, nodes vs. links, and logistics channels. 

7. **Summary**: 

- Logistics enhances product utility and supports business efficiency. Key costs are influenced by market dynamics, product properties, and logistics design. 

T6 

### Demand Management Overview 

- **Purpose**: Forecasting and managing customer demand to make strategic decisions and improve the flow of goods, services, and information along the supply chain. 

- **Goal**: Create value for the end user by aligning supply with demand effectively. 

### Key Concepts 

1. **Balancing Supply and Demand**: Use various methods to align supply with demand, adapting based on the product type and organizational capabilities. 

- *External Methods*: Adjust customer orders via pricing or lead times. 

- *Internal Methods*: Manage inventory and production flexibility. 

2. **Demand Forecasting**: A critical element in demand management, helping set marketing and operational goals. 

- **Forecast Types**: 

- *Independent Demand*: Demand for the main product. 

- *Dependent Demand*: Demand driven by the main product's demand. 

- **Forecasting Techniques**: 

- **Simple Moving Average**: Based on recent data, effective for stable demand. 

- **Weighted Moving Average**: Prioritizes recent data, allowing flexibility for trends. 

- **Exponential Smoothing**: Uses a smoothing constant for recent data, useful for stable, less seasonal demand. 

3. **Sales and Operations Planning (S&OP)**: A collaborative, internal process to reach a consensus on forecasts, integrating insights from marketing, finance, and manufacturing. 

4. **Collaborative Planning, Forecasting, and Replenishment (CPFR)**: Inter-organizational collaboration (retailers, distributors, manufacturers) to create unified forecasts and plans, using technology for real-time data sharing. 

T6(add) 

### Transportation in Supply Chain Management (SCM) 

- **Role**: Transportation links organizations within a supply chain, impacting cost, design, and strategy. 

- **Challenges**: Capacity constraints, rising customer expectations, labor shortages, and cost volatility. 

### Transportation Modes 

1. **Motor Carriers (Trucks)**: Most common for regional shipments, high variable costs, and competitive due to a large number of operators. 

2. **Railroads**: Used for long-distance, low-value goods with high fixed costs; limited by capacity and economic conditions. 

3. **Air Carriers**: For high-value, low-weight goods; costly but fast, with rising competition from other modes. 

4. **Water Carriers**: Dominate international freight, low cost but slower; ideal for high-volume, low-value goods. 

5. **Pipelines**: Lowest cost per ton, mostly for liquid and gas products with high fixed infrastructure costs. 

### Intermodal Transportation 

- Combines multiple modes to balance cost, accessibility, and speed, essential for global trade. 

### Transportation Strategy and Execution 

1. **Planning and Strategy**: 

- Involves choosing between private fleets or third-party providers, terms of sale, and carrier selection. 

- Focus on efficiency and cost management with strong carrier partnerships. 

2. **Execution and Control**: 

- Manages shipment visibility, documents, and performance monitoring to maintain quality and service. 

3. **Technology**: 

- Transportation Management Systems (TMS) support planning, tracking, and analysis for streamlined operations. 

T7 

### Inventory Management Basics 

- **Importance**: Inventory is crucial for balancing supply with demand, maintaining production, and meeting customer needs. 

- **Types**: Includes cycle stock, work-in-process, in-transit, safety stock, seasonal, and anticipatory stock, each serving different purposes for smooth operations. 

### Key Inventory Costs 

1. **Carrying Costs**: Costs of holding inventory, including capital, storage, service, and risk costs. 

2. **Ordering and Setup Costs**: Expenses related to placing orders and adjusting production setups. 

3. **Stockout Costs**: Costs of lost sales due to insufficient inventory. 

4. **In-Transit Costs**: Lower than warehousing costs but increase with longer distances. 

### Inventory Management Models 

1. **Economic Order Quantity (EOQ)**: 

- Determines optimal order size by balancing ordering and holding costs. 

2. **Just-in-Time (JIT)**: 

- Minimizes inventory by ensuring frequent, small deliveries to meet immediate needs. 

3. **Materials Requirements Planning (MRP)**: 

- Schedules material needs based on production requirements. 

4. **Vendor-Managed Inventory (VMI)**: 

- Suppliers manage inventory levels at customer sites. 

### Inventory Classification 

- **ABC Analysis**: Classifies inventory by value and impact (A = high, B = medium, C = low). 

- **Quadrant Model**: Considers inventory's value to profit and the risk of shortages. 

### Strategic Approaches 

- Balancing costs with service levels and classifying inventory effectively helps firms optimize stock levels, reduce expenses, and improve customer satisfaction.