COMMERCE 2OC3 Lecture Notes - Lecture 11: European Cooperation In Science And Technology, Natural Disaster, Keiretsu
26 Jun 2018
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CHAPTER 11: SUPPLY CHAIN MANAGEMENT
DARDEN RESTAURANTS (SEA FOOD & GREEN VEGETABLES)
Largest publicly traded casual dining company in the world
Serves over 400 million meals annually in more than 1,800 restaurants in the US and
Canada
Annual sales of $6.7 billion; $1.5 billion spent on supply chain
Sources food from five continents and thousands of suppliers with four distinct supply
chains
Competitive advantage achieved through superior supply chain
SUPPLY CHAIN MANAGEMENT
The objective is to build a chain of suppliers that focuses on maximizing value to the ultimate
customer.
THE SUPPLY CHAIN’S STRATEGIC IMPORTANCE
Supply chain management is the integration of the activities that procure materials and services,
transform them into intermediate goods and final products, and deliver them through a distribution
system
*Competition is no longer between companies; it is between supply chains
SUPPLY CHAIN MANAGEMENT
IMPORTANT ACTIVITIES INCLUDE DETERMINING:
1. Transportation vendors
2. Credit and cash transfers
3. Suppliers
4. Distributors
5. Accounts payable and receivable
6. Warehousing and inventory
7. Order fulfillment
8. Sharing customer, forecasting, and production information
**HOW SUPPLY CHAIN DECISIONS IMPACT STRATEGY
SUPPLY CHAIN RISK
More reliance on supply chains means more risk
Fewer suppliers increase dependence
Compounded by globalization and logistical complexity
Vendor reliability and quality risks
Political and currency risks
find more resources at oneclass.com
find more resources at oneclass.com
Mitigate and react to disruptions in
Processes (raw materials and component availability, quality, and logistics)
Controls (management metrics and reliable secure communication for financial
transactions, product designs and logistics scheduling)
Environment (custom duties, tariffs, security screening, natural disaster, currency
fluctuation, terrorist attacks, and political issues)
ETHICS & SUSTAINABILITY
Personal ethics
Institute for Supply Management-Canada: Principles and Standards
Ethics within the supply chain
Ethical behaviour regarding the environment
PRINCIPLES AND STANDARDS FOR ETHICAL SUPPLY MANAGEMENT CONDUCT
LOYALTY TO YOUR ORGANIZATION
JUSTICE TO THOSE WITH WHOM YOU DEAL
FAITH IN YOUR PROFESSION
1. PERCEIVED IMPROPRIETY Prevent the intent and appearance of unethical or
compromising conduct in relationships, actions, and communications
2. CONFLICTS OF INTEREST Ensure that any personal, business, or other activity does
not conflict with the lawful interests of your employer
3. ISSUES OF INFLUENCE Avoid behaviours or actions that may negatively influence, or
appear to influence, supply management decisions
4. RESPONSIBILITIES TO YOUR EMPLOYER Uphold fiduciary and other responsibilities
using reasonable care and granted authority to deliver value to your employer
5. SUPPLIER AND CUSTOMER RELATIONSHIPS Promote positive supplier and
customer relationships
6. SUSTAINABILITY AND SOCIAL RESPONSIBILITY Champion social responsibility and
sustainability practices in supply management
7. CONFIDENTIAL AND PROPRIETARY INFORMATION Protect confidential and
proprietary information
8. RECIPROCITY Avoid improper reciprocal agreements
9. APPLICABLE LAWS, REGULATIONS AND TRADE AGREEMENTS Know and obey
the letter and spirit of laws, regulations and trade agreements applicable to supply
management
10. PROFESSIONAL COMPETENCE Develop skills, expand knowledge and conduct
business that demonstrates competence and promotes the supply management
profession
SUPPLY CHAIN ECONOMICS
SUPPLY CHAIN COSTS AS A PERCENT OF SALES
INDUSTRY: ALL INDUSTRY 52%, AUTOMOBILE 67%, FOOD 60%, LUMBER 61%....
OUTSOURCING
Transfers traditional internal activities and resources of a firm to outside vendors
Utilizes the efficiency that comes with specialization
Firms outsource information technology, accounting, legal, logistics, and production
**SUPPLY CHAIN STRATEGIES
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Largest publicly traded casual dining company in the world. Serves over 400 million meals annually in more than 1,800 restaurants in the us and. Annual sales of . 7 billion; . 5 billion spent on supply chain. Sources food from five continents and thousands of suppliers with four distinct supply chains. Competitive advantage achieved through superior supply chain. The objective is to build a chain of suppliers that focuses on maximizing value to the ultimate customer. Supply chain management is the integration of the activities that procure materials and services, transform them into intermediate goods and final products, and deliver them through a distribution system. *competition is no longer between companies; it is between supply chains. Important activities include determining: transportation vendors, credit and cash transfers, suppliers, distributors, accounts payable and receivable, warehousing and inventory, order fulfillment, sharing customer, forecasting, and production information. More reliance on supply chains means more risk. Processes (raw materials and component availability, quality, and logistics)
