Intended learning outcomes: Describe the concept of the supply chain. Produce an overview on supply chain management and on integral logistics management.
Continuation from previous subsection (1.1.7).
This leads to the following general terms used for all the types of networks mentioned above (i.e. in the previous subsection):
A supply chain is the global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical goods, and cash [APIC16]. A comprehensive definition of supply chain also includes the networks for disposal and recycling. The extended enterprise is the notion that supply chain partners form a larger entity. These partners form the supply chain community (cf. [APIC16]).
Figure 1.1.7.2 shows how, e.g. with investment goods, supply chains can be connected.
Fig. 1.1.7.2 Connected supply chains for the design and manufacturing of investment goods.
One dimension is the multilevel nature: The user is in turn part of another supply chain. That network may produce other investment goods, and so on. For example, with a tool machine, products may be manufactured that are used in the manufacture of other machines.
Another dimension is the product life cycle. A close look shows that reverse logistics, that is, a supply chain dedicated to the reverse flow of the product, such as through returns, disassembly, and recycling, can lead to a further life cycle — through redesign and remanufacturing to reuse — as another product, if need be.
Supply chain management (SCM) is the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally ([APIC16]).
Integral logistics management is the management of the comprehensive supply chain, that is, along the entire product life cycle, within and across companies.
Course section 1.1: Subsections and their intended learning outcomes
1.1 Basic Definitions, Issues, and Challenges
Intended learning outcomes: Produce an overview on terms of the working environment and of business life. Explain service orientation in the classical industry, product orientation in the service industry, and the industrial product-service system. Disclose the product life cycle, the synchronization of supply and demand, and the role of inventories. Produce an overview on supply chain management, the role of planning and control as well as the SCOR model.
1.1.1 Work, Task, Process, Method, Object, etc. — Important Terms of the Working Environment
Intended learning outcomes: Produce an overview on terms of the working environment, such as work, task, function, order, procedure, process, method, object, business.
1.1.1b Value-Added, Business Process, Material, Product, etc. — Important Terms of Business Life
Intended learning outcomes: Produce an overview on terms of business life, such as value-added, business process, business method, business object, goods, item, part, component, material, product, artifact, management, etc.
1.1.2 Service and Servitization — Service Orientation in the Classical Industry
Intended learning outcomes: Present terms of the service domain such as service, customer service, service in the originary sense, servitization. Differentiate between a (primary, or core) product, a product in a broad sense, and a product in the most comprehensive sense.
1.1.3 The Service Industry and Industrialization of Service — Product Orientation in the Service Industry
Intended learning outcomes: Differentiate between service industry and classical (or conventional) industry. Produce an overview on industrialization of service.
1.1.4 The Industrial Product-Service System IPSS (or IPS2)
Intended learning outcomes: Present the industrial product-service system. Explain product-oriented, use-oriented, and result-oriented services as well as their degree of intangibility.
1.1.5 The Product Life Cycle, and the Role of Logistics and Operations Management
Intended learning outcomes: Produce an overview on the product life cycle. Differentiate between terms such as logistics, operations, logistic management, operations management, and value-added management.
1.1.6 The Customer Tolerance Time (or Demand Lead Time), and the Role of Inventories
Intended learning outcomes: Describe supply, demand, lead time, and customer tolerance time. Explain the problem of temporal synchronization between supply and demand as well as the role of various kinds of inventories in solving this problem.
1.1.7 The Extended Enterprise — Logistics Networks, Logistics Systems or Logistic Chains
Intended learning outcomes: Describe the reasons for an extended enterprise. Differentiate between a logistics network, a production network, a procurement network, a distribution network, and a service network.
1.1.7b The Supply Chain, Supply Chain Management, and Integral Logistics Management
Intended learning outcomes: Describe the concept of the supply chain. Produce an overview on supply chain management and on integral logistics management.
1.1.8 Supply Chain Planning and the Planning & Control System
Intended learning outcomes: Produce an overview on supply chain planning. Differentiate between production planning and control (PPC) and a PPC system.
1.1.8b The SCOR Model
Intended learning outcomes: Present the Supply Chain Operations Reference (SCOR) model. Describe levels 1 and 2 of the actual SCOR model.
