Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

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.



For all of the types of networks mentioned above (i.e. in the previous subsection), the following general and comprehensive terms are used today:

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]).

With investment goods, supply chains do not appear in isolation. Figure 1.1.7.2 shows that in the case of investment goods, multi­dimensional supply chains arise.

Fig. 1.1.7.2        Multidimensional supply chains for the design and manufacturing of investment goods.

One dimension is the multilevel nature of the network. 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 as tools or as components 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