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Unit 9: The Wireless Revolution

better or more cost effectively. The effect is to increase the number of organizations involved in Notes
satisfying customer demand, while reducing management control of daily logistics operations.
Less control and more supply chain partners led to the creation of supply chain management
concepts. The purpose of supply chain management is to improve trust and collaboration among
supply chain partners, thus improving inventory visibility and improving inventory velocity.
Several models have been proposed for understanding the activities required to manage material
movements across organizational and functional boundaries. SCOR is a supply chain
management model promoted by the Supply Chain Management Council. Another model is
the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities
can be grouped into strategic, tactical, and operational levels of activities.

Figure 9.14: Supply Chain Activities

Strategic

 Strategic network optimization, including the number, location, and size of warehouses,
distribution centers and facilities.

 Strategic partnership with suppliers, distributors, and customers, creating communication
channels for critical information and operational improvements such as cross docking,
direct shipping, and third-party logistics.
 Product design coordination, so that new and existing products can be optimally integrated
into the supply chain, load management.

 Information Technology infrastructure, to support supply chain operations.
 Where-to-make and what-to-make-or-buy decisions.
 Aligning overall organizational strategy with supply strategy.

Tactical

 Sourcing contracts and other purchasing decisions.

 Production decisions, including contracting, locations, scheduling, and planning process
definition.
 Inventory decisions, including quantity, location, and quality of inventory.

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