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1. Supply Chain Management Fundamentals

APICS CSCP Introduction

Content Outline – What you will learn in part 1:

Supply Chain Management (SCM) Fundamentals

A. Overview of Supply Chain Management (SCM):

1. SCM processes
2. Supply chain and SCM concepts, including reverse supply chains
3. Value and benefits of SCM, including improved profitability, decreased working capital, and identification of stakeholders
4. Evolution of SCM
a. Functional and responsive supply chains
b. Integrated supply chains (internal and external)
c. Value networks

B. Aligning Supply Chain Management (SCM) with Corporate Strategy:

1. Elements of corporate strategies including supply chain, strategic and financial planning
2. Competitive priorities and future direction
3. Aligning supply chain strategy and capabilities with corporate strategy
4. Supply chain design considerations
a. Network configuration
b. Inventory location and levels
c. Product design
d. Information technology
e. Support systems
5. Driving supply chain decisions (e.g., determination of processes, capacities, locations) with competitive priorities and supply chain strategy
6. Using enterprise resources planning (ERP) to align operations with strategy
7. Make-or-buy decisions
a. Justification and benefits of outsourcing
b. Importance of landed cost and risk analysis
8. Compliance and regulatory issues

C. Managing the Supply Chain:
1. Supply chain objectives
a. Key performance indicators (KPIs)
b. Balanced scorecard
c. Efficiency and cost versus responsiveness

D. Sustainability:
1. Waste reduction
2. Take back and end of product life management
3. Traceability
4. Procurement considerations

E. Performance Metrics:

5. Cash-to-cash cycle
6. Return on assets (ROA)
7. Total supply chain cost
8. Inventory investment
9. Value-added productivity

F. Synchronization: Understanding the concept of synchronization of supply and demand and key factors in its implementation are important to successful supply chain management.

G. Continuous Improvement:
1. Definition of continuous improvement
2. Purpose
3. Visibility and data analysis
4. Goals and benchmarking
5. Implementation
6. Change management
7. Tools and philosophies
a. Six sigma
b. Lean
c. Theory of constraints (TOC)

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