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What is Upstream?

Upstream - The processes that occur before manufacturing or conversion into a deliverable product or service, usually dedicated to getting raw materials from suppliers.

What is Downstream?

Downstream - The processes that occur after manufacturing or conversion that are dedicated to getting goods and services to customers and consumers, usually involving warehousing and distribution with subsequent transportation to retail outlets.

What is Supply Chain?

Supply Chain - The core business processes that allow a company to create and deliver a product or service from concept through development and manufacture or conversion, and into a market for consumption.  You're familiar with these processes, which usually begin in the product development or marketing department, move through purchasing and production, and end up in sales and distribution.  You're also familiar with the challenges of managing these separate functions to ensure that the operation runs smoothly.

What is Supply Chain Management?

Supply Chain Management - The methods, systems, and Leadership that continuously improved an organization's integrated processes for product and service design, purchasing, inventory, manufacturing or production, order management, logistics, distribution, and customer satisfaction. Implementing supply chain management principles involves such techniques as working with suppliers to optimize the supply base, introducing flexible manufacturing strategies, and using process redesign to streamline systems throughout the organization.

What is Advanced Supply Chain Management?

Advanced Supply Chain Managment - The creation and maintenance of a network of organizations dedicated to building and constantly improving a value chain constellation focused on a particular industry, market segments, and consumer groups.  This concept is the culmination of supply chain management in which a trusted group of suppliers, manufacturers, distributors, and sales and support specialists works interdependently to achieve market dominance.

What is the Value Chain Constellation?

Value Chain Constellation - A consortium of companies linked together to build a superior supply chain network with a focus on specific markets, customers, products and end consumers.

What are the Benefits of the Value Chain Constellation?

The benefits that accrue within total supply chain networks have been documented through number case studies and articles. The benefits include:

Attain the shortest cycle timesfrom the conception of a new product or service to profitable commercialization.

Realize your company's and your network partners' lowest inventory,  storage, distribution, and transportation costs.

Understand the value of interactive communication systems that make parts, simi-finished products, and finished goods inventory visible to your network.

Link with suppliers, distributors, and customers to use the least amount of working capital to accomplish the goals of the network.

Reach unprecedented levels of consumer satisfaction through a network system that begins with initial supply and continues to after-sales service.

In short, you'll better understand how to apply the right amount of effortto ensure that the right products and services are available in the right amount at the right times.

What are the Benefits for companies that understand the Supply Chain Principles and Applications?

Understanding Principles and application of concepts - is that significant progress can be made in improving and integrating processes across the company.  The result is greater customer satisfaction; new revenue streams; shorter cycle times; lower inventory, manufacturing, and transportation costs, and increased earnings.  For these companies, a performance gap of one to two years has been opened against competitors.

What are some standard measures of Supply Chain Optimization Success?

Standard measures of success - include cycle times and lead-times improved across the board.  Internal costs were also reduced as those partners with the best core competencies assumed responsibility for their parts of the process.

 Relationships with suppliers and customers were enhanced through forums, workshops, and action teams aimed at simplifying business processes.

A special "Procure-toPay" council was created with the five key  suppliers to serve as a think-tank to further improve the network.  This council now guided the future course of the partnership and identifies benefits to be realized by all members of the supply chain alliance.

What company is an example of Supply Chain Optimization Success?

Company Example - Sun Microsystemss is a $9.0+ billion company that has worked hard at internal excellence.  The company has industry-high revenue per employee that exceeds $400,000.

 Ultimately, total lead-time was reduced from three weeks to one day.  total inventory was reduced by 80%.  Cycle time for direct shipment of products from suppliers to Sun customers was reduced by 47 percent.  Most important, a flexible system infrastructure was introduced to support the ongoing business changes in a dynamic market.