Supply Chain Foundations

Supply Chain Management and Procurement October 25, 2025
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Introduction

This course offers a rigorous exploration of the foundational concepts that underpin integrated supply chain strategy, serving as an ideal progression for those with basic knowledge or as a comprehensive refresher. It synthesizes the interdependencies between core functions—forecasting, sourcing, manufacturing, and distribution—to highlight the total system view. Key areas include the strategic role of efficient supply chain design, the trade-offs between cost and service level, and the impact of effective planning on overall business performance. By emphasizing end-to-end integration, participants will gain the holistic perspective necessary to contribute to strategic organizational goals.

Objectives

Upon completion of this course, participants will be able to:

  • Define the strategic role of SCM and its alignment with business unit objectives.
  • Analyze the interdependencies between demand planning, inventory, and logistics.
  • Apply fundamental techniques for measuring and improving supply chain performance (KPIs).
  • Understand the strategic importance of technology (ERP, SCM software) in integrating processes.
  • Evaluate the trade-offs between responsiveness and efficiency in supply chain design.
  • Explain the basic framework of **Sales and Operations Planning (S&OP)**.
  • Identify common metrics for supplier and logistics performance evaluation.
  • Determine the key factors in making tactical network design decisions.

Target Audience

  • Mid-Career Professionals transitioning to SCM roles
  • Analysts and Planners in Demand, Inventory, or Production
  • Managers in Sales and Finance who collaborate with Supply Chain
  • Consultants specializing in business process improvement
  • Engineers and IT Specialists supporting SCM systems
  • Project Managers leading SCM change initiatives

Methodology

  • Case studies on the strategic impact of SCM design decisions (e.g., Amazon vs. traditional retail).
  • Group activity: running a simplified Sales & Operations Planning (S&OP) simulation.
  • Individual exercises on calculating inventory turns and perfect order fulfillment rate.
  • Workshop on mapping the planning process flow (Demand to Production).
  • Discussions on the organizational politics of cross-functional planning.

Personal Impact

  • Holistic view of the supply chain, enhancing cross-functional value.
  • Improved decision-making through better understanding of SCM trade-offs.
  • Capacity to lead and contribute effectively to S&OP and strategic planning.
  • Enhanced analytical skills for measuring and improving performance.
  • Recognition as a strategic asset capable of systems-level thinking.

Organizational Impact

  • Improved alignment between sales, marketing, and operations through effective S&OP.
  • Optimal inventory levels, reducing working capital and stockout costs.
  • More resilient and cost-effective logistics network design.
  • Enhanced internal collaboration and breakdown of functional silos.
  • Increased customer satisfaction through reliable order fulfillment.

Course Outline

Unit 1: Supply Chain as a Strategic System

Strategic SCM
  • SCM's contribution to the bottom line and competitive advantage
  • The strategic fit: achieving consistency between strategy and capability
  • The three major decision phases: design, planning, and operation
Measuring Performance
  • Introduction to key performance indicators (KPIs) and metrics (e.g., inventory turns, perfect order)
  • The concept of supply chain **benchmarking** against industry standards

Unit 2: Demand and Supply Planning Integration

Demand Forecasting and Management
  • Quantitative vs. qualitative forecasting methods (time series, causal)
  • Measuring forecast accuracy and bias
  • Managing the planning process: consensus forecasting
Sales and Operations Planning (S&OP)
  • The S&OP process: purpose, participants, and stages
  • Balancing supply and demand at the tactical level
  • The role of the Executive S&OP meeting in aligning functional plans

Unit 3: Sourcing and Procurement in the Integrated Chain

Sourcing Strategy
  • Strategic sourcing methodology and category management overview
  • Risk management in the supplier base (single vs. multiple source decisions)
  • Evaluating total cost of ownership (TCO) in procurement decisions
Supplier Management
  • Developing a structured supplier evaluation and scorecard system
  • The shift to long-term collaborative supplier relationships (SRM)

Unit 4: Inventory and Fulfillment Management

Inventory Optimization
  • Functions of inventory: decoupling, safety, anticipation, transit
  • Advanced inventory policies (reorder point, periodic review system)
  • The concept of Inventory Positioning and the push/pull boundary
Order Fulfillment
  • Designing the order fulfillment process from customer order to delivery
  • The importance of accurate **Available-to-Promise (ATP)** information

Unit 5: Logistics, Network Design, and IT

Logistics Network Decisions
  • Facility location decisions and the use of heuristics and models (e.g., center of gravity)
  • Strategic considerations in third-party logistics (3PL) outsourcing
  • Introduction to multimodal transportation and route optimization
Information Technology
  • The foundational role of ERP, WMS, and TMS systems
  • Introduction to SCM analytics and visualization tools

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