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Future Directions in Supply Chain Management Hau L. Lee Stanford University The Changing Time 1. The Quality evolution of the 70’s. 2. Lean Manufacturing of the 80’s. 3. 90’s and beyond … – Globalization – Product variety proliferation – Complexity of supply work – Shortening of product technology lifecycle – Dynamics of market place The Curse of Complexity Uncertainty Multilayer supply chain Product variety proliferation Long process development leadtimes Volatile demand dynamic technology Information distortion Inefficient order fulfillment Mismatch of supply and demand The Bottom Line ... Billions of dollars at stake! Demand Network Integration Lee Supply Chain Management Information Material Finance Raw materials, intermediate products, finished goods Capacity, promotion plans, delivery schedules Credits, consignment, payment terms, invoices Retailers Suppliers Customers Distributors Manufacturers Information Material Finance Sales, orders, inventory, quality, promotion plans Returns, repairs, servicing, recycling, disposal Payments, consignment The Naming Game Supply Chain Management Supply Network Management Supply Web Management Demand Chain Management Demand Network Management Demand Network Integration DemandSupply Chain Management What is Different? Multiple functions involved – manufacturing, distribution/logistics, design/engineering, marketing, finance, etc. Mul