SUPPLY CHAIN MANAGEMENT

ASWINDER SINGH

ANVI SINGH

SUPPLY CHAIN
All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows

An integrated group of processes to source, make, and deliver products

SUPPLY CHAIN PROCESSES

FACILITIES
arehouses

actories

rocessing centers

istribution centers

etail outlets

INTRODUCTION
Supply chain management is a set of approaches

used to efficiently integrate suppliers, manufacturers, warehouses, and customers so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time in order to minimize system wide costs while satisfying servicelevel requirements. he sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service.

SUPPLY CHAIN MANAGEMENT (SCM)

anaging flow of information through supply chain in order to attain the level of synchronization that will make it more responsive to customer needs while lowering costs eys to effective SCM
information communication cooperation trust

ILLUSTRATION: TYPICAL SUPPLY CHAIN FOR A MANUFACTURER

Supplier Supplier

Supplier Storage Mfg. Storage Dist. Retailer Customer

1.Improve operations

NEED FOR SUPPLY CHAIN MANAGEMENT

2.Help in decision making 3.Help increase in overall efficiency 4.Competitive pressures 5.Increasing globalization 6.Increasing importance of e-commerce 7.Manage inventories

COMPONENTS OF SUPPLY CHAIN MANAGEMENT

lan ource ake eliver

SUPPLY CHAIN MANAGEMENT PROBLEMS

Distribution Network Configuration

Distribution Strategy

Information

ELEMENTS OF SUPPLY CHAIN MANAGEMENT

Element
Customers Forecasting Design Processing Inventory Purchasing Suppliers Location Logistics

Typical Issues
Determining what customers want Predicting quantity and timing of demand Incorporating customer wants, mfg., and time Controlling quality, scheduling work Meeting demand while managing inventory costs Evaluating suppliers and supporting operations Monitoring supplier quality, delivery, and relations Determining location of facilities Deciding how to best move and store materials

LOGISTICS

Logistics

Refers to the movement of materials and information within a facility and to incoming and outgoing shipments of goods and materials in a supply chain

LOGISTICS
Movement within the facility Incoming and outgoing shipments Bar coding EDI Distribution
214800 232087768

JIT Deliveries

SUCCESSFUL SUPPLY CHAIN

rust among trading partners

ffective communications

upply chain visibility

vent-management capability
The ability to detect and respond to unplanned events

MODERN TRENDS IN SUPPLY CHAIN MANAGEMENT

Strategies for supply chains evolve toward supporting corporate strategies- although not fully at this time. Organizing for supply chain management remains an elusive solution. While major competitive advantages have been seen in some industries, our respondents expect mostly incremental improvement roles for their future supply chains

Corporate recognition of the importance of the supply chain is growing rapidly.

Supply chain management today is mostly cost- and assetfocused with large potential benefits not yet addressed.

Effective supply chain management is far more complex and difficult than is generally recognized

SCM SOFTWARE
nterprise Resource Planning (ERP)
software that integrates components of a company by sharing and organizing information and data SAP was first ERP software mySAP.com
web enabled modules that allow collaboration between companies along the supply chain

CREATING AN EFFECTIVE SUPPLY CHAIN

1. Develop strategic objectives and tactics 2. Integrate and coordinate activities in the internal supply chain 3. Coordinate activities with suppliers with customers 4. Coordinate planning and execution across the supply chain 5. Form strategic partnerships

SUPPLY CHAIN PERFORMANCE DRIVERS

1. Quality 2. Cost 3. Flexibility 4. Velocity 5. Customer service

MEASURING SUPPLY CHAIN PERFORMANCE

ey performance indicators
inventory turnover
cost of annual sales per inventory unit

inventory days of supply

total value of all items being held in inventory

fill rate
fraction of orders filled by a distribution center within a specific time period

KEY PERFORMANCE INDICATORS

Inventory turns = Cost of goods sold Average aggregate value of inventory

Average aggregate value of inventory = (average inventory for item i) X (unit value item i) = Average aggregate value of inventory (Costs of goods sold)/(365 days)

Days of supply =

OTHER MEASURES OF SUPPLY CHAIN PERFORMANCE

rocess Control
used to monitor and control any process in supply chain

upply Chain Operations Reference (SCOR)

establish targets to achieve best in class performance

EFFECTS OF 9/11 ON GLOBAL CHAINS

ncrease security measures
added time to supply chain schedules Increased supply chain costs

4 hours rules for risk screening

extended documentation extend time by 3-4 days

nventory levels have increased 5% ther costs include:

new people, technologies, equipment, surveillance, communication, and security systems, and training necessary for screening

CHALLENGES
arriers to integration of organizations

etting top management on board

ealing with trade-offs

mall businesses

SUPPLY CHAIN ISSUES

Strategic Issues
Design of the supply chain, partnering

Tactical Issues

Operating Issues

Inventory policies Quality control Purchasing policies Production planning and Production policies control Transportation policies Quality policies

BIBLIOGRAPHY
Wikipedia

Google

Textbook of Logistics and Supply Chain Management --D.K. Agrawal

THANK YOU