Supply Chain Management

AN INITIATIVE BY:
VAINY GOEL
BBA 1
MODI COLLEGE
 Outline of the Talk

 What is Supply Chain Management

 Supply Chain Management Process

 Supply Chain Management Decisions

 Software Tools

 Conclusions
What is Supply Chain Management ?

Supply Chain is a set of activities (e.g. purchasing,

manufacturing, logistics, distribution, marketing) that
perform the function of delivering value to end customer

Traditionally, all the business units along a supply chain

have their own objectives and these are often conflicting

There is no single plan to carry out supply chain activities

What is Supply Chain Management ?

There is need for a mechanism through which the

execution of various business activities along a supply
chain can be planned in an integrated fashion.

The supply chain management is an effort to achieve the

primary goal of “producing and distributing the
merchandise at the right quantity, to the right
locations, and at the right time with minimum system
wide cost” in the presence of conflicting goals of various
business units
 Statics of Material Flow

Supplier Plant Warehouse Logistics Retailer

 Dynamics of Order Flow

Supplier Plant Warehouse Logistics Retailer

Supply Chain Management Processes
Demand Forecasting
Material Requirement Planning Demand Planning

Component Production
Requirement Plan

Supplier Plant Warehouse Logistics Retailer

Order Management
Supply Chain Management Decisions

STRATEGIC

TACTICAL

OPERATIONAL

Procurement Manufacturing Distribution Logistics

Supply Chain Management Decisions
• Supplier •Location, Number,
Selection Capacity of Plants • Mode of
•Location, Number,
•Allocation of •What Products to Shipment
Size of Warehouses
Suppliers to the Produce
Plants •Which Plants to • Port Selection
Produce them
•Warehouse
Allocation
• Customer • Vehicle Routing
• Procurement • Inventory
Allocation
Policy Decisions
• Distribution Policy • Fleet Size
• Manufacturing
Policy
• Production
Schedule
•Scheduling on • Finished Goods
• Vehicle Routing
Machines Inventory
• Workload
Balancing
Software Packages

i2 Six: A comprehensive solution suite for spend/

production/ revenue/ logistics/ fulfillment optimization

Solution suites for network design & optimization/

manufacturing planning & scheduling/ global logistics
management/ service & parts management

JD EDWARD: The advanced planning software

to synchronize demand & planning/ network
Optimization/ production & distribution planning
Software Packages

ARIBA Spend Management: It helps

companies driving down enterprise wide spend

mySAP SCM: A complete supply chain

planning solution

iBann: A complete solution suite from demand

collaboration to order management
 Results

 Reduced inventory levels by 10-15%

 Reduced markdown & scrap by 10-15%

 Used resources10-20% more efficiently Companies that

utilized best-in-
 Improved delivery reliability by 95-95% class SCM solutions
have
 Reduced outages to 0-5%

 Reduced cycle time by 10-20%

 Reduced transportation cost by 10-15%

 Conclusions
 Supply Chain Planning: A critical factor in the
success and profitability of a company

 Short Product Life Cycle: Improper planning can

take the company out of business

 Bad News: Planning is an hard problem to formulate

as well as solve

 Good News: Plethora of Commercially available

software for supply chain planning
Thank You