What is supply chain management?

What is Supply
Chain Management?

Presented by Scott Leydin

What is supply chain management?

 Agenda
 Introduction
 Definitions
 Components of the Supply Chain
 Supply Chain Examples
What is supply chain management?

 Supply Chain
 CSCMP Definition
 Starting with unprocessed raw materials and ending
with the final customer using the finished goods - the
supply chain links many companies together
 The material and informational interchanges in the
logistical process stretching from acquisition of raw
materials to delivery of finished products to the end
user. All the vendors, service providers and
customers are links in the supply chain.

CSCMP – Council of Supply Chain Management Professionals

What is supply chain management?

 Supply Chain
 Definition from Wikipedia
A supply chain is a system of organizations, people,
activities, information, and resources involved in
moving a product or service from supplier to
customer. Supply chain activities involve the
transformation of natural resources, raw materials,
and components into a finished product that is
delivered to the end customer.
What is supply chain management?

 Supply Chain Management

 CSCMP Definition
 Supplychain management encompasses the planning
and management of all activities involved in sourcing
and procurement, conversion, and all logistics
management activities. Importantly, it also includes
coordination and collaboration with channel
partners, which can be suppliers, intermediaries,
third party service providers, and customers. In
essence, supply chain management integrates supply
and demand management within and across
companies.
CSCMP – Council of Supply Chain Management Professionals
What is supply chain management?

 Supply Chain Management

 APICS Definition
 The design, planning, execution, control, and
monitoring of supply chain activities with the
objective of creating net value, building a
competitive infrastructure, leveraging worldwide
logistics, synchronizing supply with demand, and
measuring performance globally.

APICS – American Production and Inventory Control Society

What is supply chain management?

 Logistics Management
 CSCMP Definition
 The process of planning, implementing, and
controlling procedures for the efficient and effective
transportation and storage of goods including
services, and related information from the point of
origin to the point of consumption for the purpose of
conforming to customer requirements. This
definition includes inbound, outbound, internal, and
external movements.

CSCMP – Council of Supply Chain Management Professionals

What is supply chain management?

 Components of the Supply Chain

 Plan
 Balancingrequirements against available resources
 Matching supply with demand
 Source
 Acquiring
raw materials
 Managing supplier compliance and performance
 Make
 Transforming raw materials to finished goods
 Controlling quality and releasing for delivery
Based on APICS SCOR (Supply Chain Operations Reference) Framework
What is supply chain management?

 Components of the Supply Chain

 Deliver
 Warehouse management (receiving, storage and
inventory integrity of raw materials & finished goods)
 Delivering raw materials & finished goods to
customers (pick, pack & ship customer orders)
 Monitoring and measuring delivery performance
 Return
 Returning finished goods from customers
 Returning raw materials to suppliers

Based on APICS SCOR (Supply Chain Operations Reference) Framework

What is supply chain management?

 Components of the Supply Chain

MOVEMENT OF GOODS, INFORMATION, MONEY

SUPPLIER MANUFACTURER DISTRIBUTOR RETAILER CONSUMER

Source Make Deliver Deliver

MOVEMENT OF GOODS, INFORMATION, MONEY

What is supply chain management?

 Supply Chain Examples

 Apparel manufacturing and distribution
 Computer manufacturing and distribution
What is supply chain management?

 Apparel Supply Chain

 Raw materials sourced from multiple suppliers
 Fabric, yarn, trims (zips/logos++), packaging
 Finished goods made by one or more manufacturers
 Printing, cutting, sewing, finishing, packing, shipping
 Finished goods delivered by one or more distributors
through various channels
 Finished goods sold by multiple retailers through
various channels
 Own retail network, independent retail stores, online
stores
 Finished goods purchased by multiple consumers
What is supply chain management?

 Computer Supply Chain

 Raw materials sourced from multiple suppliers
 Components (hard drives, memory etc. ) packaging ++
 Finished goods normally made (assembled) by a single
manufacturer
 Finished goods delivered by one or more distributors
through various channels
 Finished goods sold by multiple retailers through
various channels
 Own retail network, independent retail stores, online
stores
 Finished goods purchased by multiple consumers
What is supply chain management?

The End
Thank You

Presented by Scott Leydin

What is supply chain management?

 References
 American Production and Inventory Control Society
 http://www.apics.org
 Council of Supply Chain Management Professionals
 http://www.cscmp.org
 Icons supplied FOC from Freepik
 http://www.flaticon.com/authors/simpleicon