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SUPPLY CHAIN MANAGEMENT

Supply chain management(SCM)


Meaning of Supply chain management:Supply chain management refers to the close linkage and coordination of activities involved in buying, making, and moving a product. It integrates business processes to speed information, product, and fund flows up and down a supply chain to reduce time, redundant effort, and inventory effort and inventory costs.

SUPPLY CHAIN Meaning of supply chain:The supply chain is a network of organization and business processes for procuring raw materials, transforming these materials into intermediate and finished product, and distributing the finished products to customers. It links suppliers, manufacturing plants, distribution centers, retail outlets, and customers to supply goods and services from source through consumption.

SUPPLY CHAIN

SUPPLIER

MANUFACTURER

DISTRIBUTOR

RETAILER

CUSTOMER

The wide arrows show the flow of material between supply chain members, and the other arrows show the flow of information.

SUPPLY CHAIN PROCESS


1 PLAN Balance resources with requirements. Align supply chain plan with business financial plan.

2 SOURCE Identify suppliers.

3 MAKE Schedule production. Evaluate quality and performance. Manage work force. 5 RETURN Authorize returns. Schedule returns. Receive returns. Issue return credit.

Schedule deliveries.
Manage inventory. 4 DELIVER Select carriers. Route shipments. Manage warehouses. Invoice customers.

SUPPLY CHAIN MANAGEMENT APPLICATIONS: The objective of supply chain management systems is information visibility-open and rapid communication and information sharing between members of supply chain. Supply chain management enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. Supply chain management helps in the flow of products through distribution centers and warehouses to ensure that products are delivered to the right location in the most efficient way.

TYPES OF SUPPLY CHAIN SYSTEMS:SUPPLY CHAIN PLANNING SYSTEM


ORDER PLANNING- selects an order fulfillment plan the meets the desired level of service to customers. ADVANCED SCHEDULING AND MANUFACTURING PLANNINGprovide detailed coordination of scheduling and manufacturing based on various analysis. DEMAND PLANNING TRANSPORTATION PLANNING.

SUPPLY CHAIN EXECUTION SYSTEM


ORDER COMMITMENTS- enable vendors to quote accurate delivery dates to customers. FINAL PRODUCTION- organize and schedule final subassemblies. DISTRIBUTION MANAGEMENTcoordinating the process of transporting goods. REVERSE DISTRIBUTION- track the shipment and accounting for returned goods.

BUSINESS VALUE OF SUPPLY CHAIN MANAGEMENT SYSTEMS:1 IMPROVED CUSTOMER SERVICE AND RESPONSIVENESS:- supply chain management improves delivery service and customer gets right product at right time and at a right place. 2 COST REDUCTION:- supply chain management helps companies contain , and often reduce, some or all of costs associated with moving a product through the supply chain. 3 CASH UTILIZATION:- companies leading in supply chain efficiency have cash available two or three months faster than companies that do not have this capability.

PROCESSES THAT ARE USED IN SCM


ELECTRONIC DATA INTERCHANGE (EDI):- EDI is used to link supply chain participants through electronic exchange of documents from one stage to other. Benefit of this is that paperless exchange of information takes place. BAR-CODING AND SCANNING:- Barcode is designed to represent the item code and other information. It is labeled or printed on the item. Barcode scanners are seen at point of sales system locations, in the libraries and other stores.

DATA WAREHOUSE AND DATA MINING:- Data


warehouse is a consolidated business information database for use in strategic decision making, decision support systems and analysis of business in different dimensions.

INTERNET/INTRANET/EXTRANET:- These are


used to network the supply chain partners for communication and information sharing located anywhere in supply chain .

WORLD WIDE WEB:- Web technology is used to


store and share information useful for supply chain participants. It is also used for order placement, order tracking, e-buying.