Suppliers

Manufacturers

Warehouses &
Distribution Centers

Customers

Transportation
Transportation
Costs
Costs
Transportation
Material Costs
Costs
Manufacturing Costs Inventory Costs

Definition
A supply chain is defined as a set of three or more
companies directly linked by one or more of the up
stream and downstream flows of products, services,
finances, and information, from a source to
customer.

Information
Flow

Supplier
Customer

Focal firm

Figure 1 a
CHAIN

Supplier’s
……..
supplier

………
customer’s
customer

BASIC SUPPLY

Supplier
Figure 1 b
CHAIN

Focal firm

customer

EXTENDED SUPPLY

Third party
logistics supplier
Initial
……..
supplier

………
Ultimate
customer

Supplier
Financial
provider

Figure 1 c
SUPPLY CHAIN

Focal firm

customer

Market
research
firm
ULTIMATE

es of Detergent Supply Chain Timber Company Paper Manufactu ring Tenneco Packaging P & G or Other Manufactu rer Chemical Manufactu rer Plastic Producer Wal-Mart or Third Party DC Wal-Mart Store Customer .

Supply Chain Network Supplier Manufacturer Distribut or Retailer Customer Supplier Manufacturer Distribut or Retailer Customer Supplier Manufacturer Distribut or Retailer Customer .

for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. . strategic coordination of the traditional business functions within a particular company and across businesses with in the supply chain.Supply Chain Management  Supply chain management is the systemic.

Supply Chain Management Supply side Second-tier supplier Informatio n flow Physical flow Demand side First-tier supplier First-tier customer Purchasing and supply management Physical distribution management Logistics Materials management Supply chain management Second-tier End customer custome r .

La Londe and Masters (1994)compared a supply chain strategy to alliances and partnering strategies and suggested that they generally involve elements including two or more firms in a supply chain entering into a long term agreement.…. but rather supply chain against supply chain. [and] the potential for a shift in the locus of control of the logistics process.Supply Chain Management  Christopher (1992) argues that the real competition is not company against company. The integration of logistics activities involving the sharing of demand and sales data.  Stevens (1989) stated that the objective of managing the supply chain is to synchronize the requirements of the customer with the flow of materials from suppliers in order to effect a balance between what are often seen as . ….… the development of trust and commitment to the relationship.

• Emphasis on competition. time greater & quality based environmental .Reasons For Popularity of SCM Concept • Trends in global sourcing. • Resulting uncertainty.

.Evolution Of Supply Chain • 1st revolution: Ford supply chain (1910-1920). • 4th revolution: Reverse supply chain (2000 onwards). • 3rd revolution: Dell supply chain (1995-2000). • 2nd revolution: Toyota supply chain (1960-1970).

Partners to build and maintain long-term relationships . Mutually sharing information 3.1. Integration of processes 7. Mutually sharing channel risks and rewards 4. Cooperation 5. Integrated behavior 2. The same goal and same focus of serving customers 6.

Stage one: Base line Material Customer Flow Service Purchasing Material control Production sales Stage two: Functional integration Material Customer Flow Service Materials management Manufacturing management Distribution Distribution .

Stage three: Internal integration Material Customer Flow Service Materials management Manufacturing management Distribution Stage four: External integration Material Customer Flow Service Suppliers Internal supply chain Customers .

hain Management Antecedents and Cons Supply chain orientation Supply chain management  Systemic view Three or more contiguous companies with a SCO  Strategic view Single Company Antecedents Willingness to address Trust Commitment Interdependence Organizational compatibility Vision Key processes Leader Top management support Consequences Information sharing Shared risks and rewards Cooperation Similar customer service goals and focus Integration of key processes Long-term relationships Interfunctional coordination Improved customer value and satisfaction Profitability (Lower costs and/or increased revenue) Differential advantage .

 Order Processing  Inventory management  Transportation  Warehousing . and related information from the point of origin to point of consumption in order to meet customer’s requirements.Logistics  Logistics is that part of the supply chain process that plans. services. implements. and controls the efficient flow and storage of goods.

Order status reporting . Order processing includes I. Order entry IV. Order filling V. Order transmittal III. Order preparation II.

 Order preparation involves the customer or sales person filling out a form. Order transmission is accomplished by two fundamental ways: # Manually # Electronically  Order entry includes a)checking the accuracy of order information such as item description and number. or selection a computer menu. quantity. and price b)checking the availability of requested items . voice communication by telephone to a sales clerk. transferring the  Order from transmittal involves order request from its point of origin to the place where the order entry can be handled.

or by combination of both the two. These activities can be completed entirely manually. automatically.c) preparing back order or order cancellation documentation. which might be adjusted if there are shipment discrepancies. if necessary d) checking the customer’s credit status e) transcribing the order information as needed f) billing preparation. .

production. or purchasing b) pack the items for shipping c) schedule the shipment for delivery d) prepare the shipment documentation . Order filling is represented by the physical activities required to a) acquire the items through stock retrieval.

 Order status reporting ensures good customer service by keeping the customer informed of any delays in order processing or delivery. This includes a) tracing and tracking the order throughout the entire order cycle b)communicating with the customer as to where the order may be in the order cycle and when it may be delivered. This is a monitoring activity and does not affect the overall order processing time .

and comprehensive measure of customer service and logistics effectiveness.  A relatively new. called the “Perfect Order”. simple. measures the percentage of orders that proceeds through every step of the order management process without fault. Effective management of order processing is critical to the maintenance of good customer relationships.  The reduction of batch sizes and concurrent processing activities can work together to overcome effects resulting in excessive inventory investment and poor customer service. handling. easy. .Managing Order Processing  The phenomenon of exaggerated order swings and inventory levels is commonly known as bullwhip effect. or intervention. “friendly. exception.” and fail-safe in its operation. This critical customer interface should be designed to convenient. Both shortening the order cycle time and its improving its consistent predictability are important to customers and result in lower inventory requirements.

Bullwhip Effect Wholesale Distributo rs Time Consume rs Sales Sales Time Retailer s Sales Manufactur er Sales Multitier Supplie rs Time Time .

 Inventory assets tie up capital that might be invested more effectively in the areas of organization. These assets also represents an expense to the .  Inventories provide a means to combat uncertainties in component/product supply and demand. take advantage of scale economies in processes used to transform and transport components and products. and target specific levels of component/product availability necessary to meet customer expectations.Inventory  A primary consideration in the definitions of supply chain management is the “flow of goods.” or the “flow of materials” from the source of raw material to the ultimate end use consumer.

These includes  desired level of customer service  production economies  purchasing economies  transportation savings  seasonality of demand and supply  supply source maintenance and .Factors Influencing Inventory Levelspolicy Several factors influence inventory practice for the firm.

Types of Inventories Inventories can be characterized into various functional types:  Cycle stock  In-process stock  Safety stock  Seasonal stock  Promotional stock  Speculative stock  Dead stock .

Inventory Carrying Costs The four major component of inventory carrying cost are  capital cost  storage cost  inventory service cost  inventory risk cost .

Inventory Management  The management of inventory historically involved two fundamental questions:  How much to reorder  When to reorder .

systemwide or single facility).e. dependent versus independent demand). the type of system (i. .e.. push versus pull).Inventory Management  Four approaches to inventory management often found in the literature are  Economic order quantity (EOQ)  Materials requirements planning (MRP)  Distribution requirements planning (DRP)  Just-in-time (JIT)  The circumstances best suited to use of each approach have to do with the nature of the demand (i...e. and the level of solution (i.

which applies more to independent demand. or when market oriented ware-houses or distribution centers have capacity problems. A retailer of bicycles purchases completed bicycles from the manufacturer. however. are “dependent” on the sale of complete bicycle. . To the manufacturer.  A fast food restaurant operates basically on a pull system.  Researchers have suggested that ideal conditions for a pull system. are when order cycle time or demand levels are uncertain. those order are independent demand. waiting for individual purchaser to “trigger” more food item production. handlebars ordered from its supplier. a component of the bicycle.

dependent demand. sales economies. source capacity limitations. A food catering business operates on push system.  The researchers advocate push. or seasonal supply buildups. or planningbased. . approach when working with highly profitable segments. supply uncertainties. anticipating customers need and preparing and delivering items prior to actual demand.

where a systemwide solution is desired.  MRP is best applied in a push system of dependent demand items. EOQ is an appropriate approach in a pull system involving independent demand items for a singlefacility solution.  DRP is a preferred approach where a push system of independent demand items exists and systemwide solution is desired.  JIT is most applicable to pull systems for .

transportation creates the time and place utilities that drive the “product” and “place” components of marketing’s four Ps (along with price and promotion). defined here as the temporary holding of commodities. parts.  Together with staging. or products. materials. foe market-timing or value-added processes.Transportation  Transportation is the spatial linkage for the physical flows of a supply chain. .

transport. of which the end product is mobility. involving movements over space and through time at the lowest total resource cost.  Transportation can be described as a part of a larger communication complex. is like a beginning-to-end analysis of the ordering.Transportation: Definition  Logistics. which is three-dimensional. and storage of the product or service being produced and of the inputs required to produce it.  Transport functionality provides two major functions:  Product movement . and transportation is only one –albeit quantitatively largest—of many functions that make up logistics.

.Since transportation utilizes temporal.  This perspective of transportation that addresses the spatial or place utility is a traditional look at transportation’s function. it is important that items be moved only when it truly enhances product value. financial. A less common transportation function is temporary storage and a second method is diversion. and environmental resources.

 The role of transportation involves place and time. goods in transit may have the potential to replace some or all of the goods traditionally held in SCs. and potential impact of transportation on supply chain is changing. and as transportation services execute with high reliability. The transportation function of temporary storage. for example.  As demand information and forecasting become more available through enterprise-wide systems. holding bulk goods in private rail cars in lieu of storage facilities. addressed as staging. . also has traditional aspects when used in the context of . emphasis. However the focus.

Warehousing
 A warehouse is a location where a firm stores or
hold raw materials, semi-finished goods, or finished
goods for varying length of time. Holding goods in a
warehouse stops or interrupts the flow of goods,
adding handling and storage costs to the products
involved; however, warehousing can also add value to
the products being distributed by the functions it
serves.
 The functions of warehousing include
1.Stockpiling
2.Stock mixing
3.Transloading

 Stockpiling, or holding goods in storage,
facilitates economies in purchasing or production.
 Stock mixing, or sorting out larger shipments
into smaller ones and consolidating assortments of
smaller shipments into larger ones, is a primary
value added function of warehousing.
 Transloading uses the warehouse as a transfer
station of shipments that require a change of
transportation mode or the splitting of larger
shipments into smaller ones. A commonly used
term for this function is cross docking.
 Protection against contingencies, such as a
national disaster or strikes that could interrupt the
flow of goods, can be achieved by locating
warehouses apart from plants or not restricting

Warehousing Activities
 Warehousing can be viewed as a physical system,
involving facility space, labor, and equipment,
where inbound products are put away, stored and
protected until the outbound product shipmentrelated process occur.
 The warehousing “system” has controls to manage
the physical flow, to ensure the proper care and
handling of the materials, and to document all
activities occurring in the warehouse.
 The major activities of warehousing are receiving;
put-away; storage; order picking; packing; marking,
and staging; and shipping. Another important
activity, considered as equally important, is
housekeeping.

Warehousing Activities
 Receiving activity consists of verifying from the
manifest or carrier delivery documentation that the
goods received are authorized for receipt (usually
matching to the purchase order); unloading the
truck, railcar, or container; checking the products
received for damage; and noting any exceptions on
the receiving documentation. The location for
storing the goods is identified manually or by
computer, and the goods are put away.
 Many warehouses have separate areas for bulk
storage of large quantities, for order pick storage,
and for smaller quantities or smaller units of
measure.

through either zone picking or batch picking. where goods are appropriately packaged. and labeled. wrapped for protection. . Shipping includes the actually loading of the delivery vehicle and preparation of necessary shipping documentation. The products are then staged on the loading dock in a location and order to facilitate shipping.  After an order is assembled.Warehousing Activities  Order picking occurs when products are retrieved from storage and inventory records are updated. it is forwarded to packing and marking. or a combination of each. The order-picking area is replenished from the bulk stock area as quantities are depleted upon filling orders.

.Logistics Strategy A logistics strategy has three objectives:  Cost reduction  Capital reduction  Service improvement  Cost reduction is directed towards minimizing the variable costs associated with the movement and storage of goods. The best strategy is usually formulated by evaluating alternative courses of action. such as choosing among different warehouse locations or selecting among alternative transportation modes or carriers.

or using third-party providers of logistics services.  Service improvement strategies usually recognize that revenues are a function of the levels of logistics services provides. Although costs increase rapidly with increased levels of logistics customer service .Logistics Strategy  Capital reduction is directed toward minimizing the level of investment in the logistics system. service . increased revenues may more than offset the higher costs. selecting a just-in-time stocking approach rather than stocking to inventory. Maximization the return on investment is the motivation for the strategy. Examples include shipping directly to customers to avoid warehousing. choosing public warehouses over privately owned warehouses. To be most effective.

Unique resources (or assets) . Distinctive skills (or capabilities) 2.Competitive Advantage  There are two basic types of competitive advantage: 1.Differentiation  Two set of factors are the sources of a firm’s competitive advantage: 1.Cost leadership 2.

. defective units. effort. fast-paced competitive business is characterised by change and  Organisations need to understand and respond to ever increasing customer demands.Today’s Business Environment  Time—and quality—based competition focuses on eliminating waste in the form of time. and inventory in manufacturingdistribution systems. to develop agile supply chains and to mitigate risks.  Today’s environment innovation.

 Information makes the supply chain visible to a manager.  Information is the driver that serves as the glue allowing the other three drivers to work together to create an integrated.Importance of Information in Supply Chain  Information is crucial to the performance of a supply chain because it provides the basis over which managers make decisions. coordinated supply chain. .

• Suppliers information • Manufacturing information • Distributor & retailer information • Demand information .Information Technology Systems  IT systems consists of the hardware and software used throughout a supply chain to gather and analyze information.

 Setting inventory level requires downstream information from customer on demand and upstream information from suppliers on availability. . carrying costs.Information Technology in S Informatio n Global Scope Good Decisions Supply Chain Success  Information is the key to the success of a supply chain because it enables management to make decisions over a broad scope that crosses both functions and companies. costs of stocking out and costs of ordering. and information on current inventory levels.

exchange rates. Information must be of right kind. Determining the location. 2. capacity. schedules of a facility requires information on the trade-offs between efficiency and flexibility. Information must be accurate. 3.  Information must have the following characteristics to be useful when making supply chain decisions: 1. revenues. . Information must be accessible in timely manner. taxes and so on. demand.

Information Technology Sy Strategic High Level in Organizati on Long Time Frame Little Low Level Detail Highly Analytical Low Level in Organizati on Short Time Frame Lots of Low Level Detail Mostly Transactio nal Planning Operatio nal  Legacy systems  ERP systems  Analytical Applications .

The Past – Legacy System  Based on mainframe technology that usually work at operational level on only one stage or even one function within a stage of the supply chain. Strategic Planning Operatio nal Supplier Manufact urer Distribu tor Retailer Custom er .  Communication between systems is often minimal. and visibility across functions and supply chain stages is very limited.

The Past – Legacy System  Very limited analytical capabilities because they focus more on gathering information rather than on analyzing information to make decisions. companies using legacy systems often make decisions that have a . the supply chain could literally have dozens or even hundreds of legacy systems that handle a product.  With such limited visibility.  Most were built to keep track of transactions rather than determine what transactions ought to be occurring.  When looking across the various supply chain stages .

 ERP systems are good at monitoring transactions but generally lack the analytical capability to determine what transaction ought to happen.  ERP systems have many modules.The Present – Enterprise Reso  Gather information from across all of a supply chain’s functions. each covering different functions within a company.  The ability to keep track of orders and have broad visibility in general has become more important as supply chains become more global and complex. These modules are linked together so that users in each function can see what is happening in the other . resulting in the entire enterprise having a broader scope.

inventory management. coordinating what is done to what part at what time. Order Fulfillment: This module monitors the . Logistics: This module is often broken into several sub-modules covering different logistics functions such as transportation. warehousing.The Present – Enterprise Reso  There are several modules to an ERP system. each of which can be installed on its own or with a combination of other modules: Finance: Tracks financial information such as revenue and cost data through various areas within the company. Manufacturing: This module tracks the flow of products through the manufacturing processes.

 Supplier management: This module monitors supplier performance and track delivery of supplier’s products.  Good at providing real-time information. such as scheduling of workers. Disadvantages: .The Present – Enterprise Reso  Human Resources: This module handles all sorts of human resources tasks. Advantages:  Provide a wider scope to managers by ensuring much broader information availability.  Use enabling technologies like internet to share information.

Edwards view rather than function)  Strategic Bean rather than (Manufacturing (Finance) (Human resources (Entire integrated a specific (Entire integrated view a specific function Planning Operatio nal Supplier Manufact urer Distribu tor Retailer Custom er .The Enterprise Resource Planning  SAP applications)  Oracle  Peoplesoft applications)  D.

The Present – Analytical Ap  An analytical application’s advantage lies in the fact that it can be used for both planning and strategic decisions. In fact. many analytical applications focus only on a particular function within a supply chain stage.  These systems are generally not as broad as ERP applications in their horizontal scope. Analytical systems are not focused at an operating level but rather on planning and strategic decisions.  They analyze information supplied to them by legacy or ERP systems in order to help supply chain manager good decisions. similar to the way legacy systems perform. .

The Present – Analytical Ap  There are many different types of analytical applications that focus on various stages and vertical niches in the supply chain.  Depending on their analytical capabilities these systems are divide into two groups: • Systems focusing on planning capabilities • Systems focusing on operational level Strategic Planning Operatio nal SC M Proc urem ent Apps Supplier APS MES Manufact urer Transport &Inventory Planning Transport Execution & WMS Distribu tor Retailer Dem Plan CRM/ SFA Custom er .

The Present – Analytical Ap Systems with Significant Planning Capabilities •Procurement and Content Cataloging Applications •Advanced Planning and Scheduling •Transportation Planning and Content Systems •Demand Planning and Revenue Management •Customer Relationship Management and Sales Force Automation •Supply Chain Management Systems with More operational Focus than a Planning Focus •Inventory Management Systems •Manufacturing Execution Systems •Transportation Execution •Warehouse Management .

As supply chain become more global and more complex and as customers and competition become more demanding.The Future – Trends Shaping IT  The importance of IT in the supply chain will continue to grow. companies will need the supply chain capabilities that only sophisticated IT systems can give.  There are three main trends that will influence the supply chain software industry in the near future: • Best of breed versus single integrator • Shifts in platform technology • Convergence of supply chain management and B2B Exchanges .

• Align the level of sophistication with the need of sophistication. • Use IT systems to support decision making. not to make decisions.Supply Chain Information Tech  There are several general ideas that managers need to keep in mind when making decision regarding supply chain IT: • Select an IT system that addresses the company’s key success factors. • Think about the future. .

of  Supply chain transactions include information. products and funds. business flow of  Companies conducting e-business can perform some or all of the following transactions over the internet: • Providing information across the supply chain • Negotiating prices and contracts with customers and suppliers • Allowing customers to place orders • Allowing customers to track orders • Filling and delivering orders to customers • Receiving payments from customers .E-Business  E-business is the execution transaction over the internet.

The Impact of E-Business on Suppl Revenue Impact of E-business • • • • • • • • Offering direct sales to customers Providing 24-hour access from any location Aggregating information from various sources Providing personalization and customization of information Speeding up time to market Implementing flexible pricing Allowing price and service discrimination Facilitating efficient fund transfer .

The Impact of E-Business on Suppl Cost Impact of E-business • • • • • • Reducing product handling with shorter supply chain Postponing product differentiation until after an order in placed Decreasing delivery cost and time with downloadable product Reducing facility and processing costs Decreasing inventory costs through centralization Improving supply chain coordination through information sharing .

The Impact of E-Business on Suppl Potential Cost Disadvantages of E-business: An e-business tends to have higher costs in the following situations: • • • Increased transportation cost due to inventory aggregation Increased handling costs if customer participation is reduced Large initial investment in information infrastructure .

Emerging Trends in Busines  Lean Supply Chain Management  Agile Supply Chain Management  Leagile Supply Chain Management  Mass Customization  Sustainable Supply Chain Management  Reverse Logistics  Remanufacturing .

 This methodology is important for organizations with high volumes of  purchase orders since waste and costs can accumulate quickly.Lean Supply Chain Management  Lean supply chain management is about reducing costs and lowering waste as much as possible.  Additionally. companies with high volumes of low variability purchase orders benefit their efficiency greatly by utilizing the lean supply chain methodology.  The Lean Supply Chain is a system of interconnected and interdependent partners that operate in unison to accomplish supply chain objectives. These objectives are accomplished as .

Collaborate and use process discipline . Increase velocity. Consider advancements in technology to improve the supply chain 3. Reduce lead time 5. Use pull systems 7.Lean Supply Chain Management 1. Create a level flow/level load 6. throughput and reduce variation 8. Make customer usage visible to all members of the supply chain 4. Eliminate all waste in the supply chain so that only value remains 2.

Increased supplier performance: reduction in lead times and creating cost reduction as your suppliers are the experts in their respective fields. Kaizen/Continuous Improvement. and Lean Six Sigma and transportation cost reduction: example: use your or your Third Party Logistics (3PL) provider partner’s Transportation Management System (TMS) to optimize your freight so you add value and reduce costs by using the most effective lanes and routes.Lean Supply Chain Implementation Results Customers can gain the benefits of: Increased customer fill rate and customer satisfaction Supply chain visibility and increased performance measurement Risk Management Inventory velocity and inventory reduction Distribution center utilization of 5S. Have your suppliers implement an occasional .

.  An agile supply chain design will have redundancy built into its processes. changes in technology. logistics.  Implementing an agile supply chain allows organizations to quickly adjust their sourcing. such as economic swings.  This methodology is considered important for organizations that want to be able to adapt to unanticipated external economic changes. allowing it to quickly respond to expected changes. or changes to customer demand. and sales.Agile Supply Chain Management  Agile Supply Chain is built to be highly flexible for the purpose of being able to quickly adapt to changing situations.

 When demand suddenly rises and the primary suppliers cannot cope with the increased demand. need dates. and even cancel the orders altogether if the demand falls off a cliff. Suppliers will typically allow such flexibility for a cost. an agile supply chain will go to a secondary set of suppliers that would have been established in . commoditized goods. and favor quality inputs and personalized services over mass produced.Agile Supply Chain Management  These objectives will drive the supply chain to keep higher levels of inventories to maintain order fulfillment targets. destinations. favor on-time deliveries over cheaper shipments.  These supply chains will have more flexible supplier contracts that enable them to change order quantities.

the costs of such contracts is generally higher.  . and suppliers will provide enough buffer to the supply chain to handle most variations in demand. supply. or lead-time while maintaining its stated service levels. warehousing. transportation.  However.Agile Supply Chain Management  As purchase volumes for the secondary suppliers will be low and demand uneven. having all these layers of extra inventories.

.

so that extra costs associated with customization could be minimized.LeagilE Supply Chain Management  Today’s dynamic business environment calls for organizations to be both cost-driven and service-based thus implementation both lean and agile paradigms are inevitable.  on the other hand. lean practices are needed for elimination of wastes and reduction of physical costs associated with entire range of operations. flexibility and openness to change. agility is needed to ensure the cooperation among value chain members. promote innovation.  The combination of both lean and agile practices . responsiveness to establish and maintain customer relationships.  On one hand.

make-to-order. and engineer-to-order (Olhager. e. make-to stock. . 2012).Figure: 1 Positioning of the CODP Source: Stevenson and Spring (2007)  The location of CODP decides the selection of a particular production approach from available choices. assemble-to-order.g.

is the point where customer enters in the value chain and the product get linked with specific customer order. .  This hybrid supply chain strategy may be appropriate for a company attempting to become a "mass customizer"—producing progressively smaller batch sizes (sometimes as little as one item) specific to customers' sometimes unique needs.LeagilE Supply Chain Management  The decoupling point. also known as order penetration point.

Customer Order Decoupling Point .

custom-designed products at prices so close to those traditionally offered only for mass-produced merchandise  Give customers exactly what they want. at the price they want. therefore. customers must be involved in  . and at the time they want it  Provide sufficient variety in products and services so that virtually every customer is able to purchase a customized product for a price near the mass-produced item  Customized products are uniquely produced for each customer. Mass customizers seek to: Provide personalized.

and waste costs. inventory and traditional views of cost.  This emerging philosophy is based on the principle that socially responsible products and practices are not only good for the environment.  There is a growing need for integrating . risk.Sustainable Supply Chain Management  Supply chain sustainability is a holistic perspective of supply chain processes and technologies that go beyond the focus of delivery. but are important for long-term profitability.  Supply chain sustainability is a business issue affecting an organization's supply chain or logistics network in terms of environmental.

and economic goals in the systemic coordination of key inter-organizational business processes for improving the long-term economic performance of the individual company and its supply chains”. . environmental.Sustainable Supply Chain Management “strategic. transparent integration and achievement of an organisation’s social.

 Sustainability in the supply chain encapsulates a number of different priorities: • Environmental stewardship • Conservation of resources • Reduction of carbon footprint • Financial savings and viability . supply chain sustainability can include projects to reduce energy cost.Sustainable Supply Chain Management  In practice. packaging and measurement systems. any form of waste and application of green technologies within transportation and logistics networks.  A larger shift involves a deeper level of collaboration with internal and external supply chain partners to reexamine delivery methods. products.

finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. cost effective flow of raw materials.Reverse Logistics  Reverse logistics stands for all operations related to the reuse of products and materials.  It is "the process of planning. or proper disposal. in-process inventory. implementing.  More precisely. and controlling the efficient.  Remanufacturing and refurbishing activities also may be included in the definition of reverse . reverse logistics is the process of moving goods from their typical final destination for the purpose of capturing value.

Reverse Logistics .

repaired and new parts. remanufacturing not only impacts the cost of creating new products. in a good way. but also the environment. It requires the repair or replacement of worn out or obsolete components and modules. remanufacturing allows us to be less damaging to the environment while manufacturing the products we . remanufacturing is much more involved than simply recycling a part.  Not to be confused with recycling.  In a time where earth-friendly choices are important.remanufacturing  Remanufacturing is the rebuilding of a product to specifications of the original manufactured product using a combination of reused.  With the need to re-use as much as possible.

Thank you .