Professional Documents
Culture Documents
to
Strategic Supply Chain
Management
Text Book and References
There is no Specific text book for the course. However the
following books may be consulted:
1. Sourcing and Supply chain Management, 5/e by
Monczka Robert M.
2. Supply Chain Management, Sunil Chopra, Peter
Menindl D. V. Kalra, 5th Edition.
3. Operations Management, William J. Stevenson, 10th
Edition.
4. Bozarth, C. & Handfield, R. (2008) Introduction to
Operations and Supply Chain Management. Second
Edition. Pearson Education Inc. Upper Saddle River,
New Jersey.
What is supply chain
A supply chain is the system of organizations, people, activities,
information and resources involved in moving a product or service
from supplier to customer.
Supply chain activities transform raw materials and components into a
finished product that is delivered to the end customer.
A supply chain consists of the flow of products and services from/to:
--Raw materials manufacturers
--Intermediate products manufacturers
--End product manufacturers
--Wholesalers and distributors
--Retailers and,
--End customers
Supply chain
Supplier }
Storage Mfg. Storage Dist. Retailer Customer
Supplier
Typical Supply Chain for a Service
Supplier
Supplier
} Storage Service Customer
What is supply chain management
The design and management of seamless, value-
added process across organizational boundaries
to meet the real needs of the end customer
-- Institute for Supply Management
has captured the imagination of more & more managers and business
organizations
Fundamentals:
A supply chain is a dynamic concept that involves the constant flow of
resources (products, information, funds) amongst all the participants
along the chain
It is essentially a system of interconnecting chains i.e. a supply network or
a supply web
The Four Interrelated Flows in SCM: an example
Material Flow
Funds Flow
Information Flow
E&T Flow
Orange Fruit
farm packing
Food Retail
Mother Earth processor
Distributor outlet
2. Information Flows:
The bi-directional flows of information throughout the chain
particularly on customer demand which pulls the supply chain, but
also on supply conditions & eventual disruptions
3. Funds Flows:
The flows of funds, mainly upstream (payments for goods
& services received) but also in some cases downstream
Manufacturer
4 INTEGRATED LOGISTICS
5
Mother Earth SUPPLY CHAIN / SUPPLY NETWORK MANAGEMENT End User
Basic SCM-related tasks
of an organization in a supply chain
PURCHASING
OPERATIONS (&
LOGISTICS
INVENTORY)
(Warehousing &
CONTROL
Transportation)
DEMAND
PLANNING
Strategic
SCM
embraces &
builds upon TQM
and JIT
Strategic SCM (contd)
1. Globalization:
Globalization has increased competition and
changed the way organizations do business,
making supply chains longer & more complex
2. Outsourcing:
Outsourcing is obtaining a product previously produced
internally from an external supplier it is occurring more
frequently, especially global outsourcing
3. Location:
The choice of location becomes even more complex when taken
from the perspective of the supply chain
Strategic SCM (contd)
5. Time-based Competition:
Organizations and supply chains compete in
reducing delivery lead-times and increasing
the speed to produce new products
ITC
Strategic SCM (contd)
6. E-business:
A relatively new concept that has developed due to the risks of supply
globalization, single sourcing, outsourcing, lean systems, distribution,
etc.; it is intended to help identify the risks, protect from the
consequences of these risks and minimize any loss
Other Important Factors in SCM
Purchasing / Procurement:
Purchased Purchased
Materials Profit 10% Profit16%
Materials
60% Overheads 54% Overheads
Labour 15% Labour 15%
15%
15%
SCM manager must be good negotiator; deal maker not deal destroyer.
SCM manager should not only make good contract but also ensure good
contract management
Conclusion
ITC
Thank You