Generic Supply Chain

• Hence Supply Chain has added a new

dimension to business strategies for
sustainable competitive advantage, the
supply chain process needs seamless
integration of its subsystems.
 Generic Supply Chain
• The process that links the various
elements of business operations is
called as the SUPPLY CHAIN
PROCESS
• A Supply Chain is network of
facilities and distribution options
 Generic Supply Chain
• SCM supports both
differentiation and cost based
strategies.
• The SCM approach contributes
towards World Class
Performance which is beyond
functional integration.
 Value-Added & Product Packages
• Value-added is the difference between
the cost of inputs and the value or price
of outputs.
• Product packages are a combination of
goods and services.
• Product packages can make a company
more competitive.

4
 What is a Supply Chain?
A supply chain consists of the flow of
products and services from:
–Raw materials manufacturers
–Component and intermediate
manufacturers
–Final product manufacturers
–Wholesalers and distributors and
–Retailers
 What is Supply Chain Management?

The design and management of

seamless, value-added processes
across organizational boundaries to
meet the real needs of the end
customer
 What is Supply Chain Management?

The coordinated set of techniques to

plan and execute all steps in the
global network used to acquire raw
materials from vendors, transform
them into finished goods, and deliver
both goods and services to customers

Logistics and Supply Chain

Management Society
 What is Supply Chain Management?

The planning and management of all

activities involved in sourcing and
procurement, conversion, and all logistics
management activities … also includes
coordination with channel partners,
which can be suppliers, intermediaries,
third party service providers, and
customers.
Council of Supply Chain Management
Professionals
What is Supply Chain Management? (continued)

• New paradigm - Enterprise in a supply chain

focuses activities in its area of specialization
and enters into voluntary and trust-based
relationships with supplier and customer
Enterprises.
– All participants in the supply chain benefit.
– CONTINUED ON NEXT SLIDE
Importance of Supply Chain Management
(continued)

Enterprises using Supply Chain Management:

1. Start with key suppliers
2. Move on to other suppliers, customers,
and shippers
3. Integrate second tier suppliers and
customers (second tier refers to the
customer’s customers and the
supplier’s suppliers)
Importance of Supply Chain Management
(continued)

Cost savings and better coordination of

resources are reasons to employ Supply
Chain Management
– Reduced Bullwhip Effect - the
magnified reduction of safety stock
costs based on coordinated planning
and sharing of information
Importance of Supply Chain Management
(continued)

Cost savings and better coordination of

resources are reasons to employ Supply Chain
Management
– Collaborative planning, forecasting, and
replenishment activities reduce the
Bullwhip Effect and lead to better
customer service, lower inventory costs,
improved quality, reduced cycle time,
better production methods, and other
benefits.