Supply Chain Management


Outline of the Talk What is Supply Chain Management Supply Chain Management Process Supply Chain Management Decisions Software Tools Conclusions .

What is Supply Chain Management ? Supply Chain is a set of activities (e. logistics. all the business units along a supply chain have their own objectives and these are often conflicting There is no single plan to carry out supply chain activities . manufacturing. marketing) that perform the function of delivering value to end customer Traditionally.g. purchasing. distribution.

and at the right time with minimum system wide cost´ in the presence of conflicting goals of various business units .What is Supply Chain Management ? There is need for a mechanism through which the execution of various business activities along a supply chain can be planned in an integrated fashion. The supply chain management is an effort to achieve the primary goal of ³producing and distributing the merchandise at the right quantity. to the right locations.

Statics of Material Flow Supplier Plant Warehouse Logistics Retailer .

Dynamics of Order Flow Supplier Plant Warehouse Logistics Retailer .

Supply Chain Management Processes Material Requirement Planning Component Requirement Demand Forecasting Demand Planning Production Plan Supplier Plant Warehouse Logistics Retailer Order Management .

Supply Chain Management Decisions STRATEGIC TACTICAL OPERATIONAL Procurement Manufacturing Distribution Logistics .

Number. Number. Size of Warehouses ‡ Mode of Shipment ‡ Port Selection ‡ Procurement Policy ‡ Customer Allocation ‡ Distribution Policy ‡ Vehicle Routing ‡ Fleet Size ‡ Finished Goods Inventory ‡ Vehicle Routing . Capacity of Plants ‡What Products to Produce ‡Which Plants to Produce them ‡Warehouse Allocation ‡ Inventory Decisions ‡ Manufacturing Policy ‡ Production Schedule ‡Scheduling on Machines ‡ Workload Balancing ‡Location.Supply Chain Management Decisions ‡ Supplier Selection ‡Allocation of Suppliers to the Plants ‡Location.

Software Packages i2 Six: A comprehensive solution suite for spend/ production/ revenue/ logistics/ fulfillment optimization Solution suites for network design & optimization/ manufacturing planning & scheduling/ global logistics management/ service & parts management JD EDWARD: The advanced planning software to synchronize demand & planning/ network Optimization/ production & distribution planning .

Software Packages It helps companies driving down enterprise wide spend ARIBA Spend Management: mySAP SCM: planning solution A complete supply chain A complete solution suite from demand collaboration to order management iBann: .

Results  Reduced inventory levels by 10-15%  Reduced markdown & scrap by 10-15%  Used resources10-20% more efficiently  Improved delivery reliability by 95-95%  Reduced outages to 0-5%  Reduced cycle time by 10-20%  Reduced transportation cost by 10-15% Companies that utilized best-in-class SCM solutions have .

Conclusions  Supply Chain Planning: A critical factor in the success and profitability of a company  Short Product Life Cycle: Improper planning can take the company out of business  Bad News: Planning is an hard problem to formulate as well as solve  Good News: Plethora of Commercially available software for supply chain planning .

Thank You .

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