PCM 804

SUSTAINABLE SUPPLY
CHAIN MANAGEMENT

PRESENTATION BY
SB/PST/20/0008
SB/PST/20/0016
 SUPPLY CHAIN - OVERVIEW

In today’s global marketplace, individual firms no longer

compete as independent entities with unique brand names, but
rather as integral parts of supply chain links.

As such, the ultimate success of a firm will depend on its

managerial ability to integrate and coordinate the intricate
network of business relationships among supply chain partners
(Drucker, 1998; Lambert and Cooper, 2000).
 WHAT IS SUPPLY CHAIN?

A supply chain is referred to as an integrated system that synchronizes a

series of interrelated business processes in order to

a. Create demand for products

b. Acquire raw materials and parts
c. Transform these raw materials and parts into finished products (Adding
Value)

d. Distribute and promote these products to either retailers or customers

e. Facilitate information, material and fund exchange among various
business entities
 SUPPLY CHAIN MANAGEMENT

The planning and management of all activities involved in sourcing

and procurement, conversion, and all logistics management activities.

Importantly, it also includes coordination and collaboration with

channel partners, which can be suppliers, intermediaries, third­ party

service providers, and customers. In essence, supply chain

management integrates supply and demand management within and

across companies.
HOW DOES A TYPICAL SUPPLY
CHAIN LOOK LIKE?
 IMPORTANCE OF SUPPLY CHAIN
MANAGEMENT

 Improves the financial position of an organisation

 Good supply chain management is critical at reducing

operating costs from Procurement activities, through

operations and logistics functions and throughout the whole

supply chain.

 Ensures supply chain Agility

 FOUNDATIONS OF SUPPLY
CHAIN MANAGEMENT
Supply Element

This typically entails being ahead of the game, ensuring that you

have what you require well before you require it. Without the

correct purchasing team, you may run out of materials, causing

production to be delayed, or you may overbuy, putting a burden on

the company's budget.

Foundations – Cont’d

Operations Element

o The operations team can make significant improvements to the supply

chain, whether it's by monitoring activities and equipment to ensure

you're getting the most out of it or by reducing labor hours when

output slows.

o Managers keep an eye on the job that's being done and make sure it's

on schedule.
Foundations – Cont’d

Logistics Element

o The logistics element of supply chain do not only concentrate on the

movement of goods from the upstream of the supply chain to the
downstream. But focuses also on the warehousing, packaging of these
products and the movement of such goods.

o Whether they handle their own shipments or outsource them to a third-party

vendor, most businesses nowadays utilize logistics software to manage their
shipments. Products are moved quickly from the warehouse to the client
when they are handled correctly.
Foundations – Cont’d
Integration Element

o Setting up integration, which means that everyone involved in the

production process interacts and collaborates, is an important part

of successful planning.

o Leaders can quickly monitor the entire operation and discover

areas in the supply chain that may be improved because everyone

is working together.
Current Trends in SCM

Digitization - By digitizing the supply chain, you’ll significantly

improve the ability of business leaders to make timely decisions
using demand forecasts and better manage inventory, suppliers,
transport and storage.

Focus on resilience - Modern supply chains enable adjustments in

near-real-time to cope with disruptive events. Key here are end-to-
end visibility and supplier relationship management capabilities
paired with contingency planning and crisis management processes
and incident response plans.
Current Trends in SCM – Cont’d

Reverse and circular logistics - Today “end-to-end” doesn’t

necessarily mean a linear progression from steel to sheet metal to
carmaker to dealership.

 The concept of a circular supply chain is gaining popularity as

companies look to make their manufacturing more sustainable
by reusing and recycling stock.

 Similarly, reverse logistics is all about capturing value from, or

properly disposing of, excess goods.
Factors Shrinking The Supply Chain

 Of course, trade-offs of higher manufacturing costs are balanced

against reduced inventory costs, lower freight/logistics costs, lower

duties and taxes and all the other parts of “total cost to serve”.

 In addition, there are the benefits of far greater resiliency and

certainty. Faster response times means far less buffering to respond

to all sorts of disruptions, such as exchange rate fluctuations or

inventory uncertainty.
Factors Shrinking the SC – Cont’d

Shorter supply chains increase an organisation’s ability to perform

what Gartner calls “Response Planning”, the connecting of upstream

product demand sensing with downstream network planning and

execution response. It enables faster cycle times and faster review

cycles more responsive to customer preferences and increased agility

to changing market conditions.

Managing Supply Chain Risks

Supply chain risks is the possibility and effect of a mismatch in the

activities of a supply chain

Risks in the Supply chain comes with an Impact

Risks arise from:

External effects in the environment

Internal operations
Managing Supply Chain Risks

According to Webb, 2019

 Analyze

 Plan

 Strengthen the Supply Chain

 Monitor
What Is Supply Chain Visibility (SCV)?

Supply chain visibility (SCV) is the ability to track individual

components, sub-assemblies and final products as they travel from

supplier to manufacturer to consumer. SCV is enabled by supply

chain management technology, which provides near-real-time data

about logistics and supply chain operations.

Benefits of Supply Chain Visibility

 Level of trust and transparency

 Effective planning and responsiveness to customers

 Compliance

 Competitiveness
 Tools that Enables SC Visibility

 Oracle SCM Cloud

 SAP Integrated Business Planning

 Infor Nexus
END OF PRESENTATION

THANK YOU