WELCOME TO

SUPPLY CHAIN MANAGEMENT

BY: Naheed Ghaffar
 Marks Distribution
1st Hourly = 20 Marks
2nd hourly = 20 marks
Final Report and Presentation= 20 Marks
(Group of 5 Members each)
Final Term Exam = 20 Marks
Individual Assignment = 20 Marks
Total = 100 Marks
Rules of the Game
Regular
Punctual
Discipline
Participate
Follow the Guidelines
And most important for the Supply Chain
Management:

Be Practical
Supply Chain Management
Text Books
Joel D. Wisner; Keah-Choon Tan & G.Keong Leong,
“Principles Of Supply Chain management” (A
balanced Approach).
Sunil Chopra & Peter Meindl, “SUPPLY CHAIN
MANAGEMENT- Strategy, Planning and
Operation”.
What is Management ???
Management is:

P.O.I.C
 Planning
 Organizing
 Implementation
 Control
Supply Chain Management
Management of the flow of goods or services between
entities in the chain to realize delivery of end products or
services, satisfying customers at minimum cost.
OR
Set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses and stores, so that merchandise
is produced and distributed in the right quantities, to the
right locations at the right time in order to
minimize system wide costs while
satisfying service level requirements.
Supply Chain Management
Returned Goods
Material Flow

Cash Flow

Supplier Factory Retailer Consumer

Supplier Distr. Center Retailer

Information Flow
Supply Chain Manager
Decision Phases of a Supply Chain
Supply Chain Planning and Strategy formulation
Phase
Supply Chain Organizing Phase means Design
(Networking of Suppliers and Customers )
Supply Chain Implementation of Planning means
Operations
Supply Chain Control (evaluation and corrections)
Supply Chain Planning – strategy(action
plan)
Definition of a set of policies that govern short-term
operations
Planning decisions:
Which markets will be supplied from which locations
Planned buildup of inventories
Subcontracting, backup locations
Inventory policies
Timing and size of market promotions
Must consider in planning decisions demand uncertainty,
exchange rates, competition over the time horizon
Supply Chain Organizing- Design
Decisions about the structure of the supply chain and
what processes each stage will perform
Strategic supply chain decisions
Locations and capacities of facilities
Products to be made or stored at various locations
Modes of transportation
Information systems
Supply chain design must support strategic objectives
Supply chain design decisions are long-term and
expensive to reverse – must take into account market
uncertainty
Supply Chain Implementation of
Operation
Time horizon is weekly or daily
Decisions regarding individual customer orders
Goal is to implement the operating policies as
effectively as possible
Allocate orders to inventory or production, set order
due dates, generate pick lists at a warehouse, allocate an
order to a particular shipment, set delivery schedules,
place replenishment orders
Supply Chain Performance Drivers
Facilities
Places where inventory is stored, assembled, or
fabricated
Production sites and storage sites
Inventory
Raw materials, WIP, finished goods within a supply
chain
Inventory policies
Transportation
Moving inventory from point to point in a supply
chain
Combinations of transportation modes and routes
Supply Chain Performance Drivers
continued…
Information
Data and analysis regarding inventory, transportation,
facilities throughout the supply chain
Potentially the biggest driver of supply chain
performance
Sourcing
Functions a firm performs and functions that are
outsourced-affects bottom line
Pricing
Price associated with goods and services provided by a
firm to the supply chain-affects top line
What’s Strategic fit ?
It means that both the Business /Competitive strategy of
the company and supply chain strategy should have the
same goal. It refers to the consistency between customer
priorities that the competitive strategy is designed to
satisfy and the supply chain capabilities that the supply
chain strategy aims to build up .
Steps for Strategic Fit
• Know your customers

• Know your supply chain

• Achieve strategic fit

 SCOR Model
The supply chain operations reference model
(SCOR) is a management tool used to address,
improve, and communicate supply chain
management decisions within a company and
with suppliers and customers of the company. The
model describes the business processes required
to satisfy a customer’s demands. It also helps to
explain the processes along the entire supply
chain and provides a basis for how to improve
those processes.
Supply Chain Management
Why is SCM difficult?
Different facilities may have different, conflicting
objectives
 Suppliers want manufacturers to commit themselves to
purchasing large quantities in stable volumes with flexible
delivery dates
 Manufacturers want large production runs
 Warehouses and Distribution Centers want to reduce
inventory
 Reduction in inventory levels increase transportation costs
Supply Chain Management
Conclusion
Supply chains compete, not companies
Most of the opportunities for cost reduction and
value enhancement lie at the interface between
supply chain partners
Supply chain integration implies process
integration
Supply Chain Management

End of Topic