Supply chain management

What is Supply
Chain?
A supply chain is a system of organizations, people, activities, information, and
resources involved in moving a product or service from supplier to customer.
Supply chain activities involve the transformation of natural resources, raw
materials, and components into a finished product that is delivered to the end
customer. In sophisticated supply chain systems, used products may re-enter the
supply chain at any point where residual value is recyclable. Supply chains link
value chains

A supply chain is actually a complex and dynamic supply and demand network.
The Supply Chain Management (scm) is the oversight of materials of information
and finances as they more in a process from supplier to manufacturer to whole
to retailer to consumer.
It’s involves to coordinating and integrating these flows both and companies.
 The concept of Supply Chain Management is based on two core ideas.
Supply chain performance:

performance represents achievement amount of company to

financial and market objectives.

Internal supply chain External Supply chain

 Internal supply chain refers
 External supply chain facing
to
environmental factors that
the chain of activities
can affect a direct and
within a company that
indirect on the supply
concludes with providing a
chain.
product to customer.
The Advantages of Supply Chain Management Systems

 Effective supply chains give businesses a competitive advantage in the

marketplace and help mitigate risks associated with acquiring raw
materials and delivering products or services.
 Quality Assurance:
 Inventory Buffers:
 Increased Profits:
 Reduced Costs:
 Increased Efficiency:
 Increased Output:
 Shipping Options:
 Risk Mitigation:
Objectives of S C M.
 1) Services Orientation.
 2) System Orientation
 3)Competitiveness and Efficiency.
 4) Minimizing the time.
 5)Minimizing Working in process.
 6) Improving Pipeline Visibility.
 7)Improving Quality.
 8) Improving Visibility Demand.
 9) Reduces Transportation Cost.
 10) Reduces Warehousing Cost.
 Factors Influencing supply chain
management:
 Consumer Demand.
 Globalization.
 Competition.
 Information & Communication.
 Government Regulations.
 Environments.
 Why It is Important in Garments
Industries.
 It is very important to garment industry..
 Supply Chain Management (SCM) is an essential element to operational efficiency.
SCM can be applied to customer satisfaction and also garments industry success,
as well as within societal settings, including medical missions; disaster relief
operations and other kinds of emergencies; cultural evolution; and it can help
improve quality of life. Because of the vital role SCM plays within organizations,
employers seek employees with an abundance of SCM skills and knowledge.
Supply Chain is a progression by which
unprocessed materials such as accessories make
over from Supplier to Garment Industries in
bartering of order and payment.
The general elements of supply chain process are:
 i) Supplier
 ii) Garment Industries
 iii) Individuals
 iv) Raw materials
 v) Finished goods
 vi) Payment
Backward Linkage Garment Industry Forward Linkage
of Bangladesh

Raw Materials Manufacturer Buyers

Supplier Merchandiser Customer

Sourcing Market

Flow of Demand Flow of Supply

Total Lead Time: At present, the average lead time is 90-120 days.

Therefore we can Write that:

Customer Supply time = [{Information supply time} + {Order lead
time}]
Total supply time = [{Information lead time} + {(manufacturing lead
time) + (shipping time for import fabrics) + (Shipping time for export
final product)}
P R
Q M
Raw materials Manufacture
supplier Sea Port Buyer
r
s
Technology in Supply Chain:

 The internet & the can be very effective

web communication to
 enhancers.
Software includes Demand forecasting tools and
planning tools to allow all S.C members to coordinate
to their activities. ( And adjust their production levels)
 Software can allow members to.
 Review past performance.
 Predict future Production levels of products.