INSTITUTE –University School of

Business
DEPARTMENT -Management
M.B.A
Logistics & Supply Chain Management 23BAT-623

Lecture – 1 : Introduction to Supply Chain Management

DISCOVER . LEARN . EMPOWER

UNIT-1: Introduction to
Supply Chain Management
1
 Introduction to Supply Chain Management

Course Objective Course Outcome

CO Title Level CO Title Level
Number Number
CO1 At the completion of this course, the Understand CO1 Design competition strategies, Understand
student should be able to including costing, pricing, product
understand the concepts related to differentiation, and market
SCM. . environment according to the
natures of products and the
CO2 Students will be able to design and Apply structures of the markets.
study performance of supply
networks and processes in different CO2 Understand the links between Apply
business contexts production costs and the economic
models of supply.
2

CO3 To understand the global supply CO3 Understand how different degrees of Analyze
Analyze
chains & risks thereof competition in a market affect
pricing and output
Introduction
to Supply
Chain
Management
 Topic – 1
Introduction to Supply Chain Management

4
 What is Supply Chain Management?

“Supply Chain Management is the management of the flow of

goods and services and includes all processes that transform raw
materials into final products. It involves the active streamlining
of a business's supply-side activities to maximize customer value
and gain a competitive advantage in the market.”

--- Investopedia
 What is Supply Chain Management?

SCM represents an effort by suppliers to develop and

implement supply chains that are as efficient and
economical as possible. Supply Chains cover everything
from production to product development to the
information systems needed to direct these
undertakings.
--- Investopedia
 What is Supply Chain Management?

Supply Chain Management is a set of approaches utilized to

efficiently integrate suppliers, manufacturers, warehouses,
and stores, so that merchandise is produced and distributed
at the right quantities, to the right locations, and at the right
time, in order to minimize system wide costs while satisfying
service level requirements.
What is Supply Chain ?

Source: Lionel Bell

The Bigger Picture

• Storage, movement and handling of inventory, information or any entity is called logistics.
• Basic functions:
• Transportation (Receiving supplies & distribution)
• Storage (Warehousing)
• Maintenance (Preserving stocks)
 Objective of Supply Chain Management

The objective of supply chain management is to

coordinate activities within the supply chain to
maximize the supply chain’s competitive
advantage and benefits to the ultimate consumer.
 Strategic Importance of SCM

 The coordination of all supply chain activities,

starting with raw materials and ending with a
satisfied customer

 Includes suppliers, manufacturers and/or service

providers, distributors, wholesalers, retailers, and
final customer
SCM Example - Cisco

Source: Lionel Bell

Development
Chain
 Development Chain

Development Chain is a set of activities and processes

associated with new product introduction.

This includes:
– product design phase
– associated capabilities and knowledge
– sourcing decisions
– production plans
The Development Chain

Source: Lionel Bell

 Goals of SCM

 The right products

 To the right customer
 At the right time
 At the right place
 In the right condition
 In the right quantity
 At the right cost
 Drivers of SCM

 Facilities
 Inventory
 Transportation
 Information system
 Sourcing
 Pricing
 People
 Global
Optimization
 Global Perspective of SCM

 Geographically dispersed complex network

 Conflicting objectives of different facilities

 Variations over time

 Global Perspective of SCM

 Matching demand-supply difficult

 Different levels of inventory and backorders

 Recent developments have increased risks

 Lean production/Off-shoring/Outsourcing
Global Apparel Supply Chain

Source: Lionel Bell 22

 Resources

1. Essentials of Supply Chain Management (Essentials

Series) Paperback – Import, 12 August 2011 by Michael
H. Hugo

2. Principles and Practice of Supply Chain

Management Hardcover – Import, 3 June 2019
By Judy Dickens

3. Supply chain design and management: Strategic and

tactical perspectives by Manish Govil and Jean-Marie
Proth
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 Homework

Explain what do you understand by Supply Chain

Management.

Choose an organization and explain how supply chain

management is done in that organization.

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 Blackboard
Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Business GD Forum Attendance Scaled

Test Quiz Marks

Max. Marks 10 10 6 4 4 4 2 40

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THANK YOU

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