Concept and scope of

supply chain
management

Presented By
Rahul Wable AB2234
Ketaki Shivgan AB22
 supply chain management
• Supply chain management (SCM) is the process of planning,
designing, controlling, and optimizing the flow of goods,
information, and finances as they move from the supplier to the
manufacturer, wholesaler, retailer, and ultimately to the end
consumer.
 Concept of SCM
• Supply chain network
• Supply chain activities
• Information flow
• Demand Forecasting
• Inventory Management
• Supplier Relationship
Management
• Logistic and Transportation
• Quality Control
• Risk management
• Sustainability
• Performance metrics
• Technology and
Automation
 Component of SCM

Planning

Demand Planning

Inventory Planning

Capacity Planning
Purchasing/Procurement

 Identify Supplier
 Cost and Term of Business
are negotiated
 Purchase Raw Material
 Production
-Proper planning of inventory
-Supply inventory are well maintain
P
T
ra
e
co
ksd
u
atc
git
ii
n
no
gg
n

D
e
l
i
v
e
r
y
 Inventory Management
• Essential to maintain optimum level of inventory
• Avoid overstocking its block working capital
 Location
- Organization must be located at right place
- Continuous supply of raw material
- Cost of distribution can be kept minimum

Organization
 Transportation
-Smooth production and distribution
-should be time saving

Raw Material

Factory/Production unit

Consumer
 Distribution
• Transfer of goods from point of origin to point of consumption
• Physical distribution of company’s product to intermediaries or directly to
consumer.
Information