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SUPPLY

CHAIN

MANAGEME

NT

Presented By:

Nirmal Maloo Vinay Lohiya Khushnuma Bathena Monika Bharara Ankit Vajpayee Shashi Kabra

Contents

Definition & Scope Partners in a Supply Chain Processes of Supply Chain Management Advantages and Disadvantages Top 10 SCM Providers What is E-SCM? Emerging technologies

What is Supply-Chain Management?

Definition

Supply-chain management is a total system approach to managing the entire flow of information, materials, and services from raw- material suppliers through factories and warehouses to the end customer.

Supply Chain

Supply Chain Material Flow Material Flow VISA VISA ® ® Consumer Consumer Retailer Retailer Credit Flow

Material Flow

Material Flow

VISA VISA ® ®
VISA VISA ® ®
Supply Chain Material Flow Material Flow VISA VISA ® ® Consumer Consumer Retailer Retailer Credit Flow

Consumer

Consumer

Supply Chain Material Flow Material Flow VISA VISA ® ® Consumer Consumer Retailer Retailer Credit Flow
Retailer Retailer
Retailer
Retailer

Credit Flow

Credit Flow

Supply Chain Material Flow Material Flow VISA VISA ® ® Consumer Consumer Retailer Retailer Credit Flow
Retailer Retailer
Retailer
Retailer

Wholesaler

Wholesaler

Order Order Flow Flow
Order
Order
Flow
Flow

Cash

Cash

Flow

Flow

Supply Chain Material Flow Material Flow VISA VISA ® ® Consumer Consumer Retailer Retailer Credit Flow
Supplier Supplier Supplier Supplier
Supplier
Supplier
Supplier
Supplier
Supply Chain Material Flow Material Flow VISA VISA ® ® Consumer Consumer Retailer Retailer Credit Flow
Mfg. Mfg.
Mfg.
Mfg.

Schedules

Schedules

Scope - Strategic

Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities.

Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as direct shipping, and third-party logistics.

Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management

Information Technology infrastructure, to support supply chain operations.

Where-to-make and what-to-make-or-buy decisions

Aligning overall organizational strategy with supply strategy.

Scope - Tactical

Sourcing contracts and other purchasing decisions.

Production decisions, including contracting, locations, scheduling, and planning process definition.

Inventory decisions, including quantity, location, and quality of inventory.

Transportation strategy, including frequency, routes, and contracting.

Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise.

Milestone payments

Scope - Operational

Daily production and distribution planning, including all nodes in

the supply chain.

Production scheduling for each manufacturing facility in the supply

chain (minute by minute).

Demand planning and forecasting, coordinating the demand

forecast of all customers and sharing the forecast with all

suppliers.

Sourcing planning, including current inventory and forecast

demand, in collaboration with all suppliers.

Inbound operations, including transportation from suppliers and

receiving inventory.

Production operations, including the consumption of materials and

flow of finished goods.

Outbound operations, including all fulfillment activities and

transportation to customers.

Order promising, accounting for all constraints in the supply chain,

including all suppliers, manufacturing facilities, distribution

centers, and other customers.

Supply Chain Management

Supply Chain Management

Partners in a Supply Chain Suppliers Manufacturers Distributors Other Elements

Supply Chain Illustration 10-10
Supply Chain Illustration
10-10

Processes of Supply Chain Management

Processes of Supply Chain Management

Processes of Supply Chain Management

Demand Planning and Forecasting

Procurement

Manufacturing and Assembly

Distribution Return

SCM Takes Care of :

SCM Takes Care of :

Advantages

Reduce overhead charges Eliminates paperwork Increase the speed of transactions Facilitate Real-time data exchange Increase revenue Makes distribution more customer friendly Receive regular forecasts for execution of production and sales plans

Advantages

Analyze different supply line models and subsequently optimize them Automate warehouse inventory management Connect elements of market analysis and Friendly interface relations with suppliers Economies of scale and scope Concentration to core competence Lead time reduction

Disadvantages

Supply chain management is tailored to specific industry and particular company.

Systems are often tightly integrated a limited few suppliers and trading partners.

The purposes of SCM is more of collaboration than price negotiation.

The cost of implementation is higher. Many mistakes are done at first. Has an internal resistance to change.

It’s hard to gain trust from your suppliers and partners.

Top 10 SCM Providers

SAP Oracle Infor Manhattan Associates i2 Technologies JDA Software RedPrairie IBS Epicor Aldata

What is E-SCM? Build-t Build-to-or o-order der cars cars ovover er tthehe Inte Internet rnet
What is E-SCM?
Build-t
Build-to-or
o-order
der cars
cars ovover
er tthehe
Inte
Internet
rnet

Emerging technologies - RFID

Emerging technologies - RFID

RFID

RFID

THANK YOU !!!