Supply Chain

Example
Supply Chain Management
 ?What is Supply Chain Management (SCM)

SCM control the following activities:

• The physical flow of the Supply Chain
• The information flow of the Supply Chain
• The financial flow of the Supply Chain
 :The physical flow of the Supply Chain

It can be associated with logistics, i.e. the

movement and storage of goods. We start
from a production site, then probably move to
one or more warehouses, then to a store or a
final customer. This physical flow is really
based on the transport and storage of the flow
of goods.
The information flow of the Supply Chain

It is the simple database that could be summarized

by the following questions:
• What? (all processes and associated information)
• Where? (in which country, in which warehouse in which
store but also in which IT systems)
• How? (by what means and under what pre-established
conditions)
• When? (throughout the entire product life cycle). t

…
 :The financial flow of the Supply Chain

Finally, the goal of the supply chain is to

make its products accessible at the right
time, in the right place, and at the best price.
This is achieved by having the most efficient
supply chain possible
 Transportation
values are guidelines only
Supply Chain Principles
Supply Chain Finance Industry (Entering a New
Era of Maturity)
 To summarize, a profitable Supply Chain must

• Improve its service

• Reduce the inventory and cash invested in the business
• Keep the costs down
Value Creation through Supply Chain Integration
 Example
How to select the optimum Supply Chain w.r.t.
the given costs virtual data for Supply chain
shown in the previous slide :
Discussion:
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