Supply Chain Management

Supply Chain Management

Physical Supply Chain

Basic Delivery to
Product customer
materials

Vertical Supply Chain

Open a Attract Link to sales

website customers organisation
 Different Categories of Supply
Chains

Orders Orders Orders

Raw Material
Manufacturer Wholesaler Retailer
supplier

supplies supplies supplies

 Benefits of SCM

i. Get the right product at the right place at

the least cost
ii. Keep Inventory as low as possible and
still offer superior customer service
iii. Reduce cycle times
 Goals of SCM
To cut costs
Increase profits
Improve performance in
relationships with
customers and suppliers
Develop value added
services that give a
company a competitive
edge
 Supply Chain Management
Inventory
Supplier Management Distribution
Management Management

Supply Chain Sales force

Management Productivity

Financial Payment Channel

Management Management Management
 Critical Relationship of
Suppliers/Company
Cost
Quality

Suppliers/
Company

Flexibility
Speed
 Fourth Strategy
Product specs
that your
suppliers must Tracking of
adhere to the needs

Your Customer
suppliers company (starting point)

Downstream part of Reverse flow of Upstream parts of

the value chain the value chain
Information
 Supply Chain Design

plants

Distribution
suppliers customers
centres
 Waves of Future (Economic
Change)
Current State
Global Business
Previous State Environment
Nation state Environment Users define Markets
Producers Define Markets Technology dominates
Manufacturing dominates Capital Investment
Capital Investment Business Alliances
Independent Businesses Focus on Value
focus on Price De-regulation and
Government Control/ Privatization
Regulation
 Power Shift Response Trends

Strategic Alliances & value Late

chain Integration 90s

Customer satisfaction & Growth Mid

Strategies 90s

Early
Re-engineering & Downsizing 90s

Quality & TQM 80s

Productivity 70s
Improvement

Producer-driven 50s
Economy 60s
 VCM Architecture

Systems

Core VCM End Users

company as a layer

knowledge

Repository
 Characteristics of SCM - 1
Sourcing of raw materials or finished
goods from anywhere in the world
Centralised global business &
management strategy with hem less local
execution
On-line, real time distributed information
processing providing total supply chain
information visibility
Ability to manage information not only
within a company but across industries &
enterprises
 Characteristics of SCM - 2
Seamless integration of all supply chain
processes including third party suppliers,
information systems, cost accuring
standards and measurement systems
Development & implementation of
accounting models
Reorganisation of the supply chain
organisation into high-performance teams
 Factors hindering re-combinant
business models
Disparate data Proprietary standards
models Inertia & fear of
Disparate trading change
partner capabilities Competitiveness
Disparate process based on business
models process differences
Semantic Point to point
heterogeneity interfaces
Integration as trading
partner lockin
SCP Tools

Strategic planning
tools
Executive &
implementation
tools
Tactical planning
tools
 Tactical Planning
Network Transportation &
Available to Promise(ATP) Scheduling
Capable to Promise (CTP) Manufacturing
Capacity planning
Demand planning
Distribution planning
Deployment planning
Sales & operation
 Enterprise Collaboration
Goals

Communicate

Coordinate

Collaborate
Supply Chain Foundation
COMMUNICATIONS
HEAD QUARTERS

E
INTRANET (AT THE
U E INTERNET PLANT ENTERPRISE)

WAREHOUSE

ERP SFA

PDM MARKETING

APPLICATIONS/ INTEGRATION
FUNCTIONS
LikeusonFacebook:
p // /
http://www.facebook.com/welearnindia

FollowusonTwitter:
http://twitter com/WeLearnIndia
http://twitter.com/WeLearnIndia

WatchinformativevideosonYoutube:
http://www.youtube.com/WelingkarDLP