SUPPLY CHAIN

MANAGEMENT
PRESENTED BY-
Mahtab ansari
Ashish Sharma
Amit Shirpurkar
Anand Kr Sinha
Nand Kishore verma
 OUTLINE OF THE TALK
 What is supply chain management?
 Definitions of Supply chain management
 Dynamics of material flow
 Dynamics of order flow
 Basic components of SCM
 Functions of SCM
 Reverse logistics
 Conclusion
What is Supply Chain
Management?
 SCM is the management of two-way flow of
materials, equipment , finances,
information, and manpower resources
within and among the organizations to
ensure the efficient and fast delivery of
goods and services to the end customers
 Eg- Michael Dell
What is Supply Chain
Management?
 A supply chain consists of all activities and
entities that are involved in extracting,
processing, manufacturing, distributing
and selling the product s to the ultimate
customer.
ØFor example
 Raw material suppliers Logistic service
Providers Manufacturer Logistics
service providers Retailers
Consumers

What is Supply Chain
Management?


§ Supply chain management deals with the

management of the materials, information
and financial flows in a network consisting
of suppliers, manufacturers, distributers
and customers.

DEFINITIONS OF SCM
 “Supply chain management is the
integration of businesses from end user
through original suppliers that provides
products, services, and Information that
add value for customers.”

 “A supply chain is a network of facilities and
distribution options that performs functions
of procurement of materials into
intermediate and finished products, and
the distribution of these finished products
to the customers.”
 Dynamics of Material Flow

Supplier Plant Warehouse Logistics Retailer

 Dynamics of Order Flow

Supplier Plant Warehouse Logistics Retailer

Works on the five basic
components



 Plan- source-make-deliver-
return
Basic components of SCM
 PLAN- Refers to the over-all strategy of the
SCM program including the development of
SCM metrics to monitor


 SOURCE- Refers to the suppliers who'll

provide you with goods and services
necessary to run your business


 MAKE /manufacturing component-

Refers to the execution of processes
needed to produce, test, and package your
products

Basic components of SCM
 DELIVERY - refers to the system for
receiving orders from customers,
developing a network of warehouses;
getting the products to the customers;
invoicing customers and receiving
payment from them


 RETURN- the system for processing

customer returns and/or supporting
customers with problems with the products
they received.

Functions of supply chain
management
 Customer service
standardization


 Transportation


 Inventory management
Functions of supply chain
management
 Warehousing

 Purchase

 Information maintenance

REVERSE LOGISTICS
 Reverse logistics deals with storage and
movement of materials that flow in reverse
direction from end customer back to the
seller or supplier.


 This includes defective products, empty

containers and packaging materials.
REVERSE LOGISTICS
 This logistics is known as environmentally
responsible logistics because it helps to
recycle and use the same packing material
or containers.


 eg- empty soft drink bottles, plastic

bags and
containers etc….
CONCLUSION


 “Competition today is not among
individual businesses but among their
networks. The winner is the company
with the better network.”




 Thank You