By:- Israr K.

Raja
Islamabad, Pakistan
Supply Chain Management
 SCM consists of Three Words:-
 Supply
 Chain
 Management
Supply
 Supply
 The “quantity of a good or service” that sellers will
make available at a given price and a certain time in a
specific market.
 Supply is providing goods and services to the final
users when these are required and affordable by them
with an acceptable quality, competitive price, at an
accessible location.
Chain
 Chain
 A chain is “a serial assembly of connected pieces”,
called links, typically made of metal, with an overall
character similar to that of a rope in that it is flexible
and curved in compression but linear, rigid, and load-
bearing in tension.
 A chain may consist of two or more links.
 Chains can be classified by their design, which is
dictated by their use.
Management
 Management
 It is a set of activities or functions to achieve the
objectives of a business Efficiently and Effectively.
 Here efficiency is related to INPUT of the business and
effectiveness is the OUTPUT of business.
Supply Chain
 Supply Chain
 To achieve the objective of Supplying better than their
competitors and have a competitive advantage over them, the
businesses have to perform several interconnected steps in a
particular order.
 All these interrelated operations create a chain of actions to
fulfil the objective of Supply that is providing goods and services
to the end users.
 And to perform these interrelated operations efficiently and
effectively, we use the discipline of Management Science.
 So these three concept get together to make the Supply Chain
Management
Supply Chain Management
 This is a chain which matches the supply according
to the demand of goods and services, and managing all
these steps in an efficient and effectively way is called
Management of Supply Chain.
Supply Chain Management
 Now let’s define a formal definition of Supply Chain
Management,
 It is the process of managing the movement of goods
and services to end users from suppliers in shape of
raw material to finished goods in a very efficient and
effective way.
 These all chained activities are glued by
information technology and wheeled by $$$
Money.
 Information Technology
 Information
technology (IT) is the use
of computers to store,
retrieve, transmit, and
manipulate data,
or information, often in
the context of a business.
 SCM information systems
use Information
technology to more
efficiently & effectively
manage supply chains
 Flow of Funds $$$
 Efficiency can also be
achieved through
optimally
designed financial flow
within the chain.
 Flow of Funds in A
Supply Chain plays a very
crucial role to keep the
supply chain moving
smoothly.
 Main Functions of
Supply chain Management
 The main ingredients of supply chain are location,
production, inventory, transportation, and glued by
information and greased by cash which are sometimes
called cross- functional ingredients of supply chain.
 Functions of
Supply chain Management
 There are various functions in supply chain management, here are
some of the main functions of Supply chain management :
 Sourcing,
 Negotiating,
 Contracting,
 Purchasing,
 Transportation,
 Logistics,
 Product Designing and Development,
 Production,
 Controlling Inventory,
 Warehousing,
 Distribution
 Customers relationships