SUPPLY CHAIN MANAGEMENT

Jagpal Singh Bal Asst Professor (M2 SMME D4) 19th November 2011

Supply Chain Management

Plan Make Deliver

Activities

Plan
o

Location of Facilities (Plant, Warehouse), Suppliers, Market, Strategy

Make
o o

Forecast Production

Deliver
o o

Distribution Network

Transportation Network

Supply Chain - Definition

Design

Plan

Source

Make

Deliver

Product Lifecycle Management

Supply Chain Planning and Optimization

Supply Chain Execution and Event Management

Strategic Sourcing and Procurement

People, Strategy, Process Re-engineering and Technology Utilization

Product Movement

Raw Material Source

o

Mining, Refining, Move Purchase (Parts), Receive, Store, Move, Make, Store, Move Collect, Store, Move, Deliver Receive, Store, Sale Demography

Manufacturing Plant
o

Transportation Network
o

Distribution Network (Dealer, Showroom)

o

Market
o

In short SCM encompasses

Distribution Management
o

Dealer/Distributor Network

Design and Operations Inventory Management

o

Warehouse

Design and Operations Transportation Management

o

Primary Distribution

Source to Plant
o

Secondary Distribution

Plant to Warehouse/Market

SCM Solutions
Network design Transport planning

Strategic level

Tactical level

Facility and process design

Warehouse Simulation

Operational level

Inventory modelling

Re-engineering

W e e k 3 T r u n k L o a d s P e r N ig h t. N D C - R D C & D e tm a r

6 .0 0

5 .0 0

4 .0 0

Loads Per Night

3 .0 0

2 .0 0

1 .0 0

0 .0 0
Sat N o . o f D e tm a r L o a d s No. of RDC Loads 3 .3 7 2 .3 0 Mon 1 .3 6 1 .1 3 Tu e 0 .0 0 0 .3 1 W ed 0 .1 8 4 .7 8 Th u 0 .4 2 2 .7 1 Fri 1 .3 1 3 .0 1

De s pa c h fr om NDC Da y

Network Design

Create a model of the clients distribution network to: - Establish benchmark of existing operations - Identify cost-effective and service-efficient alternatives

Perform analysis using various structural alternatives, including:

- Centralized distribution - De-centralized distribution - Introduction of an additional plant or product lines

Determine optimal number of distribution points and their corresponding locations

Transport Planning

Utilize routing and scheduling tools to design optimized

route networks

Aim to
Minimize cost Minimize miles Maximize trailer cube utilization Maximize fleet utilization Minimize resources (drivers, tractors, trailers and facilities) - Meet and exceed service parameters as defined by the customer

Air Cargo Loading

Facility Design

Evaluate existing facilities Design new facilities Perform facility layout & reengineering Determine material handling equipment & methods Aid in labor planning & scheduling Establish productivity

standards
Automotive Logistics

Warehouse Modeling
Tasks
Checking, Put-away, Picking, Replenishment, Load assembly

Warehouse infrastructure In
No. of vehicles Arrival times Load sizes

Out
No. of vehicles Departure times Load size Percentage pick

Resources MHE, people, shift patterns,

team sizes & responsibilities

SCM and Information Technology

Enterprise Resource Planning

o o

SAP Oracle

RFID
o

Product Tracking

VTS
o

Vehicle Tracking System

EDI

Challenges

Customer Expectations are becoming more complex Dell model Wal-mart model Gaining better visibility into customer demand requirements
o

Lifecycles, changing markets, global demand and fulfillment

Managing excess capacities throughout the manufacturing and distribution network

o o o

Excess capacity as a result of reduced demand Changes in global sourcing Consolidations, mergers/acquisitions, alliances and value added services Increased lead times and reduced flexibility

General Globalization of Supply Chains

o

Questions ?? Thank You.. DHL Story