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Supply Chain Management (SCM)

The document discusses supply chain management (SCM) and its key aspects in 3 paragraphs: 1) It defines SCM as integrating procurement, logistics, and other functions to create value for customers. It also lists some common business drivers and components in SCM performance. 2) It outlines some principles of SCM, such as segmenting customers, customizing logistics networks, and improving supplier relationships to balance customer needs and company objectives. 3) It identifies forces shaping SCM, like consumer demands, globalization, and competition, and lists 7 components and 6 enablers important to SCM.

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jikku john
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99 views6 pages

Supply Chain Management (SCM)

The document discusses supply chain management (SCM) and its key aspects in 3 paragraphs: 1) It defines SCM as integrating procurement, logistics, and other functions to create value for customers. It also lists some common business drivers and components in SCM performance. 2) It outlines some principles of SCM, such as segmenting customers, customizing logistics networks, and improving supplier relationships to balance customer needs and company objectives. 3) It identifies forces shaping SCM, like consumer demands, globalization, and competition, and lists 7 components and 6 enablers important to SCM.

Uploaded by

jikku john
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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SUPPLY CHAIN MANAGEMENT (SCM)

‘SCM integrates procurement operations and logistics to


produce value added products or services to customers’

BUSINESS DRIVERS IN SC PERFORMANCE


Competitive strategy

Supply chain strategy

Efficiency Responsivenes
SC Structure

Inventory Transportation Facilities information

(minimum without (Selecting mode of tpt, (fewer ware houses) (Predict proper info-
compromising route and network) quantity required,
responsiveness) when and where)
PRINCIPLES OF SCM

(To obtain a balance between customers expectation and company's growth


and profitability objectives)
• Segment customers based on Service needs.
• Customise logistic net work.
• Plan based on market demand.
• Enhance ability to match customer requirements.
• Improved suppliers relationship.
• Have supply chain – wide technology strategy.
• Device a complete SC performance measure.
FORCES SHAPING SCM

• Consumer Demands
• Globalisation
• Competition
• Info and communication
• Govt Regulations
• Environmental regulations
SEVEN SCM COMPONENTS

• SCM Leadership
• SCM Strategy – SC Integration, Info, Coordination, Organisational
linkage
• Operational Planning
• Business Relationship Management
• Order – to – Delivery Process
• Quality and Performance Management
• Human Resource Mgt
SIX SCM ENABLERS

• Alignment
• Customer – suppliers focus
• Design
• Measurement
• Participation/involvement
• Periodic review
ELECTRONIC SCM
IMPLEMENTATION

• Evaluate level of integration


• Identify Suppliers with direct influence on produ
• Divide suppliers into different category
• Define customer base
• Improve Info Infrastructure
• Constitute a composite Team
• Identify Leaders
ADVANTAGES
Cost saving
Reduced inventory level
Low procurement cost
Reduced Cycle time
Reduction in stock-out cost
Improved accuracy in ordering
Better support for JIT manufacturing

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