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A Presentation BY Shailesh Topno

This document discusses supply chain management (SCM) and key related concepts. SCM involves integrating management practices and information technology across partners to optimize information and production flows. A supply chain consists of all parties involved in fulfilling customer requests, from suppliers to manufacturers to distributors and customers. Important SCM activities include determining transportation, payments, suppliers, inventory management, and order fulfillment. The document then covers supply chain elements, functions, objectives, distribution systems, risks, and important points around customizing networks and delaying product differentiation.

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sathya priya
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98 views24 pages

A Presentation BY Shailesh Topno

This document discusses supply chain management (SCM) and key related concepts. SCM involves integrating management practices and information technology across partners to optimize information and production flows. A supply chain consists of all parties involved in fulfilling customer requests, from suppliers to manufacturers to distributors and customers. Important SCM activities include determining transportation, payments, suppliers, inventory management, and order fulfillment. The document then covers supply chain elements, functions, objectives, distribution systems, risks, and important points around customizing networks and delaying product differentiation.

Uploaded by

sathya priya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
You are on page 1/ 24

A PRESENTATION

BY
SHAILESH TOPNO
INTRODUCTION
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT (SCM) is
integrating management practices and
information technology to optimize information
and production flow among the processes and
business partners within a supply chain. SCM is
a management concept that integrates the
management of supply chain process.
WHAT IS SUPPLY CHAIN ?

Supplier Manufacturer Distributor Retailer Customer

 Consists of all parties involved, directly or indirectly, in


fulfilling a customer request, include not only
manufacturers & suppliers, but also transporters,
warehouses, retailers & even customers.
Basic Supply Chain Process

Export &
Manufacture Primary Distribution Secondary B2B & B2C After-Sales
Import
& Raw Materials Movement Centres Movement Distribution Services
Activities

Value-Added
Suppliers Distribution Production Distribution Sales Channel End User
Services
Inbound Manufacturing Supply Distribution After Sales
Logistics Logistics Logistics Logistics Logistics

Reverse Logistics
SUPPLY CHAIN
 In a supply chain, virtually all of the members serve as
both customers as well as suppliers.
 In the Li & Fung example, the Korean yarn producer and
the Japanese zipper producer are probably only suppliers
and the customer’s customers (folks like you and me) are
probably only customers.
 Every other organization in the supply chain is both
a customer and a supplier. See the figure on slide seven.
Supplier

Supplier } Storage Mfg. Storage Dist. Retailer Customer

Supplier

Supplier

Supplier
} Storage Service Customer
Yarn Factory
Dying & 1
Yarn Weaving
Factory
2
The
Factory
Customer
3
Zippers (Retailer)
Factory
4
Factory
5
WHY IS SCM SO IMPORTANT?
 TO Gain efficiencies from procurement,
distribution and logistic
 To reduce transportation costs of inventories
 To meet the challenge of globalization and longer
supply chains
 To meet the new challenges from e-commerce
 To manage the complexities of supply chains
 To manage the inventories needed across the
supply chain
IMPORTANT ACTIVITIES INCLUDE DETERMINING
 Transportation vendors
 Credit and cash transfers
 Suppliers
 Distributors
 Accounts payable and receivable
 Warehousing and inventory
 Order fulfillment
 Sharing customer, forecasting, and
production information
WHAT ARE THE MERITS AND DEMERITS OF
SCM ?
MERITS :
With the increased visibility into the supply chain
and adaptive supply chain network, you can be
more responsive. You can sense and respond quickly
to changes and quickly capitalize on new
opportunities.
By offering a common information framework that
supports communication and collaboration, SCM
enables you to better adapt to and meet customer
demands.
You can track and monitor compliance in areas as
environment, health and safety.
With SCM, you can low operational expenses with
timelier planning for procurement, manufacturing
and transportation. Better order, product and
execution tracking can lead to improvements in
performance and quality - and lower costs. You can
also improve margins through better coordination
with business partners.
Tight connection with trading partners keep your
supply chain aligned with current business
strategies and priorities, improving your
organization's overall performance and
achievement of goals.
DEMERITS :
 SCM is hard to implement in immature/informal
organizations.
 SCM can fail if both parties are not willing to share
their insights ,information throughout.
 If in an entire SCM chain even one single node is
hiding information ,this will effect the profits and
gains of the entire network which may finally
collapse. So transparency is highly required in SCM.
 Costs.
 Requires trust.
 Imbalance of power.
 Strategic challenges.
SUPPLY CHAIN ELEMENTS

 Supply Chain Design


Strategic  Resource Acquisition
 Long Term Planning (1 Year ++)

 Production/ Distribution Planning


Tactical  Resource Allocation
 Medium Term Planning(Quarterly, Monthly)

 Shipment Scheduling
Operational  Resource Scheduling
 Short Term Planning (Weekly,Daily)
FUNCTIONS OF SCM

Supplier
management

Financial Inventory
management management

SCM
Payment Distribution
management management

Channel
management
OBJECTIVES & 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
 Objective is to be able to have the right products in
the right quantities(at the right place) at the right
moment at minimal cost
 Reduced inventory , reduced lead times , reduced
warehouse cost , helps in forecast accuracy
DISTRIBUTION SYSTEMS
 Trucking
• Moves the vast majority of
manufactured goods
• Chief advantage is flexibility
 Railroads
• Capable of carrying large loads
• Little flexibility though containers
and piggybacking have helped with
this
 Airfreight
• Fast and flexible for light loads
• May be expensive

 Pipelines
• Used for transporting oil, gas, and
other chemical products
 Waterways
• Typically used for bulky, low-value
cargo
• Used when shipping cost is more
important
than speed
DISTRIBUTION SYSTEMS
SUPPLY CHAIN RISK

 More reliance on supply chains means more


risk
 Fewer suppliers increase dependence
 Compounded by globalization and logistical
complexity
 Vendor reliability and quality risks
 Political and currency risks
IMPORTANT POINTS TO KEEP IN MIND
 Segment customers based on service needs.
 Modify the supply chain to meet these service
requirements profitably.
 Customize the logistics network.
 Delay product differentiation till the last possible
moment.
SUMMARY

 Segmentation of customers based on service


needs.
 Customization of logistics network.
 Listen to signals of market demand and plan
accordingly.
 Differentiate product close to the customer.
 Develop a supply chain wide technology
strategy.

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