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SCM 02

Supply Chain

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14 views27 pages

SCM 02

Supply Chain

Uploaded by

clinton.p
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
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Supply Chain Management

Session 2
Jeb
Programme learning goals

• Identify strategies, processes, and issues, related to supply chain


management.
• Examine the supply chain drivers and enablers to manage risks and inventory
in supply chains.
• Evaluate strategies for Logistics, Outsourcing, and supplier-base
management.
• Determine concepts of Warehousing, Transportation, and Distribution for
various business situations
• Apply concepts of technology and information systems to improve supply
Chain performance.
Objective of any
business/company
Objective of a Supply
Chain

Supply Chain Surplus = Customer Value - Supply Chain Cost


Supply chain management

• Effective supply chain management involves the management of


supply chain assets, products, information, and fund flows to
grow the total supply chain surplus.
• A growth in supply chain surplus increases the size of the total
pie, allowing contributing members of the supply chain to
benefit.
Typical stages of
Supply chain

• Customers
• Retailers
• Wholesalers/distributors
• Manufacturers
• Component/raw material
suppliers
Focal firm

• A focal firm is a business


organization that plays a central
or pivotal role in a supply chain
network.
• It is a key player in the supplier
network and exerts significant
influence over the design and
operation of the supply chain.
Decision Phases in a Supply Chain

1 2 3

Supply chain Supply chain Supply chain


design planning operation
Examples – Supply chain design

• Coca-Cola's 57th bottling facility in India was commissioned by its franchise bottling
partner Moon Beverages at Greater Noida, Uttar Pradesh, in August 2013. Moon
Beverages invested more than INR1. 4bn ($23m) to commission the plant.
• McDonald’s, the global giant in the quick service industry, entered India in 1993 and
formed two JVs in 1995 one with Vikram Bakshi (Connaught Plaza Restaurants Ltd or
CPRL) to own and operate stores in the northern and eastern zones, and another with
Amit Jatia (Hardcastle Restaurants Private Limited or HRPL) to own and operate stores
in the western and southern zones.
Examples – Supply chain design

• Zepto chooses to design its network basis 10 mins grocery delivery.


• Dell chooses to sell directly to customers.
Supply chain design

• Strategic
• Longer term
Supply chain planning

• 3 to 12 months
• What markets to sell?
• Review of supply chain partners
• Planning logistics
• Subcontracting
Examples – Supply chain planning

• Zepto: What products to tie up along with groceries basis last year’s data
• Tata Steel: Review their distributors
Supply chain operation

• Monthly
• Weekly
• Daily
• Real time

• Supply chain control tower


Example – • Supply chain tower
Supply chain • Sudden demand for
blue colour Maruti
operations Brezza.
Supply chain decisions
• Supply chain design,
planning, and operation
decisions play a significant
role in the success or
failure of a firm.
• To stay competitive,
supply chains must adapt
to changing technology
and customer expectations.
Process views of a supply chain
Cycle view

• Customer order cycle


• Replenishment cycle
• Manufacturing cycle
• Procurement cycle

Push/Pull view

• Pull – processes are initiated by customer


order
• Push – processes are initiated and
performed in anticipation of customer
orders
Is it Push or Pull ?? & Why??
• Coca cola • Tata steel
• Bakery • PWC
• Nike • ICICI Lombard
• Apple • Zepto
• Tesla • Netflix
Supply Chain
Macro Processes in
a Firm

• Customer relationship
management (CRM
• Internal supply chain
management (ISCM)
• Supplier relationship
management (SRM)
• Coca-Cola – The company uses a push
strategy by partnering with distributors and
retailers to ensure its products are widely
available in stores and vending machines.
• A bakery may need to use a push system so
that they'll have baked goods on hand when
people visit their store.
• Dell uses a pull system and wait to build a
computer to the specifications stated in an
order.
Summary
Terms
• Focal firm

Objectives of Supply chain

Stages of supply chain

Decision phases in a supply chain


• Supply chain design
• Supply chain planning
• Supply chain operation
Process view of supply chain
Thank you

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