Supply Chain Management

Session 1

Course Facilitator
Dr. Kashif Mahmood
Knowing Each other
Instructor Profile
Dr. Kashif
Mahmood
• PhD in Supply Chain
Management
• Associate Professor
• HEC approved Supervisor
• 18 years of Experience
• Master Trainer for
research Softwares
(NVIVO, SMART PLS,
SPSS, AMOS, ATLAS.Ti)
• Certified Supply Chain
Manager (CSCM) USA
• Advanced Diploma of
CILT, UK
 Introduction to the Module

Key aims of the module:

 Provide knowledge and experience of supply
chain management (meanings and rationale).
 Developing a skill for creating supply chain
networks with a holistic approach.
 Creating a mechanism of controlling the supply
chains.
 Compare and contrast Supply Chains of SMEs,
LSCs and MNCs.
 Provide understanding of key decisions in
supply chains about sourcing, production,
distribution, transportation and coordination.
 Learning Outcomes

On successful completion of the course student will

be able to:

 Understand and analyze the basic and strategic

framework of Supply Chains
 Design the supply chain network
 Plan and coordinate demand and supply in
supply chain
 Plan and manage inventories in supply chain
 Design and plan transportation networks
 Assessment Description

The course is divided into following assessment

criteria:
Marks/
Assessments
Percentage

• Case Study Analysis 20%

• Final Term Exam 40%

• Final Project (Report + Presentation ) 40%

Session Guidelines
 Critique but do not criticize
 When giving feedback use affirmative and not negatives
 Thank everyone at the end of the day
 Have absolute fun
 Say when you do not understand
 Allow time for people to speak out and express themselves
 Creating Effective Learning
Environment
Agreeing guidelines for working together as a group
 What will we cover today ?
Contents of session 1

1. Understanding Supply Chains

1. What is supply chain

2. Difference between Logistics, Agile, Lean and Supply Chain

3. Historical Perspectives

4. Importance

5. Decision phases and Process of Supply chain

 Activity

• Write down the steps through which a

formal shirt would be available to you.
 Why Supply Chain
Management?
• For a competitive advantage
• Increase efficiency
• Ensure the synchronization between
inter-firm operations

Why need 100% accuracy

What is Supply Chain Management?
Write a definition in your own words
(Take 5 Minutes)
Logistics vs Supply Chain vs Lean
vs Agile
Supply
Chain
Logistics
Managem
ent

Lean Agile
Historical Perspective

Sourcing,
Procurement Materials
and Supply Management
Management

Logistics and
Distribution
 Supply Chain
Management
A supply chain consist of all parties involved, directly or indirectly, in
fulfilling a customer request. (Chopra et al., 2013).
The management of upstream and downstream relationships with
suppliers and customers to deliver superior customer value at less cost
to the supply chain as a whole (Christopher, 2005).
A network of connected and interdependent organizations mutually
and co-operatively working together to control, manage and improve
the flow of materials and information from suppliers to end users
(Aitken, 1998)
 Supply Chain Management

•
Introduction
All stages involved, directly • Includes movement of
or indirectly, in fulfilling a products from suppliers to
customer request manufacturers to
distributors, but also
• includes movement of
Includes manufacturers,
information, funds, and
suppliers, transporters, products in both
warehouses, retailers, and directions
customers
• Probably more accurate to
• Within each company, the use the term “supply
supply chain includes all network” or “supply web”
functions involved in
fulfilling a customer • Typical supply chain
stages: customers,
request (product
retailers, distributors,
development, marketing, manufacturers, suppliers
operations, distribution,
finance, customer service) • All stages may not be
present in all supply
• Customer is an integral chains
 Supply Chain Management
Objectives
• Supply
Maximize Chain
overall valuesurplus = Customer Value – Supply
created Chain Cost
• Supply chain value: • Example: Dell receives
difference between what $2000 from a customer for
the final product is worth to a computer (revenue),
Supply chain incurs costs
the customer and the effort
(information, storage,
the supply chain expends in transportation,
filling the customer’s components, assembly,
request etc.), Difference between
• Value is correlated to $2000 and the sum of all
supply chain profitability of these costs is the supply
(difference between chain profit
revenue generated from the • Supply chain profitability
customer and the overall is total profit to be shared
across all stages of the
cost across the supply
supply chain
chain) • Supply chain success
• Sources of supply chain should be measured by
revenue: the customer total supply chain
• Sources of supply chain profitability, not profits at
cost: flows of information, an individual stage
Decision Phases In a
Supply Chain
Supply
Supply
Chain
Chain
Strategy or
Planning
Design

Supply
Chain
Operations
Process View of a Supply
Cycle View
Chain
Customer Order
Cycle Push
Replenishment Processes
VS
Cycle
Pull
Manufacturing Processes
Cycle
 Supply Chain Macro
Processes in a Firm
SRM ISCM CRM
(Supplier (Internal (Customer
Relationship Supply Chain Relationship
Management) Management) Management)

• Source • Strategic • Market

• Negotiate Planning • Price
• Buy • Demand • Sell
• Design Planning • Call Center
Collaboration • Supply • Order
• Supply Planning Management
Collaboration • Fulfillment
 SCM Examples
• Zara: Apparel Manufacturing and Retail

• Toyota: A Global Auto Manufacturer

• Amazon: Online Sales

 Next Class
ArticlePresentation
Title: What is the Right Supply
Chain for your Product
Author(s): Marshall L. Fisher
Publisher: Harvard Business Review
Any Question?