dheeraj, rohan, siddesh

8/14/2019 Dheeraj, Rohan, Siddesh

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Integrated Supply Chain Management

&Its Barriers

11/15/20131

Dhirajkumar Gite A 15

Rohan Powale A 63

Siddhesh Shetye B 58


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What is ISCM

An Integrated Supply Chain (ISC) is one that has full

responsibility across the corporation (including different

divisions, business units and geographies) for the planning

and management of all activities involved in end to end-supply

chain processes, including direct sourcing

and procurement, conversion/ manufacturing, and all logistics

management activities.

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Integrated Supply Chain

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Vendor

Procurement

ManufactureDistribution

RetailerIntegrat

ed

Supply

chain


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Why ISCM ?

1.Manufacturers goals

Reduce cost

Reduce duplication of efforts

Reduce lead time

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Contd

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Implement cost reduction program

Involve suppliers early

Reduce time to market


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Contd

2.Suppliers goals

Reduce cost

Increase sales volume

Increase customer loyalty

Improve profitability

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How ISCM is developed ?

Developing an integrated supply chain strategy-

Phase I: Competitive Environment Evaluation

The first step is to look outward.

The objective is to develop and document the

characteristics of the market place.

The process used to evaluate market characteristicsinvolves looking at and surveying vendors, customers

and competitors.

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Contd

Phase II: Supply Chain Diagnostic Review

The focus is to review the supply chain operations

and to identify those areas which offer potential forimprovement.

The objective is to develop a realistic method of

allocating overhead costs to products, markets andactivities.

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Contd

Phase III: Supply Chain Development

Development of a supply chain strategy and tactical

plan for implementing that strategy.

The objective here is to develop a strategy for the

company, based on the work done in the first two

phases which is consistent with customer desires,

management focus, market characteristics and the

realities of the organisation.

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Supply Chain Department

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ManagingDirector

Sales ManagerFinancialManager

LogisticControl

Supply chainManager

ProductionManager

StorageTransportationPlanning Marketing

Integrated Supply Chain Management Department


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Contd

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Postponement

Channel assembly

Drop shipping and special packaging

Blanket orders

Standardization

Electronic ordering and funds transfer


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Integrated Supply Chain Framework

Integrated supply chain dived into two internal

and external

Internal :

Deals with material, inventory and warehousemanagement

External :

Resource flow from supplier to manufacturerand later to customer

Information flow from customer to

manufacturer to supplier11/15/201312


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Internal integration across supply chain

Degree of Coordination between internal functions oftrading partners in supply chain

Captures organization functions such as incoming raw

material production and shipping

Requires full system visibility both inbound andoutbound

Organizations investment towards enhancing its ITand systems


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Companies Integration with customer

Degree of Coordination between manufacturing firm

and downstream customers

Involves all activities which include determiningcustomer needs and fulfilling them

Understanding customers and building strong linkage


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Companies Integration with supplier

Degree of Coordination with manufacturing firm and

upstream customers

Involves activities long term commitment and closerelationship between firms and its suppliers

It takes place through effective organization

communication and mutual trust

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Supply Chain Agents

Chain of activities involving ordering and receivingraw material manufacturing and distribution and

customer delivery

Integrated supply chain requires coordination withcustomer and supplier

This coordination is achieved through cooperating

agents each performs one or more function andcoordinates decision with other agents

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Contd

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Agent responsible for set of functions in supply chainwho stores information locally and can access from

network

Agents exists within EIA which provides distributedinformation environment


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Types Of Agent

Integrated Supply chain consists of two cooperatingagents each performs different functions and decisionsare coordinated between two

Functional agents: Plans and controls activity in

supply chain Information agents: Supports supply chain by

providing communication service

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Functional agents

Order acquisition agent:

Acquiring orders from customers, negotiating prices Handling customer request for order modification and

cancellation

Logistic agent: Coordinates with multiple supplier and distribution

centre

Manages movement of product across supply chain

from supplier to customer


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Transportation agent:

Assignment and scheduling of transportation specifiedwith logistic agent

Scheduling agent:

Takes care of scheduling activities in factory

Assigns resources and start time to resources that are

feasible

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11/15/201321

Resource agent

It merges functions of inventory management and

purchasing

Manages availability of resources so that schedule

can be executed

Selects suppliers with minimum cost and fast delivery


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Dispatch agent

They release order and are real time floor control

Coordinates with schedule agent if any change inschedule

Information agents

EIA provides communication and information serviceto information agents

It checks and maintains consistency of information

It allows automatic distribution of information to these

agents

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Supply Chain Agents

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OrderAcquisition

Logistic

Scheduling

Transport

Resourse

Dispatch

Informatio

n

Agent


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Supply Chain Model

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Ordersand

materialResponse

Trust

Visibility

Collaboration

Preference

Market

size

Employe

es

SupplierCompany Market Customer


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ISCM Significance

The significance of this development embodies a

change of focus; away from being product-orientated

to being customer-orientated, penetrating deep into

the customer organization to understand the products,

culture, market and organization.

This should ensure that the company is attuned to the

customer's needs and requirements.

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Opportunities in an Integrated Supply Chain

Accurate pulldata

Lot size reduction

Single stage control of replenishment

Vendor managed inventory

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Barriers to ISCM

Silo mentality

Lack of supply chain visibility

Lack of trust

Lack of knowledge

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Activities causing bullwhip effect

Demand updating

Order batching

Price fluctuations

Rationing and shortage gaming

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11/15/201329

dheeraj, rohan, siddesh

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