PRAVENDRA KUMAR

A supply chain is the collection of steps that a company takes to transform raw components into the final product.

Supply chain management is comprised of five stages: ◦ Plan ◦ Develop ◦ Make ◦ Deliver ◦ Return

What is SCM?

A plan or strategy must be developed to address how a given good or service will meet the needs of the customers. A significant portion of the strategy should focus on planning a profitable supply chain.

It involves building a strong relationship with suppliers of the raw materials needed in making the product the company delivers.

Develop

The product is manufactured, tested, packaged, and scheduled for delivery. Then, at the logistics phase, customer orders are received and delivery of the goods is planned.

Make and Deliver

Return of defective goods

The company will also address customer questions in this stage.

Returns

Drivers of the supply chain performanceFacilities.

Facilities are the actual physical locations in the supply chain network where product is stored, assembled, or fabricated.

Inventory. Inventory encompasses all raw materials, work in process, and

finished goods within supply chain.Transportation

Transportation entails moving inventory from point to point in the supply chain.

Drivers of the supply chain performance

Information Information consists of data and analysis concerning

facilities, inventory, transportation, costs, prices, customers throughout the supply chain.Pricing

Pricing determines how much a firm will charge for goods and services that it makes available in supply chain.

Customer order cycle Replenishment cycle Manufacturing cycle Procurement cycle

Push/pull view of supply chain process

Process view of supply chain process

Information must be accurate.

Information must be Accessible in a timely manner.

Information Of the right kind.

◦ Examples – Bar codes etc

Role of IT in SCM