supply chain mgt11

8/3/2019 Supply Chain Mgt11

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SUPPLYCHAIN MANAGEMENT

GROUP MEMBER

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Topic to present


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WHAT IS SUPPLY CHAIN MANAGEMENT

" Is the strategic management of activities involved in

the acquisition and conversion of materials to finished

products delivered to the customer"

Supplier

Management

Schedule /

ResourcesConversion

Stock

Deployment Delivery

Customer

Management

Material Flow

Information Flow


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DEFINITION

Supply chain is the system by which

organizations source, make and deliver their

products or services according to market

demand. Supply chain management operations and

decisions are ultimately triggered by demand

signals at the ultimate consumer level.

Supply chain as defined by experienced

practitioners extends from suppliers to

customers.


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Supply chain objectives may differ from

situation to situation.

For functional products, cost efficiency is the

critical factor.

For innovative products, responsiveness is

the important factor.


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Supply Chain Structure

Information Flow

rawMaterials

RETAILERFACTORY DC RDCSUPPLIER

Finished Goods


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SCM

Supply side- raw materials, inbound logistics

and production processes

Demand side- outbound logistics, marketingand sales.


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7

Supply Chain Management

A set of approachesused to efficiently integrate

Suppliers

Manufacturers

Warehouses

Distribution centers

So that the product is produced and distributed

In the right quantities

To the right locations

And at the right time

Costs are minimize and requirements are satisfied


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SUPPLY CHAIN INCLUDES

MATERIAL FLOWS

INFORMATION FLOWS

FINANCIAL FLOWS


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SUPPLY CHAIN DRIVERS

Demanding customers

Shrinking product life cycles Product offerings

Growing retailer power in some cases

Core competency

Emergence of specialized logistics providers Globalization

Information technology


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THE STEPS INVOLVED

Step 1- Designing the supply chain

Step 2 -Optimizing the supply chain

Step 3- Material flow planning

Step 4 -Transaction processing


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Information flows in Supply Chain Management

Information is overriding element

Need for databases

Master files: Information about customers, products,materials, suppliers, transportation, production and

distribution data- do not require frequent processing

Status files- heart of transaction processing- track

orders and infrastructure status- updated daily.

Essentially using the same information to make all

plans right from structuring the network to processingevery day supply chain tasks.


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Critical Success Factors today

Cross f unctional management and

planning skills Ability to define, measure and manage

service requirements by market segment

Information systems Relationship management


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Supply Chain Goals

Efficient supply chain management must

result in tangible business improvements. It is

characterized by a sharp focus on

Revenue growth

Better asset utilization

Cost reduction.


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Supply Chain

Management

Compression

Conformance

Co-operation

Communication

(Planning/Manufacturing/Supply)

(Forecasts/Plans/Distribution)

(Cross -Functional)

(Real Time Data)


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SUPPLY CHAIN ELEMENTSSUPPLY CHAIN ELEMENTS

Supply Chain Design Resource Acquisition

Long Term Planning (1 Year ++)Strategic

Production/ Distribution Planning Resource Allocation

Medium Term Planning (Qtrly,Monthly)Tactical

Shipment Scheduling

Resource Scheduling

Short Term Planning (Weekly,Daily)Operational


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Why Is SCM Difficult?

Uncertainty is inherent to every supply chain

Travel times

Breakdowns of machines and vehicles

Weather, natural catastrophe, war

Local politics, labor conditions, borderissues


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THANK YOU

supply chain mgt11

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