Supply Chain Management

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Supply Chain Management
AN INITIATIVE BY VAINY GOEL BBA 1 MODI
COLLEGE
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Outline of the Talk

• What is Supply Chain Management
• Supply Chain Management Process
• Supply Chain Management Decisions
• Software Tools
• Conclusions

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What is Supply Chain Management ?
Supply Chain is a set of activities (e.g.
purchasing, manufacturing, logistics,
distribution, marketing) that perform the
function of delivering value to end customer
Traditionally, all the business units along a
supply chain have their own objectives and these
are often conflicting
There is no single plan to carry out supply chain
activities
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What is Supply Chain Management ?
There is need for a mechanism through which the
execution of various business activities along a
supply chain can be planned in an integrated
fashion.
The supply chain management is an effort to
achieve the primary goal of producing and
distributing the merchandise at the right
quantity, to the right locations, and at the
right time with minimum system wide cost in the
presence of conflicting goals of various
business units
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Statics of Material Flow
Supplier
Plant
Warehouse
Logistics
Retailer
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Dynamics of Order Flow
Supplier
Plant
Warehouse
Logistics
Retailer
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Supply Chain Management Processes
Demand Forecasting
Demand Planning
Material Requirement Planning
Production Plan
Component Requirement
Retailer
Supplier
Plant
Warehouse
Logistics
Order Management
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Supply Chain Management Decisions
STRATEGIC
TACTICAL
OPERATIONAL
Procurement
Distribution
Manufacturing
Logistics
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Supply Chain Management Decisions
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Software Packages
i2 Six A comprehensive solution suite for
spend/ production/ revenue/ logistics/
fulfillment optimization
Solution suites for network design
optimization/ manufacturing planning
scheduling/ global logistics management/ service
parts management
JD EDWARD The advanced planning software to
synchronize demand planning/ network
Optimization/ production distribution planning

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Software Packages
ARIBA Spend Management It helps companies
driving down enterprise wide spend
mySAP SCM A complete supply chain planning
solution
iBann A complete solution suite from demand
collaboration to order management
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Results

• Reduced inventory levels by 10-15

• Reduced markdown scrap by 10-15

Companies that utilized best-in-class SCM
solutions have

• Used resources10-20 more efficiently

• Improved delivery reliability by 95-95

• Reduced outages to 0-5

• Reduced cycle time by 10-20

• Reduced transportation cost by 10-15

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Conclusions

• Supply Chain Planning A critical factor in the
• success and profitability of a company

• Short Product Life Cycle Improper planning can
• take the company out of business

• Bad News Planning is an hard problem to
  formulate
• as well as solve

• Good News Plethora of Commercially available
• software for supply chain planning

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Thank You