Supply Chain Management

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Supply Chain Management

• A presentation
• by
• Kritika chhatwal

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SUPPLY CHAIN MANAGEMENT

• Supply-chain management is the integration
  of business processes from end user through
  original suppliers, that provide products,
  services, and information that add value for
  customers.
• 1) Value Chain
• 2)Supply side- raw materials, inbound
  logistics and production processes
• 3) Demand side- outbound logistics, marketing
  and sales.

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WHAT IS SUPPLY CHAIN MANAGEMENT
Leads to Business Process Integration
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• 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 suppliers
  to customers customers.

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• SUPPLY CHAIN INCLUDES
• MATERIAL FLOWS
• INFORMATION FLOWS
• FINANCIAL FLOWS

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• Supply Chain

Material flow
Material flow
OPERATIONS
Stores RM
Distribution
Stores FG
Procurement
PROCESSING
Purchase
Warehousing
Information flow
Vendor
Customer
Out bound logistics
Inbound Logistics
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SUPPLY CHAIN ELEMENTS
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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 Principles
C
Compression
(Planning/Manufacturing/Supply)
Conformance
(Forecasts/Plans/Distribution)
Co-operation
(Cross -Functional)
(Real Time Data)
Communication
Reduce Overall Cycle Time Improve
Response
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. The steps involved

• Step1- Designing the supply chain
• Determine the supply chain network
• Identify the levels of service required

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• Step 2 - Optimizing the supply chain
• Determine pathways from suppliers to the end
  customer
• Customer markets to Distribution centers
• Distribution centers to production plants
• Raw material sources to production plants
• Identify constraints at vendors, plants and
  distribution centers
• Get the big picture
• Plan the procurement, production and
  distribution of product groups rather than
  individual products in large time periods-
  quarters or years

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• Step 3- Material flow planning
• Determine the exact flow and timing of materials
• Arrive at decisions by working back from the
  projected demand through the supply chain to the
  raw material resources
• Techniques
• ERP

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• Step 4 - Transaction processing and
• short term scheduling
• Customer orders arrive at random
• This is a day to day accounting system which
  tracks and schedules every order to meet customer
  demand
• Order entry, order fulfillment and physical
  replenishment

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• IMPORTANCE of Information 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
  processing every day supply chain tasks.

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• Thank You