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Supply Chain Management

BC312 Enterprise Computing Presented by Team Reuters: Valerie Tan Ying Qi Wee Jia Yi Ding Haohang Nguyen Ngoc Huy

Lesson Outline
Introduction to Supply Chain Management A classroom simulation of a supply chain Go in-depth to individual components of Supply Chain Supply chain integration Conclusion

Key Players
- A supply chain consists of
Supplier Manufacturer Distributor Retailer Customer

to match supply and demand, profitably for products and services


SUPPLY SIDE DEMAND SIDE

- Aims

achieves

+ + + +

Hiccups in a Supply Chain

Eliminating inefficiencies in supply chains can save millions of dollars

Motivation
Globalisation + Lower cost of IT Outsourcing and Offshoring became popular Form huge and complex supply network across the globe To remain competitive, SCM became very important

Real life Examples


Compaq estimates it lost $0.5 B to $1 B in sales in 1995 because laptops were not available when and where needed

Definition
Design, Planning, Execution, Control, and Monitoring of supply chain activities Objective:
Creating Building a Leveraging Synchronizing Measuring

with globally

Key Activities

Procurement

Procurement
Why important?
Food -> Healthy body Supply -> Healthy supply chain

Procurement
Why important? Whats the key consideration?

Manufacturing and Operations

Manufacturing and Operations


Considerations
Cost Quality Speed Flexibility

Trade-off
Resources Facility Process

Manufacturing and Operations

Manufacturing and Operations


Outsourcing

Not a Core Activity?


Offshore Franchising

Transportation

Key issues in transportation


Primary mode of Transportation
E.g.

Procedure to transport the goods


E.g. Packaging, documentation, insurance, storage, export and import regulation

Sometimes, may need to


E.g. Freight forwarder who guides you through the complex details, depending on your industry

Implications on Logistics
Very important because the transportation process will dictate the logistical planning process. Each item is different.

EVERY PRODUCT HAS THEIR OWN STORY!!

Retail

Key issues in Retail


SCM: Get the right product to the right place, at the right time, in the most efficient manner. Customers want the products not warehouse, distribution centers, or elsewhere. What makes up excellent retail experience?
price, clean facilities, good customer service, fast waiting line, fast payment, easy return policies.

What do retail stores need to consider?


Materials, operations, logistics Capacity, productivity and value Consistently effective, efficient, ready to adapt to what the market demands. Interesting facts:
Each Big Box American retail store typically sells between $500,000 - $1.5m worth of products each week Big Box Store manager earn 6-figure income

Retail isnt just about physical goods


What do Hospitals, Airlines, Banks, Hotels have in common?
no different from retail stores!

They can all make use of SCM

Retail Services can all benefit from SCM too!

Integrating Supply Chain Activities

Integrating SC Activities
Involves
Buyers and suppliers Joint product development Common systems Shared information

Continuous

SC in the Business Process


Strategic
Number, location, size of facilities Partnerships Suppliers, distributors, customers Create communication channel Integrating products into SC IT chain operations Where-to-make, make-buy decisions

SC in the Business Process


Tactical
Sourcing contracts etc. Quantity, location, quality Frequency, route, contracting Benchmarking Against competitors Implement best practices throughout the enterprise

SC in the Business Process


Operational
Daily production and distribution planning Production scheduling (minute by minute) Demand Coordinate demand forecast of customers Share forecast with suppliers Sourcing planning Current inventory and forecast demand

SC in the Business Process


Operational (continued)
operations Transportation between suppliers and receiving inventory Production operations Consumption of materials and flow of goods operations Fulfillment activities, warehousing, transportation to customers

Example Wal-Mart + P&G


Make use of Information Technology
Share data across their mutual supply chains

Effective partnership channel


Channel activities well coordinated

Reduced needs for inventory with increased sales


Focus on selling what customers want

Supply chain adopted a much better customer focus through channel partnership