NATIONAL COLLEGE OF BUSINESS ADMINISTRATION AND

ECONOMICS

SUPPLY CHAIN
MANAGEMENT
ASSIGNMENT NO 1

ZUNAIR ALI SYED

SUPPLY CHAIN MANAGEMENT

Contents
Supply Chain & Its Importance................................................................................... 1
Supply Chain........................................................................................................... 1
Why SCM methodology is vital for an Organization.................................................1
Example.................................................................................................................. 1
Characteristics of supply chain...................................................................................2
Supply Chain........................................................................................................... 2
Characteristics:....................................................................................................... 2
Explain Supply Chain w.r.t.......................................................................................... 3
1) Operations.............................................................................................................. 3
2) Marketing............................................................................................................... 3
Supply chain (Operations):...................................................................................... 3
Marketing and SCM................................................................................................. 4

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SUPPLY CHAIN MANAGEMENT

Supply Chain & Its Importance
Supply Chain
SCM is the management of a network of all business processes and activities
involving procurement of raw materials, manufacturing and distribution
management of Finished Goods.

Why SCM methodology is vital for an Organization

Store network Strategies are the basic spine to Business Organizations today.
Powerful Market scope, Availability of Products at areas which hold the way to
income acknowledgment relies on the adequacy of Supply Chain. Simply expressed,
when an item is presented in the business sector and publicized, the whole market
in the nation and every one of the business counters need to have the item where
the client has the capacity purchase and take conveyance. Any glitch in item not
being accessible at the perfect time can bring about drop in client intrigue and
request which can be grievous. Transportation system outline and administration
accept significance to reinforce deals and promoting methodology.
Stock control and stock perceivability are two extremely basic components in any
operations for these are the expense drivers and straightforwardly affect the
primary concerns in a critical position sheet. Stock means esteem and is an
advantage of the organization. Each business has a standard for stock turnaround
that is ideal for the business. Stock turnaround refers to the quantity of times the
stock is sold and replaced in a time of twelve months. The strength of the stock
swing identifies with the wellbeing of business.
In a worldwide situation, the completed products stock is held at numerous areas
and dissemination focuses, oversaw by outsiders. A considerable measure of stock
would likewise be in the pipeline in transportation, other than the stock with
wholesalers and retail stocking focuses. Since any loss of stock anyplace in the store
network would bring about loss of worth, successful control of stock and
perceivability of stock additions significance as a key variable of Supply Chain
Management capacity.

Example
On the off chance that you go to a Supermarket and get a couple of things of the
rack from gadgets and white merchandise or even garments and take a gander at
the names, odds are that you will discover them having been fabricated in China or
Mexico. The espresso units you purchase to use for your consistently utilize
originates from Africa. PCs have been delivered out of South American Factories and
Soft decorations on the racks are from India and Hong Kong.
Worldwide markets are extending past outskirts and re-characterizing the way
request and supplies are overseen. Worldwide organizations are driven by business
sectors crosswise over mainlands. With a specific end goal to keep the expense of
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SUPPLY CHAIN MANAGEMENT

assembling down, they are compelled to keep hoping to set up creation focuses
where expense of crude materials and work is modest. Sourcing of raw materials
and sellers to supply the right quality, amount and at right value calls for element
acquisition system spreading over crosswise over nations.
With the above situation you discover organizations securing materials
comprehensively from different merchants to supply raw materials to their
processing plants arranged in diverse mainlands. The completed merchandise out
of these diverse manufacturing plant areas then go through distinctive chains of
appropriation system including stockrooms, fares to distinctive nations or nearby
markets, wholesalers, retailers lastly to the end client.
In basic dialect, dealing with the greater part of the above exercises in coupled to
oversee request and supply on a worldwide scale is Supply Chain Management.
According to definition SCM is the administration of a system of all business
procedures and exercises including acquisition of raw materials, assembling and
dispersion administration of Finished Goods. SCM is additionally called the specialty
of administration of giving the Right Product, At the Right Time, Right Place and at
the Right Cost to the Customer.

Characteristics of supply chain

Supply Chain
SCM is the management of a network of all business processes and activities
involving procurement of raw materials, manufacturing and distribution
management of Finished Goods.

Characteristics:
There are seven characteristics of the companies that outperformed their peer
groups:
1. Leadership. Enlightened leadership which focuses on the management of
the supply chain as a complex system.
2. Outside-In Processes. The use of channel data in advanced analytics to
sense and translate demand. Today, with higher demand volatility, the
demand latency of the customer order is not sufficient for most supply
chains.
3. Mature Horizontal Processes. Leaders have focused on building strong
horizontal processes; like revenue management, Sales and Operations
Planning, Supplier Development and Corporate Social Responsibility. For
mature companies, there is balance in S&OP between the s and the op. For
example, when companies are balanced in S&OP processes, they outpace
their peer group with 10X greater performance in inventory turns.
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4. The Right Stuff in the Organization. Companies with the strongest
performance had more advanced supply chain human resource departments,
a well-integrated supply chain finance team, and a supply chain center of
excellence. Today, only 14% of companies feel they manage the human
resources of the supply chain team well, and only 40% of companies have a
human resources team focused on building talent. In addition, only 8% of
companies can readily get to total supply chain costs, and while 1/3 of
companies have a supply chain center of excellence, only 50% feel that they
are effective. As a result, there is much to be done.
5. Supply Chain Design. While companies would never think of building a plan
without years of design and fine-tuning, only 22% of companies actively
design their supply chain. Companies that do this well will focus teams on
continually designing and redesigning their supply chain flows crossfunctionally. It is not just about the bricks and mortar. Instead, it is about the
flows: form and function of inventory, stocking locations, interplant
shipments, the alignment of suppliers, and the design of the channel. It
matters. Active supply chain design is a common characteristic of ten of the
fifteen leaders.
6. Aligned Metrics. To ensure the effective management of the complex
system, the metrics of operating margin, inventory turns, ROIC, customer
service, revenue, and forecast accuracy need to be managed together as a
nonlinear system cross-functionally. The functional metrics have a laser-focus
on reliability with a cross-functional alignment on the higher-level balance
sheet performance.
7. Strong Planning Capabilities. Companies with better planning capabilities
score higher on the methodology. The supply chain today cannot be
adequately managed on a spreadsheet. Yet, despite the implementation of
many supply chain planning technologies, the spreadsheet is still the most
commonly used technology for planning. The issues are manydifficulty with
the user interface, scalability, a lack of what-if modeling, suitability of the
data modelgetting it right makes a major difference in driving corporate
performance.

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Explain Supply Chain w.r.t
1) Operations
2) Marketing
Supply chain (Operations):
The operations and supply chain management relates how to manage operations in
business and government. An operation is the process by which a company or
organization converts raw materials, labor and capital into a final product or service.
In an automobile company, for example, materials and labor are transformed by
manufacturing operations into cars. In a hospital, nurses and doctors use medicines,
care and equipment to help sick patients become healthy. In a bank, staff members
use computers and systems to manage the flow of money among accounts and
provide customers with statements and other banking services. Whatever the
operation, decisions have to be made to establish work schedules for employees,
forecast demand for products and services, improve and maintain quality, ensure
adequate inventory, transport and store products and materials, and order
materials and parts.
Clearly, the impact that SCM has on business is significant and exponential. Two of
the main ways SCM affects business include:
o

Boosts Customer Service

SCM impacts customer service by making sure the right product assortment
and quantity are delivered in a timely fashion. Additionally, those products
must be available in the location that customers expect. Customers should
also receive quality after-sale customer support.

Improves Bottom Line

SCM has a tremendous impact on the bottom line. Firms value supply chain
managers because they decrease the use of large fixed assets such as plants,
warehouses and transportation vehicles in the supply chain. Also, cash flow is
increased because if delivery of the product can be expedited, profits will also
be received quickly.

Supply chain management helps streamline everything from day-to-day product

flows to unexpected natural disasters. With the tools and techniques that SCM
offers, youll have the ability to properly diagnose problems, work around
disruptions and determine how to efficiently move products to those in a crisis
situation.

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Marketing and SCM
A market orientation requires a firm to redefine the responsibilities of each function
within a firm, especially those of marketing. A seller's creation of value for buyers is
analogous to a symphony orchestra in which the contribution of each subgroup is
tailored and integrated by a conductor. Therefore, in addition to traditional
marketing exercises, marketing should perform a guiding and coordinating role to
make sure the rest of the company delivers on customers expectations and
satisfactions. By nature, a market orientation requires close inter-firm relationships
that are the sources of information outside the firm. Hence, a firm should have
intimate relationships with its customers to closely monitor their current and future
needs and to make sure that customers obtain what they want from the firm.
Furthermore, the firm should have close relationships with distributors, resellers,
suppliers, and other participants in the market to identify influences of those market
participants on customers needs and preferences. The sharing of information
among the partners in a supply chain may simply be part of practicing
organizational learning within the boundary of a supply chain rather than the
boundaries of individual firms. When linked, these alterations help partners within a
supply chain achieve better two way relationships with suppliers and distributors.
With improved information sharing, partners are able to utilize supplier creativity
and knowledge, encourage individual learning within an established supply chain
context and help in improvement of the processes. Finally, a market orientation
facilitates relationship marketing could promote the implementation of Supply Chain
Management indirectly as compared to relationship marketing. Building and
maintaining close long term relationships among partners beyond the life of a
contract that encourage inter-firm coordination are needed for the implementation
of SCM. However, relationship marketing depends on inter-firm cooperation that
focuses on the systematic development of ongoing and collaborative business
relationships. Therefore, in addition to close long-term relationships among the
supply chain members, the implementation of relationship marketing promotes
inter-firm cooperation to a great extent

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