SUPPLY CHAIN

MANAGEMENT (SCM)

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Purpose
SCM: CONCEPT

 Supply chain is a chain of activities describing the flow of

materials/goods from suppliers to the end user.
 In other words supply chain is an integrated approach or flow of the
goods movement from suppliers to the end users.
 Major players involved along with this chain are suppliers, warehouse,
manufacturers, logistics department or the transport department,
customer or distributor.

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Purpose
 Supply chain management is to ensure seamless flow between
many entities and ensure delivery of goods to the customer.

 Ultimate objective to manage the flow seamlessly is to attain the

level of synchronization between all the players that will make
organization more responsive to customer needs while lowering
costs and hence more competitive.

 Role of SCM is to design efficient processes in the various

business functions such as procurement, warehousing,
transport, etc. plan and execute the activities at the different
stages.

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Purpose
 SCM IN MANUFACTURING

Manufacturing supply chain is largely dominated by

Supply and logistics network to supply of raw materials. Warehousing operation to
inspect, stack and issue the raw material and keep track of inventory. Warehouse is also
to ensure once the finished goods are manufactured prepare a proper packing list,
packages to load them to transport to the customer and receive the acknowledgement

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Purpose
SUPPLY CHAIN IN RETAIL

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Purpose
EVOLUTION OF SUPPLY CHAIN

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Purpose
SCM COMPONENTS

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Purpose
SCM BENEFITS
• Efficient Supply Chain Network
Supply chain implementation brings in 360° visibility across the entire supply chain
network.
It tracks and manages all the activities across all the components of supply chain, namely
suppliers, production centres, warehouses and distribution channels.
•
• Optimize Delivery Performance
Successful implementation of SC brings in value additions in achieving on time deliveries
and finally, maintains the satisfied customer.
•
• Cost Reduction
One of the most importance objectives of SCM is to reduce the cost relating to inventories
by having improved inventory management function.

Inventory models like just-in-time (JIT), arriving at the proper inventory levels will reduce
the financial burden of overstocking of the material. This will have further impact on
achieving the reduction in production cost and the benefit is passed on to the customer.

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Purpose
SUPPLY CHAIN: IT PRODUCTS

• Expectations from the IT Products

SN Expectations from the Business Expectations from the Applications

Better contract management

1 Continued focus on cost cutting More automation
Improved performance reporting

Compliance with standards

2 Realtime collaboration
Increased visibility

Accurate performance measures

3 Accountability
Compliance support

Business flows that cross organizations

4 Alignment between SCM and CRM
Unified information architecture
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Purpose
SCM: PRODUCT FOOTPRINT

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SCM: PRODUCT FOOTPRINT

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Purpose
THANK YOU

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Purpose