SUPPLY CHAIN MANAGEMENT

A Presentation
By

Team - 3

CONTENTS

Introduction

INTRODUCTION
What Is Supply Chain Management (SCM)?
Plan Source Make Deliver Buy

A set of approaches used to efficiently integrate -Suppliers -Manufacturers -Warehouses -Distribution centers So that the product is produced and distributed -In the right quantities -To the right locations -And at the right time System-wide costs are minimized and Service level requirements are satisfied

Importance of SCM

Supply chain is very important because of flow of goods from one destination to other destination with cost effective and on timely delivery of goods to the business needs and gives the profit to the organisation. Supply Chain consists of many trading partners, from raw materials to finished products. Typical supply chain is denoted as below, Supplier-->Manufacturer-->Wholesaler-->Retailer Supply Chain Management is important because of relationship between each party. If every party join hand and work together, it will create cost savings and time to market reduction and everyone will enjoy the benefit.

Goals and Purposes of SCM

Supply chain is to maximize the overall value generated.

Reduce uncertainity and risks, inventory, cycle time.

Improve service. business processes,customer

Increased profits and competitiveness.

Supply Chain Structure

Plan Source Make Deliver Buy

suppliers

Manufacturers

Warehouses & Distribution Centers

Customers

Material Costs

Transportation Transportation Costs Transportation costs Costs Manufacturing Costs Inventory Costs

Advantages

Minimum cost with better material handling.

Improved customer satisfaction with right quality product and right time delivery of the product in his hand. Improves the supplier and manufacturer relationship which leads to business growth.

Disadvantages

SCM is hard to implement in immature /informal organisations. Willingness to share information,risks and gains. Transparency is highly required in any SCM networks.

CONCLUSION

The efficient delivery of the product to the consumer at the right price,in the right place and at the right time will result in good business of each link of chain.This takes strategic planning and effective collaborations with all patners. Through effective supply chain management,it benifits itself,the environment in other businesses.

Process view of supply chain

Cycle view

Customer order cycle

Replenishment cycle Manufacturing cycle Procurement cycle

Push / pull view

Supply chain activities

Forecasting demand

Selecting suppliers
Ordering materials Managing inventory Scheduling production Shipping and delivery Organizing information exchange

Selecting a supplier
In selecting a supplier, a number of factors must be analyzed:

Price Quality Reliability Credit terms

Shipping costs

Forecasting demand

Demand planning and sales forecasting is critical function for manufacturers, distributors, retailers and orther supply chain members It can help improve labour productivity,reduce the head count,cut inventories, speed up product flow and increaserevenues and profits Forecasts can be long term,short term or aggregate Forecasts methods methods vary depending on type of Industry vertical

Purchasing and procurement

Purchasing: implies the monetary transaction.

Procurement: the responsibility