SUPPPLY CHAIN MANAGEMENT

Presented By: Arpit Rastogi Anshul Chhabra

Supply Chain Management (SCM)

Managing flow of information through supply

chain in order to attain the level of synchronization that will make it more responsive to customer needs while lowering costs
Keys to effective SCM information communication cooperation trust

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Copyright 2006 John Wiley & Sons, Inc.

SUPPLY CHAIN INFLOW

Products Services

Information
Financial resources Demand forecasts

SUPPLY CHAIN PROCESS

Supply Chain for Service Providers

More difficult than manufacturing Does not focus on the flow of physical goods Focuses on human resources and support

services More compact and less extended

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Copyright 2006 John Wiley & Sons, Inc.

SUPPLY CHAIN DRIVERS

Why sudden interest? Demanding customers Shrinking product life cycles Proliferating product offerings Growing retailer power in some cases Doctrine of core competency Globalization Information technology

SUPPLY CHAIN ELEMENT

Supply Chain Design Resource Acquisition Long Term Planning

(1 Year ++)

Production/ Distribution Planning Resource Allocation Medium Term Planning (Quaterly monthly)

Shipment Scheduling Resource Scheduling Short Term Planning

(Weekly Daily)

SUPPLY CHAIN GOAL

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.

TYPES OF SUPPLY CHAIN

EFFICIENT Focus on cost , Economy of scale.

Supply and demand is uncertainty low.

RESPONSIVE Flexible to need of customer RISK HEDGING Sharing of resources in supply

chain to avoid risk

AGILE Combine responsiveness and risk

hedging strategy

INFORMATION FLOWS IN SCM

Information is overriding element Need for database Master files: Information about customers, products,

materials, suppliers, transportation, production and distribution data- do not require frequent processing.
Essentially using the same information to make all plans

Essentially using right from structuring the network to processing every day supply chain tasks.

KEY PROBLEM IN SCM

Design a supply chain network that delivers high quality products to the right customers at the right time at minimum cost

IMPORTANT POINTS TO BE KEPT IN MIND

Segment customers based on service needs.

Modify the supply chain to meet these service

requirements profitably. Develop forecasts collaboratively involving every link of the supply chain. Locate the leverage point where the product is unalterably configured to meet a single requirement Delay product differentiation till the last possible moment.