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Learning Objectives
What is Supply Chain Management How it differs from traditional Purchase and Materials function How it gained momentum from Purchase and Materials General Supply Chain Model for Manufacturing and Service Industry Summary
Materials Management is Concerned with the Flow of Materials to Manufacturing Departments from Suppliers End Learning How Much to Set, When to Set, From Where to Set and at What Price & Quality & last but not the Least, Continuity of Supply
IT
PURCHASE
R&D
OPERATIONS SUPPLIERS
DESIGN
Summary
A Systems Approach for the End-to-End Processes Avoiding Surprises at any Point of Time but at Bare-Minimum Operational & Holding Cost Role of Supply Chain Creates a Platform for Business Partner Relationship Between Customers & Vendors
Learning Objectives
Activities Involved along with Objectives How to Overcome Traditional Approach 21st Century Supply Chain Activities to Initiatives Latest techniques used TQM, JIT, ReEngineering Summary
Summary
Arrange Quality Material on Time
Focus on Business Partner relationship to Avoid Overstocking Emphasis on Value Creation Positioning by Way of Differentiation
Learning Objectives
Role of Supply Chain Manager Objectives of Supply Chain Manager Supplier Management and its Functions Summary.
Summary
Focus on Proper Supplier Network Qualitative & Quantitative for effective supplies Value Analysis & Value Engineering for proper Supplier Evaluation Improve Customer Satisfaction through proper Network Management
Learning Objectives
Objectives of Inventory Management and Control. Scope and Importance of Inventory Management. Roles and Responsibilities of Supply Chain Manager. Summary
Summary
Centralized Inventory Management helps SCM Managers for effective Planning Balancing Demand & Supply
Learning Objectives
Procurement Process. Relevance of procurement for Manufacturing & Services. Importance of quality as an interface. Logistics interface for managing supply chain. Summary.
Procurement Process
Ask for Quotations Negotiations Vendor Audit Sampling Quality Approval Trial Order Business Partner Relationship
Summary
Integration through Logistics help Supplier Chain manager to take quick & effective decisions Business Partner Relationship for Continuous Improvement Value addition for exceeding Customer demand for Branding
Learning Objectives
Out Sourcing and Value Chain Management. Multiple, Few, Vertical, Keiretsu and Virtual Companies. Strategic Focus on Supply Chain Management. Role of Purchasing in Supply Chain Management. Summary
Summary
Manufacture products at location which will give better ROI In bound & Out bound Logistics acts as key differentiator to manage Supply Chain Integration to be taken on top priority to avoid miss communication between internal Customers for external disatisfaction
Learning Objectives
Quality. Cost. Lead Time Strategic Location. Shortages. Summary
Quality
Conformance to the given requirements Fitness for Use Its a journey & Not the final destination Material to be procured for right Quality as per the specifications given by technical department
Cost
Material to be procured at a price which has to justify Not to Compromise on price which might give unfavorable results Rejection of goods should not be at the cost of poor inputs Create value addition and not cost addition
Lead Time
Integration of Cross Function Coordination and Suppliers-Top Priority Supplier Scheduling & Re-scheduling keeping in mind variations in demand forecasting Sufficient lead time to be given to Suppliers to avoid surprises
Strategic Location
Manufacture products where costs are low Avail Tax benefits Monitor smooth flow of materials and avoid delays due to poor Transportation Allocate sufficient resources for enhancing Productivity to deliver the best results from that Strategic Location
Shortages
Poor Planning Create Shortages Non availability of Product triggers customers to become butterfly
Summary
Quality should be treated on top priority Relationship with Suppliers can reduce purchasing cost
J.I.T. philosophy to be adopted to avoid shortages vi a vi excess stocking Strategic Location to evaluate where and when to manufacture
Learning Objectives
Make / Buy Or Make-Buy Decisions. Supplier Scheduling. Value Analysis and Value Engineering. Supplier Certification. Summary.
Supplier Scheduling
Based on Demand Forecasting Location wise arranging Raw-materials, Spares & Components
Supplier Certification
Approval from Quality Control & Quality Assurance to be done for certifying Supplier Various Conditions and Legalities involved during certification process Suppliers to adhere to the said norms Periodic Audit undertaken to check any malpractices
Summary
Business Decisions are taken by conducting Value Engineering/Value Analysis Make/Buy or Make-Buy decisions based on various parameters Supplier Scheduling based on Strategic Locations Certification of Suppliers is a must for avoiding any mishaps in long run
Learning Objectives
Co-ordination/Interaction/Feedback. ABC Analysis. Vendor Auditing and Rating. Measurement of Vendors. Structural Importance CROSS DOCKING. Summary.
Co-ordination/Interaction/ Feedback
Co-ordinate between Materials Function, Logistics Function & Supply Chain Management Function Interaction with Integration of Resources to avoid Surprises Feed back from plant locations to Centralized Purchase function using IT platform
ABC Analysis
Adequate Quality, Prompt Deliveries & Favorable Vendor Relations ABC Analysis Involves how much to store for Critical items where lead time is more ABC Analysis also helps SCM Managers to work out cost allocations for Inventory Management ABC Analysis guides Finance department for resource/fund allocation
Vendor Auditing/Rating
To avoid sub standard products Vendor has to be audited by Commercial & Technical Team Vendor registration form has to be filled All relevant norms like facilities, machinery Equipments, Promoters background, Site Location, Cleanliness along with Plant visit & Financial Analysis of the Vendor
Measurement Of Vendors
Reputation of Vendor Buyer should ask list of major customers where the vendor is perusing Business Ethical Standards & delivery Promises Technological Competency along with the desire to invest for Good Manufacturing Practices
Summary
No appointment of Vendor to be done with out Auditing Reputation of Vendor is a must ABC Analysis helps Supply Chain Managers to take quick Decisions Cross Docking helps to minimize Ware house Inventory
Learning Objectives
15 Steps to transform Purchase Into Strategic Sourcing
15 Steps
Develop Plan of Action to integrate Individual Purchasing Units Understand different Business & Corporate Cultures Identify External & Internal factors that could work the efforts Determine Annual Spending by way of Budget Ascertain Percentage spend under Strategic Sourcing Calculate Saving Potential through Development of New Procurement Organization
Cont:
Establish Personal & Team Credibility Survey all Existing Procurement Related Systems Create a Business Case Develop a Strategic Vision Statement & Schedule Evaluate Existing Procurement Staffing Skills Enumerate Role of A Supplier
Cont:
Involvement Of Senior Management Implementation Of Strategic Plan Formulating Metrics to track results achieved by the new Procurement Organization
Learning Objectives
Lean Supply Strategies 5 S Tools Summary.
Seiri (Sort) Seiton ( Set In Order) Seiso ( Shine or Purity) Seiketsu(Standardize) Shitsuke (Sustain)
5 S
Sort: Remove all but the necessary Materials, Equipment & Supplies Set In Order: Arrange Product & Equipment so it is easy to find & easy to use in the Context of Supply Chain Shine: Keep Everything Clean Standardize: Integrate first three S Sustain: Discipline Starts with the Leadership
Summary
Treat Suppliers as Points of Flexibility Evaluate Internal Processes & Structures Eliminate Communication Gap Give Importance on monitoring Supplier Events Benefits by way of Cost, Time & Quality
Learning Objectives
Importance of IT systems for SCM Effective time and Cost Management. IT Diagram and its connectivity. Summary.
Summary
IT has created a platform to streamline SCM activities IT helps for Decision Support Systems IT gives an landmark to avoid overspending IT helps for stocking what is required & helps Re-Order Level
Learning Objectives
Global Supply Chain Management Summary
Business Situation
Environmental Scanning Of Business Goals, Competitive Positioning, Employee, Suppliers & Share holders
Business Strategy
Choice that determine how company resources interact with the Market What and Where to Manufacture Pears Soap World wide is manufacturing base is India Cost effectiveness, Strategic Supplier Identification & Business Partner Relationship is key differentiating factor
Design Element
Understanding the Design Process Ensure Holistic Thinking Important elements are tasks, People, Information, Decision Making, Rewards and Structure Helps Organizations take quick & Effective Decisions
Culture
How to Shape Vision & Mission Statement Operational Behavior play important role in shaping the future of the Organization Certain Companies Award businesses only to low bidder as their culture is price driven Certain Companies give thrust on innovation & pay high price to the Supplier
Business Results
The most important avenue is Bottom line Out put of the Organization can be measured on the basis of Cost, Market Share, Profits, Sales & Innovation Constantly Changing Business Environment demands the Organizations to recreate Continuously
Summary
Organization to take a Holistic View Construct new dimensions of Business to grow Deliver what the Market wants & Change to the required level of Operations Constantly view & Review Business Models & Change according to the circumstances
Learning Objectives
Role of Logistics. Role of Distribution. Role of Transportation. Internal Logistics & Distribution along with IT. Summary.
Role Of Logistics
Logistics involves Integration Of Information, Transportation, Inventory, Ware housing, Material Handling & Packaging Operational Responsibility is geographical positioning of Raw-Materials, WIP & FG where required at the lowest possible Cost
Role Of Distribution
Efficient Movement of Finished Products from end of prediction line to the consumer Activities undertaken in the execution of physical distribution of goods to the end user Acts as a link between the end to end users
Role Of Transportation
It involves two major functions like a) Physical Movement of Products b) Product Storage Main Aim Of transport Principle is Economy of Scale & Economy of distance
Summary
Distribution, Logistics & Transportation are the pillars of Supply Chain Management To strengthen the Scope of Supply Chain Management IT related Systems can act as spinal Cord for Tracking
Learning Objectives
Re-order Level Analysis Safety Stock Analysis. J.I.T. along with Quality. Time and Revenue Management. Summary.
Summary
Avoid Stock Out Situations Create Business Partner Relationship Focus on Stringent Quality & delivery norms Stress upon Safety Stocks for Critical Inputs Manage Cash Flow to avoid Overdraft