CHAPTER 10

SUPPLY CHAIN MANAGEMENT

Prepared by :-

Faisal
Amirdeen
Asyraf
Shahir







BASIC OF SUPPLY CHAIN MANAGEMENT

A supply chain consists of all parties involved, directly, in the
procurement of a product or raw material.

It becoming increasingly important in creating organizational
efficiencies and competitive advantages.

It improves ways of companies to find the raw components
they need to make a product or service, manufacture that
product or service, and deliver it to customer.



The Five Basic Supply Chain
Management Activities

1. Plan

2. Source

3. Make

4. Deliver

5. Return









Factors Driving Supply Chain
Management

Visibility

Consumer Behavior

Competition

Speed

VISIBILITY

Supply chain visibility The ability
to view all areas up and down the
supply chain

Bulwhip effect Occurs when
distorted product demand information
passes from one entity to the next
throughout the supply chain
CONSUMER
BEHAVIOUR

Companies can respond faster and
more effectively to consumer
demands through supply chain
enchances
Demand planning software
generates demand forecast using
statistical tools and foreasting
techniques
COMPETITION

Supply chain planning (SCP)
software usesadvanced
mathemetical algorithms to
improve the flow and effeciency of
the supply chain
Supply chain execution (SCE)
software automates the different
steps and stages of supply chain






Supplier

Manufacturer

Distributor

Retailer

Customer





Three Fostering Supply Chain Speed

1. Pleasing customers has become something of a corporate
obsession.

2. Information is crucial to managers abilities to reduce
inventory and human resources requirements to a
competitive level.

3. Information flows are essential to strategic planning for and
deployment of resources.








Principles of Supply Chain Management

1. Segment customers by service needs, regardless of industry and
then tailor services to those particular segments.

2. Customize the logistics network and focus intensively on the service
requirements and on the profitability of the preidentified customer
segments.

3. Listen to signals of market demand and plan accordingly. Planning
must span the entire chain to detect signals of changing demand.

4. Differentiate products closer to the customer, since companies can
no longer afford to hold inventory to compensate for poor demand
forecasting.

5. Strategically manage sources of supply, by working with key
suppliers to reduce overall costs of owning materials and services.
Five industry best practices to improve their
chances of successful implementation of SCM
system

1. Make the sale to suppliers.

2. Wean employees off traditional business practice.

3. Ensure the supply chain management system support the
organizational goal.

4. Deploy in incremental phases and measure and communicate success.

5. Be future oriented







THE END