Supply Chain Management

 Supply Chain: The sequence of organizations -

their facilities, functions, and activities -
that are involved in producing and delivering
a product or service.

key Elements of SCM
Typical Supply Chain for a
Manufacturer

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Need for Supply Chain
Management
1.Improve operations
2.Increasing levels of outsourcing
3.Increasing transportation costs
4.Competitive pressures
5.Increasing globalization
6.Increasing importance of e-commerce
7.Complexity of supply chains
8.Manage inventories
Supply Chain Benefits and
Drawbacks
Problem Potential Benefits Possible
Improvement Drawbacks
Large Smaller, more frequent Reduced holding Traffic congestion
inventories deliveries costs Increased costs

Long lead times Delayed differentiation Quick response May not be feasible
Disintermediation May need absorb
functions
Large number of Modular Fewer parts Less variety
parts Simpler ordering

Cost Outsourcing Reduced cost, higher Loss of control

Quality quality

Variability Shorter lead times, better Able to match supply Less variety
forecasts and demand
Logistics
 Logistics
 Refers to the movement of materials and
information within a facility and to incoming
and outgoing shipments of goods and materials
in a supply chain

Materials Movement
Work center
Work center Work
center

Work Storage
center

Storage

Storage
RECEIVING

Shipping
Purchasing
 Purchasing is responsible for obtaining the
materials, parts, and supplies and services
needed to produce a product or provide a
service.

Duties of Purchasing
 Identifyingsources of supply
 Negotiating contracts
 Maintaining a database of suppliers
 Obtaining goods and services
 Managing supplies

Purchasing Cycle
Legal
1.Requisition received
2.Supplier selected Operations
Accounting

3.Order is placed
4.Monitor orders Data
5.Receive orders Purchasing process-
ing


Design

Receiving
Suppliers
Suppliers
 Choosing suppliers
 Evaluating sources of supply
 Supplier audits
 Supplier certification
 Supplier relationships
 Supplier partnerships

Factors in Choosing a Supplier
 Quality and quality assurance
 Flexibility
 Location
 Price
 Product or service changes
 Reputation and financial stability
 Lead times and on-time delivery
 Other accounts

Inventory

Meaning
 Inventory is sum total of all material resources
invested in business.

Inventory can be in following forms:
 Raw-Materials
 Work-in-Process
 Finished Goods
Inventory Control Techniques
 ABC Analysis
 HML Analysis
 VED Analysis
 FSN Analysis
 GOLF Analysis
 SDE Analysis
 XYZ Analysis
warehousing

Meaning


 Warehousing is a continuous value chain

 Its is responsible for contributing in the value
process.

Functions of warehouse
 Store the material properly
 Remove the material when required
 Deliver the material to the right place
 Keep the records perfectly in discipline
 Avoid keeping surplus material
 Verification of stocks & regular interval
 Co-ordination & co-operation

distribution
 Meaning
 The distribution channel represents the
channel through which saleable materials or
services reach customers.
 Typical distribution channels include
wholesale, retail & direct sales.
Uses of DRP
 Management uses DRP to plan and coordinate:
 Transportation
 Warehousing
 Workers
 Equipment
 Financial flows



THANK

YOU


PRESENTED BY :-
 PETULA RODRIGUES
 DIVYA SUVARNA
 SWATI BHANDARI
 MEENAKSHI REGE
 SWATI NAYAK
