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SUPPLY CHAIN COMPETITIVENESS

Supply Chain Competitiveness

Module I

How does AMUL get the milk to your table ?

Supply Chain Competitiveness

Module I

Supply Chain at AMUL

Supply Chain Competitiveness

Module I

Supply Chain at AMUL

Supply Chain Competitiveness

Module I

Supply Chain at AMUL

Supply Chain Competitiveness

Module I

With such a world class Supply Chain, is it a wonder that AMUL is a true Champion ?
Sales (Rs in Crores) 6000 5000 4000 3000 2000 1000 0 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 200795 96 97 98 99 00 01 02 03 04 05 06 07 08

Supply Chain Competitiveness

Module I

Developments in Supply Chain Management


Creation era: post WW II and during industrialisation Creation of assembly line

Integration era: (1960s) Use of electronic data transfers, internet, Enterprise Resource Planning (ERP)
Globalisation era: (1980s) sourcing globally, expansion of supply chain across countries Specialised era (I): (1990s) outsourced manufacturing, distribution focus on core competencies

Specialised era (II): growth of SCM service providers


SCM 2.0: Increased use of Web 2.0 applications
Supply Chain Competitiveness

Module I

Lets break up a typical organisations processes and functions


Basic Raw Materials

Basic Raw Materials

SUPPLIERS

Other primary inputs

Supply Chain Competitiveness

Module I

Basic Raw Materials SUPPLIERS Basic Raw Materials Other primary inputs

Semi finished

MANUFACTURER (OEM)
Sub-assemblies Other resources (consumables, fuel, etc)

Basic Raw Materials SUPPLIERS Basic Raw Materials Other primary inputs

Supply Chain Competitiveness

Module I

A simplified SUPPLY CHAIN


Basic Raw Materials SUPPLIERS Basic Raw Materials Other primary inputs Basic Raw Materials SUPPLIERS Basic Raw Materials Other primary inputs

MANUFACTURER (OEM)

DISTRIBUTOR

STORE

DEALER

Supply Chain Competitiveness

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Supply Chain Competitiveness

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Importance of Supply Chain


1. Better planned overall production

2. Smoother Distribution

3. Cut Costs
4. Give more attractive final product

ultimately leading to competitive edge


Supply Chain Competitiveness

Module I

Get ready to be..

The SUPPLY CHAIN DOCTOR

Supply Chain Competitiveness

Module I

Defining Supply Chain

Product life-cycle processes comprising physical, information, financial, and knowledge flows whose purpose is to satisfy enduser requirements with physical products and services from multiple and linked suppliers.

Supply Chain Competitiveness

Module I

Defining Supply Chain


Product life-cycle processes comprising physical, information, financial, and knowledge flows whose purpose is to satisfy enduser requirements with physical products and services from multiple and linked suppliers. Product life-cycle: - selling life-cycle - usage life-cycle (Eg: Cars [usage life > selling life] Compare Fiat after sales service & spares Vs Maruti)

Supply Chain Competitiveness

Module I

Defining Supply Chain


Product life-cycle processes comprising physical, information, financial, and knowledge flows whose purpose is to satisfy end-user requirements with physical products and services from multiple and linked suppliers.

* Physical flow of products/ spares / goods/ services


* Information flow- stocks/ forecasting/ order & delivery status

* Financial flow- payments/ rebates


* Knowledge flow- design & innovation inputs
Supply Chain Competitiveness

Module I

Defining Supply Chain


Product life-cycle processes comprising physical, information, financial, and knowledge flows whose purpose is to satisfy enduser requirements with physical products and services from multiple and linked suppliers.

Satisfy end-user requirements- fundamental mission of the supply chainto match supply with demandacross segments

Supply Chain Competitiveness

Module I

Defining Supply Chain


Product life-cycle processes comprising physical, information, financial, and knowledge flows whose purpose is to satisfy enduser requirements with physical products and services from multiple and linked suppliers.

Multiple and linked suppliers- encompasses all members in the chain

Supply Chain Competitiveness

Module I

Defining GLOBAL Supply Chain


Product life-cycle processes comprising physical, information, financial, and knowledge flows whose purpose is to satisfy enduser requirements with physical products and services from multiple and linked suppliers. When the supply chain spreads across countries to include international suppliers, processes and end-users are themselves globally located, it becomes a GLOBAL supply chain

Supply Chain Competitiveness

Module I

The FLOWS in a typical Supply Chain

Supply Chain Competitiveness

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The FLOWS in a typical Supply Chain

` Supply Chain Competitiveness

Module I

The FLOWS in a typical Supply Chain

Supply Chain Competitiveness

Module I

The FLOWS in a typical Supply Chain

Supply Chain Competitiveness

Module I

UPSTREAM
SUPPLIERS

OEM

DISTRIBUTOR

RETAILER

DOWNSTREAM
Supply Chain Competitiveness

Module I

Elements of a supply chain:


Customer: A supply chain starts and ends with him. Requirement/demand order (eg- Contact lenses) Planning: Orders processed production plan Purchasing: Bill of Materials Financial budgeting PO Inventory: Receive raw material quality check store Production: Manufacture Inspection packing Transportation: Shipping to dealer/ distributor and ultimately to end-user
Supply Chain Competitiveness

Module I

Defining Supply Chain Management (SCM)

Design, maintenance, and operation of supply chain processes, including those for base and extended products, for satisfaction of end-user needs.

Getting the RIGHT PRODUCT to the RIGHT PLACE at the RIGHT TIME for PROFIT

Supply Chain Competitiveness

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FASTER

BETTER

CHEAPER
Supply Chain Competitiveness

Module I

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