SUPPLY CHAIN

MANAGEMENT

Value Chain
Supply side- raw materials, inbound
logistics and production processes
Demand side- outbound logistics,
marketing and sales.
WHAT IS SUPPLY CHAIN MANAGEMENT
" Is the strategic management of activities involved in
the acquisition and conversion of materials to finished
products delivered to the customer"
Supplier
Management
Schedule /
Resources
Conversion
Stock
Deployment
Delivery
Customer
Management
Leads to Business Process Integration
Material Flow
Information Flow


SUPPLY CHAIN INCLUDES :


MATERIAL FLOWS

INFORMATION FLOWS

FINANCIAL FLOWS

SUPPLY CHAIN MANAGEMENT IS
FACILITATED BY :

PROCESSES

STRUCTURE

TECHNOLOGY

Supply chain serves two functions:


Physical

Market mediation
Supply Chain Structure
Information Flow
Raw Materials
RETAILER FACTORY
DC RDC

SUPPLIER
Finished Goods
SUPPLY CHAIN ELEMENTS
Supply Chain Design
Resource Acquisition
Long Term Planning (1 Year ++)
Strategic
Production/ Distribution Planning
Resource Allocation
Medium Term Planning (Qtrly,Monthly)
Tactical
Shipment Scheduling
Resource Scheduling
Short Term Planning (Weekly,Daily)
Operational
Supply Chain Goals

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.
.
The steps involved


Step1- Designing the supply chain
Determine the supply chain network
Identify the levels of service required
Step 2 - Optimizing the supply chain
Determine pathways from suppliers to
the end customers
Step 3- Material flow planning

Determine the exact flow and timing of
materials

Step 4 - Transaction processing and
short term scheduling

Customer orders arrive at random
This is a day to day accounting system which
tracks and schedules every order to meet
customer demand
Order entry, order fulfillment and physical
replenishment