Professional Documents
Culture Documents
SCM - 30
I N U
I T
Flow of products and services from: Raw materials, Intermediate products, End product manufacturers, Wholesalers and distributors and also Retailers Connected by transportation and storage activities Integrated through information, planning, and integration activities Cost and service levels
3
Contd""
Supply Chain Management (SCM) 3" is a set of approaches utili ed to efficiently integrate suppliers, manufacturers, warehouses, and stores !o that merchandise is produced and distributed
4
Contd""
" at the right #uantities, to the right locations, and at the right time in order to minimi e system wide costs while satisfying service level re#uirements"
1hy need 2
LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering
Cost effective
Supply 0emand
SCM +ormation9 %>tensions ;'(< (=M< B/-< Alliances 'n6entory Management9Cost *ptimi:ation (raditional Mass Manufacturing
7#$0s
7# 0s
7#50s
7#80s
7##0s
!000s
Beyond
5
'he
design and management of seamless, value(added process across organi ational boundaries to meet the real needs of the end customer""
'nstitute for Supply Management
)anaging
supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory trac$ing, order entry and order management, distribution across all channels, and delivery to the customer
(he Supply Chain Council
8
AM- -esearch
"'he biggest issue enterprises face today is intelligent visibility of their supply chains % both upstream and down* "Companies need to sense and proactively respond to unanticipated variations in supply and demand by adopting emerging technologies such as intelligent agents" 'o boost their operational agility, firms need to transform their static supply chains into adaptive supply networ$s " " +y ,--." /-0 of enterprises that fail to apply supply(chain management technology and processes to increase their agility will lose their status as preferred suppliers "
+orrester -esearch
&artner &roup
SCM 0efinition
LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering
Material +lo@
Con6erter Con6erter
0istri?utor
-etailer Consumers
0istri?utor
%nd-.ser
Aalue-Added Ser6ices +unds90emand +lo@ 'nformation +lo@ -euse9Maintenance9After Sales Ser6ice +lo@
70
'he system of organi ations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer" 'ransform natural resources, raw materials and components into a finished product that is delivered to the end customer"
77
7!
Suppliers
Manufacturers
0istri?utors
-etailers
c u s t o m e r s
73
7$
Components of SCM
LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering
75
78
Supplier
Manufacturer
0istriu?tor
-etailer
Customer
Component Manufacture
Component 0istri?ution
*%M /roducer
7#
!0
!7
Chain 0istri?ution ,et@orB Configuration 'n6entory Control /roduction Sourcing Supply Contracts 0istri?ution Strategies Supply Supply Supply Both Supply 0e6elopment 0e6elopment 0e6elopment Supply Both Supply
&lo?al *ptimi:ation H
Strategic /artnering
*utsourcing and *ff shoring /roduct 0esign 'nformation (echnology Customer Aalue Smart /ricing
H H H H H H H H
H H
H H H
!!
!upplier
8lant
Warehouse
9ogistics
Retailer
*rder Management !3
!4