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Supply Chain Management

SCM - 30

LSM-30 Supply Chain Management

Master of Business Administration (Logistics & Supply Chain Management)

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

I N U

I T

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

1hat is SC and SCM 2


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

Supply Chain (SC) 3

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
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&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

1hat is SC and SCM 2


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

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
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&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

1hat is SC and SCM 2


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

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"

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

1hy need 2
LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

What makes Supply Chain and what we manage

a way to lin$ and balance the !upply % &emand

Cost effective
Supply 0emand

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

%6olution of Supply Chain Management


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering
+urther -efinement of SCM Capa?ilities

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
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&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

'mportance of SCM understood ?y some


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

'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
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&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

'mportance of SCM understood ?y some


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

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

1pen ended statement, 2gility can be increased continuously"

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

SCM 0efinition
LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

Material +lo@

Supplier Source Supplier

Con6erter Con6erter

0istri?utor

-etailer Consumers

0istri?utor

%nd-.ser

Aalue-Added Ser6ices +unds90emand +lo@ 'nformation +lo@ -euse9Maintenance9After Sales Ser6ice +lo@
70

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Supply Chain ,et@orB (SC,)


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

'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"

3ust(in time , cost effective

-esilience is also an Co?Decti6e functionE for SC,

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&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Supply Chain Management ,et@orB


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

7!

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

SCM - ,et@orB /erspecti6e


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

Suppliers

Manufacturers

0istri?utors

-etailers

Supplier Supplier Supplier /lant 0istri?utor 0istri?utor -

c u s t o m e r s

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&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Supply Chain ,et@orB +lo@s


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

-eal-(ime Access to SCM 'nformation is Critical to Maintain Cost-%fficient *perations


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&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Current Supply Chains are ,et@orBs


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

7$

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Components of SCM
LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

'he ma4or components to the !C) are


Supplier ,et@orB or Supply Chain %nterprise 0istri?ution ,et@orB Customers

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Components of SCM (!)


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

5pstream !upply Chain

1rgani ation6s first tier suppliers 7 their suppliers"

Internal !upply Chain

8rocesses used by an organi ation to transform their inputs to outputs"

&ownstream !upply Chain

8rocesses involved in delivering the product to the final customers"

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&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

SCM - +lo@s /erspecti6e


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

78

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Supply Chain stages


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

Supplier

Manufacturer

0istriu?tor

-etailer

Customer

-a@ Material Manufacture

Component Manufacture

Component 0istri?ution

Su? Contractor Manufacture

*%M /roducer

7#

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

SCM F Stages perspecti6e


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

!0

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Gey 'ssues in Supply Chain Management


Supply Chain F 0e6elopment Chain
LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

!7

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Gey 'ssues in Supply Chain Management


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

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

Managing -isB and .ncertainty 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

!!

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Supply Chain /rocesses & +unctions


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering
Material -eIuirement /lanning Component Re#uirement 8roduction 8lan &emand Forecasting 0emand /lanning

!upplier

8lant

Warehouse

9ogistics

Retailer

*rder Management !3

&'(AM SC)**L *+ ',(%-,A('*,AL B.S',%SS

/rofessor 0r" /"-"S SA-MA M"B"A & /h"0" - ''(0

Supply Chain /rocesses & +unctions


LSM-30 Supply Chain Management !3"#!$- Logistics Systems %ngineering

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