Professional Documents
Culture Documents
Basic
materials
Product
Delivery to
customer
Open a
website
Attract
customers
Link to sales
organisation
Raw Material
supplier
supplies
Orders
Manufacturer
supplies
Orders
Wholesaler
Retailer
supplies
Benefits of SCM
i.
Goals of SCM
To cut costs
Increase profits
Improve performance in
relationships with
customers and suppliers
Develop value added
services that give a
company a competitive
edge
Inventory
Management
Supply Chain
Management
Financial
Management
Payment
Management
Distribution
Management
Sales force
Productivity
Channel
Management
Critical Relationship of
Suppliers/Company
Cost
Quality
Suppliers/
Company
Flexibility
Speed
Fourth Strategy
Product specs
that your
suppliers must
adhere to
suppliers
Downstream part of
the value chain
Tracking of
the needs
Your
company
Reverse flow of
Information
Customer
(starting point)
Upstream parts of
the value chain
plants
suppliers
Distribution
centres
customers
Global Business
Environment
Users define Markets
Technology dominates
Capital Investment
Business Alliances
Focus on Value
De-regulation and
Privatization
Mid
90s
Early
90s
80s
Productivity
Improvement
70s
Producer-driven
Economy
50s
60s
VCM Architecture
Systems
Core
company
VCM
as a layer
knowledge
Repository
End Users
Characteristics of SCM - 1
Sourcing of raw materials or finished
goods from anywhere in the world
Centralised global business &
management strategy with hem less local
execution
On-line, real time distributed information
processing providing total supply chain
information visibility
Ability to manage information not only
within a company but across industries &
enterprises
Characteristics of SCM - 2
Seamless integration of all supply chain
processes including third party suppliers,
information systems, cost accuring
standards and measurement systems
Development & implementation of
accounting models
Reorganisation of the supply chain
organisation into high-performance teams
Proprietary standards
Inertia & fear of
change
Competitiveness
based on business
process differences
Point to point
interfaces
SCP Tools
Strategic planning
tools
Executive &
implementation
tools
Tactical planning
tools
Tactical Planning
Transportation &
Network
Available to Promise(ATP) Scheduling
Capable to Promise (CTP) Manufacturing
Capacity planning
Demand planning
Distribution planning
Deployment planning
Sales & operation
Enterprise Collaboration
Goals
Communicate
Coordinate
Collaborate
HEAD QUARTERS
E
U
INTERNET
PLANT
WAREHOUSE
ERP
PDM
SFA
MARKETING
APPLICATIONS/
FUNCTIONS
INTEGRATION
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