SUPPLY CHAIN MANAGEMENT

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SUPPLY CHAIN MANAGEMENT

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SUPPLY CHAIN MANAGEMENT

SCM is the oversight of materials, information and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
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SCM task is to coordinate integrate these flows among and within companies

SUPPLY CHAIN MANAGEMENT

SCM is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers.
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SCM spans all movement and storage of raw materials, work in progress inventory and finished goods from point of origin to point of consumption.

SUPPLY CHAIN MANAGEMENT

SCM flow can be divided into the following
Product flow Information flow Finances flow Product flow movement of goods 1011 0011 0010 1010 1101 0001 0100 from a supplier to customer Information flow transmitting orders and updating the status delivery Financial flow consists of credit terms, payment schedules and consignment and title ownership arrangements.

SUPPLY CHAIN MANAGEMENT

There are two main types in SCM software:
Planning application Execution application
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Planning app use advanced technologies to determine the best way to fill an order. Execution app track the physical status of goods, management of materials, financial information involving all parties

SUPPLY CHAIN MANAGEMENT

Elements of SCM: Production Supply Inventory 0011 0010 Location 0001 0100 1011 1010 1101 Transportation Information

SUPPLY CHAIN MANAGEMENT

Elements of SCM: Production: Focuses on customer demand, market strategy.
How many products to produce Outsourcing 0011 0010 1010 1101 0001 0100 1011 Capacity, quality and volume of goods Operational decision, focus on scheduling workloads, maintenance of equipment and meeting client/market demands

Supply:

Determining the facilities for manufacturing of a product, economically and efficiently Careful selection of raw material suppliers Outsourcing implementation

SUPPLY CHAIN MANAGEMENT

Elements of SCM: Inventory:
Inventory, how much product should be in-house Customer satisfaction must be met
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Location: Depends on

market demands Determination of customer satisfaction Strategic decisions regarding placement of production plants, distribution and stocking facilities. Once prime locations are decided Long term commitment must be made to locate production and stocking facilities

SUPPLY CHAIN MANAGEMENT

Elements of SCM: Transportation:
Air transport:, quick but costlier Shipping by boat or rail: affordable, but needs high inventory As 30% product cost is for transportation, it is critical issued to be decided 0011 0010 1010 1101 0001 0100 1011

Information:

From the point of end use Linking this info through out the chain Internet Account management software, product configurators, enterprise resource planning systems, global communication are key components.

SUPPLY CHAIN MANAGEMENT

Great role in SCM is of EDI, to share info instantly with wholesalers and retailers across time zones and geography. With better synchronization across the entire supply chain, each member achieves major benefits Lower inventories and lower financing costs 0011 0010 1010 1101 0001 0100 1011 Shorter receivable cycles Optimal use of production resources, costly work force Faster response to market changes Greater satisfaction and loyalty among customers Greater profitability

SUPPLY CHAIN MANAGEMENT

Origins of SCM: World War II, to supply manpower and material to right place at right time. SCM is used to schedule loading and movement of ships, planes and railcars
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APS(Advanced Planning and Scheduling) ability to consider constraints that affect production and delivery of goods. APS uses artificial intelligence techniques

SUPPLY CHAIN MANAGEMENT

SCM and Retailers: SCM main technique is the ability to identify and then act upon fleeting fashion and other consumer trends.
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So retail industry is the prime candidate for SCM advancements.

SUPPLY CHAIN MANAGEMENT

ADVANTAGES OF SCM:SCM enables Supply Chain Planning and teamwork Supply Chain implementation 0011 0010 Supply Chain visibility design and analytics 1010 1101 0001 0100 1011 Business benefits

SUPPLY CHAIN MANAGEMENT

ADVANTAGES OF SCM:SCM enables Supply Chain Planning and teamwork: set goals, forecast, optimize, schedule time, materials and other resources. 0011 0010 1010match of 0100 1011 Profitable 1101 0001 supply and demand. Supply Chain implementation: to carry out supply chain planning and generate high efficiency at the lowest cost Demand can be sensed and can be responded with available EDI.

SUPPLY CHAIN MANAGEMENT

ADVANTAGES OF SCM:SCM enables Supply Chain visibility design and analytics: Gives you network wide visibility across your extended supply chain to perform strategic as well as day to day planning. 0011 0010 1010 1101 0001 0100 1011 Analyze the performance using pre-defined key performance indicators.

SUPPLY CHAIN MANAGEMENT

ADVANTAGES OF SCM:SCM enables Business benefits: Faster response to changes in supply and demand Increased customer satisfaction 0011 0010 1010 1101 0001 0100 1011 fulfillment with rigid requirements Improved cash flow Higher margins Greater harmonization with business priorities.

B-B
Business-2-Business B2B E-commerce 0011 0010 1010 1101 0001 0100 1011 E-commerce or electronic commerce is the purchasing, selling, and exchanging of the businesses take place between two business entities by matching their sale and purchase requirements online.

B-B
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http://www.ec21.com
http://www.sugoo.com http://www.tpage.com http://www.indiamart.com

B-C
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Business-2-Consumer B2C E-commerce With the help of sophisticated shopping cart software, business sell to general public through online catalogs. Yahoo e-commerce is a perfect example of Business-to-Consumer.

B-C
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B-C
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B-C
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C-B
Consumer-2-Business C2B E-commerce: 0011 A consumer posts his project with a set budget 0010 1010 1101 0001 0100 1011 online and within hours companies review the consumers requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Consumers around the world by providing the meeting ground and platform for such transactions.

C-B
Consumer-2-Business C2B E-commerce:
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C-C
Consumer-2-Consumer E-commerce 0011 Auction sites are good example of Consumer-to 0010 1010 1101 0001 0100 1011 Consumer e-commerce. There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell due to online payment systems where people can send and receive money online with ease.

C-C
Consumer-2-Consumer E-commerce
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