Supply Chains of the Future

Video

What is Supply Chain?

The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable.

Supply Chain
Supply Chain

Value Chains

VALUE VALUE SUPPLY

Use word SUPPLY and VALUE twice in filling the blanks..

Future supply chain 2016

Earlier companies used to focus on improving on-shelf availability, reducing cost & supporting sound financial figures like (ROI or return on brand equity).

Future supply chain 2016

In future the industry must aim for additional parameters like: CO2 emissions reductions, reduced energy consumption, better traceability, reduced traffic congestion.

Big question is: What impact will these new parameters have on future supply chain?

How should the industry build the future supply chain & what are the components?

Solution- 7 key solutions areas were identified. This can cover the existing as well as new parameters

In-store logistics: includes in-store visibility, shelfready products, shopper interaction

Collaborative physical logistics: shared transport, shared warehouse, shared infrastructure.

Reverse logistics: recycling products, recycle packaging, returnable assets.

Demand fluctuation management: joint planning, execution & monitoring

Identification & labeling

Efficient assets: alternative forms of energy, efficient/aerodynamic vehicles, switching modes, green buildings

Joint scorecard & business plan

Lets look at an example; a manufacturer produces product A which moves through the supply chain network reaching the distributor or customer. Any process or management after the sale of product A involves Reverse Logistics. If product A happened to be defective the customer would return the product. The manufacturing firm would then have to organise shipping of the defective product, testing the product, dismantling, repairing, recycling or disposing the product. Product A will travel in reverse through the supply chain network in order to retain any use from the defective product. This is what reverse logistics is about.

Characteristics of 2016 future supply chain

Information sharing with key stakeholders like:consumers(ordering from home or store), suppliers, manufacturers, etc After production the products will shipped to the collaborative warehouse where multiple manufacturers store there products

Characteristics of 2016 future supply chain

Collaborative transport will carry goods from collaborative warehouse to city hubs & to regional consolidation centres Warehouse should be on the edge of the cities so that the hubs where cross docking takes place for final distribution be very useful

Characteristics of 2016 future supply chain

Non-urban areas will have regional consolidation centres in which products will be cross-docked for final distribution Final distribution to stores, pick-up points and homes in urban & non-urban areas will take place more seamlessly and systematically.

Cross Docking
Cross-docking is a practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between. This may be done to change type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles (or containers) with the same, or similar destination.

Cross Docking
Cross-docking is done by moving cargo from one transport vehicle directly into another, with minimal or no warehousing. In retail practice, cross-docking operations may utilize staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship.

Advantages
Streamlines the supply chain from point of origin to point of sale Reduces handling costs, operating costs, and the storage of inventory Products get to the distributor and consequently to the customer faster Reduces, or eliminates warehousing costs May increase available retail sales space.

Disadvantages
Potential partners don't have necessary storagecapacities or an adequate transport fleet to operate CrossDocking Need of adequate ITSystem Additional freight handling can lead to product damage

The total impact of this supply chain

Reduce transport costs per pallet of more than 30% Cut handling costs upto 20% Reduce lead time by 40% Lower CO2 emissions of upto 25% Improving on-shelf availability

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the and of all activities involved in sourcing and , conversion, and all logistics management activities. Importantly, it also includes and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated , used products may re-enter the supply chain at any point where residual value is recyclable.

Management, Procurement, Supply Chain Management , Processes, Planning, Coordination, , Linking, Transform, Transmit, Product, Material

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the Planning and of all activities involved in sourcing and , conversion, and all logistics management activities. Importantly, it also includes and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated , used products may re-enter the supply chain at any point where residual value is recyclable.

Management, Procurement, Supply Chain Management , Processes, Coordination, , Linking, Transform, Transmit, Product, Material

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the Planning and Management of all activities involved in sourcing and , conversion, and all logistics management activities. Importantly, it also includes and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated , used products may re-enter the supply chain at any point where residual value is recyclable.

Procurement, Supply Chain Management , Processes, Coordination, , Linking, Transform, Transmit, Product, Material

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the Planning and Management of all activities involved in sourcing and Procurement, conversion, and all logistics management activities. Importantly, it also includes and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated , used products may re-enter the supply chain at any point where residual value is recyclable.

Supply Chain Management , Processes, Coordination, , Linking, Transform, Transmit, Product, Material

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the Planning and Management of all activities involved in sourcing and Procurement, conversion, and all logistics management activities. Importantly, it also includes Coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated , used products may re-enter the supply chain at any point where residual value is recyclable.

Supply Chain Management , Processes, Linking, Transform, Transmit, Product, Material

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the Planning and Management of all activities involved in sourcing and Procurement, conversion, and all logistics management activities. Importantly, it also includes Coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for Linking major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated , used products may re-enter the supply chain at any point where residual value is recyclable.

Supply Chain Management , Processes, Transform, Transmit, Product, Material

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the Planning and Management of all activities involved in sourcing and Procurement, conversion, and all logistics management activities. Importantly, it also includes Coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for Linking major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of Process and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated , used products may re-enter the supply chain at any point where residual value is recyclable.

Supply Chain Management, Transform, Transmit, Product, Material

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the Planning and Management of all activities involved in sourcing and Procurement, conversion, and all logistics management activities. Importantly, it also includes Coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for Linking major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of Process and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities Transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated , used products may re-enter the supply chain at any point where residual value is recyclable.

Supply Chain Management, Transmit, Product, Material

 The Council of Supply Chain Management Professionals (CSCMP) defines supply chain management as follows: Supply Chain Management encompasses the Planning and Management of all activities involved in sourcing and Procurement, conversion, and all logistics management activities. Importantly, it also includes Coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for Linking major business functions and business processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of Process and activities with and across marketing, sales, product design, finance and information technology. Supply chain activities Transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated Supply Chain Management , used products may re-enter the supply chain at any point where residual value is recyclable.

Transmit, Product, Material

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