SUPPLY CHAIN MANAGEMENT

Submitted ByDharmjeet Singh Esha Shrivastava Gagan Makhiza Garima Agrawal

CONCEPT OF SCR
Systematic strategic coordination of traditional business function Integral to Business to Business Managing flow of information through supply chain in order to attain the level of synchronization that will make it more responsive to customer needs while lowering costs Network of facilities performing function of procurement of material Operate on upstream information flows integrating the value chain of a company & its supplier

WHAT IS SUPPLY CHAIN MANAGEMENT

Is the strategic management of activities involved in
the acquisition and conversion of materials to finished products delivered to the customer"

Supplier Management

Material Flow Information Flow

Stock Deployment

Customer Management

Schedule / Resources

Conversion

Delivery

Leads to Business Process Integration

SUPPLY CHAIN MANAGEMENT INTRODUCTION

Supply chain is the system by which organizations source, make and deliver their products or services according to market demand. Supply chain management operations and decisions are ultimately triggered by demand signals at the ultimate consumer level. Supply chain as defined by experienced practitioners extends from suppliers suppliers to customers customers.

Supply Chain Structure

SUPPLIER

FACTORY

DC

RDC

RETAILER

Raw Materials

Finished Goods Information Flow

SUPPLY CHAIN ELEMENTS

Strategic Supply Chain Design Resource Acquisition Long Term Planning (1 Year ++)

Tactical

Production/ Distribution Planning Resource Allocation Medium Term Planning (Qtrly,Monthly)

Operational

Shipment Scheduling Resource Scheduling Short Term Planning (Weekly,Daily)

SUPPLY CHAIN COMPONENT

Upstream supply chain Internal supply chain Downstream supply chain

FEATURE OF SCM
Management of Inventory Managing of Orders Procurement Logistics Planning and Forecasting Managing of Returns

PROCESS OF SCM

SUPPLY CHAIN DECISION

Location Decisions Production Decisions Inventory Decision Transportation Decision

PHASES OF SCM
Identification of Requirements Sourcing Pricing Post-award Activities

SIGNIFICANCE OF SCM
Integrates suppliers,distributer and customer requirements to reduce cost & time Quick communication flow of decision Calculation of multiple performance factors Customer satisfaction enhanced Firms profitability

PUSH & PULL APPROACHES TO SCM

PUSH BASED MODEL

PULL BASED MODEL

Applied to that portion of the supply chain where demand uncertainty is relatively small Production and distribution decisions are based on long term forecasts Based on past orders received from retailer's warehouse Less expenditure on advertising than pull strategy Inadequate data integration, long cycle so more response time

Applied to that portion of the supply chain where demand uncertainty is high Production and distribution are demand driven No inventory, response to specific orders Difficult to implement Better data integration short cycle so less response time

PRINCIPLES OF SCM

Segment customers based on the service needs of distinct groups and adapt the supply chain to serve these segments profitably Customize the logistics network to the service requirements and profitability of customer segments Listen to market signals and align demand planning accordingly across the supply chain, ensuring consistent forecasts and optimal resource allocation Differentiate product closer to the customer and speed conversion across the supply chain Manage sources of supply strategically to reduce the total cost of owning materials and services Develop a supply chain-wide technology strategy that supports multiple levels of decision making and gives a clear view of the flow of products, services, and information Adopt channel-spanning performance measures to gauge collective success in reaching the end-user effectively and efficiently

Supply Chain Management Underlying Principles

Compression (Planning/Manufacturing/Supply)
.

Conformance (Forecasts/Plans/Distribution) Co-operation (Cross -Functional) Communication (Real Time Data)

Reduce Overall Cycle Time : Improve Response

WAL-MART STORES SWOT ANALYSIS

Location of Factor OF Favourable Internal Strengths Strong market position in the US Balanced brand mix Strong marketing capabilities Unfavourable Weaknesses Exit from South-Korean and German Markets Product recall Numerous legal issues TYPE FACTOR

Internal

Opportunities Expanding brand portfolio Rising US healthcare spending Increasing online sales Increasing store network

Threats Intense competition Opposition and resistance from communities Affects of the sub prime crisis

CONCLUSION OF SCM
A case study was provided to illustrate actual supply chain dynamics and how an Asian firm might integrate into global supply chains. Supply chain management in Asia still remains a challenge for all involved stakeholders. Asian manufacturers and traders need to be in better control of their supply chains, while most local providers are still struggling to provide value-added logistics services. Infrastructure and institutional arrangements are improving, but not quickly enough to enable successful supply chain management. Supply chain management must consider the deployment of all resources that affect customer value.

THANK YOU