Supply Chain Management

by Deepak HC

Supply Chain
The set of entities and relationships that cumulatively define materials and information flows both downstream towards the customer and upstream towards the very first supplier.

10-2

Supply Chain Management

The design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the end customer.
--Institute for Supply Management

10-3

A Typical Supply Chain

10-4

SCOR is founded on five distinct management processes

Plan

Deliver Return

Source Return

Make

Deliver Return

Source Return

Make

Deliver Return

Source Return

Make

Deliver Return

Source Return

Suppliers Supplier

Supplier
Internal or External

Your Company

Customer
Internal or External

Customers Customer

SCOR Model
Building Block Approach

SCOR = Supply Chain Operations Reference-model

10-5

System Dynamics in Supply Chains

Supply chain is a highly interactive system. Decisions in each part of the chain affect the other parts. There is an accelerator (bull whip) effect Even with perfect information, replenishment lead times will lead to an accelerator effect. The best way to improve a supply chain is to reduce the total replenishment time and to feed back actual demand information to all levels.
10-6

Coordination in the Supply Chain

Need for coordination both within firms and across firms
e.g. ECR (efficient consumer response) in the grocery industry

Supply chains must be managed as integrated systems. Parallel between supply chain and quality improvement
10-7

Thank you

10-8