Professional Documents
Culture Documents
Management
Recap on Definitions
Importance of Supply Chain in todays
environment
Integrated Supply Chain Operations a
few examples
Definition of a Supply Chain
Financial Flow
Information Flow
Activities in a Supply Chain
Plan
Make
Buy
Move
Store
Sell
Return
Supply Chain Decisions
Location
Production
Sourcing
Inventory
Transportation
Pricing
Importance of Supply Chain in
todays environment
Inbound
Outbound
Event Management
An Auto OEM
Assignment
Consolidation from south bound vendors for
supplying to the Jamshedpur plant
Aim
To reduce the inventory levels at the plant
warehouse
Issues
Excise
Inventory planning
Optimum batch size
Scheduled daily pick up from
vendors
One container load despatched
daily: constituting 4 days of
inventory
Significant features
Manufacturing Locations:
Goa
Bhopal
Hyderabad
Trichy
Out Bound Distribution
Increased Inventory
Transportation became easier and
regular.
Results:
Spokes (CFAs):
Reduced to 17 days.
Event Logistics
Bringing cricket to
Indian Homes
Significant Features
Extensive Planning
Large number of Pre Approvals
Dynamic Decision Making.
Results
Supplier
Purchase Accounts
Customer
Production Sales
Evolution of Supply Chain
Traditional 1980s
Linear
Single Organisation
Silo Mindset
Process Driven
Evolution of Supply Chain
Traditional 1980s
Consequences:
Manufacturer
Supplier Customer
Purchase Accounts
Production Sales
Evolution of Supply Chain
- ERP Enabled 1990s
Non Linear
Single Organisation
Internally Focused
Flexible
Information Driven
Evolution of Supply Chain
- ERP Enabled 1990s
Consequences:
Competitive Markets.
Pricing Pressures
Low Product Differentiation.
Demanding and intolerant customers.
Globalisation.
What Should a Supply Chain deliver
ProductAvailability
Minimum Total Supply Chain Costs
Optimum Inventory
Current Trends and The Road Ahead
Information Integration
Manufacturer
Supplier Customer
Current Trends and The Road Ahead
Non Linear
Multiple Organisations
Externally Focused
Highly Flexible
Fully Information Driven
Customer Responsive
Current Trends and The Road Ahead
Impact:
Outsourcing
Transportation
Contract Manufacturing
Warehousing
In-plant Logistics
Consolidation
The Road Ahead
Integration of Service
Providers:
Administrative Convenience
Metrics Management
Investment in Infrastructure by Service
Providers
The Road Ahead
Information Integration:
E-Procurement
Cost Savings
Overhead Savings
Speed
The Road Ahead
Reverse Logistics
Tracking
Data Integrity
Ease of Verification
Expiry and Batch Management
The Road Ahead
Obsolescence Management
Enlarged Production Range
International Logistics
Integration of Operations
End to End Management
Time Definite Deliveries
Tracking & Visibility
Standardization
International Logistics - Issues
Commoditisation
Back Haul Management
Differential Infrastructure