Supply Chain Management

(SCM)
 What is the Supply Chain?
• The supply-chain is a complex sequence
of events and decisions, which connects
sourcing raw materials with manufacturing
and the end consumer.

• Logistics is the management of this end to

end supply-chain.
 Supply Chain
All facilities, functions, activities, associated
with flow and transformation of goods and
services from raw materials to customer, as
well as the associated information flows

An integrated group of processes to “source,”

“make,” and “deliver” products
 Logistics
Modern ‘Logistics’ is a form of supply
chain management of both outward and
inward movement of material/goods from
source to points of consumption.
It involves consolidation, de-consolidation,
transportation, warehousing, distribution,
and order & inventory management.
Supply Chain Processes
 Scope of Supply Chain
• Product development
• Procurement
• Planning and control
• Production
• Distribution
 The Logistics network
A complex network
of
Factories, warehouses, distribution centers, and retailers..

Manufactures, Distribution centers, Customers

Suppliers, Plant direct shipments Retailers
Port of entries, Cross – dock facilities Demand points
Assembly plants Assembly plants Product destination
 Supply Chain Management

Curtin Business School

International Programs
 Supply Chain Management
Supply Chain Management covers flows of goods from suppliers
through manufacturing and distribution up to the customers
Inventories
Work in process
Raw Finish Stock
materials Wip Product points
stock

Factory Distribute
Manufactory Customer
Suppliers PO orders orders
orders
orders Customers

Supply chain line

The time spent by items from the purchase of raw materials
up to the delivery of product to customer
Supply Chain Illustration
 Supply Chain Management (SCM)
…..is primarily concerned with the efficient
integration of suppliers factories, warehouses and stores

so that merchandise is produced and distributed in

the right quantities to the right locations at the right time in damage-free conditions

and

so as to minimize the total System cost of a

company subject to satisfying service
requirements.
 AKTIVITAS SUPPLY CHAIN

FISIK MEDIA PASAR

- Sourching - Riset pasar
- Produksi - Pengembangan
- Penyimpanan produk
- Distribusi - Penetapan harga
- Pengembalian produk diskon
- Pelayanan purna jual
Supply chain
Management
Strategies
1. Beroperasi secara efisien. 1. Murah

2. Menciptakan kualitas 2. Berkualitas

3. Cepat 3. Tepat waktu

4. fleksibel 4. bervariasi

5. fleksibleinovatif
• What SCM is looking for is to develop
production & delivery mechanisms and
processes that can produce goods to the
actual end-user rate of demand for the
smallest time-period manageable.
• Ensure that the variety of products
reaching the market place matches what
customers want to buy.
The functions of the SCM
A physical function

production procurement

storage transportation

A Market interface function

the right product at the right place

at the right time in the right quantity,

exactly as per Customers’ needs and expectations.

 Keputusan taktis SCM

Strategi Supply Chain

Lokasi Sistem Persediaan Transportasi Pasokan Pengambangan

fasilitas Produksi Produk
 Decoupling point
• Titik temu sampai dimana suatu kegiatan
bisa dilakukan atas dasar ramalan tanpa
menunggu permintaan dari pelanggan dan
darimana kegiatan harus ditunda sampai
ada perminttaan yang pasti.
 Decoupling point

Decoupling Point

LEAN
- Komponen/modul standar
- Efisiensi fisik
- Sedikit variasi
- Volume tinggi
- Ketidakpastian permintaan rendah
- Produksi berdasar ramalan
- Independent demand
- Sistem produksi: flowshop/batch
AGILE
- Customized product
- Fokus pada kecepatan dan flexibility
- Banyak variasi
- Volume rendah
- Ketidakpastian permintaan tinggi
- Produksi berdasar permintaan
- Dependent demand
- Sistem produksi: job shop/project
 SISTEM PRODUKSI

• MAKE TO STOCK ( MTS )

• ASSEMBLY TO ORDER ( ATO )
• MAKE TO ORDER ( MTO )
• ENGINEER TO ORDER ( ETO )
 MTS

Perancangan Fabrikasi perakitan Pengiriman

produk
 ATO

Perancangan Fabrikasi perakitan Pengiriman

produk
 MTO

Perancangan Fabrikasi perakitan Pengiriman

produk
 ETO

Perancangan Fabrikasi perakitan Pengiriman

produk
 Decoupling point
• Menggeser DP kearah hulu akan bisa menciptakan
produk dengan variasi yang lebih fundamental,
mengurangi ketergantungan atas ramalan permintaan,
mengurangi persediaan barang setengah jadi serta
mengurangi resiko keusangan persediaan (
obsololescence ) .
• Merubah ke posisi hilir berarti mamperbanyak ke proses
standar dan membatasi proses spesifik ( customized ).
Hal ini akan menyebabkan peningkatan efisiensi dan
mengurangi waktu tunggu
Konsep postponement dalam SCM
• Postponement adalah konsep menunda
differensiasi produk sampai ada pesanan dari
pelanggan . Hal ini sangat penting terutama bagi
produk yang bersifat inovatif serta dapat
mengurangi resiko suatu produk menumpuk
secara berlebihan karena tidak terserap oleh
pasar.
Conceptual transition from classical logistics to
supply chain management

Lean logistics Supply chain management

Classical
And lean
logistics
manufacturing - Alliances
- Information technology
- Lean manufacturing
Getting the right Replacing inventory - Lean logistics
Product to the With information - Integration of key business process
1. product dev
Right customer, 2. Demand management
At the right time, 3. manufacturing scheduling & mgt.
At the right place, 4. Order fulfillment
In the right condition, 5. Product support
In the right quantity,
At the right cost
Manajemen pengadaan dalam
SCM
 Langkah2 pembelian
Supplier Pengadaan Gudang User Keuangan

Buat
Buat P/O Purchase
Kirim Kirim ke Requisiti
konfirmasi supplier on
Bisa Copy ke Ke
tidaknya gudang bag.pem-
Pesanan User, belian
dipenuhi keuangan.
Kalau bisa
Kirim sesuai
persetujuan Payment
Receive
And
check
Monitoring
 Pemilihan supplier
• Jumlah technical support yang diberikan
• Ide2 inovatif
• Kemampuan dalam komunikasi secara efektif
• Tingkat fleksibilitas tinggi
• Kecepatan respon
• Tingkat kepercayaan tinggi
• Kekuatan hubungan pada berbagai dimensi
 Pemilihan supplier
• Inovasi
• Ketepatan waktu kirim
• Kualitas
• Kemampuan berkomunikasi
• Aspek finansial
Analytical Hierarchy Process ( AHP )
Pemilihan supplier

Inovasi Delivery Quality Communication Financial

time
Teknologi Cert infras penawaran
Jarak
R&D Pratek manajer
Kapasitas potensi

History Kesan plg

supplier supplier supplier

 KETERLIBATAN SUPPLIER DALAM PENGEMBANGAN
PRODUK

Ide awal Pengembangan konsep Perancangan awal prototipe

Lebih awal Lebih akhir

• Supplier untuk item2 yg • Supplier untuk item yang

kompleks lebih simple
• Supplier untuk sistem dan • Supplier untuk komponen
subsistem tunggal
• Supplier item atau • Supplier untuk teknologi
teknologi yg kritis yg tidak terlalu kritis
• Supplier yg merupakan • Supplier yang tidak
aliansi yang strategis termasuk aliansi strategis
 The objectives
of
Supply Chain Management
 Bridging the gaps
When is a product desired
Where is a product wanted
DEMAND How much or how many are needed
What mix of products is called for
How is it desired

When is a product made

Where it is made or sourced
SUPPLY How much or how many are made or acquired SUPPLY
What product mix is made or scheduled to be received
How is it delivered
 The objectives of SCM
Supply Chain management tries to:
• Set free capital tied up in inventories in the
whole pipeline from supplier to customer,
• While minimizing the transportation costs,
• Without sacrificing the desired levels of
customer service.
 The objectives of SCM
• The objectives of the supply chain are to
optimize pre and post-production inventory
levels, obtain greater efficiency from labor,
equipment and space across the company
and provide flexible planning and control
mechanisms.
SCM helps companies make better
decisions
• What is the best price to charge for my product?
• Should I change the price if I have excess
inventory?
• If so, by how much?
• If I am short of a product, where should I allocate
supply?
• Which suppliers should I buy parts from?
• Which factory should I manufacture the product?
 Traditional
versus
new supply chain models
Traditional approach of SCM

suppliers manufacturers warehouse retailers customers

Interface between entities

Traditional organizations set performance goals for each function

to be managed in isolation with no or little attention given
to inter-functional relationships.
 Efficient implementation of the
Supply Chain
Supply Chain Management concept accepts the
whole supply chain as a single entity & enable a total
transparency of demand information across all business partners

Push-pull boundary

pull pull
push pull

Orders
Are
received
suppliers manufacturers warehouse retailers customers
 Why inventories in the supply-
chain?

Numerous reasons among which,

But also,
Demand variability promotions, seasonality,
Product nature batch process, tight capacities etc..
Desired service levels (90% - 99%)
High fluctuation of product demand
Suppliers long delivery time
STOCK
High delivery variability
( SAVETY OR
Information distortion
UNWANTED
 Demand patterns
DIFFERENT DEMAND PATTERN

GENERATE

DIFFERENT INVENTORY LEVEL

NEXT DAY DELIVERY HIGH LEVEL OF SERVICE

LOW COST NETWORK PLANT TO CUSTOMERS

Type of Products

Different products

induce

Different distribution
patterns
Service levels

TWO DIFFERENT TYPES OF

PRODUCT
WITH

similar service requirements

“NEXT DAY DELIVERY”

induce different storing patterns.

MANAJEMEN TRANSPORTASI
DAN DISTRIBUSI DALAM SCM
 Fungsi dasar manajemen distribusi dan
transportasi
• Menentukan segmentasi dan menentukan target
service level.
• Menentukan mode transportasi yang akan
digunakan
• Melakukan konsolidasi informasi dan pengiriman
• Melakukan penjadwalan dan penentuan rute
pengiriman
• Memberikan pelayanan nilai tambah
• Menyimpan persediaan
• Menangani pengembalian
 Mode transportasi serta keunggulan dan
kelemahan

Mode transportasi Truk Kereta Kapal Pesawat Paket

Volume Sedang S/banyak S/banyak banyak S/sedikit

Fleksibilitas waktu Tinggi rendah rendah rendah tinggi

Fleksibilitas rute Tinggi S/rendah S/rendah S/rendah S/tinggi

Kecepatan sedang sedang rendah S/tinggi tinggi

Biaya sedang rendah rendah tinggi S/tinggi

Inventory(intransit) sedikit banyak S/banyak rendah S/rendah

 Penentuan rute dan jadwal
pengiriman
• Mengidentifikasikan matrik jarak
• Mengidentifikasikan matrik penghematan
• Mengalokasikan toko ke kendaraan atau
rute
• Mengurutkan toko (tujuan ) dalam rute
yang telah terdifinisi.
 Cross docking dalam distribusi

• Salah satu metode inovatif dalam

menejemen distribusi dan transportasi
adalah cross docking. Pada metode ini
gudang tidak hanya berfungsi sebagai
tempat penyimpanan , tetapi sebagai
tempat transfer beban dari truk
pengangkut ke truk penjemput. Cara ini
banyak memberikan manfaat dari segi
biaya maupun waktu pengiriman.
 The management of
the supply chain relates
to two
levels of decision
Strategic decision

Strategic decision

Optimal number of warehouse

Tactical decision
Tactical decision

Optimal flow of product

 Formulas for Measuring Supply-
Chain Performance
• One of the most commonly used
measures in all of operations
management is “Inventory Turnover”
Cost of goods sold
Inventory turnover 
Average aggregate inventory value

• In situations where distribution

inventory is dominant, “Weeks of
Supply” is preferred and measures
how many weeks’ worth of inventory
is in the system at a particular time
 Average aggregate inventory value 
Weeks of supply    52 weeks
 Cost of goods sold 
 Example of Measuring Supply-
Chain Performance

Suppose a company’s new annual report

claims their costs of goods sold for the
year is $160 million and their total average
inventory (production materials + work-in-
process) is worth $35 million. This
company normally has an inventory turn
ratio of 10. What is this year’s Inventory
Turnover ratio? What does it mean?
 Example of Measuring Supply-Chain
Performance (Continued)

Cost of goods sold

Inventory turnover 
Average aggregate inventory value
= $160/$35
= 4.57

Since the company’s normal inventory turnover ration

is 10, a drop to 4.57 means that the inventory is not
turning over as quickly as it had in the past. Without
knowing the industry average of turns for this
company it is not possible to comment on how they
are competitively doing in the industry, but they now
have more inventory relative to their cost of goods
sold than before.