Future trend -Supply Chain

Management
 Challenges – of Supply Chain Management

 Complex Supply Chain

 Global Business
 Computerization / Automation
 New Technologies
 Operational Productivity
21 st Century Supply Chain
Management

1. Reason for growth

1. Growth of IT
2. Growth of Infrastructure
3. Air traffic development
 Nature of SCM IN 21ST
Century

1. Computerization – CRM/DRP/MRP/SCM
2. RFID / Universal Bar-coding
3. Robotics / FMS / Automation
4. Zero Inventory / Zero Defect / Lean
Mfg /JIT
5. Electronic Fund transfers / Internet
banking
6. Outsourcing 3 PL/ 4
 Customer service AND
Supply Chain Management
 Definition of Customer service
 Knowing Customers requirement
 Availability

 After Sales support

 Customer service AND
Supply Chain Management
 Core Product expectations
 Quality
 Product features
 Technology
 Durability
 Customer service expectations
 Delivery lead time & flexibility
 Delivery reliability and consistency
 Single point of contact
 Ease of doing business
 After sales - Support
 Customer service AND
Supply Chain Management
 Customer service elements

 Pre transactional elements

 Transactional Elements


Post transactional elements
 Customer service AND
Supply Chain Management
 Customer service elements
 Pre transactional elements
 Written customer service policy

 Accessibility

 Organization structure

 System flexibility
 Customer service AND
Supply Chain Management
 Customer service elements
 Transactional elements
 Order cycle time

 Inventory availability

 Order fill rate

 Order status information

 Customer service AND
Supply Chain Management
 Customer service elements
 Post-Transactional elements
 Availability of spares

 Call out time

 Product tracing / Warranty

 Customer complaints / claims

 Inventory Management
customer service /
satisfaction
 Setting customer service priority
 Setting stock availability matrix
 Managing product service levels
 Inventory Management
customer service /
satisfaction
 Setting customer service priority

ABC

SALES
C
C
B
AA

CUSTOMERS
 Inventory Management
customer service /
satisfaction
 Setting Stock Availability
stock Matrix
availability Products Stock
matrix Availability

A 99%
B 97%
C 90%
 Inventory Management
customer service /
satisfaction
Volume HI
 Managing Q2 > Provide
(by Q1 > Seek High Stock
product SKU) cost availability
service reduction
LO Q3 > Review Q4 > JIT
levels
Deliveries

LO HI
PROFIT
 Inventory Management
customer service /
satisfaction
 Setting customer service standards
 Order Cycle Time
 Stock Availability
 Order size constrains
 Ordering Convenience
 Frequency of Delivery
 Delivery Reliability
 Documentation Quality
 Claims Procedures
 Order Completeness
 Technical support
 Order status information