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Similar to Supply chain, developed for inhouse training at The Eicher goodearth company, learners program
Similar to Supply chain, developed for inhouse training at The Eicher goodearth company, learners program (20)
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Supply chain, developed for inhouse training at The Eicher goodearth company, learners program
- 1. Supply Chain The backbone of a successful business This is Goodearth's property, publishing, printing or distributing is prohibited (R) 1
- 2. Key learning takeaways Understanding basics of supply chain function People and their importance in the entire process The best practices from around the world Goodearth’s way of doing things Way forward This is Goodearth's property, publishing, printing or distributing is prohibited (R) 2
- 3. What is supply chain? It’s a fine balance between TASKS and TIMINGS This is Goodearth's property, publishing, printing or distributing is prohibited (R) 3
- 4. Supply Chain Management (SCM) Definition Here are two definitions: The design and management of seamless, value-added process across organizational boundaries to meet the real needs of the end customer -Institute for Supply Management Supply chain is PEOPLE………. Collaboration is the key The ability of the people to work together across departmental and organizational boundaries. -New Definition This is Goodearth's property, publishing, printing or distributing is prohibited (R) 4
- 5. Rationale for Logistics and Supply Chain Management (SCM) Defeat of British in American war of independence: At the height of war, 12000 troops had to be equipped and fed from the far away Britain. Gulf war in 1991, American triumph: Half a million people and half a million tones of equipment had to be airlifted 12000 kms with a further 2.3 million tones of equipment moved by sea – all in an impossible timeframe This is Goodearth's property, publishing, printing or distributing is prohibited (R) 5
- 6. BASICS OF SUPPLY CHAIN Organizations must embrace technologies that can effectively manage supply chains This is Goodearth's property, publishing, printing or distributing is prohibited (R) 6
- 7. BASICS OF SUPPLY CHAIN The supply chain has three main links: 1. Materials flow from suppliers and their “upstream” suppliers at all levels 2. Transformation of materials into semi finished and finished products through the organization’s own production process. This is called VALUE ADDITION. 3. Distribution of products to customers and their “downstream” customers at all levels This is Goodearth's property, publishing, printing or distributing is prohibited (R) 7
- 8. Fill out PO D E M A N D Delivery to WH Pick list generated PO Approval QC Dispatch to Shops Production process GRN Raw Material Sourcing Customer Picks up PO to Supplier Production Scheduling FEEDBACK This is Goodearth's property, publishing, printing or distributing is prohibited (R) 8
- 9. How the small change in the bottom can bring a big impact on top….. The bullwhip effect. Revenue 100 100 Profit Mere 5% reduction in purchase cost can result in 50% increase in margin percentages 5 7.5 Costs 45 45 Expenses 50 47.5 In order to have an equal impact the organization would have to….. This is Goodearth's property, publishing, printing or distributing is prohibited (R) • • • Increase sale by 50% Reduce overheads by upto 20% Cut cost from some other methods 9
- 10. Benefits of SCM Inventory reduction Clusterization & Rationalization Productivity improvement scheduling Better utilization of resources DC Overhaul Cost reduction LP On-time delivery fulfillment Xdoc Vs DSD Vs Staples Better order management Better cash management What else???? Higher customer satisfaction Increased Profits This is Goodearth's property, publishing, printing or distributing is prohibited (R) 10
- 11. Few Great examples… This is Goodearth's property, publishing, printing or distributing is prohibited (R) 11
- 12. Few Great examples… Dell…. Innovative thinking and Speed IRCTC…. Technology Mc D…. Collaboration UPS…. Precision Wal-Mart….. Volume Handling/Efficiency Goodearth…. Lets write our own story This is Goodearth's property, publishing, printing or distributing is prohibited (R) 12
- 13. What is available.. Resources Good, Hard working, dedicated people Software systems What is critically desired… Group/Team functionality across all levels Building relationships to ease out processes Healthier communication i.e Timely, Accurate and Acceptable Training and development for continuous improvement 13 This is Goodearth's property, publishing, printing or distributing is prohibited (R)
- 14. Open up your mind Please ask questions….. Thanks for your time, involvement and patience listening, Really appreciate it all. This is Goodearth's property, publishing, printing or distributing is prohibited (R) 14
Editor's Notes
- http://www.marsdd.com/articles/dell-distribution-and-supply-chain-innovation/