Supply chain mamngement

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Supply chain mamngement

  1. 1. Supply Chain Management Presented By: Kapil Batra Jyoti Arora
  2. 2. Agenda <ul><li>Introduction to Supply Chain Management </li></ul><ul><li>Concept of Supply Chain Management </li></ul><ul><li>Need of supply Chain Management </li></ul><ul><li>Evolution of Supply Chain Management </li></ul><ul><li>Issues involved in development of SCM framework </li></ul>
  3. 3. Introduction to Supply Chain Management
  4. 4. Introduction to Supply Chain Management <ul><li>Retail helps in </li></ul><ul><ul><li>Making goods available </li></ul></ul><ul><ul><li>At the right time </li></ul></ul><ul><ul><li>Takes care of customer preference </li></ul></ul><ul><ul><li>Services to the customer </li></ul></ul>
  5. 5. Complexity of Retail Department Store Cosmetics Kitchen Apparel Gifts Appliances Electronic Gadget
  6. 6. Department Store Cosmetics Kitchen Apparel Gifts Appliances Electronic Gadgets Men Women Kids
  7. 7. Department Store Cosmetics Kitchen Apparel Gifts Appliances Electronics Men Women Kids Casual Formal Access- ories
  8. 8. Department Store Cosmetics Kitchen Apparel Gifts Appliances Electronic Gadgets Men Women Kids Casual Formal Access-ories Shirts Trousers
  9. 9. Department Store Cosmetics kitchen Apparel Gifts Appliances Electronic Gadgets Men Women kids Casual Formal Access-ories Shirts Trousers Full Sleeves Half Sleeves
  10. 10. The challenge of Supply Chain Management in Retailing <ul><li>Increased complexity over the last decade </li></ul><ul><li>Opening of global markets </li></ul><ul><li>Uncontrollable cost of </li></ul><ul><ul><li>Transportation </li></ul></ul><ul><ul><li>Warehousing </li></ul></ul><ul><ul><li>Distribution </li></ul></ul><ul><ul><li>Shipping </li></ul></ul><ul><ul><li>Has led to decrease in </li></ul></ul><ul><ul><li>profitability of retailers </li></ul></ul>
  11. 11. Overcoming the Challenge <ul><li>To overcome the challenge of complexity in SCM various innovations have been done </li></ul><ul><ul><li>Just In Time (JIT) </li></ul></ul><ul><ul><li>Total-Quality Management (TQM) </li></ul></ul><ul><ul><li>Zero Inventory (ZI) </li></ul></ul><ul><ul><li>Vendor Management Inventory (VMI) </li></ul></ul><ul><ul><li>Efficient Consumer Response (ECR) </li></ul></ul>
  12. 12. Concept of Supply Chain Management
  13. 13. Concept of Supply Chain Management <ul><li>“ Supply chain is a network of facilities & distribution options that performs the function of procurement of raw materials , transformation of these materials into intermediate & finished products and distribution of these products to the customers ” </li></ul>
  14. 14. Customer’s Customer Customer Buyer Delivery of a superior value: Quality, Flexibility, Innovation & Value flow to the customer Demands for low pricing, high quality; Customer; Supplier Integration across a responsive & flexible supply chain Supplier Supplier’s Supplier Value acquisition from Suppliers Value added in production Value delivery to customers
  15. 15. <ul><li>Supply Chain Involves 5 Basic Steps </li></ul>Plan Deliver Feedback Source Make SOURCING RAW MATERIALS MANAGING SUPPLY & DEMAND WAREHOUSING & INVENTORY TRACKING DISTRIBUTION ACROSS CHANNEL MANUFACTURING & ASSEMBLY
  16. 16. These Five Steps Broadly Define These Efforts <ul><ul><li>Delivery To The End Customers </li></ul></ul><ul><ul><li>Distribution Across Channels </li></ul></ul>Order Entry & Order Management <ul><ul><li>Warehousing & Inventory Tracking </li></ul></ul><ul><ul><li>Manufacturing & Assembling </li></ul></ul>Sourcing Raw Materials <ul><ul><li>Managing </li></ul></ul><ul><ul><li>Supply & Demand </li></ul></ul><ul><li>Reduced Cost </li></ul><ul><li>Speed To Market </li></ul><ul><li>Better Services </li></ul>
  17. 17. Objectives of SCM for Retailers <ul><li>Objectives:- </li></ul><ul><ul><li>R ight Product </li></ul></ul><ul><ul><li>Right Place </li></ul></ul><ul><ul><li>Right Time </li></ul></ul><ul><ul><li>Right Price & </li></ul></ul><ul><ul><li>Profit for </li></ul></ul><ul><ul><li>the retailer </li></ul></ul>Product Time Price & Profit Place R ight
  18. 18. SUPPLIER Flow of Goods Flow of Information SCM also Involves RAW MATERIAL WAREHOUSE STOCK MANUFACTURER WAREHOUSE DISTRIBUTION CENTRE RETAILER CUSTOMER
  19. 19. Need of SCM
  20. 20. Need of SCM <ul><li>Change in Customer Buying Habits </li></ul><ul><ul><li>Demand changes frequently </li></ul></ul><ul><ul><li>Shorter product lifecycle </li></ul></ul><ul><ul><li>Increased cost of holding inventory </li></ul></ul><ul><li>Increased Competition </li></ul><ul><ul><li>Multiple buying options for customer </li></ul></ul><ul><ul><li>Hence, need of making product accessible to customer </li></ul></ul><ul><ul><li>Minimize the cost </li></ul></ul><ul><ul><li>Efficient distribution result </li></ul></ul>
  21. 21. <ul><li>Increasing pressure of profit margins earned </li></ul><ul><ul><li>Emphasis on integration of SCM process </li></ul></ul><ul><ul><li>Helps in cost cutting </li></ul></ul><ul><li>Technology Driven World </li></ul><ul><ul><li>Information plays an important role </li></ul></ul><ul><ul><li>Product availability has increased </li></ul></ul>Need of SCM
  22. 22. Evolution of Supply Chain Management
  23. 23. Evolution of Supply Chain Management Traditional Mass Manufacturing Inventory mgmt & cost containment 1950s 1960s 1970s 1980s 1990s 2000s Future JIT, TQM, BPR, Supplier & Customer Alliances Supply Chain Relationship Formation & Extension Increased Supply Chain Capabilities
  24. 24. Issues Involved In Developing Efficient Supply Chain Framework
  25. 25. Issues Involved In Developing Efficient Supply Chain Framework Warehouse Design & Operations STRATEGIC Customer Service Network Strategy STRUCTURAL Channel Design Transportation Management Materials Management Information Systems Policies & Procedures Facilities & Equipments Organization & Change Management FUNCTIONAL IMPLEMENTATION
  26. 26. Thank You

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