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SUPPLY CHAIN MANAGMENT INTRODUCTION
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SUPPLY CHAIN MANAGMENT INTRODUCTION

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SUPPLY CHAIN MANAGEMENT INTRODUCTION

SUPPLY CHAIN MANAGEMENT INTRODUCTION

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SUPPLY CHAIN MANAGMENT INTRODUCTION SUPPLY CHAIN MANAGMENT INTRODUCTION Presentation Transcript

  • SUPPLY CHAIN MANAGEMENT PRAVEEN SURESH – 1116121 PREEMA D’SOUZA – 1116122 SIDDARTH UMESH – 1116154 SUMAN
  • Supply Chain Management - Meaning  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
  • What is Supply Chain Management? - A supply chain consists of Supplier Manufacturer Distributor Retailer Upstream Customer Downstream - aims to Match Supply and Demand, profitably for products and services SUPPLY SIDE DEMAND SIDE - achieves The right Product + + + The right The right The right Price Store Quantity + The right + Customer The right Time = Higher Profits
  • Origins of Supply Chain Management © 2009 South-Western, a division of Cengage Learning
  • Supply Chain facilities •Warehouses •Factories •Processing Centers •Distribution Centers •Retail Outlets •Offices
  • Supply Chain functions & activities •Forecasting •Purchasing •Inventory Management •Information Management •Quality assurance •Scheduling •Production & Delivery •Customer Service
  • Need for Supply Chain Management
  • Impact of both areas on each other
  • Need for Supply Chain Management •Match Demand •Improve Operations • Increasing transportation cost • Competitive pressures • Increasing globalization • Managing Inventories • Increasing importance of e-commerce • Complexity of supply chains
  • Benefits of Supply Chain Management • Lower inventories • Higher productivity • Higher profitability • Shorter lead times •Greater customer loyalty by delivering on time
  • Challenges of Supply Chain Management Difficulty in integration •Getting top managements on board •Dealing with trade-offs •Small businesses •Variability & Uncertainty •Long lead times •
  • Current Trends in Supply Chain Management •Outsourcing of manufacturing is a major trend •Outsourcing of the logistics function •Moving towards more web based transactions systems •Improving the information flows along the entire chain
  • Current Trends in Supply Chain Management Expanding the Supply Chain  The expansion involves:  breadth- foreign manufacturing, office & retail sites, foreign suppliers & customers  depth- second and third tier suppliers & customers
  • Current Trends in Supply Chain Management The Greening of Supply Chains - Producing, packaging, moving, storing, delivering and other supply chain activities can be harmful to the environment  Supply chains will work harder to reduce environmental degradation  Large majority (75%) of U.S. consumers influenced by a firm’s environmental friendliness reputation  Recycling and conservation are a growing alternative in response to high cost of natural resources 14
  • Current Trends in Supply Chain Management Reducing Supply Chain Costs  Cost reduction achieved through:  Reduced purchasing costs  Reducing waste  Reducing excess inventory, and  Reducing non-value added activities  Continuous Improvement through  Benchmarking- improve over competitors’ performance  Trial & error  Increased knowledge of supply chain processes