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Supply Chain Management
A Supply Chain for BreadA Supply Chain for Bread
2
What is Supply chain?
• Consists of all parties involved,
directly or indirectly, in fulfilling a
customer request
Supplie...
Is supply chain so simple?
Supplier Manufacturer Distributor Retailer Customer
Supplier Manufacturer Distributor Retailer ...
Objective of a Supply Chain
• Maximise overall profit
• Profit
– Revenue generated from customer - costs
incurred along th...
Simple Product Supply ChainSimple Product Supply Chain
Supply Chain: A sequence of activities
And organizations involved i...
1-7
Stage of Production Value
Added
Value of
Product
Farmer produces and harvests wheat $0.15 $0.15
Wheat transported to m...
So, what is SCM?
• Objective is to be able to have the right products
in the right quantities (at the right place) at the
...
Causes
• Little or no communication between supply
chain partners.
• Delay times between order processing,
demand, and rec...
Distribution
• Steps taken to move and store a product
from supplier
• Design Options
– Manufacturer storage with direct s...
Logistics
• Logistics is the management of the flow of
goods, information and other resources,
including energy and people...
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  • Transcript of "Scm"

    1. 1. Supply Chain Management
    2. 2. A Supply Chain for BreadA Supply Chain for Bread 2
    3. 3. What is Supply chain? • Consists of all parties involved, directly or indirectly, in fulfilling a customer request Supplier Manufacturer Distributor Retailer Customer
    4. 4. Is supply chain so simple? Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Upstream Downstream
    5. 5. Objective of a Supply Chain • Maximise overall profit • Profit – Revenue generated from customer - costs incurred along the entire chain (e.g. manufacturing / storing / distributing the product) • When is Supply chain effective? – Manage Product, Information and Fund flow
    6. 6. Simple Product Supply ChainSimple Product Supply Chain Supply Chain: A sequence of activities And organizations involved in producing And delivering a good or service 6
    7. 7. 1-7 Stage of Production Value Added Value of Product Farmer produces and harvests wheat $0.15 $0.15 Wheat transported to mill $0.08 $0.23 Mill produces flour $0.15 $0.38 Flour transported to baker $0.08 $0.46 Baker produces bread $0.54 $1.00 Bread transported to grocery store $0.08 $1.08 Grocery store displays and sells bread $0.21 $1.29 Total Value-Added $1.29 A Supply Chain for BreadA Supply Chain for Bread
    8. 8. So, what is SCM? • Objective is to be able to have the right products in the right quantities (at the right place) at the right moment at minimal cost.
    9. 9. Causes • Little or no communication between supply chain partners. • Delay times between order processing, demand, and receipt of products. • Over reacting to the backlog orders. • Inaccurate demand forecasts.
    10. 10. Distribution • Steps taken to move and store a product from supplier • Design Options – Manufacturer storage with direct shipping – Manufacturer storage with direct shipping and in-transit merge
    11. 11. Logistics • Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption • Logistics involves the integration of information, transportation, inventory, warehousing, material- handling, and packaging, and occasionally security • Logistics is a channel of the supply chain which adds the value of time and place utility.
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