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  • Dell
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    • 1. Supply Chain Management
    • 2. A Supply Chain for BreadA Supply Chain for Bread 2
    • 3. What is Supply chain? • Consists of all parties involved, directly or indirectly, in fulfilling a customer request Supplier Manufacturer Distributor Retailer Customer
    • 4. Is supply chain so simple? Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Upstream Downstream
    • 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. 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. 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. 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. 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. 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. 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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