It will help to introduce the supply chain management and also help you to grow the knowledge of operations management.
It is highly useful for management students who are studying with operations management.
3. WHAT IS SUPPLY CHAIN?
• Supply chain management (SCM) is the management of the flow of goods
• A supply chain consists of all parties involved directly or indirectly, in fulfilling
a customer requirement.
• 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 process to “Source”, “Make” and “deliver”
4. DEFINITION:-
• Supply chain management (SCM), the management of the flow of
goods and services, involves the movement and storage of raw
materials, of work-in-process inventory, and of finished goods
from point of origin to point of consumption.
6. BENEFITS OF SCM :-
Reduce uncertainty &
risks in supply chain
This positively affects
inventory levels, cycle
time, business process
& customer service
Contributes to overall
increase in profitability
& competitive
advantage.
8. SUPPLY CHAIN STAGES
• Customer
• Retailers
• Wholesalers/Distributors
• Manufacturers
• Component/ Raw material suppliers
- It is not compulsory that all stages should be present in a supply chain
9. OBJECTIVES
• Satisfy the customer needs.
• Maximize the overall value generated.
• Increase supply chain profitability.
• High supply chain profitability
10. SUPPLY CHAIN DECISIONS:-
• Ensure effective flow of goods and information.
• Clusters of store near distribution centers.
• Collaboration with suppliers.
• Active efforts to steer customer at real time.
• Centralized manufacturing
• Worth of inventory
• Manage cash flow
• Should be flexible
11. Steps of Supply Chain Process
Design
Planning
Execution
Control
Monitoring
13. PUSH AND PULL STRATEGY OF SCM
• Push process- Executed in anticipation to customer orders.
• Pull process- Executed in response to customer orders.
14. PUSH STRATEGY
Push strategies include trade shows, showrooms, getting
retailers to stock a product, and creating a supply chain to
facilitate distribution.
Features:
-Classic manufacturing supply chain strategy.
-Manufacturing forecasts are long range.
-Longer response time to react to marketplace changes.
-Increased variability (Bullwhip Effect)
-Inefficient use of production facilities (factories).
Ex-Auto Industries, Larger appliances
15. PULL STRATEGY
Pull strategy motivates customers to actively seek out a specific product and it best for new
products or in the case when a manufacturer has a strong and visible brand.
Features:
-Production and distribution are demand-driven.
-None or little inventory held.
-Fast information flow mechanisms
-Decreased lead times and retailer & manufacturer inventory.
-Decreased variability in the supply chain and especially at manufacturers.
Ex- E-commerce business (Amazon)