This document discusses supply chain management. It defines supply chain management as the effective management of information, material, and funds flowing from suppliers to consumers. It explains that the purpose of effective supply chain management is to make the right goods available at the right place, time, quantity, condition and cost. It then provides details on the organizational structure and responsibilities of various supply chain departments, including production planning, material planning, purchasing, warehousing, and logistics. Finally, it discusses current topics in supply chain management such as supply chain mapping, visibility, forecasting, customer service, cost analysis, tracking and tracing, just-in-time systems, and return management.

1. Supply Chain Management
By
M. Daniyal khan
Presented at
Uniferoz (PVT) LTD

2. What is Supply Chain Management ?
“Effective management of flow of information, material and funds
from supplier’s supplier to final consumer & vise versa”
Supplier’s
Supplier
Supplier Manufacturer
Wholesaler
/Distributer
Retailer Consumer
Information
Material
Funds

3. Purpose of Effective Supply Chain Management
To make available
Right QUANTITIES of the
Right GOODS to the
Right PLACE at the
Right TIME in the
Right CONDITION at the
Right COST

4. Supply Chain Organogram
Supply Chain Manager
AM-Production
Planning
Sr. Officer PP
Officer PP
AM-Material
Planning
Officer MP
Sr. Officer
MP
AM-Purchases (Local +
Imports)
Sr. Officer
Purchases
Officer
Purchases
AM-Material
Stores
Sr. Officer
Stores
Officer Stores
Labor
Labor
Labor
AM-F/G
Warehouse
Sr. Officer
WH
Officer WH
Labor Labor Labor
AM-Logistics
(Domestic +
International)
Officer
Logistics
Officer
Logistics

5. Supply Chain Operational Model
2.Production
Planning
3.Material
Planning
9.Customer
5.Material
Stores
4.Purchase
1.Sales & Marketing
Coordinator
8.Logistics
6.Production
7.F/G Warehouse
(Local + Export)
Production Planning dept will develop
the monthly production planning
scheduled after analyzing the available
stocks at warehouse and share with
material planning dept for raw material
arrangements
Material Planning dept referring to the
monthly production plan check
material status and raised the material
requisition to purchase dept for
required items
ReverseLogistics(Returns)
R&D + PD
+ QA-QC
Dept
HR &
Admin
Dept
Fianance
Dept
Engineeri
ng Dept
Facilitators
Facilitators
Facilitators
Facilitators

6. Strategic & Operational working criteria & Responsibilities of
Each Sub Department of Supply Chain
1. Production Planning and Control Department PP.xlsx
• Demand planning and Bullwhip effect analysis
• Developing monthly production planning schedule in coordination with stake holders
• Developing of master planning schedule
• Analysis on production capacity planning
• Material consumption controlling, rectifying the accuracy of bill of material, wastage reports
• Over time reduction strategies
• Production output optimization
• Prepare production summaries + planned production output VS achieved output analysis
• ABC product classification
2. Material Planning Department MP.xlsx
• Material requirement planning
• Setting up min/max levels for every item (Fix + Floating)
• Work on economic order quantity (EOQ)
• ABC product classification
• Monthly reconciliation of all material requisitions against P.O opened and material received with
purchase department.
• Play part in supplier’s evaluation
• Send alert to purchase department for nil, coming to nil and below mim stock level items.

7. Strategic & Operational working criteria & Responsibilities of
Each Sub Department of Supply Chain
3. Purchase Purchase Management.xlsx
• Replenishment of material according to material requisition by material planning department
• Work on all three purchase function levels, (Strategic, Tactical and Operational)
• Buy competitively and wisely (achieve the best combination of price, quality and service)
• Continually search for new and alternative ideas, products, and materials to improve efficiency
and profitability
• Build and maintain healthy relations with active suppliers and the supplier community
• Managing purchasing risk, and using right mode of inbound transportation
• Develop supplier assessment methodology, and supplier audit technique
• ABC product category purchase analysis
• Import items management, sales contract terms, supplier’s reliability, custom tariff analysis etc
• Drafting and communication of company's protocols to suppliers while going into a purchase
contract
• Method of handling the discrepancies and rejections in supplied material or services
• Buy cheap sell valued approach

8. Strategic & Operational working criteria & Responsibilities of
Each Sub Department of Supply Chain
4. Material Stores
• Compliance of standard operating procedures
• Practice FEFO (First expire first out) method
• Strong documentation and computerized system compliance.
• Stores diagrammatic layout should be available and should be used to preplan storage needs
• Develop stores inventory audit technique.
• Bin card system should be practice to reconcile the physical stock status with computerized
system
• ABC item category classification and product grouping should be done for spacing
• Improve working efficiency by utilizing the material handling equipment (MHE) effectively
• Calculation of resource utilization, e.i labor, space, equipment and system
• Keep eye on fire protection, safety and housekeeping of the stores
• Prepare report on slow moving and dead stock items, and communicate with higher
management for its utilization

9. Strategic & Operational working criteria & Responsibilities of
Each Sub Department of Supply Chain
5. Warehousing Warehouse.xlsx
• Use of Distribution Requirement Planning System (DRP)
• Compliance of standard operating procedures and documents requirements
• Practice FEFO (First expire first out) method
• Stock levels monitoring and reporting to supply chain manager
• Maximum utilization of resources.
• Play part on reverse logistics
• Innovative packing and bundling idea’s for transportation cost reduction and maintenance of
goods quality in transit.
• ABC product classification for safety stock levels and location setting
• CBM calculation for each item for accuracy in planning if shipments
6. Transportation/Logistics Domestic & Export
• Demand and supply planning
• Work on economies of scale
• Knowledge of transportation regulations, industry structure and services
• Make effort on transportation related service elements like speed, availability, and flexibility in
shipments required by customer

10. Strategic & Operational working criteria & Responsibilities of
Each Sub Department of Supply Chain
• Working of all basic modes of transportation and do cost comparison
• When vehicle is free utilize in inbound logistics requirement
• Relationship with freight forwarders and custom clearance companies for export logistics
• Knowledge of custom, port duties, charges and rebate procedure for exports
• Routing, scheduling and load planning
• Complain procedure flow and reverse logistics

11. Current Topics of Discussion in Supply Chain
1. Supply Chain Mapping
• The break up of the supply chain operations into smaller elements in order to know a value-
added and non-value added activity and the time frame for performing that activity and its
cost implication so that we can reduce or minimize that non-value added activities to make
the supply chain lean; below graph will elaborate the concept further
Cost Addition
ValueAddition
Procurement
Manufacturin
g
Distribution
Raw
Material
Processing
Finished
Goods
Field Stock
Customer
Order

12. Current Topics of Discussion in Supply Chain
2. A helicopter View
• From top head of supply chain can view all the activities of all sub-
department of supply chain and can give his input from where the supply
chain process is distracted
3. Visibility in Supply Chain
• Visibility means more than just awareness of where materials are at a
given point in time or the amount of goods in a warehouse. Instead,
visibility means a window into a wider range of data, supply chain
processes, events, and patterns that enable automation, dynamic
responses, and predictability.
4. Forecast and Capacity Planning
• Capacity planning is important to balance the demand and supply, but
there are certain measures to be taken before going for capacity
increased because of companies financial protocols, and also consider
what type of capacity planning is appropriate for current demand.

13. Current Topics of Discussion in Supply Chain
5. Customer Service and Supply Chain
• Supply chain management is directly related to the company’s customer service and if a company
have a great customer service then they can get a leg up on the competition, for example deliver
products to customers faster and with greater accuracy, track shipments to ensure they reach in
time and safely and maintain optimal inventory levels so you always have what customers want in
stock.
6. Non-Monetary Cost/Benefit Evaluation
• Stock out cost
• Customer dissatisfaction cost
• Material holding and carrying cost
• Cost of capital / Opportunity cost
• Unproductive activity cost
• Under utilized Capacity cost
7. Tracking and Tracing
• The system of T & T give the ability to track serial numbers and lot numbers and it is important for
manufacturers & distributors who need to track items for variety of purposes including quality
control, service management, warranty management, theft deterrent and production issue etc.
8. Just in Time Inventory System (JIT)
• JIT is the concept based on the fact that an activity should not take place until there is a need
for it, hence an inventory item should not be brought into the system until it is required for
making the final product.

14. Current Topics of Discussion in Supply Chain
9. Return Management
• Appropriate returns policies can strengthen relationships with key customers. develop
appropriate gatekeeping, disposition, and avoidance policies. operational policies and
procedures must be developed to handle returns. metrics and performance
expectations for returns management must be aligned across functional areas and with
overall supply chain strategy
Thank you for Understanding