Supply chain

1. UNDERSTANDING THE
SUPPLY CHAIN
MANAGEMENT
By Abdullah Athar

13. Definition of Supply Chain
Mgt :
 Basic Supply Chain : a network used
to deliver product and services from
raw materials to end customers
through an engineered flow of
Information, physical distribution and
cash.
 Supply chain = supply + chain+ mgt

14. Supplier
Manufactur
e
Distributor Retailer Customer
Funds
Product
Information
SUPPLY CHAIN MANAGEMENT

15.  Supply chain is the game of
management of 3 flows as shown in
diagram. You are to explain how these
3 flows affects or support supply chain
performance. Kindly give reply point
wise.

16. Generally key pillars of supply chain
are
 Customer
 Manufacturer
 Retailers
 Wholesaler/distributor
 Warehouse and transportation
 Component /raw material suppliers
Each stage in supply chain is connected
through flow of products , information
and fund

17.  During operation, supply chain closely
interacts with other functions like
finance, sales , marketing etc

18. Supply Chain in Reality
Supply chain process is not as simple
as explained. Complexity includes due
to involvement of various real scenarios
like many suppliers, many distributors,
many manufacturing options .

19. Different Real Scenarios in Supply Chain

20. Services also have supply chains

21. Sourcing ,
Procurement
and supply
management
(purchasing ,
supplier
relationship)
Material
Management
(Forecasting
Inventory, store ,
stoke keeping)
Logistics &
Distribution
Supply Chain-Historical Perspective

22. Objective of Supply Chain
To satisfy customers need by
 Matching variable demand with
variable supply
 In shortest possible time
 With minimum total cost

23. Significance of Supply Chain :
◦ Supply chain designing and its
operation plays a significant role in
the success of firm.
o Supply chain is the channel which
ensure product availability to end
user, so it determines company
success.
◦ Successful supply chain operation
requires well inter-connectivity within
functions and efficient role of all
functions.

24. Some Strategies in Supply Chain
◦ Few suppliers/ many suppliers
◦ Make or buy decision
◦ Inventory Management
◦ Capacity Planning

25. Decision Phase in Supply Chain
 Supply chain strategy
next several years
 Supply chain planning
◦ Quarter to a yearly
 Supply chain operation
◦ (weekly/monthly)

29. Process view of supply chain
 Supply chain is a consequence of
processes and flows that take place
within and between different stages
and combine to fill a customer need
for a product.
 Two views of supply chain are
◦ Cycle view :
◦ Push/pull view

30. Cycle View
 Processes in supply chain are divided
into a series of cycles , each
performed at the interface between 2
consecutive stages of supply chain.
◦ Customer order cycle
◦ Replenishment cycle
◦ Manufacturing cycle
◦ Procurement cycle

32. Push/pull view
 The process in supply chain are
divided into 2 categories depending on
whether they are executed in
response to a customer order on in
anticipation of customer order. Pull
processes are initiated by a customer
order. Push process are initiated and
performed in anticipation of customer
need.

34. Push/pull process
 Make to stock order
◦ Pull process : customer order cycle
◦ Push process : procurement +
manufacturing
+replenishment
 Build to order
◦ Pull process : customer order cycle
+manufacturing
◦ Push process : procurement

35. Supply Chain Macro Process in a Firm
SRM ISCM CRM
Supplier Firm Customer
Source
Negotiate
Buy
Design collaboration
Supply collaboration
Demand planning
Supply planning
production
Warehouse
Market
Price
Sell
Order management
Call centre