Prepared for class presentation. References: https://cscmp.org/ https://www.forceintellect.com https://www.afflink.com

1. By:
Namrata Tripathi
MBA – M&S
2017-19
Amity University, Rajasthan

2. What is a Supply Chain?
A supply chain consists of the flow of products
and services from:
– Raw materials manufacturers
– Intermediate products manufacturers
– End product manufacturers
– Wholesalers and distributors and
– Retailers
Connected by transportation and storage
activities, and
Integrated through information, planning, and
integration activities

3. Supply chain not only includes just
“Material flow” but also:
- Information flow, and
- Finance flow

4. Supply chain is also referred as the logistics
network.
Suppliers, manufacturers, warehouses, distribution
centers and retail outlets – “facilities” and the
• Raw materials
• Work-in-process (WIP) inventory
• Finished products
that flow between the facilities

6. Let us now understand with an
example that how supply chain
works:
Coca Cola Supply Chain.mp4

7. What is Supply Chain Management?
• A set of approaches used to efficiently integrate
– Suppliers
– Manufacturers
– Warehouses
– Distribution centers
• So that the product is produced and distributed
– In the right quantities
– To the right locations
– And at the right time
• System-wide costs are minimized, and
• Service level requirements are satisfied

8. Functions of SCM
Strategic
Level
Tactical
Level
Operational
Level

9. 1. Strategic Level
• Strategic network optimization, including
numbers, location and size of warehousing,
distribution centers & facilities
• Strategic partnerships with suppliers,
distributors & customers creating
communication channels for critical
information & operational improvements
• Where to make & make-buy decisions
• It is long term planning and needs resource
commitment

10. 2. Tactical Level
• Sourcing contracts & other purchasing
decisions
• Transportation strategy, including frequency,
routes and contracting
• Production decisions, including contracting
scheduling, & planning process definition
• Focus on customer demand & inventory
decision

11. 3. Operational Level
• Daily production & distribution planning,
including all nodes in the supply chain
• Production scheduling for each manufacturing
facility in the supply chain
• From production level to supply level
accounting all transit damage cases & arrange
to settlement at customer level by maintaining
company loss through insurance company

12. Design Decision in SCM
• What activities should be carried out by
the nodal firm and what should be out
sourced?
• How to select partners to perform
outsourced activities and what should be
the nature of the relationship with those
entities?
• Decisions pertaining to the capacity and
location other various facilities.

13. Importance Of SCM
• Proliferation of Product Lines
Ex: HUL keep on an average 1200 SKU’s
• Higher level of outsourcing
Ex: Dell
• Globalization of manufacturing
Ex: ABB ; General Motor
• Shift in power structure in the chain
Ex: Wal-Mart using Point of sales system

14. Other Benefits of SCM
Boost
Customer
Service
Reduce
operating
cost
Business
Impact of
SCM
Improve
financial
Position

15. 1. Boost Customer Service
• Right product assortment and
quantity
• Right product location
• Right delivery time
• Right after sales support/service

16. 2. Reduce operating costs
• Decrease purchasing cost
• Decreases production cost
• Decreases total supply chain cost

17. 3. Improve financial position
• Increases profit leverage
• Decreases fixed assets
• Increases cash flow