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Supply Chain Management


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Supply Chain Management is a practice adopted by companies to get the right product at the right time to the customers, reduce cycle times, keep the inventory as low as possible and still offer superior customer service. Some of the goals of SCM are cut costs, increase profits,improve performance in relationships with suppliers and customers, develop value added services that gives company a competitive edge.

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Supply Chain Management

  1. 1. Supply Chain Management
  2. 2. Supply Chain Management Physical Supply Chain Basic Delivery to Product customermaterials Vertical Supply ChainOpen a Attract Link to saleswebsite customers organisation
  3. 3. Different Categories of Supply Chains Orders Orders OrdersRaw Material Manufacturer Wholesaler Retailer supplier supplies supplies supplies
  4. 4. Benefits of SCMi. Get the right product at the right place at the least costii. Keep Inventory as low as possible and still offer superior customer serviceiii. Reduce cycle times
  5. 5. Goals of SCM• To cut costs• Increase profits• Improve performance in relationships with customers and suppliers• Develop value added services that give a company a competitive edge
  6. 6. Supply Chain Management Inventory Supplier Management DistributionManagement Management Supply Chain Sales force Management Productivity Financial Payment ChannelManagement Management Management
  7. 7. Critical Relationship of Suppliers/Company Cost Quality Suppliers/ CompanyFlexibility Speed
  8. 8. Fourth Strategy Product specs that your suppliers must Tracking of adhere to the needs Your Customer suppliers company (starting point)Downstream part of Reverse flow of Upstream parts ofthe value chain the value chain Information
  9. 9. Supply Chain Design plants Distributionsuppliers customers centres
  10. 10. Waves of Future (Economic Change) Current State Global Business Previous State Environment Nation state Environment Users define MarketsProducers Define Markets Technology dominates Manufacturing dominates Capital Investment Capital Investment Business Alliances Independent Businesses Focus on Value focus on Price De-regulation and Government Control/ Privatization Regulation
  11. 11. Power Shift Response TrendsStrategic Alliances & value Latechain Integration ’90s Customer satisfaction & Growth Mid Strategies ’90s Early Re-engineering & Downsizing ’90s Quality & TQM ’80s Productivity ’70s Improvement Producer-driven ’50s – Economy ’60s
  12. 12. VCM ArchitectureSystems Core VCM End Users company as a layerknowledge Repository
  13. 13. Characteristics of SCM - 1• Sourcing of raw materials or finished goods from anywhere in the world• Centralised global business & management strategy with hem less local execution• On-line, real time distributed information processing providing total supply chain information visibility• Ability to manage information not only within a company but across industries & enterprises
  14. 14. Characteristics of SCM - 2• Seamless integration of all supply chain processes including third party suppliers, information systems, cost accuring standards and measurement systems• Development & implementation of accounting models• Reorganisation of the supply chain organisation into high-performance teams
  15. 15. Factors hindering re-combinant business models• Disparate data • Proprietary standards models • Inertia & fear of• Disparate trading change partner capabilities • Competitiveness• Disparate process based on business models process differences• Semantic • Point to point heterogeneity interfaces• Integration as trading partner lockin
  16. 16. SCP Tools • Strategic planning tools • Executive & implementation tools • Tactical planning tools
  17. 17. Tactical Planning• Network • Transportation &• Available to Promise(ATP) Scheduling• Capable to Promise (CTP) • Manufacturing• Capacity planning• Demand planning• Distribution planning• Deployment planning• Sales & operation
  18. 18. Enterprise CollaborationGoalsCommunicateCoordinateCollaborate
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