2. • Supply chain (also called value chain or demand chain), is the
network of the involved companies, through upstream and
downstream linkages, in the different processes and activities that
produce value in the form of products and services in the hands of
the ultimate consumer.
• For example, a shirt manufacturer is a part of a supply chain that
goes upstream through the weavers of fabrics to the manufacturers
of fibers, and downstream through distributors and retailers to the
final consumer.
WHAT IS SCM?
3. Plan Source Make Deliver Buy
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•
4. • Increasing transportation costs like rising fuel prices,
increasing product handling charges.
• World economic slowdown causing fewer purchases.
• Difficulty in reaching far remote areas.
• Products recall or reverse logistics
• Inventory control, time management, labor allocation etc.
CHALLENGES IN SCM
6. • FedEx or Federal express is a US multinational courier delivery services
company headquartered in Memphis, Tennessee.
• It was founded by Frederick W. Smith in the year 1971.
• With an initial capital of $84 millions FedEx was setup.
• Headquarters: Hong Kong
• Employees: Approx. 18000
• No. of flights: 400<
• Vehicles fleet: 5000<
FEDEX