This PPT will briefly give an over view of what are the challenges faced in SCM.

1. Challenges and Requirements
SUPPLY CHAIN MANAGEMENT

2. Session Objectives
To enable the learner to understand:
What are the challenges of SCM ?
Why do we care to have SCM ?

5. Challenges of SCM -1
Metrics-
How do we measure a
system?
Trade off of breadth vs.
validity of metrics
Outcome based
logistics-
Perfect order, Perfect
shelf
Politics &Power of Players-
Who wins?
Mom & Pop stores vs.
Megastores/Hypermark
ets
Mega Retailers vs.
Mega CPG
Manufacturers
Visibility-
Who can see what and how
quickly?
Data are stored
separately.
Massive data ≠ Shared &
accessible information
All parties do not have
equal access to data

6. Versus
Mom & Pop Store
(Unorganized)
Mega store
(Organized)

7. Contrast between cluttered shopping floor vs. perfectly ordered
shelf usage

8. Challenges of SCM -2

9. Why do we care ?
Supply Chains –
Span the globe and cannot be managed
as an isolated function,
Have become critical to any
organization’s operations, and
Connect functions, divisions, and business
units within a firm as well as across firms.
Evolved into being both a Bridge and a Shock Absorber

10. Illustration of Variability of Diesel Pricing
22/3/2
013
1/4/20
13
16/4/2
013
11/5/2
013
23/5/2
013
1/6/20
13
1/7/20
13
2/7/20
13
1/8/20
13
1/9/20
13
1/10/2
013
1/11/2
013
1/12/2
013
4/1/20
14
5/1/20
14
1/2/20
14
1/3/20
14
Price 48.67 48.63 48.67 49.67 49.67 50.25 50.26 50.84 51.4 51.97 52.54 53.1 53.67 54.34 55.48 54.91 55.48
48.67 48.63 48.67
49.67 49.67
50.25 50.26
50.84
51.4
51.97
52.54
53.1
53.67
54.34
55.48
54.91
55.48
44
46
48
50
52
54
56
ONHIGHWAYDIESELPRICE(RS./LITRE)-2013-14
Variability of Diesel Pricing in Delhi (India) -2013-14

11. Logistics Costs per GDP
5.7 5.8 5.8
6
6.2
6.4
3.2
4.5
4.8
4.1
3.9
4.2
1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005
%ageofIndia’sGDP
Logistics Costs per GDP in India (1999-2005)
Contribution of TransportIn GDP (%) Proportion of Transport inTotal Expenditures (%)

12. + + =
Transportation Storage Distribution Logistics

13. Importance of SCM
Functional Logistics Supply Chain
Key Skills Technically Narrow Coordination
Influence Local & Controllable Across entire Supply Chain
Leadership Hierarchical, Direct, ‘Hard’ Influential, Indirect, ‘Soft’
Risk Management Robust or Reactionary Planned Response & Flexibility
Measurement Single Focus Multi-faceted
Technology
Approach
Isolated Optimization Visibility & Coordination
Technology Platform Self-Hosted, On-site Cloud or SaaS
Scope / Reach Regional / National Global / Multi-National
Supply Chain Management is a growing and evolving discipline.

14. Let’s Summarize
Challenges of SCM includes :
 Metrics
 Politics and power
 Visibility
 Uncertainty
 Global Operations
SCM acts as both as a bridge and a shock absorber to connect functions as well as
neutralize disruptions.