Succesful implementation of Supply Chain Management Solution

1. Successful Implementation of Supply
Chain Solutions
Sanoon Mohideen
DIPPCA/2014/15/024

2. SUPPLY CHAIN MANAGEMENT
A supply chain is the system of
organizations, people, activities,
information and resources
involved in moving a product or
service from supplier to
customer. Supply chain activities
transform raw materials and
components into a finished
product that is delivered to the
end customer.
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3. WHAT IS A SUPPLY CHAIN?
•A supply chain is dynamic and involves the constant
flow of information, product, and funds between
different stages.
•Walmart & Dell examples
•Customer is integral to supply chain.
•Primary purpose from the existence of any supply
chain is to satisfy customer needs, in the process
generating profits for itself.
•Supply chain activities begin with a customer order
and end when a satisfied customer has paid for his or
her purchase.

4. FUTURE VALUE CHAIN TRENDS
•Increased urbanization
•Aging population
•Increasing spread of wealth
•Technology adaptation and the rise of social
media
•Consumer service demands
•Importance of health and wellbeing
•Growing consumer concerns about
sustainability

5. FUTURE VALUE CHAIN TRENDS
•Shifting of economic power
•Scarcity of natural resources
•Increase in regulatory pressure
•Rapid adoption of supply chain technology
capabilities
•Impact of Next-Generation Information
Technologies
•Risks, disruptions, contingencies and continuity

6. SUPPLY CHAIN COMPETENCIES

7. COMPLEXITY
•Network complexity
•Process complexity
•Range complexity
•Product complexity
•Customer complexity
•Supplier complexity

8. MINIMIZING COMPLEXITY
• Improving demand management, forecasting, and logistics
management abilities through a decision platform supported
by SCM solutions.
High number and variety of SKUs
(necessary complexity)
• Offering a limited range of products
High number and variety of SKUs
(unnecessary complexity)
• Measuring product complexity in terms of SC impacts,
• Redesigning the products that have a high complexity index
Product complexity
• Implementing a customized Software as a Service logistics
solution
High variety of requirements to
be met by the IT solution
•Developing and implementing a new planning system
•Making process and technological adjustments
•Developing new performance metrics
Incapable and incompatible
planning systems
• Implementing a SC planning software modified to handle
planning requirements
Large planning models
• Profiling uncertain demand
• Planning of operations on a daily basis
Demand uncertainty/ demand
volatility

9. MINIMIZING COMPLEXITY
•Forming a partnership with a partner that has expertise in
transportation management
•Adopting new technology and processes
Incapable transportation
management and technology
• Redesigning the SC,
• Reorganizing the distribution network,
• Collaboration with suppliers
Incapable SC operations,
incompatible SC design
•Supplier integration
•Gaining visibility into operations through B2B platform
Outsourcing of manufacturing
•Developing an end to end procurement process
•Integrating the procurement processes and systems with the ERP
system
Lack of a well defined
procurement system
•Forming a partnership with a partner that has the know how
•Outsourcing the operations to a partner that has the experience
Lack of experience
• Automating decision making process using a business rules
management system
Lack of effective means of control
over the processes
•Reducing number of outsourcing partners
•Working in close collaboration with the outsourcing partners
Lack of control due to
outsourcing
• Adapting to changes by providing synchronized services
Changing requirements of the
industry
•Adopting adaptive SC strategies
Market pressure and changing
customer requirements

10. QUESTIONS?

11. Thank you