Saurabh Nair(8)

Siddhant Kolwalkar(18)

        Rohit Patel(15)
Supply Chain Management System
1.   A supply chain is a network of organizations for
     procuring raw materials and transforming them into
     finished products



2. It links Suppliers,Manafacturers,Retail Outlets and
     Customers through consumption
 Supply Chain Management systems helps managing
 relations with suppliers by a constant exchane of
 information



 Aim: To get Right amount of products in Least amount
 of time at lowest cost
Bullwhip Effect
 Distortion of information along the chain
 Eg: Pampers Diapers
 Aggressive Price, High Inventories
Strategies
 Just in Time Strategy
Contnd….
 Use of internet and constant communication between
 the system.



 To balance and synchronize the distribution of
 product.
What is Wal-Mart??????


 Wal-Mart Stores, branded as Walmart, is an American
  multinational retail corporation that runs chains of large
  discount department stores and warehouse stores.

 The company is the world’s third largest public
  corporation, according to the Fortune Global 500 list in
  2012, the biggest private employer in the world with over
  two million employees, and is the largest retailer in the
  world.
walmarts supply chain strategy
Walmart’s supply chain begins with strategic sourcing to find products at
 the best price from suppliers who are in a position to ensure they can
 meet demand.


Walmart establishes strategic partnerships with most of their vendors,
 offering them the potential for long-term and high volume purchases
 in exchange for the lowest possible prices.


Suppliers then ship product to Walmart’s distribution centers where the
  product is cross docked and then delivered to Walmart stores.
Cross docking, distribution management, and transportation
  management keep inventory and transportation costs down,
  reducing transportation time and eliminating inefficiencies.

Technology plays a key role in Walmart’s supply chain, serving as
  the foundation of their supply chain.

Walmart has the largest information technology infrastructure of
 any private company in the world.

Its state-of-the-art technology and network design allow Walmart
   to accurately forecast demand, track and predict inventory levels,
   create highly efficient transportation routes, and manage
   customer relationships and service response logistics.
benefits of the strategy
 Wal-Mart’s supply chain management strategy has
 provided the company with several sustainable competitive
 advantages, including lower product costs, reduced
 inventory carrying costs, improved in-store variety and
 selection, and highly competitive pricing for the consumer.

 This strategy has helped Walmart become a dominant force
 in a competitive global market. As technology evolves,
 Walmart continues to focus on innovative processes and
 systems to improve its supply chain and achieve greater
 efficiency.
Supply Chain Management
 Supply side- raw materials, inbound logistics and
  production processes
 Demand side- outbound logistics, marketing and
  sales.
WHAT IS SUPPLY CHAIN MANAGEMENT?
" Is the strategic management of activities involved in

the acquisition and conversion of materials to finished

products delivered to the customer"


 Supplier                     Material Flow               Customer
Management                                                Management
                            Information Flow


                                                Stock
 Schedule /             Conversion                         Delivery
                                             Deployment
 Resources



                  Leads to Business Process Integration
Information flows in Supply Chain Management

 • Information is overriding element
 • Need for databases
 • Master files: Information about customers, products, materials,
   suppliers, transportation, production and distribution data- do
   not require frequent processing
 • Status files- heart of transaction processing- track orders and
   infrastructure status- updated daily.
 • Essentially using the same information to make all plans right
   from structuring the network to processing every day supply
   chain tasks.
Global Supply Chains and the Internet
•   Before Internet, supply chain coordination hampered by difficulties of using
    disparate internal supply chain systems
•   Enterprise systems supply some integration of internal supply chain
    processes but not designed to deal with external supply chain processes
•   Intranets and Extranets
     •   Intranets: To improve coordination among internal supply
         chain processes
     •   Extranets: To coordinate supply chain processes shared with
         their business partners
• Supply chain management systems
  •   Push-based model (build-to-stock)
       •   Schedules based on best guesses of demand

  •   Pull-based model (demand-driven)
       •   Customer orders trigger events in supply chain

  •   Sequential supply chains
       •   Information and materials flow sequentially from company to
           company

  •   Concurrent supply chains
       •   Information flows in many directions simultaneously among
           members of a supply chain network
 Supply chain objectives may differ from situation to
 situation.

 For functional products, cost efficiency is the critical
 factor.

 Forinnovative products, responsiveness is the
 important factor.
Supply Chain Structure
SUPPLIER        FACTORY   DC         RDC         RETAILER




Raw Materials
                               Finished Goods


                                     Information Flow
Supply Chain and Demand Chain

 Demand chain is defined as the system by which
  organizations manage sales and distribution of products
  and services to end users.



 Conceptually incorrect to look at demand chain separately
Supply Chain Management.

Supply Chain Management.

  • 1.
  • 2.
    Supply Chain ManagementSystem 1. A supply chain is a network of organizations for procuring raw materials and transforming them into finished products 2. It links Suppliers,Manafacturers,Retail Outlets and Customers through consumption
  • 3.
     Supply ChainManagement systems helps managing relations with suppliers by a constant exchane of information  Aim: To get Right amount of products in Least amount of time at lowest cost
  • 5.
    Bullwhip Effect  Distortionof information along the chain  Eg: Pampers Diapers  Aggressive Price, High Inventories
  • 6.
  • 7.
    Contnd….  Use ofinternet and constant communication between the system.  To balance and synchronize the distribution of product.
  • 8.
    What is Wal-Mart?????? Wal-Mart Stores, branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores.  The company is the world’s third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest private employer in the world with over two million employees, and is the largest retailer in the world.
  • 9.
    walmarts supply chainstrategy Walmart’s supply chain begins with strategic sourcing to find products at the best price from suppliers who are in a position to ensure they can meet demand. Walmart establishes strategic partnerships with most of their vendors, offering them the potential for long-term and high volume purchases in exchange for the lowest possible prices. Suppliers then ship product to Walmart’s distribution centers where the product is cross docked and then delivered to Walmart stores.
  • 10.
    Cross docking, distributionmanagement, and transportation management keep inventory and transportation costs down, reducing transportation time and eliminating inefficiencies. Technology plays a key role in Walmart’s supply chain, serving as the foundation of their supply chain. Walmart has the largest information technology infrastructure of any private company in the world. Its state-of-the-art technology and network design allow Walmart to accurately forecast demand, track and predict inventory levels, create highly efficient transportation routes, and manage customer relationships and service response logistics.
  • 11.
    benefits of thestrategy  Wal-Mart’s supply chain management strategy has provided the company with several sustainable competitive advantages, including lower product costs, reduced inventory carrying costs, improved in-store variety and selection, and highly competitive pricing for the consumer.  This strategy has helped Walmart become a dominant force in a competitive global market. As technology evolves, Walmart continues to focus on innovative processes and systems to improve its supply chain and achieve greater efficiency.
  • 12.
    Supply Chain Management Supply side- raw materials, inbound logistics and production processes  Demand side- outbound logistics, marketing and sales.
  • 13.
    WHAT IS SUPPLYCHAIN MANAGEMENT? " Is the strategic management of activities involved in the acquisition and conversion of materials to finished products delivered to the customer" Supplier Material Flow Customer Management Management Information Flow Stock Schedule / Conversion Delivery Deployment Resources Leads to Business Process Integration
  • 14.
    Information flows inSupply Chain Management • Information is overriding element • Need for databases • Master files: Information about customers, products, materials, suppliers, transportation, production and distribution data- do not require frequent processing • Status files- heart of transaction processing- track orders and infrastructure status- updated daily. • Essentially using the same information to make all plans right from structuring the network to processing every day supply chain tasks.
  • 15.
    Global Supply Chainsand the Internet • Before Internet, supply chain coordination hampered by difficulties of using disparate internal supply chain systems • Enterprise systems supply some integration of internal supply chain processes but not designed to deal with external supply chain processes • Intranets and Extranets • Intranets: To improve coordination among internal supply chain processes • Extranets: To coordinate supply chain processes shared with their business partners
  • 16.
    • Supply chainmanagement systems • Push-based model (build-to-stock) • Schedules based on best guesses of demand • Pull-based model (demand-driven) • Customer orders trigger events in supply chain • Sequential supply chains • Information and materials flow sequentially from company to company • Concurrent supply chains • Information flows in many directions simultaneously among members of a supply chain network
  • 18.
     Supply chainobjectives may differ from situation to situation.  For functional products, cost efficiency is the critical factor.  Forinnovative products, responsiveness is the important factor.
  • 19.
    Supply Chain Structure SUPPLIER FACTORY DC RDC RETAILER Raw Materials Finished Goods Information Flow
  • 20.
    Supply Chain andDemand Chain  Demand chain is defined as the system by which organizations manage sales and distribution of products and services to end users.  Conceptually incorrect to look at demand chain separately