INTRODUCTION
TO
SUPPLY CHAIN
PRESENTED BY:-
DEBAYAN SIMLAI
SEM- II
ROLL- 2017015
Certificate of ALISON
WHAT IS SUPPLY CHAIN?
• Supply chain management (SCM) is the management of the flow of goods
• A supply chain consists of all parties involved directly or indirectly, in fulfilling
a customer requirement.
• All facilities, functions, activities, associated with flow and transformation of
goods and services from raw materials to customer as well as the associated
information flows.
• An integrated group of process to “Source”, “Make” and “deliver”
DEFINITION:-
• Supply chain management (SCM), the management of the flow of
goods and services, involves the movement and storage of raw
materials, of work-in-process inventory, and of finished goods
from point of origin to point of consumption.
Fig- The process of SCM
BENEFITS OF SCM :-
Reduce uncertainty &
risks in supply chain
This positively affects
inventory levels, cycle
time, business process
& customer service
Contributes to overall
increase in profitability
& competitive
advantage.
Illustration of Supply Chain
SUPPLY CHAIN STAGES
• Customer
• Retailers
• Wholesalers/Distributors
• Manufacturers
• Component/ Raw material suppliers
- It is not compulsory that all stages should be present in a supply chain
OBJECTIVES
• Satisfy the customer needs.
• Maximize the overall value generated.
• Increase supply chain profitability.
• High supply chain profitability
SUPPLY CHAIN DECISIONS:-
• Ensure effective flow of goods and information.
• Clusters of store near distribution centers.
• Collaboration with suppliers.
• Active efforts to steer customer at real time.
• Centralized manufacturing
• Worth of inventory
• Manage cash flow
• Should be flexible
Steps of Supply Chain Process
Design
Planning
Execution
Control
Monitoring
DECISION PHASES OF SUPPLY CHAIN
PUSH AND PULL STRATEGY OF SCM
• Push process- Executed in anticipation to customer orders.
• Pull process- Executed in response to customer orders.
PUSH STRATEGY
Push strategies include trade shows, showrooms, getting
retailers to stock a product, and creating a supply chain to
facilitate distribution.
Features:
-Classic manufacturing supply chain strategy.
-Manufacturing forecasts are long range.
-Longer response time to react to marketplace changes.
-Increased variability (Bullwhip Effect)
-Inefficient use of production facilities (factories).
Ex-Auto Industries, Larger appliances
PULL STRATEGY
Pull strategy motivates customers to actively seek out a specific product and it best for new
products or in the case when a manufacturer has a strong and visible brand.
Features:
-Production and distribution are demand-driven.
-None or little inventory held.
-Fast information flow mechanisms
-Decreased lead times and retailer & manufacturer inventory.
-Decreased variability in the supply chain and especially at manufacturers.
Ex- E-commerce business (Amazon)
PUSH VS PULL STRATEGY
DRIVERS OF SCM:
Facilities Inventory
Pricing
Transport
ation
Inform
ation
Sourcing
A FRAMEWORK OF STRUCTURING DRIVERS:-
EXAMPLE OF STRUCTURING DRIVERS: WAL MART
THANK YOU

Introduction to scm

  • 1.
  • 2.
  • 3.
    WHAT IS SUPPLYCHAIN? • Supply chain management (SCM) is the management of the flow of goods • A supply chain consists of all parties involved directly or indirectly, in fulfilling a customer requirement. • All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer as well as the associated information flows. • An integrated group of process to “Source”, “Make” and “deliver”
  • 4.
    DEFINITION:- • Supply chainmanagement (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.
  • 5.
  • 6.
    BENEFITS OF SCM:- Reduce uncertainty & risks in supply chain This positively affects inventory levels, cycle time, business process & customer service Contributes to overall increase in profitability & competitive advantage.
  • 7.
  • 8.
    SUPPLY CHAIN STAGES •Customer • Retailers • Wholesalers/Distributors • Manufacturers • Component/ Raw material suppliers - It is not compulsory that all stages should be present in a supply chain
  • 9.
    OBJECTIVES • Satisfy thecustomer needs. • Maximize the overall value generated. • Increase supply chain profitability. • High supply chain profitability
  • 10.
    SUPPLY CHAIN DECISIONS:- •Ensure effective flow of goods and information. • Clusters of store near distribution centers. • Collaboration with suppliers. • Active efforts to steer customer at real time. • Centralized manufacturing • Worth of inventory • Manage cash flow • Should be flexible
  • 11.
    Steps of SupplyChain Process Design Planning Execution Control Monitoring
  • 12.
    DECISION PHASES OFSUPPLY CHAIN
  • 13.
    PUSH AND PULLSTRATEGY OF SCM • Push process- Executed in anticipation to customer orders. • Pull process- Executed in response to customer orders.
  • 14.
    PUSH STRATEGY Push strategiesinclude trade shows, showrooms, getting retailers to stock a product, and creating a supply chain to facilitate distribution. Features: -Classic manufacturing supply chain strategy. -Manufacturing forecasts are long range. -Longer response time to react to marketplace changes. -Increased variability (Bullwhip Effect) -Inefficient use of production facilities (factories). Ex-Auto Industries, Larger appliances
  • 15.
    PULL STRATEGY Pull strategymotivates customers to actively seek out a specific product and it best for new products or in the case when a manufacturer has a strong and visible brand. Features: -Production and distribution are demand-driven. -None or little inventory held. -Fast information flow mechanisms -Decreased lead times and retailer & manufacturer inventory. -Decreased variability in the supply chain and especially at manufacturers. Ex- E-commerce business (Amazon)
  • 16.
    PUSH VS PULLSTRATEGY
  • 17.
    DRIVERS OF SCM: FacilitiesInventory Pricing Transport ation Inform ation Sourcing
  • 18.
    A FRAMEWORK OFSTRUCTURING DRIVERS:-
  • 19.
    EXAMPLE OF STRUCTURINGDRIVERS: WAL MART
  • 20.