The document outlines the fundamentals of supply chain management (SCM), defining it as the integration of activities connecting suppliers to consumers, involving logistics and various entities such as producers and retailers. It highlights essential features of SCM, including customer focus and long-term partnerships, while contrasting logistics management with SCM, which encompasses the entire flow of production. Additionally, it discusses benefits and challenges of both local and global supply chains along with key components like facilities, inventory, transportation, and information.

1. Supply Chain
Management
Subject Code: 503
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5. Supply chain Definition?
 A supply chain is a network between a company
and its suppliers to produce and distribute a
specific product or service. The entities in the
supply chain include producers, vendors,
warehouses, transportation companies, distribution
centers, and retailers.
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6. Supply-chain management
 Supply-chain management is the integration of
the activities that procure materials and
services, transform them into intermediate
goods and the final product, and deliver them to
customers
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7. Features of Supply Chain Management
 Integrated Behaviour
 Mutually Sharing information
 Mutually sharing Channel risk and rewards
 Co-operation
 Focus on serving customers
 Integration of processes
 Partners to build and maintain long term
relationship
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8. Evolution and Development
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Difference
BASIS FOR
COMPARISON
LOGISTICS MANAGEMENT SUPPLY CHAIN MANAGEMENT
Meaning Logistics refers to the overall process
of managing how resources are
acquired, stored, and transported to
their final destination.
Supply chain management is the handling
of the entire production flow of a good or
service — starting from the raw
components all the way to delivering the
final product to the consumer.
Objective Customer Satisfaction Competitive Advantage
Evolution The concept of Logistics has been
evolved earlier.
Supply Chain Management is a modern
concept.
How many
organizations are
involved?
Single Multiple
One in another Logistics Management is a part of
Supply Chain Management.
Supply Chain Management is the modern
version of Logistics Management.

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Functions of Supply Chain
Management

12. Importance of Supply Chain
Management
1. Boosts Customer Service
2. Reduces operating costs
3. Improves financial position
4. Momentum
5. Integrated and co-operative logistics
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14. The new manufacturing & distribution practices
in the light of Globalized Economy
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Yenepoya Institute of Arts Science
Commerce and Management

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The local supply chain implies HAVING
REGIONAL SUPPLIERS AND
MANUFACTURERS IN AN AREA
VERY CLOSE TO YOUR MAIN
LOCATION.
LOCAL SUPPLY CHAIN?

18. Benefits of Local SCM
Build trust and integration with local
suppliers
Shorter delivery and lead times
Allows for just in time manufacturing
Avoids the complexity of dealing with
overseas firms, or import taxes
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19. Issues
Items may not be available locally
Cheaper or more specialized suppliers
may be more distant
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20. Global supply chains are NETWORKS THAT CAN
SPAN ACROSS MULTIPLE CONTINENTS AND
COUNTRIES FOR the purpose of sourcing and
supplying goods and services.
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GLOBAL SUPPLY CHAIN

21. Benefits Global Supply Chain
Management
 Cheaper Cost:
 A Skilled Workforce:
 Increased Production Capacity:
 Infrastructure:
 Technology:
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22. Issues
Language Barrier:
Local Tariff And Tax:
Political Instability:
Shipping Costs:
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23. 1) Raw supply chains.
2) Ripe supply chains.
3) Internal supply chains.
4) External supply chains.
5) Self-monitored supply chains.
6) Outsourced supply chain.
7) Production oriented supply chain.
8) Financial -oriented supply chain.
9) Market – oriented supply chain.
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34. Decisions on Three Levels
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35. SCM Building blocks (Cont.d
in the next chapter)
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36. Facilities, Inventory, Transportation And
Information are the four major drivers of
the supply chain.
The performance of any supply chain can be
measured on the basis of the drivers that run
it.
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37. In order to achieve a strategic fit:
• A company needs to balance its efficiency
with responsiveness in its supply chain so
as to suit its competitive strategy.

38. Major drivers of any supply
chain
1. Facilities (for example, Production unit)
2. Inventories (for example, Stock of goods)
3. Transportation (for example. Modes and
Routes)
4. Information (for example, Customer demand)
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39. FACILITIES
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• Role in the Supply Chain
- The ‘where’ of the supply chain
- Manufacturing or storage (warehouse)
• Role in the competitive strategy
- Economies of scale (efficiency priority)
- Larger number of smaller facilities
(responsiveness priority)
• Components of facilities decisions

40. Components of decision making
• Location
• Capacity
• Operations methodology
• Warehousing methodology
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41. Inventory Management
• Existence of inventory is because of the
mismatch between the supply and demand.
• Mismatch exists - where it is economical
for them to produce in lots or where
companies need to stock goods -
anticipation of future demand.
• Inventory is important because it can
readily satisfy the demand of the customers
by having the product ready.
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42. Component of inventory decisions
• Cycle inventory
• Safety inventory
• Seasonal inventory
• Sourcing
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43. Transportation
• Role of transportation in the supply chain
• Role of transportation in competitive
strategy
• Components of transportation decisions
Mode of Transportation
Selection of routes and network
In house or outsourcing
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44. Information
• Role played by information in a supply chain
• Role played by information in the competitive strategy
• Components information decisions
Push versus pull
Forecasting & proper planning
Information sharing & co-ordination
Pricing & managing revenue
Technology
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45. Obstacles in Strategic FitAchievement
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