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•   1 Definitions

•   2 Problems addressed by supply chain management

•   3 Activities/functions
    • A. Strategic level
    • B. Tactical level

•   4 Importance of supply chain management

•   5 Historical developments in supply chain management

•   6 Supply chain business process integration

•   7 Supply chain systems and value

•   8 Global supply chain management
   Managing upstream and down stream value
    added flow of materials, final goods and
    related information among suppliers;
    company; resellers; final consumers is supply
    chain management.
   The process of planning, implementing, and
    controlling the efficient, cost-effective flow
    and storage of goods, services, and related
    information, from point of origin to point of
    consumption, for the purpose of
    conforming to customer requirements.
   Supply network variability




   Manufacturing process variability



                                   Carrying safety
   Customer network variability   inventories are the most
                                   common approach to
                                   dealing with variability
   Links the success of independent
    suppliers, manufacturers, and customers

   Risks and rewards are shared among
    supply chain partners

   Many technologies are accepted among
    supply chain managers
   PRESENT




   FUTURE
   Distribution Network Configuration

   Distribution Strategy

   Trade-Offs in Logistical Activities

   Information

   Inventory Management

   Cash-Flow
   Supply chain management is a cross-function
    approach including managing the movement
    of raw materials into an organization



   Functions are increasingly being outsourced
    to other entities that can perform the
    activities better or more cost effectively.
   The global logistics industry was valued at
    US$3.5 trillion in 2005,

   US logistics industry size was around US$900
    billion, 25% of the global logistics industry.

   Logistics costs in India is estimated to be
    around 13% of the GDP

   High cost in developing countries
   The worldwide supply chain management
    (SCM) software market returned to double-
    digit growth in 2010 as SCM software revenue
    totaled $6.8 billion in 2010,
•   Strategic network optimization, including the number,
    location, and size of warehousing,



•   Distribution centres, and facilities.



•   Product life cycle management, so that new and existing
    products can be optimally integrated into the supply
    chain and capacity management activities.
•   Information technology chain operations.

•   Where-to-make and make-buy decisions.

•   Aligning overall organizational strategy with
    supply strategy.

•   It is for long term and needs resource
    commitment
   Sourcing contracts and other purchasing
    decisions.

   Production decisions, including
    contracting, scheduling, and planning
    process definition.

   Inventory decisions, including
    quantity, location, and quality of inventory.
   Transportation strategy, including
    frequency, routes, and contracting.

   Benchmarking.


   Milestone payments.


   Focus on customer demand and Habits.
   No Scarcity


   More Efficiency


   On time Delivery


   Just in time
Customer relationship management
•   Customer service

•   Demand management style

    Order fulfillment
•   Manufacturing flow

•   Supplier relationship

•   Product development and commercialization

•   Returns management
   Globalization

   Increased cross border sourcing

   Collaboration for parts of value chain with low-cost providers

   Shared service centres for logistical and administrative
    functions

   Increasingly global operations, which require increasingly
    global coordination and planning to achieve global optimums

   Complex problems involve also midsized companies to an
    increasing degree,
   Ashok Leyland –Mr Raghunandan Saran

   Aggarwal Packers and Movers-Mr Ramesh Aggarwal

   DTDC –Mr Subahasish Chakraborty

   First Flight –Mr Op saboo

   O M Logistics LTD-Mr Anil Singhal

   Blue Dart-Mr Anil Khanna

   Royal Logistics-Mr Hilare Kadjo

   DHL –Mr Frank Appel
   Founder Mr. Raghunandan Saran


   Year of Establishment1955


   Industry Manufacture of Commercial Vehicles


   Business Group Hinduja Group
   Mr. Subhasish Chakarabory is the founder
    Chairman & Managing Director of DTDC
    Courier & Cargo Ltd, A Gold Medalist in
    Chemistry. Mr. Chakraborty is the pioneer of
    franchisee business model in the courier
    industry.
   Technological evolution


   Knowledge obsolescence


   Intensity of competition


   politically and economically
logistics and supply chain management

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logistics and supply chain management

  • 2. 1 Definitions • 2 Problems addressed by supply chain management • 3 Activities/functions • A. Strategic level • B. Tactical level • 4 Importance of supply chain management • 5 Historical developments in supply chain management • 6 Supply chain business process integration • 7 Supply chain systems and value • 8 Global supply chain management
  • 3. Managing upstream and down stream value added flow of materials, final goods and related information among suppliers; company; resellers; final consumers is supply chain management.
  • 4. The process of planning, implementing, and controlling the efficient, cost-effective flow and storage of goods, services, and related information, from point of origin to point of consumption, for the purpose of conforming to customer requirements.
  • 5. Supply network variability  Manufacturing process variability Carrying safety  Customer network variability inventories are the most common approach to dealing with variability
  • 6.
  • 7. Links the success of independent suppliers, manufacturers, and customers  Risks and rewards are shared among supply chain partners  Many technologies are accepted among supply chain managers
  • 8. PRESENT  FUTURE
  • 9. Distribution Network Configuration  Distribution Strategy  Trade-Offs in Logistical Activities  Information  Inventory Management  Cash-Flow
  • 10. Supply chain management is a cross-function approach including managing the movement of raw materials into an organization  Functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively.
  • 11. The global logistics industry was valued at US$3.5 trillion in 2005,  US logistics industry size was around US$900 billion, 25% of the global logistics industry.  Logistics costs in India is estimated to be around 13% of the GDP  High cost in developing countries
  • 12. The worldwide supply chain management (SCM) software market returned to double- digit growth in 2010 as SCM software revenue totaled $6.8 billion in 2010,
  • 13. Strategic network optimization, including the number, location, and size of warehousing, • Distribution centres, and facilities. • Product life cycle management, so that new and existing products can be optimally integrated into the supply chain and capacity management activities.
  • 14. Information technology chain operations. • Where-to-make and make-buy decisions. • Aligning overall organizational strategy with supply strategy. • It is for long term and needs resource commitment
  • 15. Sourcing contracts and other purchasing decisions.  Production decisions, including contracting, scheduling, and planning process definition.  Inventory decisions, including quantity, location, and quality of inventory.
  • 16. Transportation strategy, including frequency, routes, and contracting.  Benchmarking.  Milestone payments.  Focus on customer demand and Habits.
  • 17. No Scarcity  More Efficiency  On time Delivery  Just in time
  • 18. Customer relationship management • Customer service • Demand management style Order fulfillment • Manufacturing flow • Supplier relationship • Product development and commercialization • Returns management
  • 19. Globalization  Increased cross border sourcing  Collaboration for parts of value chain with low-cost providers  Shared service centres for logistical and administrative functions  Increasingly global operations, which require increasingly global coordination and planning to achieve global optimums  Complex problems involve also midsized companies to an increasing degree,
  • 20. Ashok Leyland –Mr Raghunandan Saran  Aggarwal Packers and Movers-Mr Ramesh Aggarwal  DTDC –Mr Subahasish Chakraborty  First Flight –Mr Op saboo  O M Logistics LTD-Mr Anil Singhal  Blue Dart-Mr Anil Khanna  Royal Logistics-Mr Hilare Kadjo  DHL –Mr Frank Appel
  • 21. Founder Mr. Raghunandan Saran  Year of Establishment1955  Industry Manufacture of Commercial Vehicles  Business Group Hinduja Group
  • 22. Mr. Subhasish Chakarabory is the founder Chairman & Managing Director of DTDC Courier & Cargo Ltd, A Gold Medalist in Chemistry. Mr. Chakraborty is the pioneer of franchisee business model in the courier industry.
  • 23. Technological evolution  Knowledge obsolescence  Intensity of competition  politically and economically

Editor's Notes

  1. Distribution Network Configuration: number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers.Distribution Strategy: questions of operating control (centralized, decentralized or shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD (direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL).Trade-Offs in Logistical Activities: The above activities must be well coordinated in order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy.Information: Integration of processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, potential collaboration, etc.Inventory Management: Quantity and location of inventory, including raw materials, work-in-process (WIP) and finished goods.Cash-Flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain.Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional.
  2. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement.
  3. a 10 per cent increase from 2009 revenue, according to IT research firm Gartner. SAP continued to lead the SCM software market, as it accounted for 19.5 per cent of the worldwide market. Oracle was the No. 2 vendor with 17.9 per cent market share. JDA Software experienced the strongest growth among the top five vendors, with 40.2 per cent growth in 2010.
  4. Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy.[7] In Peter Drucker's (1998) new management paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies.During the past decades, globalization, outsourcing and information technology have enabled many organizations, such as Dell and Hewlett Packard, to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among the players. From a systems perspective, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance (Mintzberg, 1979).In the 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, strategic alliances and business partnerships, significant success factors were identified, complementing the earlier "Just-In-Time", "Lean Manufacturing" and "Agile Manufacturing" practices.[8] Second, technological changes, particularly the dramatic fall in information communication costs, which are a significant component of transaction costs, have led to changes in coordination among the members of the supply chain network (Coase, 1998).Many researchers have recognized these kinds of supply network structures as a new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", "Global Production Network", and "Next Generation Manufacturing System".[9] In general, such a structure can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Akkermans, 2001).The security management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by ISO and IEC