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SUPPLY CHAIN MANAGEMENT
PRAVEEN SURESH – 1116121
PREEMA D’SOUZA – 1116122
SIDDARTH UMESH – 1116154
SUMAN
Supply Chain Management - Meaning
 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 processes to “source,” “make,”

and “deliver” products
What is Supply Chain Management?
- A supply chain consists of

Supplier

Manufacturer

Distributor

Retailer

Upstream

Customer

Downstream

- aims to Match Supply and Demand,
profitably for products and services
SUPPLY SIDE

DEMAND SIDE

- achieves

The right

Product

+ + +
The right

The right

The right

Price

Store

Quantity

+

The right

+

Customer

The right

Time

=

Higher

Profits
Origins of Supply Chain Management

© 2009 South-Western, a division of Cengage Learning
Supply Chain facilities

•Warehouses
•Factories
•Processing Centers
•Distribution Centers
•Retail Outlets
•Offices
Supply Chain functions & activities

•Forecasting
•Purchasing
•Inventory Management
•Information Management
•Quality assurance
•Scheduling
•Production & Delivery
•Customer Service
Need for Supply Chain Management
Impact of both areas on each other
Need for Supply Chain Management

•Match Demand

•Improve Operations
• Increasing transportation cost
• Competitive pressures
• Increasing globalization
• Managing Inventories
• Increasing importance of e-commerce
• Complexity of supply chains
Benefits of Supply Chain Management

• Lower inventories
• Higher productivity
• Higher profitability

• Shorter lead times
•Greater customer loyalty by delivering on time
Challenges of Supply Chain Management

Difficulty in integration
•Getting top managements on board
•Dealing with trade-offs
•Small businesses
•Variability & Uncertainty
•Long lead times
•
Current Trends in Supply Chain Management

•Outsourcing of manufacturing is a major trend
•Outsourcing of the logistics function

•Moving towards more web based transactions
systems
•Improving the information flows along the entire
chain
Current Trends in Supply Chain Management
Expanding the Supply Chain
 The expansion involves:
 breadth- foreign manufacturing, office & retail sites, foreign
suppliers & customers
 depth- second and third tier suppliers & customers
Current Trends in Supply Chain Management
The Greening of Supply Chains
- Producing, packaging, moving, storing, delivering and
other supply chain activities can be harmful to the
environment
 Supply chains will work harder to reduce
environmental degradation
 Large majority (75%) of U.S. consumers influenced by
a firm’s environmental friendliness reputation
 Recycling and conservation are a growing alternative
in response to high cost of natural resources
14
Current Trends in Supply Chain Management

Reducing Supply Chain Costs
 Cost reduction achieved through:
 Reduced purchasing costs
 Reducing waste

 Reducing excess inventory, and
 Reducing non-value added activities

 Continuous Improvement through
 Benchmarking- improve over competitors’

performance
 Trial & error
 Increased knowledge of supply chain processes

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SUPPLY CHAIN MANAGMENT INTRODUCTION

  • 1. SUPPLY CHAIN MANAGEMENT PRAVEEN SURESH – 1116121 PREEMA D’SOUZA – 1116122 SIDDARTH UMESH – 1116154 SUMAN
  • 2. Supply Chain Management - Meaning  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 processes to “source,” “make,” and “deliver” products
  • 3. What is Supply Chain Management? - A supply chain consists of Supplier Manufacturer Distributor Retailer Upstream Customer Downstream - aims to Match Supply and Demand, profitably for products and services SUPPLY SIDE DEMAND SIDE - achieves The right Product + + + The right The right The right Price Store Quantity + The right + Customer The right Time = Higher Profits
  • 4. Origins of Supply Chain Management © 2009 South-Western, a division of Cengage Learning
  • 5. Supply Chain facilities •Warehouses •Factories •Processing Centers •Distribution Centers •Retail Outlets •Offices
  • 6. Supply Chain functions & activities •Forecasting •Purchasing •Inventory Management •Information Management •Quality assurance •Scheduling •Production & Delivery •Customer Service
  • 7. Need for Supply Chain Management
  • 8. Impact of both areas on each other
  • 9. Need for Supply Chain Management •Match Demand •Improve Operations • Increasing transportation cost • Competitive pressures • Increasing globalization • Managing Inventories • Increasing importance of e-commerce • Complexity of supply chains
  • 10. Benefits of Supply Chain Management • Lower inventories • Higher productivity • Higher profitability • Shorter lead times •Greater customer loyalty by delivering on time
  • 11. Challenges of Supply Chain Management Difficulty in integration •Getting top managements on board •Dealing with trade-offs •Small businesses •Variability & Uncertainty •Long lead times •
  • 12. Current Trends in Supply Chain Management •Outsourcing of manufacturing is a major trend •Outsourcing of the logistics function •Moving towards more web based transactions systems •Improving the information flows along the entire chain
  • 13. Current Trends in Supply Chain Management Expanding the Supply Chain  The expansion involves:  breadth- foreign manufacturing, office & retail sites, foreign suppliers & customers  depth- second and third tier suppliers & customers
  • 14. Current Trends in Supply Chain Management The Greening of Supply Chains - Producing, packaging, moving, storing, delivering and other supply chain activities can be harmful to the environment  Supply chains will work harder to reduce environmental degradation  Large majority (75%) of U.S. consumers influenced by a firm’s environmental friendliness reputation  Recycling and conservation are a growing alternative in response to high cost of natural resources 14
  • 15. Current Trends in Supply Chain Management Reducing Supply Chain Costs  Cost reduction achieved through:  Reduced purchasing costs  Reducing waste  Reducing excess inventory, and  Reducing non-value added activities  Continuous Improvement through  Benchmarking- improve over competitors’ performance  Trial & error  Increased knowledge of supply chain processes