supply chain management

1. UNIT VII
Supply Chain Management
By Dr. Dhobale J V
Associate Professor
School of Engineering & Technology
RNB Global University, Bikaner
RNB Global University, Bikaner. 1Course Code - 11010700

2. Objectives
 The Business Network.
 E-SCM Electronic Data Interchange.
 Role of SCM
 Benefits and Challenges of SCM.
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3. SCM – The Business Network
 Supply Chain Management can be defined as
the management of flow of products and
services, which begins from the origin of
products and ends at the product’s
consumption. It also comprises movement and
storage of raw materials that are involved in
work in progress, inventory and fully furnished
goods.
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4. SCM – The Business Network
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5. SCM – The Business Network
 The main objective of supply chain
management is to monitor and relate
production, distribution, and shipment of
products and services.
 This can be done by companies with a very
good and tight hold over internal inventories,
production, distribution, internal productions
and sales.
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6. SCM – The Business Network
 Supply chain management basically merges
the supply and demand management.
 It uses different strategies and approaches to
view the entire chain and work efficiently at
each and every step involved in the chain.
 Every unit that participates in the process must
aim to minimize the costs and help the
companies to improve their long term
performance, while also creating value for its
stakeholders and customers.
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7. SCM – The Business Network
 Basic Components of SCM: .
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8. SCM – The Business Network
 SCM Process Flow: Supply chain
management can be defined as a systematic
flow of materials, goods, and related
information among suppliers, companies,
retailers, and consumers.
 There are three different types of flow in
supply chain management:
1. Material flow
2. Information/Data flow
3. Money flow
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9. SCM – The Business Network
 SCM Process Flow:
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10. SCM – The Business Network
1. Material flow: Material flow includes a
smooth flow of an item from the producer to
the consumer.
 This is possible through various warehouses
among distributors, dealers and retailers.
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11. SCM – The Business Network
1. Material flow:
 The main challenge we face is in ensuring
that the material flows as inventory quickly
without any stoppage through different points
in the chain.
 The item can also flow from the consumer to
the producer for any kind of repairs, or
exchange for an end of life material.
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12. SCM – The Business Network
2. Information flow:
 For a successful supply chain, regular
interaction is necessary between the
producer and the consumer.
 In many instances, we can see that other
partners like distributors, dealers, retailers,
logistic service providers participate in the
information network .
 In addition to this, several departments at the
producer and consumer side are also a part
of the information loop.
12RNB Global University, Bikaner.Course Code - 11010700

13. SCM – The Business Network
3. Money flow:
 Money flows from the clients to the respective
producer.
 Flow of money is also observed from the
producer side to the clients in the form of
debit notes.
 To achieve an efficient and effective supply
chain, it is essential to manage all three flows
properly with minimal efforts.
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14. Electronic Supply Chain Management
(eSCM)
 SCM ideally embraces all business processes
cutting across all organizations within the
supply chain, from initial point of supply to the
ultimate point of consumption.
 eSCM will refer as The impact that Internet
has on the integration of key business
processes from end user through original
suppliers that provides products, services, and
information that add value for customers and
other stakeholders.
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15. Electronic Supply Chain Management
(eSCM)
 E-logistics will refer as impact that Internet has
on the supply chain process that plans,
implements, and controls the efficient,
effective flow and storage of goods, services,
and related information from the point-of-origin
to the point-of consumption in order to meet
customers’ requirements.
 Logistics is a subset of SCM, and accordingly,
e-logistics is a subset of e-SCM.
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16. Electronic Supply Chain Management
(eSCM)
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17. Electronic Supply Chain Management
(eSCM)
 Internet has created the opportunity to access
and share information across the supply chain
in a faster and more reliable way.
 It provides common communication protocols
and standards for system inter-operability,
enabling reliable and low-cost inter business
connectivity.
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18. Electronic Supply Chain Management
(eSCM)
 To take full advantage of the Internet,
businesses must restructure their internal and
external processes across the supply chain
and improve their collaboration.
 The first step in this collaboration is just data
exchange or information sharing, but a further
step consists on sharing knowledge to enable
a better planning and decision making across
the supply chain.
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19. Electronic Supply Chain Management
(eSCM)
 The impact of Internet on SCM comprises one
or more of the following aspects:
1. E-commerce: Internet consists on a new
commercial channel where firms sell their
products and services.
2. Information sharing: Internet is the medium to
access and transmit data and information
among supply chain partners.
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20. Electronic Supply Chain Management
(eSCM)
3. Knowledge sharing: Knowledge is
considered, in the Information Systems
Management area, the result of applying
analysis, interpretation and modelling to
information.
 The availability of analytical tools to translate
sales data into meaningful knowledge and
business intelligence can lead to a rapid
decision-making to respond to customer
demands.
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21. Electronic Supply Chain Management
(eSCM)
4. Design an efficient Supply Chain: To maintain
an effective cost structure & responsiveness
Supply chain needs to design in such a way
that it leads to an efficient flow of goods.
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22. Supply Chain Management - Role
/Advantages
 Develops better customer relationship and
service.
 Creates better delivery mechanisms for
products and services in demand with
minimum delay.
 Improvises productivity and business
functions.
 Minimizes warehouse and transportation
costs.
 Minimizes direct and indirect costs.
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23. Supply Chain Management - Role
/Advantages
 Assists in achieving shipping of right products
to the right place at the right time.
 Enhances inventory management, supporting
the successful execution of just-in-time stock
models.
 Assists companies in adapting to the
challenges of globalization, economic
upheaval, expanding consumer expectations,
and related differences.
 Assists companies in minimizing waste, driving
out costs, and achieving efficiencies
throughout the supply chain process. 23RNB Global University, Bikaner.Course Code - 11010700

24. Challenges of SCM
 Five of the biggest supply chain challenges
are:
1. Customer service .
2. Cost control.
3. Planning & Risk management.
4. Supplier/partner relationship management.
5. Talent.
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25. Review
 The Business Network.
 E-SCM Electronic Data Interchange.
 Role of SCM
 Benefits and Challenges of SCM.
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26. Thank You!
RNB Global University, Bikaner. 26Course Code - 11010700