Unit -1 introduces the key concepts of supply chain management including planning, sourcing, manufacturing, delivery, and returns. Supply chain management involves managing the flow of goods and services from raw materials to final products. It is important for boosting customer service, reducing costs, and gaining a competitive advantage. The functions of supply chain management are purchasing, operations, logistics, resource management, and information workflow. Processes can be viewed through the cycle view or push/pull view. Integrated and autonomous supply chains aim to streamline the end-to-end process.

1. Unit -1
Introduction to Supply Chain Management

2. Concept of Supply Chain Management
Supply chain management has five key elements planning, sourcing raw
materials, manufacturing, delivery, and returns.
The planning phase refers to developing an overall strategy for the
supply chain, while the other four elements specialize in the key
requirements for executing that plan.

3. What Is Supply Chain Management (SCM)?
Supply chain management is the management of the flow of goods and services
and includes all processes that transform raw materials into final products.
It involves the active streamlining of a business's supply-side activities to
maximize customer value and gain a competitive advantage in the marketplace.

4. Importance of Supply Chain Management
I Boost Customer Service
• Customers expect the correct product assortment and quantity to be delivered.
• Customers expect products to be available at the right location. (i.e., customer
satisfaction diminishes if an auto repair shop does not have the necessary parts in
stock and can’t fix your car for an extra day or two).
• Right Delivery Time – Customers expect products to be delivered on time (i.e.,
customer satisfaction diminishes if pizza delivery is two hours late or Christmas
presents are delivered on December 26).
• Right After Sale Support – Customers expect products to be serviced quickly. (i.e.,
customer satisfaction diminishes when a home furnace stops operating in the winter
and repairs can’t be made for days)
Source
https://cscmp.org/CSCMP/Develop/Starting_Your_Career/Importance_of_Supply_Chain_Management.aspx

5. II Reduce Operating Costs
• Decreases Purchasing Cost – Retailers depend on supply chains to quickly deliver expensive
products to avoid holding costly inventories in stores any longer than necessary. For
example, electronics stores require fast delivery of 60” flat-panel plasma HDTV’s to avoid
high inventory costs.
• Decreases Production Cost – Manufacturers depend on supply chains to reliably deliver
materials to assembly plants to avoid material shortages that would shutdown production.
• Decreases Total Supply Chain Cost – Manufacturers and retailers depend on supply chain
managers to design networks that meet customer service goals at the least total cost.
Efficient supply chains enable a firm to be more competitive in the market place.
• Increases Profit Leverage – Firms value supply chain managers because they help control
and reduce supply chain costs.

6. Functions Of Supply Chain Management
Purchasing
The first function of SCM is purchasing. During manufacturing process, raw materials are needed. It is essential that
these materials are procured and delivered on time. Then only the production can begin. In order to make this
happen, coordination with suppliers and delivery companies is needed to avoid delays.
Source https://enterslice.com/learning/objectives-and-functions-of-supply-chain-management/

7. • Operations
Forecasting and demand planning is needed before materials are procured as the demand market shall dictate how
many units are to be produced and how much material is needed for production.
• Logistics
Logistics is a part of SCM that co-ordinates all planning aspects, purchasing, production, and transportation aspects
to ensure that products reach the end consumer without hindrances.
• Resource Management
Resource management ensures that right resources are allocated to the right activities and that too in an optimized
way.
• Information workflow
Sharing information and distribution is that what keeps all other functions of supply chain management on track. If
this information workflow and communication is poor, it can hurt the entire chain.

9. Process view of supply chain management
• Cycle view: processes in a supply chain are divided into a series of cycles, each
performed at the interfaces between two successive supply chain stages.
• Push/pull view: processes in a supply chain are divided into two categories
depending on whether they are executed in response to a customer order (pull)
or in anticipation of a customer order (push).
Source: https://www.ques10.com/p/15429/process-view-of-a-supply-chain-1

10. Cycle view:
Each cycle occurs at the interface between two successive stages
•Customer order cycle (customer-retailer)
•Replenishment cycle (retailer-distributor)
•Manufacturing cycle (distributor-manufacturer)
•Procurement cycle (manufacturer-supplier)
Cycle view clearly defines processes involved and the owners of
each process. Specifies the roles and responsibilities of each
member and the desired outcome of each process.

11. Push/pull view

12. • Under the push supply chain, the logistics are driven by long-term projections
of customer demand. For example, at the end of the summer season, clothing
brands start to manufacture more warm clothes.
• Under the pull supply chain, the manufacturing and supply process is driven
by actual customer demand. In this type of supply chain logistics, inventory is
acquired on a need basis.
Source : https://www.blockchain-council.org/blockchain/what-is-push-and-pull-strategy-in-supply-chain-management/

13. Concepts of integrated supply chains
• Integrated supply chain means a process where, from procurement of
raw materials to production, quality control to packaging, distribution
or supply to final delivery is streamlined and inseparable. It is a
holistic collection of various processes, which may be under complete
control of one company or multiple partners shall come together to
have collective control over the integrated approach.

14. Autonomous supply chain
• Autonomous supply chain management is a supply chain in which all
of the supply chain planning and execution functions are performed
by AI and machine learning algorithms and agents, with little to no
human intervention.