Supply chain management

1. Supply Chain
Management
Presented by:
Priya Bambale

2. Introduction
Supply chain management is an essential
aspect of business today. The idea is to apply a
total system’s approach to managing the
entire flow of information, materials and
services from raw materials suppliers through
factorize and warehouses to the end
customer.
A supply chain refers to the way that materials
flow through different organization , starting
with raw materials and ending with finished
products delivered to the ultimate customer.
A supply chain is a sequence of suppliers,
warehouses, operations and retail outlets.

3. Supply chain
for a
Manufacturing
Organization

4. Supply chain
for a Service
Organization

5. Overview of
supply chain
A typical supply chain may involve the
following stag:
• Customers
• Retailers
• Wholesalers / Distributors
• Manufacturing
• Component / Raw material suppliers

6. Objective of
a supply
chain
1. To maximize the overall value generated.
The value a supply chain generates is the
difference between what the final product
is worth to the customer and the effort the
supply chain expends in filling the
customer’s request.
2. To achieve maximum supply chain
profitability. Supply chain profitability is
the total profit to be shared across all
supply chain stages.
3. To reduce the supply chain costs to the
minimum possible level.

7. Activities
involved in
supply chain
management
Four important activities involved in supply
chain management are:
• Purchasing
• Logistics
• Warehousing
• Expediting
This activities from the framework for
studying the nature and scope of supply chain
management.

8. Purchasing
Purchasing is the link between the
organization and its suppliers. It exchange
information with suppliers and functional
area.

9. Logistics
Logistics refers to the movement of materials
within a production facility, the shipment of
incoming materials from suppliers and the
shipment of outgoing products of customers.
Materials include all the physical items used in
the production process such as raw materials,
parts, components, consumable supplies, fuel,
equipments, tools, office supplies and so on.

10. Warehousing
Warehousing is the management of materials
while they are in storage. It includes storing,
dispersing, ordering and accounting for all
materials and finishing goods from the
beginning to the end of the production
process.
Warehousing operation deals with materials
that directly support operations. The first
problems that must be addressed are when to
place an order. Orders are placed and
shipment eventually appear in he receiving
department, usually by either truck or railroad
cars (railway wagons).

11. Expediting
Expediting is a concept in purchasing and project
management for securing the quality and timely delivery of
goods and components.
The procurement department or an external expeditor
controls the progress of manufacturing at the supplier
concerning quality, packing, conformity with standards and
set timelines. Thus the expeditor makes sure that the
required goods arrive at the appointed date in the agreed
quality at the agreed location.
Expediting exists in several levels:
• Production control
• Quality control
• Packing / Transport survey
• Project management

12. Managing
the supply
chain
Because supply chain management deals with the
complete cycle of materials as they flow from
suppliers to production to warehousing to distribution
to the customer, there are many opportunities to
enhance value.
Some of these opportunities are:
1 Postponement
2 Channel assembly
3 Drop shopping and special packing
4 Blanket order
5 Invoice purchasing
6 Electronic ordering and fund transfer
cont.

13. Managing
the supply
chain
7 Stockless purchasing
8 Standardization
9 Other techniques

14. Process tools
for supply
chain
management
Any supply chain management efforts, from
confrontational purchasing to a virtual
corporation, relies on certain process tools to
evaluate resource flows between suppliers
and the transformed operations management
system.
Four such tools that need focus are:
a) Make-or-Buy Decision / Make-Buy Analysis
b) Supplier scheduling
c) Value analysis / value engineering
d) Supplier certification / evalution

15. Supply chain
dynamics
Supply chains have inherent system dynamics.
Three key points about supply chain dynamics
are:
1. The supply chain is highly interactive
system.
2. There is an accelerator effect of demand
change.
3. The best way to improve the supply chain
is to reduce the total replenishment time
and to feed back actual demand
information to all levels.

16. Measuring
supply chain
performance
Measuring supply chain performance is the
first step towards improvement. A base line of
performance needs to be established and
goals set for improvement. Four measures of
supply chain performance, which compare
closely to the cost, quality, flexibility and
delivery measures for operations are as
follows:
1. Delivery
2. Quality
3. Time
4. Cost Delivery

17. Structural
improvement
There are two basic way to improve supply
chins, by changing structure or
infrastructure. Changes in structure are
related to bricks and mortar, while
infrastructure changes are related to people
and systems
Structure change include capacity, facilities,
process technology and vertical integration.
Infrastructure include people, information
systems, organizations, production and
inventory control and quality control systems.

18. Thank you!