The document discusses supply chain management (SCM). SCM involves coordinating the flow of materials, information, and finances as goods move from suppliers to manufacturers to distributors and finally to consumers. The goal of SCM is to reduce inventory levels while meeting customer demand. Effective SCM requires planning, sourcing materials, manufacturing products, delivering products to customers, and managing returns. It also requires coordinating functions like forecasting, purchasing, inventory management, and quality assurance. Companies implement SCM to achieve economies of scale, improve focus, meet rising customer expectations, and add customer value through quick customized responses. The ultimate goal of SCM is efficient operations that improve business metrics like revenue, asset utilization, and cost reduction.

2.  The quantity of goods available for use
 The actual or planned replenishment of
product or component. The replenishment
quantities are created in response to demand
for the product or component or in
anticipation of such a demand.

3. • Network of organizations and business processes
for:
• Procuring raw materials
• Transforming them into intermediate and finished
products
• Distributing finished products to customers

4.  Supply chain management (SCM) is the flow
of materials, information, and finances as
they move in a process from supplier to
manufacturer to wholesaler to retailer to
consumer.
 Supply chain management involves
coordinating and integrating these flows both
within and among companies.
 The ultimate goal of any effective supply
chain management system is to reduce
inventory

5.  Plan
 Source
 Make
 Deliver
 Return

6.  The strategic portion of SCM.
 Companies need a strategy for managing all
the resources that go toward meeting
customer demand for their product or
service.
 A big piece of SCM planning is developing a
set of metrics to monitor the supply chain so
that it is efficient, costs less and delivers
high quality and value to customers.

7.  Companies must choose suppliers to deliver the
goods and services they need to create their
product.
 Therefore, supply chain managers must develop
a set of pricing, delivery and payment processes
with suppliers and create metrics for monitoring
and improving the relationships.
 SCM managers can put together processes for
managing their goods and services inventory,
including receiving and verifying shipments,
transferring them to the manufacturing facilities
and authorizing supplier payments.

8.  The manufacturing step.
 Supply chain managers schedule the
activities necessary for production, testing,
packaging and preparation for delivery.
 This is the most metric-intensive portion of
the supply chain—one where companies are
able to measure quality levels, production
output and worker productivity.

9.  Also may be referred to as logistics
 Companies coordinate the receipt of orders
from customers
 Develop a network of warehouses, pick
carriers to get products to customers and set
up an invoicing system to receive payments.

10.  Supply chain planners have to create a
responsive and flexible network for receiving
defective and excess products back from
their customers and supporting customers
who have problems with delivered products..

11.  Supply chain functions and activities
 Forecasting
 Purchasing
 Inventory management
 Information management
 Quality assurance
 Scheduling
 Production and delivery
 Customer service

12. • To achieve economies of scale and scope –
Costs are significant
• To improve business focus and expertise
• Customer Expectations are increasing
• Adds Significant Customer value
• Customers Increasingly Want Quick &
Customised Response

13. Efficient supply chain management must
result in tangible business improvements. It
is characterized by a sharp focus on
 Revenue growth
 Better asset utilization
 Cost reduction.