A presentation on the Supply Chain Management as per Production and Marketing are concerns, the highly relayed branch of any business house is to concentrate on this particular topic.
3. MEANING & DEFINATION
A supply chain is a network of supplier, manufacturing, assembly,
distribution, and logistics facilities that perform a functions of procurement
of materials, transportation of these materials into intermediate and finished
products, and distribution of these products to customers.
Supply chain management (SCM) is the management of the flow of
goods. It includes the movement and storage of raw materials, work-in-
process inventory, and finished goods from point of origin to point of
consumption
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5. SUPPLY CHAIN MANAGEMENT
Supply Chain Management is the design and
management of processes across organizational
boundaries with the goal of matching supply and
demand in the most cost effective way.
Supply Demand
Mission impossible: Matching Supply and Demand 5
7. OBJECTIVE OF SUPPLY CHAIN MANAGEMENT
īService Oriented
īSystem Oriented
īCompetitiveness and Efficiency
īMinimizing the time
īMinimizing Work-In-Progress
īImproving visibility of Demand
īImproving Quality
īReduces Transportation
īReduces Warehousing
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8. COMPONENTS OF SCM
Supplier partnership
Material planning
Material Scheduling
Procurement Methodology
Capacity planning
Production scheduling
JIT inventory system
Flexibility-Volume and Varieties
Demand planning
Responsiveness
Postponement
Distribution networking
Procurement Processing Distribution
Information Flow
Inventory Flow
Supplier Customers
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9. FUNCTIONS
Supply chain activities can be grouped into strategic, tactical, and
Operational level of activities:
1. Strategic Functions:
i. Strategic network optimization.
ii. Product design co-ordination.
iii. Strategic partnership.
iv. Information Technology infrastructure.
v. Where-to-make & What-to-make or buy decisions.
vi. Aligning overall organizational strategy with supply strategy.
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10. FUNCTIONS
2. Tactical Functions:
i. Sourcing contracts and other purchasing decision.
ii. Production decision.
iii. Inventory decision.
iv. Transportation strategy.
v. Milestone payments
vi. Focus on customer demand
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11. FUNCTIONS
3. Operational Functions:
i. Daily production and distribution planning.
ii. Production scheduling.
iii. Demand planning and forecasting.
iv. Inbound operations
v. Outbound operations.
vi. Order promising.
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13. FACTOR INFLUENCING SCM
īCustomer demand
īGlobalization
īCompetition
īInformation and communication
īGovernment regulation
īEnvironment
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14. IMPORTATNCE
īReduce inventory cost
īProvide better medium for information sharing among the partners.
īImproves customer satisfaction as well as service.
īMaintains better trust between partner.
īProvide efficient manufacturing strategy.
īImprove process integration.
īImproves quality and gives higher profit margin.
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