A supply chain is a network involved in the procurement, production, and distribution of goods, which supply chain management (SCM) aims to optimize for cost-effectiveness while meeting demand. Various types of supply chains exist, such as raw, ripe, and outsourced, and SCM includes strategic, tactical, and operational functions to manage these processes. Key factors influencing SCM include customer demand, globalization, and competition, while its importance lies in reducing costs and enhancing customer satisfaction and trust among partners.

1. Prepared BY:
Gurukrushna Patnaik

2. What is Supply Chain
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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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4. SUPPLY CHAIN
Supplier Manufacturer Distributor Retailer Customers
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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

6. TYPES OF SUPPLY CHAIN
Raw Supply Chain
Ripe Supply Chain
Internal Supply Chain
Extended Supply Chain
Self-monitored Supply Chain
Outsourced Supply Chain
Production-Oriented Supply Chain
Financial-Oriented Supply Chain
Market-Oriented Supply Chain
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7. OBJECTIVE OF SUPPLY CHAIN MANAGEMENT
Service Oriented
System Oriented
Competitiveness and Efficiency
Minimizing the time
Minimizing Work-In-Progress
Improving visibility of Demand
Improving Quality
Reduces Transportation
Reduces 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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12. PROCESS OF SCM
CUSTOMER
RELATIONSHIP
MANAGEMENT
CUSTMOER
SERVICE
MANAGEMENT
DEMAND
MANAGEMENT
MANUFACTURING
FLOW
MANAGEMENT
PROCUREMENT
PRODUCT
DEVELOPMENT &
COMMERCIALIZATION
RETURNS
MANAGEMENT
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13. FACTOR INFLUENCING SCM
Customer demand
Globalization
Competition
Information and communication
Government regulation
Environment
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14. IMPORTATNCE
Reduce inventory cost
Provide better medium for information sharing among the partners.
Improves customer satisfaction as well as service.
Maintains better trust between partner.
Provide efficient manufacturing strategy.
Improve process integration.
Improves quality and gives higher profit margin.
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