This document discusses supply chain management (SCM). It provides an introduction to SCM, including that it is also known as a value chain and involves the management of inventory flows across organizations. It discusses the importance of SCM in gaining efficiencies, reducing costs, and meeting competitive pressures. The objectives of SCM are also outlined, such as rapid demand fulfillment and giving customers what they want at low costs. Different SCM modules, functions, issues, software solutions, and EDI activities are described. It concludes with a case study of how Bharat Petroleum reduced logistics and distribution costs by 56% and inventory levels by 60% using SAP Supply Chain Management software.

1. SUPPLY CHAIN MANAGEMENT
(SCM)
1
Presented by:
Bhagirath Parmar - 72
Shruti Pithadia - 74
Mahesh Purohit - 76
Nisha Sankhla - 78

2. Introduction
2
 Also known as Value Chain
 Management of the flow of Inventory.
 A sequence of organizations-their facilities, functions,
and activities that are involved in producing and
delivering a product or service.

3. Introduction
3
Supplier
Supplier
Supplier
Supplier
Supplier
Storag
e
Storag
e
Servic
e
Custom
er
Mfg.
Custom
er
Storag
e
Retaile
r
Dist.

4. Introduction
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5. Trends in SCM
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6. Importance of SCM
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 To gain efficiencies from procurement, distribution and
logistics.
 To make outsourcing more effective
 To reduce transportation cost of inventories
 To meet competitive pressures from
• Shorter development times
• More new products
• Demand for more customization

7. Importance of SCM
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 To meet the challenge of globalization and longer supply
chains
 To meet the new challenges from globalization
 To manage the complexities of supply chains
 To manage the inventories needed across the supply
chain

8. Disadvantages of SCM
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 Investment
 Cost
 Productivity
 Unskilled Buyer
 Backlash
 Other Disadvantages

9. Objectives of SCM
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 Rapid demand fulfillment
 Shortening time to order
 Provide flexible planning and control mechanism
 To optimize pre and post production inventory levels
 Greater labor, space and equipment efficiency
 Effective distribution and channel partnerships
 Responsiveness and accountability to customers
 Give customers what, when and how they want, at the lowest
cost

10. Continued..
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11. Modules of SCM
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 Demand and Supply Planning
 Service parts planning
 Procurement
 Manufacturing
 Warehousing
 Order fulfillment
 Transportation
 Supply chain design and analytics

12. Functions and Outcomes of SCM
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13. Issues in SCM
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 Strategic
• Determining the number, location and capacity of facilities
• Make or buy decisions
• Forming strategic alliances
• Network design
 Tactical
• Determining inventory levels
• Quality-related decisions
• Production, procurement, logistics plans
• Demand forecast

14. Issues in SCM
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 Operational
• Production planning and control decisions
• Goods and service delivery scheduling
• Work center scheduling
 Execution
• Order cycle
• Material movement

15. Software & Solutions
 Designed for small to
mid-sized companies
looking for a complete
inventory management
system without replacing
QuickBooks for
accounting.
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Fishbowl SNAP FULFIL
 A full-featured Cloud-based/
SaaS Warehouse
Management System
designed to meet the
needs of a variety of
businesses in a multitude
of industries.
 Works to improve the
efficiency of picking and
dispatching, while reducing
the time it takes to fulfil
sorders.

16. Software & Solutions
 A powerful, user-friendly
Transportation Management
System
 Offers a full suite of tools that
include direct e-carrier
management, user-friendly
procurement, RFQ
development and bid
capabilities, load tendering,
robust analytics, and more, all
from a simple and sleek
interface that's accessible
anywhere with an Internet
connection.
 eBid eXchange by eBid
Systems offers a robust,
integrated web-based
solution that includes a
variety of comprehensive
features to support the
complete contract
procurement cycle
 In addition to supplier
management and
procurement, eBid
eXchange offers solid
strategic sourcing, as well
as contract and event
management.
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URoute eBid systems

17. Software & Solutions
JDA Oracle
 A leading provider of global
supply chain solutions.
 Offers an extensive array
of integrated and planning
capabilities for companies
to manage the entire
supply chain.
 Transform supply chains
from a functional necessity
to a competitive
advantage.
 Products help modernize
the operations across the
demand, supply and
product pillars to deliver
operational and innovation
excellence
•.
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18. Top 25 supply chain 2014
 1. Apple
 2. McDonald's
 3. Amazon.com
 4. Unilever
 5. Procter & Gamble
 6. Samsung Electronics
 7. Cisco Systems
 8. Intel
 9. Colgate-Palmolive
 10. The Coca-Cola Company
 11. Inditex
 12. Nike
 13. H&M
 14. Wal-Mart Stores
 15. PepsiCo
 16. Lenovo
 17. Starbucks
 18. 3M
 19. Qualcomm
 20. Seagate Technology
 21. Kimberly-Clark
 22. Johnson & Johnson
 23. Caterpillar
 24. Cummins
 25. Nestlé
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19. EDI ACTIVITIES
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20. Comparing Purchase Order Fulfillment Without
EDI
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21. Comparing Purchase Order Fulfillment With EDI
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22. Supply Chain RFID
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 A flexible technology that is convenient, easy to
use and well-suited for automatic operation
 Replacement of barcodes
 does not require contact or line-of-sight between
the reader and the object to be identified;
 enables multiple tags to be read simultaneously;
 Can also provide security and product
authentication because tags can be applied
discreetly and are extremely difficult to
counterfeit.
 makes the supply chain considerably more
precise and improves the efficiency and reliability
of the entire chain.

23. Supply Chain RFID
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Advantages
 Production Tracking
 Asset management
 Inventory Control
 Shipping & Receiving
 Returns & Recall Management
 Service and Warranty Authorizations

24. Bharat Petroleum: Reducing Logistics and
Distribution Costs with SAP Supply Chain
Management
For BPCL and its
network of more than
49 plants, 115 depots,
over 100 supply
locations, and 10,000-
plus dealers and
retailers, it takes the
SAP Supply Chain
Management
application.
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25. Executive Overview
The company’s top objectives:
 Improve responsiveness to market demand while lowering
supply chain costs
 Match available supply to demand at the lowest possible cost
 Outperform the competition with faster, more efficient
planning and execution
The resolution:
 Introduced the SAP® Supply Chain Management application
to calibrate planning and execution with customer demand
 Employed flexible IT solution to meet specific needs of each
division
 Received full support and guidance from senior management
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26. Sales growth and Supply chain costs
 Key benefits:
 56% reduction in inventory(average).
 2.5% reduction in logistics costs.
 14% improvement in demand fulfillment.
 60% reduction in planning cycle time.
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27. Fueling further transformation
 Plans to deploy the software
throughout its three fuels
divisions (retail, industrial and
commercial, and aviation),
 Making it India’s first oil and
gas company to use SAP
SCM for this particular line of
business.
 In doing so, the company will
continue to lead the way in
using innovative technology
to help ensure customer
value and satisfaction.
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