Complete details of SCM with a case study.

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

2. Introduction
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 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
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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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