This document discusses supply chain management. It defines supply chain management as all operations linked to provide goods and services to end customers. The objectives of supply chain management are listed as quality, speed, dependability, flexibility and cost. The key activities of supply chain management are purchasing, physical distribution management, transportation, storage, warehousing, order processing and communication. The document also discusses relationships in supply chains between businesses and customers, and types of partnerships. It outlines approaches to improving supply chain performance, including the Supply Chain Operations Reference (SCOR) model of business process modeling, benchmarking and best practices analysis.

1. What Is Supply Chain
Management
Refers to all the operations that are linked together so as to
provide goods and services through to the end-customers.
Imstudies, University Of Peshawar !

2. Supply Chain Objectives
• Quality
• Speed
It has two meanings in a supply chain context.
A. how fast customers can be served
• B. time taken for goods and services to move through the chain
• Dependability
‘on-time’ delivery
• Flexibility
Also referred to as supply chain agility
the chain’s ability to cope with changes and disturbances
• Cost

3. The activities of supply chain management
Following are the activities of Supply Chain Management.
1.Purchasing(Procurement)
2.Physical Distribution Management

4. The activities of supply chain management
• Purchasing:
Purchasing raw materials and services from your suppliers.
Very large impact on a Business’ Operational costs as well as profits.

5. The activities of supply chain management
• Single Sourcing and Multisourcing:
1.Single Sourcing:
Sourcing from one supplier.
Trust, ability to borrow, easy to do business
BUT: What if fire/emergency occurs,
Can increase prices if he thinks you are too much dependent on him.

6. The activities of supply chain management
• MultiSourcing:
Sourcing from multiple Suppliers
Benefits: Prices down, switch sources
But: little trust, difficult to borrow, hard to do business.

7. The activities of supply chain management
• Internet and e-procurement:
Easier to buy from them
Faster to buy from them
Global IT catalogues
Lower purchasing costs
Increases efficiency

8. The activities of supply chain management
• Global Sourcing:
Cost Saving when sourcing from china, Pakistan, India, Vietnam
etc
But:
Purchase costs, transportation costs, taxes, risks, social &cultural
barriers, religious practices, communication.

9. The activities of supply chain management
• DISTRIBUTION:
Arrangement for the movement of raw materials to their operations &
physical goods to their operations as well as their protection, storage and
inventory control.
6 Inter-related activities:
1.Transportation 4. materials handling
2. Storage 5. Security
3. Warehousing 6. Order Processing & communication

10. The activities of supply chain management
• Distribution and the internet:
2 major effects:
a. Information is available more readily across the supply chain transport
companies, suppliers, warehouses & customers.
b. Business to consumer relationships

11. Relationships between operations in supply
chains
• Business-to-business relationships(B2B):
This involves businesses trading products and services with each other. It is
the most common and important type of relationship in a supply chain.
• Business-to-consumer relationships(B2C):
These types of relationships involves businesses selling products and
services directly to end customers/consumers.

12. Relationships between operations in supply
chains
• Consumer-to-business relationships(C2B):
It involves consumers informing businesses of their opinions, ideas or needs
(sometimes stating the price they are willing to pay) & companies then
decide whether to offer.
• Customer-to-customer relationships(C2C):
It includes consumers posting items or services for sale to other consumers
or a bid to purchase them.e.g includes olx, ebay etc.

13. Types of B2B relationships
1. Market based supply relationships:
These types of relationships between businesses are short term, and once the
goods are delivered and payment is made, there may be no further
trading between the parties.
Advantages:
a. Maintaining competition between the suppliers.
b. Economies of scale
c. Inherent flexibility in outsourced supplies.
d. Helps operations to concentrate on core activities.

14. Types of B2B relationships
2. Partnership supply relationships:
These relationships are long term, inter-firm co-operative agreements in
which suppliers and customers are expected to co-operate even to extent of
sharing their skills and resources, to achieve joint benefits.
Advantages:
a. Sharing success d. Trust
b.Long term expectations e. Joint co-ordination of activities
c.Few relationships f. Information transparency

15. Supply Chain Improvement
• With the advent of global sourcing, the task of organizing supply chains
has become more complex as activities crossed international borders. This
is why supply chain improvement has become such an important topic for
most businesses. Some of the improvement effort has been focused on
improved information systems that permit supply chain man- agers to
know more precisely and faster exactly items which are in the chain. Some
efforts have involved improving relationships with suppliers. But, at a
more fundamental level, sup- ply chain performance improvement often
requires an attempt to understand the complexity of supply chain processes
and to co-ordinate activities throughout the chain.

16. Supply Chain Improvement
• THE SCOR MODEL:
The Supply Chain Operations Reference Model (SCOR) is a broad, but highly structured
and systematic, framework to supply chain improvement that has been developed by the
Supply Chain Council (SCC), USA.
It has 3 steps.
a. Business process modelling
b. Benchmarking performance
c. Best practice analysis.

17. Supply Chain Improvement
a. Business process modelling:
It says that every operation in the supply chains consists of 5 processes
having a supplier customer relationship.
1.Source: the supplier of raw mat. for the operation
2.Make: adding value to the supplied materials
3.Deliver: deliver it to the next operation
4.Plan: balance the supply demand b/w operations
5.Return: returning the supplied materials back due to defects.

18. SCOR MODEL
B. Benchmarking performance:
Businesses form key performance indicators(KPI) for the supply
chain and then when the operations are performed the evaluate it
according to their KPI’s.
This helps them improve the overall performance of supply chain.

19. SCOR MODEL
C. Best practice analysis:
SCC members have identified more than 400 ‘best practices’ derived from their experience.
Businesses should look at the their operations whether they are performing their operations
with respect to best practices or not.
The definition of a ‘best practice’ in the SCOR model is one that:
● is current – neither untested (emerging) nor outdated;
● is structured – it has clearly defined goals, scope and processes;
● is proven – there has been some clearly demonstrated success;
● is repeatable – it has been demonstrated to be effective in various contexts;