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Supply chain management
Supply chain management involves the integration of suppliers, manufacturers, warehouses, and stores to minimize costs while meeting customer demand. It aims to produce and distribute goods in the right quantities, locations, and times. Key aspects of supply chain management include supply chain planning, procurement, manufacturing, and distribution. Effective supply chain management requires cross-functional collaboration, information sharing, and managing uncertainties to achieve global optimization across the entire supply chain network.
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Supply chain management
- 1. Supply Chain Management By:Er. Vaibhav Agarwal Asst. prof. BBD University, Lucknow
- 2. Supply Chain Management Definition: Supply Chain Management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying customer service requirements. Notice: Who is involved Cost and Service Level It is all about integration
- 3. What Is SupplyChain Management? Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements.
- 4. What Is aSupply Chain? Flow of products and services from: Raw materials manufacturers Intermediate products manufacturers End product manufacturers Wholesalers and distributors and Retailers • Connected by transportation and storage activities • Integrated through information, planning, and integration activities • Cost and service levels
- 5. What is asupply chain? Customer wants detergent and goes to Jewel Jewel Supermarket Jewel or third party DC P&G or other manufacturer Plastic Producer Chemical manufacturer (e.g. Oil Company) Tenneco Packaging Paper Manufacturer Timber Industry Chemical manufacturer (e.g. Oil Company)
- 6. Drivers of SupplyChain Performance Efficiency Responsiveness Inventory Transportation Facilities Information Supply chain structure Drivers
- 7. Decision Phases inSupply Chain Supply Chain Strategy & Design Supply Chain Planning Supply Chain Operations Strategy & Design Planning Operations
- 8. Cycle View ofSupply Chains Customer Order Cycle Replenishment Cycle Manufacturing Cycle Procurement Cycle Customer Retailer Distributor Manufacturer Supplier
- 9. Flows in aSupply Chain Customer Information Product Funds
- 10. Supply Chain Strategy& Design Location & capacity of production and warehouses Products to manufactured and in which locations Mode of transportation Types of information systems to be used Strategic sourcing decisions
- 11. The Value Chain:Linking Supply Chain and Business Strategy New Product Development Marketing and Sales Operations Distribution Service Finance, Accounting, Information Technology, Human Resources Business Strategy New Product Strategy Marketing Strategy Supply Chain Strategy
- 12. Supply Chain Planning Markets to be supplied & from which location Planned build-up of inventory Subcontracting of manufacturing Timing and size of market promotion Handling uncertainty in demand, foreign exchange fluctuations Establishing production plan under fixed strategic parameters
- 13. Procurement Planning Manufacturing Planning Distribution Planning Demand Planning Sequential Optimization Supply Contracts/Collaboration/InformationSystems and DSS Procurement Planning Manufacturing Planning Distribution Planning Demand Planning Global Optimization Sequential Optimization vs. Global Optimization Source: Duncan McFarlane
- 14. Strategic Scope Suppliers ManufacturerDistributor Retailer Customer Competitive Strategy Product Dev. Strategy Supply Chain Strategy Marketing Strategy
- 15. Strategic Scope IntracompanyIntraoperation Scope Minimize local cost view Intracompany Intrafunctional Scope Minimize functional cost view Intracompany Interfunctional Scope Minimize company profit view Intercompany Interfunctional Scope Maximize supply chain surplus view
- 16. Supply Chain Challenges Achieving Global Optimization Conflicting Objectives Complex network of facilities System Variations over time
- 17. Key Issues inSupply Chain Management Distribution Network Configuration Inventory Control Supply contract Distribution Strategies Supply Chain Integration & Strategic Partnering Outsourcing & Procurement Strategies
- 18. Key Issues ofSCM (cont) Product Design Information Technology & Decision Support System Customer Value
- 19. Relationships between keySCM Issues and the business environment Global Optimization Managing Uncertainty Dist. Conf. X Inv. Control X Sup. Contract X Dist. Strategies X X St. partnership X X Outsourcing X Pr. Design X IT & DSS X X Cust. Value X X
- 20. Prerequisites for Supply ChainManagement Top management understanding & commitment Quest for excellence Effective and efficient communication Relationship instead of exchange Cross-functional teams Reality of team, partnerships & alliances (based on harmony & trust)
- 21. Considerations for SupplyChain Drivers Driver Efficiency Responsiveness Inventory Cost of holding Availability Transportation Consolidation Speed Facilities Consolidation / Dedicated Proximity / Flexibility Information What information is best suited for each objective