kjoiojjjjjjjjjjjjjjjjjjjjjjjjjj

1. SUPPLY CHAIN
MANAGEMENT
Presented to :Dr.Khalid seif el
Molouk
By: Christi Mamdouh
ID No.:22226272
group:2S

2. Supply chain management
What is supply chain?
It’s a network between organization and its suppliers to produce and distribute a specific product or service to
final customer including different functions, activities, people, information and resources.
What is supply chain management?
Is the process of managing & coordinating supply chain different function, flow of goods &services to and from
business including every step from beginning of raw material till final product or service reaching end
customer so organization can manage supply and demand as efficiently as possible.
Logistics: is that part of supply chain management that plans, implements, and controls the efficient, effective
forward and reverses flow and storage of goods, services and related information between the point of origin
and the point of consumption in order to meet customers' requirements.” includes management of inbound
and outbound transportation, material handling, warehousing, inventory, order fulfillment and distribution,
third-party logistics, and reverse logistics.
The supply or value chain has two components for each organization—a supply component and a demand
component
A typical manufacturing supply chain: A typical service supply chain:
Major points concerned by most of organization regarding supply chain:
Measuring supply chain ROI: that help managers to make right decision
“Greening” the supply chain: taking decision based on social responsibilities, public pressure.
Reevaluating outsourcing: It not only helps in reducing operational costs but also provides access to specialized
services. Companies can leverage the expertise of external providers to enhance their service quality and
efficiency.
Integrating IT (EPR system): can analyze historical data to predict future trends, optimize inventory levels, and
enhance supply chain.
Managing risks: risks arise from various sources, including external factors such as natural disasters, political
instability, economic fluctuations, and supplier failures, as well as internal factors such as production delays,
quality issues, or data breaches

3. Adopting lean principles: can overcome negatives by eliminating non-value-added processes; and improving
product flow.
Being agile: doing things quickly, saving costs, being responsive to market demands, maintaining flexibility,
and keeping productivity high.
Adopting block chain technology: to keep all transaction recorded
Establishing transparency.
Adopting new delivery modes.
Risk Management and Resiliency
Supply chain risk management:
Typically involves identification, assessment, treatment, risk reporting and communication, and monitoring of
supply chain risks. Potential disruptions due to weather, supplier issues, quality concerns, sustainability,
transportation disruptions, security threats, cost fluctuations, demand volatility, and other factors.
This can be done by:
Knowing your suppliers.
Providing supply chain visibility (ability to track company's logistics, inventory and warehouse management
processes and people in real time)
Developing event-response capability. (Is ability to deal with sudden events such as shortage, delay….)
Global supply chain
The increasing complexity of global supply chains compared to domestic operations, highlights several key
challenges, including:
Cultural and logistical differences: Language barriers, currency fluctuations, time zone differences,
transportation complexities, and increased need for trust among partners.
Risk management (as mentioned before)
Increased need for analysis: Understanding local capabilities, infrastructure, regulations, and political
landscapes in different countries. While some companies mitigate risks by holding more inventory, it negates
some benefits of global sourcing. And this reflect the positive impact of technology, specifically real-time
information exchange, in helping integrate global operations.
ERP AND SUPPLY CHAIN MANAGEMENT
ERP integrates various business processes, including supply chain activities. This allows for efficient planning,
demand management, inventory control, production, warehousing, and transportation.
ERP centralizes transaction data. This provides a single source of truth for supply chain information,
improving visibility and decision-making.
ERP offers functionalities for different aspects of supply chain management:
Supplier Relationship Management: manages sourcing, vendor performance, and simplifies processes.
Performance Management: tracks costs, profits, productivity, quality, and customer satisfaction.
Sales and Order Fulfillment: provides inventory and quality management, tracks returns, and schedules
production and distribution.
Customer Relationship Management: centralizes contact information, purchase patterns, and service history.
Ethics &supply chain

4. Importance of ethical supply chain code: Guides behavior towards suppliers, customers, environment, and
Reduces risk of reputational damage from unethical practices in your supply chain.
Challenges of maintaining ethical supply chains: Difficulty in tracing and monitoring global supply chains,
Complexities of communicating expectations and enforcing compliance.
Key to reduce risk:
Selecting suppliers with good ethical reputations, including compliance clauses in contracts, building long-term
relationships with ethical suppliers, responding promptly to identify problems, taking Benefits of ethical and
sustainable supply chains, applying fair wages, good working conditions, gender equality, and environmental
protection.
Small business: Agility can be a competitive advantage for small businesses in supply chain management for
example:
Inventory management by Carrying extra inventory can tie up capital and take up space. Consider backup
suppliers and deliveries.
Reducing risksby using reliable suppliers, measure performance, recognize warning signs, and have plans in
place to manage problems.
International trade by Exporting: lack of knowledge can cause problems. Importing: consider using domestic
suppliers if risks are high.
MANAGEMENT RESPONSIBILITIES
Legal: Comply with laws and regulations across all countries involved in the supply chain.
Economic: Efficiently meet product and service demands.
Ethical: Conduct business ethically and morally.
Strategies:
Responsive/Agile: Adapt to changes and disruptions.
Lean: Eliminate waste and create cost-efficiency.
Near-sourcing: Use nearby suppliers for faster response and reduced risk.
Management Responsibilities:
Strategic: Aligning supply chain with organizational strategy, determine supplier, warehouse, and facility
locations. Integrating information technology throughout the chain, making decisions on products, services,
and capacity, Choosing and managing partnerships, deciding best distribution methods and risk management.
Tactical: By Preparing and evaluating forecasts, selecting suppliers and make production decisions,
Coordinating supply chain and internal operations, managing inventory placement and transportation,
collaborating with partners to align plans.
Operational: That will be achieved by Scheduling operations and distribution, managing inbound and
outbound deliveries. Being able to convert inputs to outputs, fulfilling customer orders, to maintain and
replenish inventory, keep sharing information with partners and most commonly to Control quality, inventory,
and other variables
Procurement
Importance of Purchasing:
Up to 90% of costs in some industries come from purchased goods/services. That Impacts product quality,
delivery timing, and overall operations.
Duties of Purchasing:
Identifying suppliers, Negotiating contracts, maintaining supplier database, obtaining goods/services timely
and cost-efficiently, and managing relationships with suppliers.

5. Purchasing Interfaces:
Operations: Main source of purchase requests, requires close collaboration on quality, quantity, and delivery.
Legal: Assists with contract negotiations, specifications, and legal interpretation.
Accounting: Handles payments, receives purchase notifications for discounts, and manages inventory records
and vendor performance.
Design/Engineering: Provides material specifications and benefits from purchasing's knowledge of new
products/materials.
Receiving: Checks incoming shipments for quality, quantity, and timing; notifies purchasing and accounting.
Suppliers: Collaborates on specifications, deliveries, and new suppliers; evaluated based on cost, reliability.
Purchasing Cycle:
Requisition: Internal request specifies item details, quantity, delivery timing, and requester.
Supplier Selection: Identify capable suppliers, referencing vendor ratings or seeking new ones.
Order Placement: For large purchases, use bids and possible negotiations. Blanket purchase orders exist for
continuous-usage items. Smaller purchases might be handled directly by requesting units.
Order Monitoring: Track orders, especially large ones, to anticipate delays and inform other units.
Receiving Orders: Check quality and quantity, notify relevant departments. Address discrepancies with
suppliers.
Centralized purchasing: Potential for lower prices due to larger order volumes and better supplier service.
Specialists manage specific item categories for efficiency.
Decentralized purchasing: Better awareness of local needs and quicker response, Lower transportation costs
by buying locally and fostering community goodwill.
Hybrid Approach: Organizations can combine both approaches, with individual units handling specific items
while centralizing high-volume or high-value purchases.
Business Defined: Using electronic technology to facilitate business transactions (buying, selling, information
sharing), involving interactions between businesses and individuals. Examples: online stores, email, order
tracking, e-data interchange.
Advantages of E-Business: Global reach for both companies and customers, it improves competitiveness and
service through 24/7 access. Help, Monitoring customer choices and requests electronically.
Analyzing product interest based on website traffic, easier to create personalized products and mass
customization. Help supply chain to respond faster, allow elimination of intermediaries and cost reduction,
leading Lower prices as result of reduced operational costs.
Key Features of E-Business:
Website or app (front-end design), Order fulfillment (back-end operations): processing, billing, inventory,
warehousing, packing, shipping, delivery.
Challenges of E-Business:
To meet customer expectations for fast delivery despite demand fluctuations, while balancing inventory
control and supplier dependence. Deciding between internal fulfillment, outsourcing, or partnering with
traditional retailers and Ensuring quality control and consistent standards when outsourcing fulfillment.
B2B Commerce:
Growing segment of e-business involving transactions between businesses.B2B marketplaces facilitate these
transactions. Include improved supply chain visibility, standard data formats, and efficient collaboration
between shippers and carriers.
Supplier management

6. Supplier management is very important and effective for creating supply chain, that’s why it is so important
choosing a reliable Suppliers, thus will afford fast deliveries and high quality contribution to smooth
operations.
Supplier Management Aspects:
Choosing Suppliers: Similar to major purchases (considering price, quality, reputation, experience, after-sales
service), Companies often provide detailed specifications for large orders instead of buying off-the-shelf.
Vendor analysis: By assigning weights to different factors based on importance in specific situations, rating
potential vendors against these weighted factors, Conducting periodically or when weighting changes
significantly.
Supplier Audits: by ensuring suppliers maintaining production/service capabilities, quality, and delivery
standards, identifying and addressing problem areas through collaboration with suppliers.
Supplier Certification: Rigorous examination of a supplier's policies and capabilities, verifying if they meet or
exceed buyer's requirements, especially for long-term partnerships, certified suppliers (often called "world-
class") require less inspection and testing.
Supplier Relationship Management: purchasing department establishes and maintains good relationships
with suppliers. Relationships vary between Short-term: competitive bidding, minimal interaction.
Medium-term: ongoing relationships with more interaction, Long-term/Partnerships: collaboration on various
issues for mutual benefit.
Benefits of Good Supplier Relationships: flexibility in changes (delivery, quality, quantity), easy problem
identification and suggestions for improvement.
Supplier Views: Traditional view: suppliers as adversaries, chosen based on price, Modern view: suppliers as
partners, valued for reliability, quality, and flexibility.
Supplier Partnerships: Fewer suppliers, longer relationships, information sharing, and planning collaboration.
Potential benefits: higher quality, faster delivery, lower costs, and improved operations.
Obstacles: supplier hesitancy due to investment and cultural differences.
Strategic Partnering: Occurs between complementary businesses for mutual strategic benefit.
Example: supplier holds inventory for buyer in exchange for long-term commitment, reducing costs for both.
Inventory Management in Supply Chains: Location, Velocity, and the Bullwhip Effect
Inventory Location
Centralized inventories: Lower overall inventory but slower delivery and potentially higher shipping costs.
Decentralized inventories: Faster delivery and lower shipping costs but risk of overstock in some locations and
understock in others.
Inventory Velocity: The rate at which materials move through the supply chain, higher velocity means lower
holding costs and faster order fulfillment.
Bullwhip Effect: amplification of demand variability as it moves upstream through the supply chain.
Creates shortages and surpluses, increasing costs and reducing customer satisfaction.
Caused by various factors, including: Demand variability, Periodic ordering and reaction to shortages
Communication issues, Forecast inaccuracies, practices (batching, discounts), Sales promotions and return
policies
How to Overcome the Bullwhip Effect?
Strategic inventory buffering, Information sharing among supply chain partners, Inventory replenishment
based on actual needs (not forecasts).
Order fulfillment:
Engineer-to-Order (ETO): by designing Products specifically according to customer needs. (Ex: construction
projects, custom homebuilding, home remodeling, job shops. But it take more to be fulfilled and produced)

7. Make-to-Order (MTO): Standard product design with customization based on customer specifications.
Examples: aircraft manufacturing shorter Fulfillment time than ETO, but still lengthy due to production
requirements.
Assemble-to-Order (ATO): already available products only assembled according to customer specification.
Examples: computer manufacturers (e.g., Dell).shortest Fulfillment time, often less than a week.
Make-to-Stock (MTS): production is based on a forecast of future demand. Finished goods are stocked in
inventory and sold to customers as orders arrive. Standardized products with high demand and predictable
sales patterns. Examples: supermarkets, mass-produced electronics. Fulfillment time: Immediate (in-store) or
with a short shipping lag for online orders.