This document discusses supply chain management. It defines supply chain management as handling the entire production flow from raw materials to delivering the final product to consumers. It identifies the key components of supply chain management as planning, sourcing, manufacturing, delivery and logistics, and returning. Effective supply chain management minimizes costs and waste through just-in-time systems. It is important for identifying potential problems, optimizing prices dynamically, and improving inventory allocation. The document outlines five features of effective future supply chain management: connected, collaborative, cyber-aware, cognitively enabled, and comprehensive systems.

2. SUPPLY CHAIN MANAGEMENT
LEARNING
OBJECTIVES:
1. Understand the concepts, importance, and roles of
Supply Chain Management in today’s business
environment
2. Become familiar with the components, scenarios and
key features of effective supply chain management
3. Apply the concepts and practices of Supply Chain
Management in problem-based learning situations

3. SUPPLY CHAIN MANAGEMENT
WHAT IS A SUPPLY CHAIN
MANAGEMENT?
Supply chain management is the handling of the
entire production flow of a good or service — starting
from the raw components all the way to delivering the
final product to the consumer.

4. SUPPLY CHAIN MANAGEMENT
A company creates a network of suppliers
(“links” in the chain) that move the product along
from the suppliers of raw materials to those
organizations that deal directly with users.
WHAT IS A SUPPLY CHAIN
MANAGEMENT?

5. SUPPLY CHAIN MANAGEMENT
1 PLANNING
3 MANUFACTURING
5 RETURNING
SOURCING
DELIVERY & LOGISTICS
2
4
5 COMPONENTS OF SUPPLY CHAIN
MANAGEMENT
HOW DOES SUPPLY CHAIN
MANAGEMENT WORK?

6. SUPPLY CHAIN MANAGEMENT
Plan and manage all resources
required to meet customer
demand for a company’s
product or service.
HOW DOES SUPPLY CHAIN
MANAGEMENT WORK?

7. SUPPLY CHAIN MANAGEMENT
Choose suppliers to provide
the goods and services needed to
create the product. Then,
establish processes to monitor
and manage supplier
relationships.
HOW DOES SUPPLY CHAIN
MANAGEMENT WORK?

8. SUPPLY CHAIN MANAGEMENT
Organize the activities required
to accept raw materials,
manufacture the product, test
for quality, package for shipping
and schedule for delivery.
HOW DOES SUPPLY CHAIN
MANAGEMENT WORK?

9. SUPPLY CHAIN MANAGEMENT
Coordinate customer
orders, schedule deliveries,
dispatch loads, invoice
customers and receive
payments.
HOW DOES SUPPLY CHAIN
MANAGEMENT WORK?

10. SUPPLY CHAIN MANAGEMENT
Create a network or process
to take back defective,
excess or unwanted
products.
HOW DOES SUPPLY CHAIN
MANAGEMENT WORK?

11. Effective supply chain management systems
minimize cost, waste and time in the production
cycle. The industry standard has become a just-in-
time supply chain where retail sales automatically
signal replenishment orders to manufacturers.
SUPPLY CHAIN MANAGEMENT
WHY IS SUPPLY CHAIN
MANAGEMENT IMPORTANT?

12. SUPPLY CHAIN MANAGEMENT
WHY IS SUPPLY CHAIN
MANAGEMENT IMPORTANT?
Retail shelves can then be restocked almost
as quickly as product is sold. One way to further
improve on this process is to analyze
the data from supply chain partners to see where
further improvements can be made.

13. SUPPLY CHAIN MANAGEMENT
WHY IS SUPPLY CHAIN
MANAGEMENT IMPORTANT?
Three scenarios where effective supply chain
managementincreasesvaluetothesupplychaincycle:
1. Identifying potential problems
2. Optimizing price dynamically
3. Improving the allocation of “available to promise”
inventory

14. SUPPLY CHAIN MANAGEMENT
When a customer orders more
product than the manufacturer can
deliver, the buyer can complain of
poor service. Through data analysis,
manufacturers may be able to
anticipate the shortage before the
buyer is disappointed.
WHY IS SUPPLY CHAIN
MANAGEMENT IMPORTANT?
IDENTIFYING POTENTIAL
PROBLEMS

15. SUPPLY CHAIN MANAGEMENT
Seasonal products have a limited shelf
life. At the end of the season, these
products are typically scrapped or sold
at deep discounts. Airlines, hotels and
others with perishable “products”
typically adjust prices dynamically to
meet demand.
WHY IS SUPPLY CHAIN
MANAGEMENT IMPORTANT?
OPTIMIZING PRICE
DYNAMICALLY

16. SUPPLY CHAIN MANAGEMENT
Analytical software tools help to
dynamically allocate resources
and schedule work based on the
sales forecast, actual orders and
promised delivery of raw
materials.
WHY IS SUPPLY CHAIN
MANAGEMENT IMPORTANT?
IMPROVING THE ALLOCATION
OF “AVAILABLE TO PROMISE”
INVENTORY

17. SUPPLY CHAIN MANAGEMENT
KEY FEATURES OF EFFECTIVE SUPPLY
CHAIN MANAGEMENT
The supply chain is the most obvious “face” of
the business for customers and consumers. The
better and more effective a company’s supply chain
management is, the better it protects its business
reputation and long-term sustainability.

18. SUPPLY CHAIN MANAGEMENT
KEY FEATURES OF EFFECTIVE SUPPLY
CHAIN MANAGEMENT
FIVE “Cs” OF THE EFFECTIVE SUPPLY CHAIN MANAGEMENT OF THE FUTURE
CONNECTED
COLLABORATIVE
CYBER-AWARE
COGNITIVE ENABLED
COMPREHENSIVE
1
2
3
4
4

19. SUPPLY CHAIN MANAGEMENT
Being able to access unstructured
data from social media, structured
data from the Internet of Things
(IoT) and more traditional data sets
available through traditional ERP
and B2B integration tools.
KEY FEATURES OF EFFECTIVE SUPPLY
CHAIN MANAGEMENT
CONNECTED

20. SUPPLY CHAIN MANAGEMENT
Improving collaboration with
suppliers increasingly means the
use of cloud-based commerce
networks to enable multi-enterprise
collaboration and engagement.
KEY FEATURES OF EFFECTIVE SUPPLY
CHAIN MANAGEMENT
COLLABORATIVE

21. SUPPLY CHAIN MANAGEMENT
The supply chain must harden its
systems and protect them from
cyber-intrusions and hacks, which
should be an enterprise-wide
concern.
KEY FEATURES OF EFFECTIVE SUPPLY
CHAIN MANAGEMENT
CYBER-AWARE

22. SUPPLY CHAIN MANAGEMENT
The AI platform becomes the
modern supply chain's control
tower by collating, coordinating
and conducting decisions and
actions across the chain. Most of
the supply chain is automated and
self-learning.
KEY FEATURES OF EFFECTIVE SUPPLY
CHAIN MANAGEMENT
COGNITIVELY
ENABLED

23. SUPPLY CHAIN MANAGEMENT
Analytics capabilities must be
scaled with data in real time.
Insights will be comprehensive and
fast. Latency is unacceptable in the
supply chain of the future.
KEY FEATURES OF EFFECTIVE SUPPLY
CHAIN MANAGEMENT
COMPREHENSIVE

24. SUPPLY CHAIN MANAGEMENT
EXERCISE

25. SUPPLY CHAIN MANAGEMENT
What is Supply Chain Management?
EXERCISE

26. SUPPLY CHAIN MANAGEMENT
EXERCISE
What are the 5 Components of Supply Chain
Management?

27. SUPPLY CHAIN MANAGEMENT
EXERCISE
What are the three scenarios where effective
supply chain management increases value to
the supply chain cycle?

28. SUPPLY CHAIN MANAGEMENT
EXERCISE
What are the five “Cs” of the effective Supply
Chain Management of the future?

29. SUPPLY CHAIN MANAGEMENT
EXERCISE
Why Supply Chain Management is important?

30. SUPPLY CHAIN MANAGEMENT
Referenc
e:
- https://www.ibm.com/topics/supply-chain-management
- https://www.investopedia.com/terms/s/scm.asp
- https://www.michiganstateuniversityonline.com/resources/supply
-chain/what-is-supply-chain-management/