This document discusses supply chain management and the role of information technology. It covers topics such as globalization, competitive advantage in supply chains through various strategies, challenges in supply chain management for industries, and how information technology can enable more effective supply chain management. The key points are that supply chain management involves both operational and relationship elements, and that information technology solutions like EDI and ERP systems can help streamline activities across the supply chain to reduce costs and increase efficiency.
This document discusses supply chain management. It defines supply chain management as the strategic management of activities involved in acquiring materials and converting them into finished products delivered to customers. The supply chain includes material, information, and financial flows facilitated by processes, structure, and technology to deliver value to customers. Key aspects of effective supply chain management include segmentation of customers, customization of logistics networks, collaborative forecasting, delayed differentiation, and relationships with suppliers.
Supply chain management Understanding the Supply ChainOsama Yousaf
This chapter discusses supply chain management. It defines a supply chain as including all parties involved in fulfilling a customer request, from suppliers to customers. A supply chain's objective is to maximize overall value by balancing revenue and costs across stages. Decision-making in a supply chain occurs in three phases: strategy/design, planning, and operations. Processes in a supply chain can be viewed through the lenses of cycles between stages or a push/pull distinction based on whether they are reactive or speculative to customer demand. The chapter provides examples of different supply chain models.
The document provides an overview of supply chain management. It defines supply chain management as the strategic management of activities involved in acquiring raw materials and converting them into finished products delivered to customers. It describes key aspects of effective supply chains such as integrating business processes, forecasting collaboratively with all supply chain partners, customizing logistics networks based on customer service needs, and differentiating products close to customers. It also discusses challenges like the bullwhip effect and strategies used by companies like Dell, Li & Fung, and Italian clothing manufacturers to implement efficient supply chain management.
Logistics management refers to creating and operating an integrated system that makes products and services available to customers as needed, when needed, in the required quantities and qualities, at the lowest possible cost. The document then traces the evolution of logistics management from the early 20th century to the present, highlighting changes in business focus and functional structures at different periods as logistics became more integrated internally and with external partners.
This document discusses supply chain management. It defines supply chain management as the strategic management of activities involved in acquiring materials and converting them into finished products delivered to customers. The supply chain includes material, information, and financial flows between suppliers, manufacturers, distribution centers, retailers, and customers. The goal of supply chain management is to efficiently manage these flows to reduce costs and improve customer responsiveness. Key aspects that are discussed include supply chain design, optimization, material and information planning, and performance measurement.
Supply chain management involves coordinating activities from sourcing raw materials to delivering finished products to customers. It aims to reduce costs and improve responsiveness through strategic management of material and information flows. Key aspects of supply chain management include supply chain design, planning, procurement, production, and distribution management. Coordinating these activities requires integrating business processes and sharing information across organizational boundaries with suppliers and customers. The goal is to satisfy customer demands efficiently while optimizing overall supply chain performance.
This document provides an introduction to supply chain management. It discusses key concepts like the objective of a supply chain being to maximize overall value, and defines a supply chain as all stages involved in fulfilling a customer request. It also covers different views of supply chains, including the cycle view which looks at processes between successive stages, and the push/pull view which categorizes processes as either push (anticipatory) or pull (reactive to customer orders). Achieving strategic fit between the supply chain strategy and competitive strategy is also discussed.
The document discusses the building blocks of supply chain management. It identifies the key building blocks as customer focus and demand management, resource and capacity management, procurement and supplier focus, inventory management, operations management, and distribution management. It also discusses three integrating processes: systems and procedures, sales and operations planning, and performance management. The document emphasizes that all building blocks must be examined together to have an effective total supply chain management approach.
This document discusses supply chain management. It defines supply chain management as the strategic management of activities involved in acquiring materials and converting them into finished products delivered to customers. The supply chain includes material, information, and financial flows facilitated by processes, structure, and technology to deliver value to customers. Key aspects of effective supply chain management include segmentation of customers, customization of logistics networks, collaborative forecasting, delayed differentiation, and relationships with suppliers.
Supply chain management Understanding the Supply ChainOsama Yousaf
This chapter discusses supply chain management. It defines a supply chain as including all parties involved in fulfilling a customer request, from suppliers to customers. A supply chain's objective is to maximize overall value by balancing revenue and costs across stages. Decision-making in a supply chain occurs in three phases: strategy/design, planning, and operations. Processes in a supply chain can be viewed through the lenses of cycles between stages or a push/pull distinction based on whether they are reactive or speculative to customer demand. The chapter provides examples of different supply chain models.
The document provides an overview of supply chain management. It defines supply chain management as the strategic management of activities involved in acquiring raw materials and converting them into finished products delivered to customers. It describes key aspects of effective supply chains such as integrating business processes, forecasting collaboratively with all supply chain partners, customizing logistics networks based on customer service needs, and differentiating products close to customers. It also discusses challenges like the bullwhip effect and strategies used by companies like Dell, Li & Fung, and Italian clothing manufacturers to implement efficient supply chain management.
Logistics management refers to creating and operating an integrated system that makes products and services available to customers as needed, when needed, in the required quantities and qualities, at the lowest possible cost. The document then traces the evolution of logistics management from the early 20th century to the present, highlighting changes in business focus and functional structures at different periods as logistics became more integrated internally and with external partners.
This document discusses supply chain management. It defines supply chain management as the strategic management of activities involved in acquiring materials and converting them into finished products delivered to customers. The supply chain includes material, information, and financial flows between suppliers, manufacturers, distribution centers, retailers, and customers. The goal of supply chain management is to efficiently manage these flows to reduce costs and improve customer responsiveness. Key aspects that are discussed include supply chain design, optimization, material and information planning, and performance measurement.
Supply chain management involves coordinating activities from sourcing raw materials to delivering finished products to customers. It aims to reduce costs and improve responsiveness through strategic management of material and information flows. Key aspects of supply chain management include supply chain design, planning, procurement, production, and distribution management. Coordinating these activities requires integrating business processes and sharing information across organizational boundaries with suppliers and customers. The goal is to satisfy customer demands efficiently while optimizing overall supply chain performance.
This document provides an introduction to supply chain management. It discusses key concepts like the objective of a supply chain being to maximize overall value, and defines a supply chain as all stages involved in fulfilling a customer request. It also covers different views of supply chains, including the cycle view which looks at processes between successive stages, and the push/pull view which categorizes processes as either push (anticipatory) or pull (reactive to customer orders). Achieving strategic fit between the supply chain strategy and competitive strategy is also discussed.
The document discusses the building blocks of supply chain management. It identifies the key building blocks as customer focus and demand management, resource and capacity management, procurement and supplier focus, inventory management, operations management, and distribution management. It also discusses three integrating processes: systems and procedures, sales and operations planning, and performance management. The document emphasizes that all building blocks must be examined together to have an effective total supply chain management approach.
The document discusses supply chain and logistics concepts including:
1) Physical distribution involves choosing warehouses and transportation carriers to deliver goods in the desired time at lowest cost. Physical distribution has expanded into supply chain management.
2) Supply chain management involves procuring inputs, efficiently converting them into finished products, and dispatching them to customers.
3) Market logistics planning involves four stages - deciding on a value proposition, developing operational excellence, implementing solutions, and deciding on a channel/network strategy.
Supply chain management-Introduction-Part 1Gourab Ray
This document provides an overview of supply chain management and logistics. It defines supply chain management as dealing with linking organizations within a supply chain to meet demand efficiently and at low cost. Logistics is described as managing the flow of goods from origin to customer. Key aspects of logistics work are discussed, including order processing, inventory management, transportation, warehousing, and facility network design. The document also provides historical context on how supply chain management related to colonialism and a conceptual diagram of an integrated supply chain framework.
This document provides an introduction and overview of supply chain management. It begins by defining key terms like supply chain, supply chain management, logistics, and related concepts. It then discusses the importance of SCM in reducing costs and increasing profits. The objectives of SCM are outlined as maximizing overall value created across the supply chain and reducing costs. It notes how the focus of SCM has expanded over time to include more tiers of suppliers and customers as well as greater integration through information and communication technologies. The document also covers SCM organizations, decision phases in SCM including strategy, planning and operations, and how effective SCM can provide competitive advantage.
Chapter 1 The Progression to Professional Supply ManagementTran Thang
Purchasing, Supply Management, and Supply Chain Management Defined
Increasing Importance of Purchased Materials.
Supply Management’s Impact on the Bottom Line
Increased Sales
Faster to Market or Time-Based Competition
Supply Management and Return on Investment
The Progression to Proactive Supply Management
1. Supply chain management involves efficiently integrating suppliers, manufacturers, warehouses, and retailers so that products are delivered to customers in the right quantities, locations, and times to minimize costs while meeting service requirements.
2. Key aspects of supply chain management include facilities, inventory, transportation, information sharing, sourcing decisions, and pricing strategies. These factors work together to balance efficiency and responsiveness across the supply chain.
3. An organization's competitive strategy helps determine which supply chain drivers it prioritizes, such as Walmart focusing on low inventory, centralized facilities, and information sharing to support its low-price model.
The document provides an overview of supply chain management. It discusses Li & Fung's customized supply chain for a customer order. Key points include that effective supply chain management requires coordinating activities across organizations, considering strategic partnerships, and addressing inventory issues like the bullwhip effect. Strategic partnering approaches like vendor managed inventory can help improve forecasting and inventory levels when firms share information.
Introduction to Supply Chain Management Qamar Farooq
This document summarizes key concepts from Chapter 1 of a supply chain management textbook. It discusses what a supply chain is, including the flow of products and services from raw materials to end consumers. It also covers types of products, the global nature and complexity of supply chains, uncertainty and risks, and the evolution and objectives of supply chain management. Specific examples are provided to illustrate concepts around complexity, costs, and issues in managing supply chains.
1. Supply chain management involves coordinating the flow of materials, information, and finances between suppliers, manufacturers, distributors, retailers, and customers. It aims to optimize the production and distribution of goods and services.
2. Key aspects of supply chain management include purchasing, logistics, and warehousing. Purchasing links an organization to its suppliers, logistics involves transporting materials, and warehousing manages inventory storage and order fulfillment.
3. Developing partnerships with suppliers is important in supply chain management. Strategic supplier relationships can help lower costs, improve quality, and increase flexibility throughout the supply chain.
Logistics and supply chain management.sreeshSreesh S
The document discusses various topics related to logistics and supply chain management. It begins with defining logistics and its components, as well as factors that affect logistics. It then defines supply chain and the goal of supply chain management. Next, it discusses paradigms in supply chain management and the role of modularization. It also covers the role of procurement and distribution management in supply chain management. Finally, it discusses the differences between logistics and supply chain management, and defines supply chains and their networks.
This document summarizes the outline for a supply chain management course. The course will cover topics such as strategic fit and scope, demand management, aggregate planning, network operations, inventory management, sourcing, transportation, and information technology. Students will be graded based on homework assignments, a beer game simulation, a midterm exam, and a final exam. Homework must be completed on time or grades will be reduced. Classes will be held twice a week from 6-8pm.
Market Logistics & Supply Chain Management
Logistics Defined
Scope of Logistics
Logistics and SCM
The Value Chain
Logistics Focus Areas
Factors Which Drive Inventory
ABC Inventory Analysis
This document discusses the role of information technology in supply chain management. It states that information is crucial for coordinating supply chains and enabling good decisions. IT systems capture and deliver the accurate, accessible, and shared information needed across strategic planning, operations, inventory management, transportation, sourcing, and other supply chain functions. When implemented effectively, IT can significantly improve supply chain performance by providing visibility across the end-to-end process from suppliers to customers.
The document discusses supply chain management and logistics. It defines supply chain as the network of facilities, vehicles, and information systems involved in procuring raw materials, manufacturing and distributing products to customers. Supply chain management aims to optimize value across procurement, production, distribution and customer fulfillment functions. Logistics is focused on physical distribution, warehousing and transportation within the supply chain. Key drivers of effective supply chain design include inventory, transportation, information and facility management. Supply chains must be designed, planned and operated to balance these factors at strategic, tactical and operational levels.
The document discusses supply chain management and vendor management strategies at Maruti Suzuki India Limited (MSIL). It notes that MSIL sources over 70% of car components from local vendors. MSIL delivers over 150 car variants from 14 models while sourcing 25-30 parts from 2,500-3,000 vendors. It emphasizes strategic vendor relationships, rationalizing vendors from 370 to 100, and locating most within 100 km for just-in-time delivery. The document also outlines MSIL's vendor selection process, methods for rating vendors, and efforts to develop vendors through knowledge sharing.
Global supply chain management involves coordinating activities across countries. A global supply chain connects organizations worldwide to source materials and produce goods for customers. Managing such a complex network introduces challenges like long distances, currency fluctuations, and differing business environments. However, companies also benefit from expanded markets, lower costs, and competitive advantages. To operate efficiently, firms must integrate worldwide operations and have the agility to respond to various global factors. For example, a large computer company redesigned its supply chain from 33 plants across many countries to 12 plants within 3 regional zones, reducing costs and improving profits.
This document provides an overview and introduction to supply chain management concepts through a training course presented by Mahmud Abouel-Atta. The training covers essential supply chain topics like the history and objectives of supply chain management, activities in the supply chain, performance measurements, and the SCOR model. It emphasizes the importance of integrating all parts of the supply chain to improve strategic planning, utilization of resources, and response to disruptions.
Supply chain management involves planning and managing the flow of goods and services from raw materials to end customers. The key objectives are improved customer value and satisfaction to gain a competitive advantage. It has evolved from separate functional silos to integrated internal and external networks. The basic elements are demand forecasting, planning, procurement, production, warehousing, transportation, distribution and returns. Strategic fit among the supply chain design, capabilities and competitive strategy is important for high performance. Challenges to achieving fit include increasing product variety, shorter lifecycles, demanding customers and globalization.
Retail supply chain management involves planning inventory, purchasing, and transporting merchandise from suppliers to customers in an integrated and timely manner. Information technology helps retailers reduce cycle times and improve efficiency. Individual activities like warehousing and transportation were previously handled separately but are now coordinated as part of an overall supply chain management process. The objective is to ensure the right products reach customers at the right place, time, and price.
The document discusses the evolution of distribution and logistics management to modern supply chain management (SCM). It describes how the focus has shifted from physical distribution, to integrated logistics management, and now SCM which links partners throughout the supply chain. SCM aims to deliver enhanced customer value through coordinated management of information and material flows. The document also outlines key aspects of logistics and SCM including activities, strategies, integration, and enabling information technologies.
The document provides an overview of supply chain management (SCM). It defines SCM as the flow of materials from suppliers to customers. Key aspects of SCM discussed include procurement, manufacturing, distribution, inventory management, warehousing, and transportation. The document also summarizes SCM software like SAP and Oracle, which help plan and manage supply chain operations.
The document contains 10 multiple choice questions about supply chain management concepts from an APICS exam. The questions cover topics like the basic elements of a supply chain, objectives of inventory management, and aggregate inventory management. Sample answers are provided that reference a textbook on materials management.
Supply Chain Planning ^0 Operations Part 10.pptxSheldon Byron
Effective supply chain coordination aims to improve supply chain performance by aligning the plans and objectives of individual enterprises. A supply chain is a network of companies and people involved in the production and delivery of a product or service. Key components include producers, vendors, warehouses, transportation companies, distribution centers, and retailers, which perform functions like product development, marketing, operations, distribution, finance, and customer service. Coordination within and across companies can help reduce costs and speed up production cycles.
The document discusses supply chain and logistics concepts including:
1) Physical distribution involves choosing warehouses and transportation carriers to deliver goods in the desired time at lowest cost. Physical distribution has expanded into supply chain management.
2) Supply chain management involves procuring inputs, efficiently converting them into finished products, and dispatching them to customers.
3) Market logistics planning involves four stages - deciding on a value proposition, developing operational excellence, implementing solutions, and deciding on a channel/network strategy.
Supply chain management-Introduction-Part 1Gourab Ray
This document provides an overview of supply chain management and logistics. It defines supply chain management as dealing with linking organizations within a supply chain to meet demand efficiently and at low cost. Logistics is described as managing the flow of goods from origin to customer. Key aspects of logistics work are discussed, including order processing, inventory management, transportation, warehousing, and facility network design. The document also provides historical context on how supply chain management related to colonialism and a conceptual diagram of an integrated supply chain framework.
This document provides an introduction and overview of supply chain management. It begins by defining key terms like supply chain, supply chain management, logistics, and related concepts. It then discusses the importance of SCM in reducing costs and increasing profits. The objectives of SCM are outlined as maximizing overall value created across the supply chain and reducing costs. It notes how the focus of SCM has expanded over time to include more tiers of suppliers and customers as well as greater integration through information and communication technologies. The document also covers SCM organizations, decision phases in SCM including strategy, planning and operations, and how effective SCM can provide competitive advantage.
Chapter 1 The Progression to Professional Supply ManagementTran Thang
Purchasing, Supply Management, and Supply Chain Management Defined
Increasing Importance of Purchased Materials.
Supply Management’s Impact on the Bottom Line
Increased Sales
Faster to Market or Time-Based Competition
Supply Management and Return on Investment
The Progression to Proactive Supply Management
1. Supply chain management involves efficiently integrating suppliers, manufacturers, warehouses, and retailers so that products are delivered to customers in the right quantities, locations, and times to minimize costs while meeting service requirements.
2. Key aspects of supply chain management include facilities, inventory, transportation, information sharing, sourcing decisions, and pricing strategies. These factors work together to balance efficiency and responsiveness across the supply chain.
3. An organization's competitive strategy helps determine which supply chain drivers it prioritizes, such as Walmart focusing on low inventory, centralized facilities, and information sharing to support its low-price model.
The document provides an overview of supply chain management. It discusses Li & Fung's customized supply chain for a customer order. Key points include that effective supply chain management requires coordinating activities across organizations, considering strategic partnerships, and addressing inventory issues like the bullwhip effect. Strategic partnering approaches like vendor managed inventory can help improve forecasting and inventory levels when firms share information.
Introduction to Supply Chain Management Qamar Farooq
This document summarizes key concepts from Chapter 1 of a supply chain management textbook. It discusses what a supply chain is, including the flow of products and services from raw materials to end consumers. It also covers types of products, the global nature and complexity of supply chains, uncertainty and risks, and the evolution and objectives of supply chain management. Specific examples are provided to illustrate concepts around complexity, costs, and issues in managing supply chains.
1. Supply chain management involves coordinating the flow of materials, information, and finances between suppliers, manufacturers, distributors, retailers, and customers. It aims to optimize the production and distribution of goods and services.
2. Key aspects of supply chain management include purchasing, logistics, and warehousing. Purchasing links an organization to its suppliers, logistics involves transporting materials, and warehousing manages inventory storage and order fulfillment.
3. Developing partnerships with suppliers is important in supply chain management. Strategic supplier relationships can help lower costs, improve quality, and increase flexibility throughout the supply chain.
Logistics and supply chain management.sreeshSreesh S
The document discusses various topics related to logistics and supply chain management. It begins with defining logistics and its components, as well as factors that affect logistics. It then defines supply chain and the goal of supply chain management. Next, it discusses paradigms in supply chain management and the role of modularization. It also covers the role of procurement and distribution management in supply chain management. Finally, it discusses the differences between logistics and supply chain management, and defines supply chains and their networks.
This document summarizes the outline for a supply chain management course. The course will cover topics such as strategic fit and scope, demand management, aggregate planning, network operations, inventory management, sourcing, transportation, and information technology. Students will be graded based on homework assignments, a beer game simulation, a midterm exam, and a final exam. Homework must be completed on time or grades will be reduced. Classes will be held twice a week from 6-8pm.
Market Logistics & Supply Chain Management
Logistics Defined
Scope of Logistics
Logistics and SCM
The Value Chain
Logistics Focus Areas
Factors Which Drive Inventory
ABC Inventory Analysis
This document discusses the role of information technology in supply chain management. It states that information is crucial for coordinating supply chains and enabling good decisions. IT systems capture and deliver the accurate, accessible, and shared information needed across strategic planning, operations, inventory management, transportation, sourcing, and other supply chain functions. When implemented effectively, IT can significantly improve supply chain performance by providing visibility across the end-to-end process from suppliers to customers.
The document discusses supply chain management and logistics. It defines supply chain as the network of facilities, vehicles, and information systems involved in procuring raw materials, manufacturing and distributing products to customers. Supply chain management aims to optimize value across procurement, production, distribution and customer fulfillment functions. Logistics is focused on physical distribution, warehousing and transportation within the supply chain. Key drivers of effective supply chain design include inventory, transportation, information and facility management. Supply chains must be designed, planned and operated to balance these factors at strategic, tactical and operational levels.
The document discusses supply chain management and vendor management strategies at Maruti Suzuki India Limited (MSIL). It notes that MSIL sources over 70% of car components from local vendors. MSIL delivers over 150 car variants from 14 models while sourcing 25-30 parts from 2,500-3,000 vendors. It emphasizes strategic vendor relationships, rationalizing vendors from 370 to 100, and locating most within 100 km for just-in-time delivery. The document also outlines MSIL's vendor selection process, methods for rating vendors, and efforts to develop vendors through knowledge sharing.
Global supply chain management involves coordinating activities across countries. A global supply chain connects organizations worldwide to source materials and produce goods for customers. Managing such a complex network introduces challenges like long distances, currency fluctuations, and differing business environments. However, companies also benefit from expanded markets, lower costs, and competitive advantages. To operate efficiently, firms must integrate worldwide operations and have the agility to respond to various global factors. For example, a large computer company redesigned its supply chain from 33 plants across many countries to 12 plants within 3 regional zones, reducing costs and improving profits.
This document provides an overview and introduction to supply chain management concepts through a training course presented by Mahmud Abouel-Atta. The training covers essential supply chain topics like the history and objectives of supply chain management, activities in the supply chain, performance measurements, and the SCOR model. It emphasizes the importance of integrating all parts of the supply chain to improve strategic planning, utilization of resources, and response to disruptions.
Supply chain management involves planning and managing the flow of goods and services from raw materials to end customers. The key objectives are improved customer value and satisfaction to gain a competitive advantage. It has evolved from separate functional silos to integrated internal and external networks. The basic elements are demand forecasting, planning, procurement, production, warehousing, transportation, distribution and returns. Strategic fit among the supply chain design, capabilities and competitive strategy is important for high performance. Challenges to achieving fit include increasing product variety, shorter lifecycles, demanding customers and globalization.
Retail supply chain management involves planning inventory, purchasing, and transporting merchandise from suppliers to customers in an integrated and timely manner. Information technology helps retailers reduce cycle times and improve efficiency. Individual activities like warehousing and transportation were previously handled separately but are now coordinated as part of an overall supply chain management process. The objective is to ensure the right products reach customers at the right place, time, and price.
The document discusses the evolution of distribution and logistics management to modern supply chain management (SCM). It describes how the focus has shifted from physical distribution, to integrated logistics management, and now SCM which links partners throughout the supply chain. SCM aims to deliver enhanced customer value through coordinated management of information and material flows. The document also outlines key aspects of logistics and SCM including activities, strategies, integration, and enabling information technologies.
The document provides an overview of supply chain management (SCM). It defines SCM as the flow of materials from suppliers to customers. Key aspects of SCM discussed include procurement, manufacturing, distribution, inventory management, warehousing, and transportation. The document also summarizes SCM software like SAP and Oracle, which help plan and manage supply chain operations.
The document contains 10 multiple choice questions about supply chain management concepts from an APICS exam. The questions cover topics like the basic elements of a supply chain, objectives of inventory management, and aggregate inventory management. Sample answers are provided that reference a textbook on materials management.
Supply Chain Planning ^0 Operations Part 10.pptxSheldon Byron
Effective supply chain coordination aims to improve supply chain performance by aligning the plans and objectives of individual enterprises. A supply chain is a network of companies and people involved in the production and delivery of a product or service. Key components include producers, vendors, warehouses, transportation companies, distribution centers, and retailers, which perform functions like product development, marketing, operations, distribution, finance, and customer service. Coordination within and across companies can help reduce costs and speed up production cycles.
This document discusses supply chain management (SCM) concepts. It defines key terms like supply chain, demand chain, and SCM. It describes the benefits of SCM like increased profits and competitive advantage. It explains the components of supply chains including upstream, internal, and downstream processes. It also discusses challenges in SCM like the bullwhip effect and solutions like strategic partnerships and just-in-time approaches. The role of technology like ERP systems and e-commerce in integrating SCM is also summarized.
The document discusses strategies for optimizing industrial engineering management systems across an enterprise supply chain. It emphasizes the importance of demand planning to efficiently forecast needs and minimize unnecessary inventory costs. Key points include using data analysis to accurately predict demand trends and scenarios, coordinating production planning between companies and suppliers, and implementing logistics solutions to maximize inventory turns and eliminate waste throughout manufacturing and distribution operations.
LOGISTICS AND SUPPLY CHAIN MANAGEMENT.pptxranganayaki10
The document discusses supply chain management. It defines supply chain management as the process of delivering a product from raw material to the consumer. It notes that supply chain management includes planning, sourcing, production, delivery, and handling customer complaints. It also discusses the importance of supply chain management in improving customer satisfaction and business performance. Finally, it outlines the key components of an effective supply chain management process.
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Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Camaraderie comes alive due to our Supply Chain Management Review Powerpoint Presentation Slides. Friendly feelings get expressed. https://bit.ly/3gZ8iGi
Logistics has gained importance for several reasons, including rising transportation costs, production efficiency reaching peaks, inventory philosophy changes, and globalization. Marketing logistics interfaces involve activities like forecasting, transportation, storage, and order fulfillment that influence factors such as price, product design, promotion strategies, and customer service levels. Increasing production efficiency can be achieved through improving workflows, training employees, preventative maintenance, and organization.
Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Camaraderie comes alive due to our Supply Chain Management Review Powerpoint Presentation Slides. Friendly feelings get expressed.
The document summarizes a presentation on supply chain management. It discusses key topics in supply chain management including network planning, inventory control, distribution strategies, supply chain integration, product design, and information technology. It also addresses developing best practices around determining inventory levels, packaging design, timely delivery, and partnership. The presentation aims to identify issues in the supply chain and steps to enhance criteria for effective management.
Introduction to Sales Management – The Sales Organization
– Determining Sales Related Marketing Policies – Sales
Functions and Policies – International Sales Management
– Personal Selling.
Sales Planning – Sales Budgets – Estimating Market
Potential and Forecasting Sales – Sales Quotes – Sales &
Cost Analysis, Sales Force Management: Hiring and Training Sales
Personnel – Time and Territory Management –Compensating Sales Personnel – Motivating the Sales Force
– Leading the Sales Force – Evaluating Sales Force
Performance.
Marketing Logistics - Distribution as Marketing Mix
Element – Distribution Resource Planning – Marketing
Channel Integration – Channel Management – Nature of
Marketing Channels – Evaluating Channel Performance-
Specialized Techniques in selling – Tele Marketing – Web
Marketing
Distribution Cost Analysis: Managing Channel Conflicts –
Channel Information Systems – Wholesaling – Retailing –
Ethical And Social Issues in Sales and Distribution
Management.
This document discusses supply chain management and logistics. It defines supply chain management as the management of relationships within and between organizations in a supply chain, including suppliers, manufacturers, distributors, and retailers. The document notes that effective supply chain management is important for minimizing costs and ensuring customer needs are met. It also discusses how supply chain management has evolved from a focus on individual company operations to integrating activities across organizations.
The document discusses supply chain network optimization and design. It notes that companies can significantly reduce supply chain costs and improve service levels through optimizing their network design using modeling approaches. The modeling incorporates end-to-end costs across purchasing, production, warehousing, inventory and transportation. Companies should periodically revisit their network design considering changes in factors like demand, supply sources, products, and fiscal policies to ensure their network remains optimized over time. Case studies demonstrate how modeling approaches can determine the optimal network configuration and facility locations to minimize total costs while meeting service level targets.
1) The document discusses supply chain management strategies including defining supply chains, understanding industry models, and achieving supply chain excellence.
2) It provides 12 ground rules for effective supply chain management such as building in flexibility, optimizing information, and treating customers unequally based on needs.
3) Key aspects of supply chain management covered include inventory management, production planning, distribution, and techniques to reduce costs and waste.
The document provides an overview of logistics and supply chain management. It discusses key concepts like supply chain processes, objectives of an effective supply chain, and the increasing importance of supply chain costs for companies. It also describes components of supply chain management systems like inventory control, replenishment methods, and the benefits of just-in-time approaches. Finally, it analyzes Konica Minolta's sustainable supply chain practices and their focus on human rights, ethics and reducing business risks.
The document discusses how supply chain analytics can help organizations optimize their supply chain operations. It describes how the changing role of consumers has impacted supply chains and the need for collaboration, visibility, and efficiency across the supply chain. It then provides examples of different types of supply chain analytics and insights organizations can gain in areas like executive dashboards, supply chain design, demand forecasting, pricing, inventory management, and more. It also provides a brief case study of how Team Computers implemented an analytics solution for Parle Products to track stock levels, sales, and shortfalls.
The document discusses logistics management and supply chain management. It defines logistics management as planning and implementing effective movement and storage of goods and information from origin to destination to meet customer demands. The key objectives of logistics management are reducing costs, improving customer service, increasing sales, and establishing competitive advantages. The document also discusses international marketing, supply chain trends, third-party logistics, and fourth-party logistics.
The document discusses retail management and supply chain management. It covers topics such as the goals of SCM like decreasing inventory costs and improving customer satisfaction. It also discusses challenges in retail management like a lack of organization between retailers and suppliers. Effective SCM can enable benefits like realistic ordering lead times and averting problems. Retailers must focus on providing a good customer experience, streamlining costs, and optimizing their supply chain.
Om0013 advanced production and operations managementsmumbahelp
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This document discusses data, variation, and process capability. It defines two types of data: continuous data which can be measured, and discrete data which can only be observed and counted. It also explains how to measure the location and spread of data using statistics like the mean, median, mode, standard deviation, and range. The document distinguishes between chance variation from random causes and assignable variation from non-random causes. It states that a process is considered statistically controlled when it only exhibits chance variation. Finally, it defines process capability as representing a process's best performance when under statistical control, and describes different indices used to measure potential capability and demonstrated excellence.
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The document discusses the five phases of the Six Sigma Breakthrough Strategy: Plan, Assess, Evaluate, Enhance, and Control. It provides details on the steps and activities involved in each phase, such as identifying problems, measuring defects, analyzing data, developing and testing solutions, and monitoring ongoing performance. The strategy aims to improve processes and reduce defects by systematically addressing underlying causes of problems. An example case study describes how a company implemented these phases to reduce errors on vouchers.
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2. 2
Contents of the presentation
1. Introduction to Supply Chain Management ~ Salience
& Issues
2. Competitive advantage in Supply Chains ~ Strategy
3. IT enabled Supply Chain Management
4. SCM Challenges for Industry
5. Word of Caution on SCM
6. Path to Supply Chain Leadership
3. 3
GLOBALIZATION !
• An English princess with an Egyptian boyfriend,
crashes in a French tunnel, riding a German Car with a
Dutch engine
driven by a Belgian , high on Scottish whisky,
followed closely by Italian Paparazzi, on Japanese
motorcycles,
treated by an American doctor, using Brazilian Medicines !
Isn't this Globalization??
4. 4
GLOBALIZATION !
• You are probably reading this on one of the IBM clones
that
use Taiwanese-made chips,
and Korean made monitors, assembled by Bangladeshi
workers in a
Singapore plant transported by lorries driven by
Indonesians, hijacked by
Pakistanis
and finally sold to you by Chinamen!
• All above is made available to you by an Indian, using
Bill Gates' technology which Bill Gates may have stolen
from the Japanese( as they claim?).
Is this Globalization ?????
5. 5
Introduction To Supply Chain Management ~ Salience
“ Global competitiveness means Customer is supreme” ~
Book by Kenichi Ohmae ‘ The Borderless World’
• Customer can source his goods & services from any
where in the world
• Retaining customer v/s new customer : Costs~ issues :
Quality , timely ness,Costs, services
• If supply chain is not managed the delivery chain gets
affected ~ customer dissatisfaction !
• Define a customer ???? ( Internal / External !!!!!) / 86ed !!
6. 6
Introduction To Supply Chain Management ~ Salience
• Supply chain management involves both hardware &
software.
Hardware: Physical elements of the logistics & purchase.
Software : Overall philosophy of enterprise dealing with the
supplier.
Software issues : Relation of the enterprises with its
suppliers~ a) Power –driven adversarial or b) nurturing
cooperative relationship based on win –win formula
Hardware issues : Logistics & purchase. Inventory
Management , Reduction in lead time means BPR (
basic thinking ) or use of ERP ?
7. 7
Before Moving Further . Interpreting & Understanding
~ RE ENGINEERING ~ Hammer & Champy !!!!!
“Fundamental rethinking and radical redesign of business processes to
achieve dramatic improvements in critical, contemporary measures of
performance, such as costs, quality, service and speed”. Key Words:
Fundamental : basic questions asked : Why do we do what we do ? And
why this way? Reengineering begins with no assumptions and no
givens! from Latin ‘radix’ means ‘root’, getting to the root of the things
Radical :. Its’ about business reinvention- NOT business improvement,
enhancement or modification.
Dramatic : Isn’t about marginal or incremental improvements but quantum
leaps.3 kinds of companies undertake reengineering. A) In deep
trouble ( desperate) B) See trouble coming ( proactive) c) Peak
condition ( defeating competition before it arises)
Process : activities taking inputs and creating outputs that are valued by
customers. Not tasks, jobs or people who do not add value
8. 8
Introduction to supply chain Management~
Issues !
• Costs , Quality & Time ? Tendering procedure ? At what
costs? Reliance commissions its refinery before time !
• Contractors quoting to Government bodies account for the
delays in costs.
• Issues with regards to in house manufacture / fabrication /
services to outsourcing
• Role of IT& Internet as we move towards digital
economy?Locating new vendors & suppliers/ management
of the external environment ? Creativity & innovation !
9. 9
Introduction to supply chain Management~
Issues !
Supply Chain Management is ‘ Actualization of
integrated Logistics’ with IT as an enabler. Integrated
logistics is from systems perspective linking of
production , distribution & marketing.
Logistics~ science of movement of materials ,
intermediaries and final product from producer to the
customer , to full fill demand at the right place, at right
time , with right quality at lowest possible costs
Components of Logistical system : Facility structure,
transportation, Inventory, communication ,
warehousing & packaging.
10. 10
Competitive advantage in supply chains !!!!!!
In a world of LPG ( Liberalization , Privatization &
Globalization) ~ survival of the fittest is the maxim
• Corporate Challenges : maximization of efficiency in
operations, optimum utilization of plant capacity,
minimization of cost of operations, optimum utilization of
the plant capacity, minimization of cost of operations,
quality of products & services, reduced inventories and
optimum use of resources.
• Three P’s ( pillars ) of SCM are : Plan , People &
Processes ~ interdependent synergizing to produce
business output in shape of customer satisfaction, market
share and productivity.
11. 11
Competitive advantage in supply chains !!!!!!
• Strategic supply chain strategy gets drawn from
business strategy.
• Key components include :
# Sourcing strategy ,
# Distribution strategy,
# Inventory strategy,
# Customer service strategy and
# strategy of integration
• Sourcing strategy elements : Manufacturing
management , Capacity management and Make
or buy decision
12. 12
Competitive advantage in supply chains ~
Strategy?
• Distribution strategy : Linkage between firms customers &
sources of its products & services that firm provides to the
market place.
Factors : Channel selection ( dealer, retailer , stockiest,
wholesaler, distributor & web based mktg.) , Supply chain
configuration( sources of supplies, storage or stocking
stations, distribution channels up to customers ~ relevant
questions : volume of supplies , number of customers &
their geographic locations, cost of transportation,
distribution costs and levels of customer satisfaction)and
distribution planning ( Inventory strategy , Demand
forecasting and stock facility planning).
13. 13
Competitive advantage in supply chains ~
Strategy?
• Customer service strategy : Defining method & means to
respond to the needs and expectations of the customer in
order to maximize profitability. EX.Service brings profits
when the product differentiation is not marked ( MS, HSD
same)~ cutting edge( 5 point drive way service) ,Fast
repairs , attending to complaints.
Factors : Identification of service needs ( segmentation of
customers including unique segments and identification of
service needs relevant to each customer / product
/Geographical location). Cost of service ( data on present
level of service & desired level). Revenue Management (
SBU’s?)
14. 14
Competitive advantage supply chains~Strategy !
• Strategy Integration : Information integration
;(Participants share confidential & crucial information
~supplier knows what the manufacturer needs ,
manufacturer knows the stock and needs of the
distribution channels . ERP ?
• Decision Integration ( participants expected to meet at
regular intervals for joint decision making on
inventories, distribution, pricing policies etc)
• Financial integration ( implies each of the participant
has a financial stake in the operation of other
participants , EX. suppliers equity holders in the venture
of manufacturers & manufacturers in channels :
Interdependence( Higher Value, Stephen Covey ?)
15. 15
Major Strategies in Supply Chain Management
Procurement Strategy : Proper Specifications _ Quality of
output material & design, value analysis and bargaining
leverage/ market research, vendor analysis and broad
based data bank, information system-use of cost benefit,
Segmental and geographical scope of procurement, long
term agreements and technological coalitions, paper less
procurement- global sourcing and green purchasing
Inventory strategy : service level policy , replenishment policy
, stock turnover target and location
.
16. 16
Major Strategies in Supply Chain Management
Warehouse strategy: Number of stock holding points, location
of depots, ware house design /material handling methods
Transport strategy: Fleet mix , customer pick up / direct
delivery, vehicle utilization targets, lease / buy decisions,
different modes of transportation
Customer satisfaction strategy : Order status policy, order
processing system, policy for acceptance/ claims for
defective supply, stock availability V/s ordering
convenience and frequency and reliability of delivery
including documentation
17. 17
IT- Enabled Supply Chain Management
IT Need : increased focus on reduced response time,
business transformation- towards process redesign and
continuous improvement, achieving global standards and
access to global markets through strategic alliances,
streamlining activities across the supply chain to reduce
costs and increase efficiency.
Changing IT role ; Stage –I: OAS( office automation system)
routine functions replacing clerical systems eg. payroll ,
general ledger etc. Stage-II: focus on effective use of
assets and control of overall expenses to enhance
profitability eg. sales analysis, inventory management etc (
focus on cost reduction). Stage –III:Computing cost
reduced drastically , new opportunities for enhancing
revenues eg. financial consolidation, JIT inventory
management , ERP. Stage –IV:system for improving
decision making process(DSS) Simulation , modeling ,
marketing across organizational boundaries
18. 18
IT- Enabled Supply Chain Management
IT solution Options: Electronic Data Interchange (EDI),
Enterprise resource Planning (ERP), Intranet / Extranet,
Internet Commerce
Electronic Data Interchange (EDI): Inter organizational
exchange of business documentation in a structured
machine process able form eg. Purchase orders, invoices
etc. It is not necessary that sender & recipient have
identical data processing system ( or common format
ASCII). Special translator software helps the data
exchange and wraps the document in a electronic
envelope with an ID for intended user.Works through VAN /
ID pigeon holes the data correctly
• Benefits : reduced transaction costs & time( adds value not
cost), increased accuracy, optimized inventory (JIT
replenishments), improved decision making( forecasts the
optimum stock levels) & increased business opportunities
19. 19
IT- Enabled Supply Chain Management ~
Benefits !
Enterprise Resource Planning (ERP): Comprehensive
planning and control framework, genesis in MRP,RDBMS.
• Benefits : Increased customer focus( links all departments
with customer needs), linking markets with manufacturing (
quick changes in production schedule), Rapid product
development
Intranet / Extranet: sharing / leveraging knowledge amongst
various stakeholders
Internet Commerce : Increased revenues( virtual stores ,
lower customer selling & servicing costs ,faster time to
market
20. 20
Supply Chain Management _ The ERP Way $$$
ERP Paradigm :Organization is more than the mere sum of
functions/ departments,operation of all the business are
closely interrelated and global optimization is sought rather
than local maximization.
Efficiency Concept : In a competitive product market, producer
is a price taker, company can make profit by reducing
costs. ERP tightens the interlocking of resources at the
operational level in a manner to minimize wastage or slack.
21. 21
Supply Chain Management _ The ERP Way $$$
Issues addressed by ERP : helps planning for all M’s of
enterprise, integrates corporate with the global
standards,creates synergies between various activities of
the organization & informational islands are interlinked,
regular process improvements on a continual basis ,
positive change in the organizational culture (
interdepartmental conflicts are resolved( battles between
production & sales) and inter phases with the customers
for an immediate feedback ( helps outclass competition)
ERP Implementation strategy ( Pure BPR- complete
change in processes then ERP , Channeled BPR –
reengineering along with ERP and Pure ERP- mapping
current processes and designing ERP ~ rarely followed)
23. 23
“The greatest challenge in working with
suppliers is getting them in sync with the
fast pace we have to maintain.
The key to making it work is information.”
Michael Dell, Dell Computer
Harvard Business Review, Mar/Apr 1998
24. 24
Broadened Scope of
Information and Coordination
Supplier Customer Customer’s
Customer
Suppliers’
Supplier
Make DeliverSource Make MakeSourceDeliver SourceDeliver
(internal or
external)
(internal or
external)
Your Company
Source Deliver
Plan
28. 28
Supply Chain Visibility
• Lack of visibility increases risk, cost,
and time
• All stages of relationships
• Identifying constraints
• Ability to manage bottlenecks
30. Industry’s Mission Into the 21st Century
• Information Technology
• Globalization
• New Products & Services
• Installed Base Services
• Quality
31. • Integrate Entire Supply Chain
• Apply Intra / Inter-business Work Flows
• Increase Legacy System ROI
• Provide End-to-End Enterprise
Commerce Services
• Share Best Practices Globally on
Intranets/Extranets
Vision for Electronic Commerce
Create Electronic Commerce Centers of Excellence
32. 32
EDI & Extranets
• Secure Network-Based Transmission
of Data
• BI-Directional Communication Between
Trading Partners
• Linkages Between Supply Chain Activities
& Internal Applications
• Custom Application Development
• Structured Messaging Protocols
• Inter-Company Transaction Requirements
• Drive Toward Real-Time Collaborative
Messaging
• Flexibility to Incorporate New Standards &
Technologies
• Supply Chain Ramp & Implementation
Richness
Reach
Late 1970’s
1980’s-90’s
Late 1990’s-2000+
EDI
Extranets
Gateways
EC Outsourcing
33. The Goal
• Increase market reach and revenue
• Shorten the inter-business value chain
• Increase productivity
• Improve customer service
• Reduce costs
• Disseminate information quickly
34. 34
The Value Chain Challenge
Manufacturer
Supplier Distributor Merchant
Legacy systems
Cumbersome communications
High costs
Too much stock
Outdated pricing
Long turn around time
Large
support
staff
Customer
service
Issues
35. As Global Player ~ Challenges
Supply Chain Integration is the Competitive Differentiator
Source
Build
Integrate
Assemble
Distribute
Plan / Forecast
Traditional Productivity Focus
CUSTOMERS
Design
SUPPLIERS
….. Move Productivity Beyond the Shop Floor
37. Electronically Establish Virtual Global Trading Communities to
Drive Growth, Improve Quality, and Expand Productivity
COMPANY
MANUFACTURERS
DISTRIBUTORS
CUSTOMERS
SUPPLIERS
BANK
VISION - Virtual Global Trading Communities
38. 38
Functional Units
Supply Chain Component Definitions
• Supplier Selection & Identification
• Electronic Requisition & Purchasing
Process
• Information Exchange & Updates
• JIT Manufacturing & Delivery
• Product, Pricing & Inventory
Information
• Order to Remittance (OTR) Process
• Vendor Managed Inventory
• Industry Information
• Shipping & Tracking Information
• Order Tracking
• Shared Catalog Information
• Industry Standards Compliance
• Electronic Funds Transfer
DISTRIBUTORS
DISTRIBUTORS
LOGISTICS
COMPANY
PEERS
SUPPLIERS
FINANCIAL HUMAN RESOURCES
40. 40
The Business Value of Electronic Commerce
• Order processing cycle times can be reduced by 30% to 70%
• Customer service levels can be improved by 5% to 25%
• Inventory can be reduced by 10% to 15 days
• Inventory turns can be increased by up to six fold
• Distribution personal productivity can be increased by 25% to 30%
• Demand forecast errors can be reduced by 50% to 60%
• Profit can be improved by 150% to 250%
Commerce”
EC managers should pursue personal and organizational alliances
with Business Managers( BM’s) responsible for process re-
engineering strategies since BM’s are best-positioned to use EC tools
to the benefit of the enterprise
41. The EC Solutions~ benefits !
• Collaborative environments
• Easy for trading partners to use
• Leverage existing investments
• Supports business processes
• Provide secure transactions
• DELIVER Real time results
42. 42
Ex. Multi-enterprise Design Collaboration
Dramatically Decreases Cycle Time While Improving Quality
Collaborative
Environment
Design
Data
Value-added Suppliers
and Manufacturers
High-speed
Lines
CAD/CAM Models;
E-mails
Distributors & Customers
Internet
Technical Data;
2D Drawings;
E-mails
CAD/CAM Models;
E-mails
Develoment Parnters
and/or Customers
High-speed
Lines
Technical Data;
2D Drawings;
E-mails
Internet
Piece Part Suppliers
43. 43
• Vendor report cards
• Shipment tracking
• Store locator
• Forecasting tools
• Sales projection tools
• Charge back records
• Commitment schedules
• In-stock positioning
• In-house application integration
• Integration with Internet Forms Based EDI
Retail Vendor Extranet solution
Adding interactive
information access
and transaction
processing to the
EDI community
44. The Three Nets of Electronic Commerce
Your
Electronic
Marketplace
Internet
Your
Business
Partners
ExtranetIntranet
Your
Company
45. Intranet: Communicating within your Enterprise
Your
Company
Business Benefits:
• Reduce Time To Market
• Lower Costs
• Enhance Quality
• Gain Competitive Advantage
Technology Drivers:
• Electronic Messaging
• Workgroup Collaboration
• Process Automation
• Browser-Based Paradigm
TheThe Three Nets of Electronic
Commerce
46. Your
Business
Partners
Extranet: Communicating with your Business Partners
Business Benefits:
• Better Manage Supply Chain
• Tighten Partner Integration
• React Quickly To Changing
Market Conditions
Technology Drivers:
• Internet Based EDI
• Secure Network Access
• Legacy System Integration
The Three Nets of Electronic Commerce
47. Your
Electronic
Marketplace
Internet: Communicating with your End Customers
Business Benefits:
• Increase Revenue
• Expand Market Share
• Develop New Markets
• Improve Customer Service
Technology Drivers:
• Electronic Catalogs
• Content Management
• Secure Payments
• Robust Servers / Databases
The Three Nets of Electronic Commerce
48. 48
• Significant mailing cost reductions depending on the
level of electronic commerce implementation (For
example, a 200-page document weighing
approximately half kilogram can cost as much as Rs
40 nationally / Rs 800 internationally by courier.
• Reduced paper costs .Reduced copying costs
(currently Rs0.60 per copy) and labor costs associated
with making copies
• Reduced savings in labor to fax and mail documents
• Reduced paper document costs from $5.00 per page
to $0.13 per page
Documented Savings
Based on inputs from Industry studies & various other businesses
and industry electronic commerce efforts
49. Drives Cost/Revenue Benefits
• Retool business processes
• Decrease transaction costs
• Find new revenue sources
• Shorten cycle times
• Add electronic trading partners
Increases Affinity
• Better serve trading partners
• Build stronger relationships with
customers and business partners
• Improve customer service
In Summary….EC, the Internet & Collaborative Extranets
Business-to-Business Opportunities in
Electronic Commerce can be Revolutionized
with Internet Technologies!
50. 50
Word of Caution on SCM !!!!
Often heard/ read in SCM circles :
• SCM is and will continue to be different because of the
opportunities offered by the Web based information
systems
• Everything is different / changed than it was two / three
years back
I AGREE with First & not Second
51. 51
Word of Caution on SCM !!!!
What has not changed in both B2B & B2C markets ,are
following
• Only “ Total Cost “ matters, and “ Companies do not
compete , their supply chains do”.Technology can
reshape a supply chain, but firms need a clear strategy
with a focus on “ Total Costs” from the customers’ view
( read as “ Total Value “ to customer including quality ,
delivery and other attributes).
• Customer pays for inventory where ever it is. Surges in
demand ? Flexibility to changes in demand? Extra
capacities ?
52. 52
Word of Caution on SCM !!!!
• Tradeoffs are forever. Companies must select some
performance attributes to favor at the expense of others.
Grandmothers advice: You can’t have
everything.Tradeoff’s are complicated and often involve
several terms , not just two.
~ Eg. In B2C, different parameters are important in different
situations, but trade off need to consider at least the fixed
cost of production , inventory , speed and reliability of
service and the number of options offered.
53. 53
Word of Caution on SCM !!!!
• Consider the transportation cost. Home delivery
companies may say the transportation costs have
increased whereas the inventory costs have reduced
.Some will pay extra to save time , others will be
pleased to move product the “ last mile “ to save
money.
“ Profit matters, People matter, Character Counts and
Purpose Matters”. Selectively understand customers
& build operation plan that serves from initial contract
to returns and / or service ”.
54. 54
Word of Caution on SCM !!!!
• Uncertainty is certain : Web communication only removes
some uncertainty . As long as some remains ,
countermeasures ( “buffers” ) will be needed. When
information moves faster, firm has shorter period of
uncertainty.
• Only 3 buffers exist : inventory , Excessive capacity (
above the amount needed on average) and customer
waiting time.Internet does not reduce the changeover time
or process variability or makes the process more flexible ,
can reduce ( but not eliminate ) uncertainty.
55. 55
Word of Caution on SCM !!!!
• Old approaches to dealing with above issues in both
operational management and marketing remain
valid.The fundamental ‘laws” of inventory and
manufacturing have not been repealed.
~ The concept of “ Mass Customization ” involves
complexity reduction and postponement of
differentiation ( 87 , 91, 93 octane /un leaded/ power )
• Automobile industry has been talking of a ‘ three Day
Car’ , product is more complicated than a computer.
With more common & fewer parts B2B will be
cheaper to operate.
56. 56
Word of Caution on SCM !!!!
~ Another good idea is ‘Centralized Inventory’. If demand is
unpredictable, holding inventory in one location (
aggregating demand) can dramatically reduce the total
inventory.
~ In a supply Chain ( or any portion thereof) inventory is
directly related to the flow time for material in the chain.If
you want to be fast , reduce the inventory and if you want
to reduce inventory , be fast. But the physical system
does not allow to make changes simply as reducing
inventory without making other changes( changeover
time , process uptime & reliability)
~ In M2M ( Manufacturing to manufacturing) when
production schedules are shared, still core business
processes must continuously be analyzed , tracked and
improved
57. 57
Word of Caution on SCM !!!!
It is frequently said “ information has replaced inventory ”.
Inventory formulas in many software compute
inventories using a variety of factors as variability related
to lead time & demands. Information reduces the period
of uncertainty , therefore the lead time and inventory. But
the approach is unchanged. It does not mean that
people want information about their refrigerators instead
of the refrigerator!
58. 58
Word of Caution on SCM !!!!
Positively speaking:
~ There have been costs & benefits associated with
cultivating & maintaining long term
relationships.These have been reduced.
~ Capacities can be bought ( out sourced). A contract
manufacturer’s capacity can be purchased, delaying
precise product mix decision. This is form of demand
aggregation / inventory centralization.
60. 60
Leadership Lessons in SCM ~ Milton Olson
Fact 1: As each goose flaps its wings it creates an "uplift" for the birds
that follow. By flying in a "V" formation, the whole flock adds 71%
greater flying range than if each bird flew alone.
• Lesson: People who share a common direction and sense of
community can get where they are going quicker and easier because
they are traveling on the thrust of one another.
Fact 2: When a goose falls out of formation, it suddenly feels the drag
and resistance of flying alone. It quickly moves back into formation to
take advantage of the lifting power of the bird immediately in front of it.
• Lesson: If we have as much sense as a goose, we stay in
formation with those headed where we want to go. We are willing to
accept their help and give our help to others.
Fact 3: When the lead goose tires, it rotates back into the formation and
another goose flies to the point position.
• Lesson: It pay to take turns doing the hard tasks and sharing
leadership. As with geese, people are interdependent on each other's
skills, capabilities,and unique arrangements of gifts, talents or
resources.
61. 61
Leadership Lessons in SCM ~ Milton Olson
Fact 4: The geese flying in formation honk to enourage those up front to
keep up their speed.
• Lesson: We need to make sure our honking is
encouragement. In groups where there is encouragement, the
production is much greater. The power of encouragement (to stand
by one's heart or core values and encourage the heart and core of
others) is the quality of honking we seek.
Fact 5: When a goose gets sick, wounded or shot down, two geese
drop out of formation and follow it down to help and protect it. They
stay with it until it dies or is able to fly again. Then, they launch out
with another formation or catch up with the flock.
• Lesson: If we have as much sense as geese, we will stand by
each other in difficult times as well as when we are strong.
• "The final test of a leader is that he [she] leaves behind
in others the conviction and will to carry on." --Walter
Lippman
62. 62
Thank You
for your
KIND ATTENTION
Dr Naval Karrir
Centre for Environmental Studies
The Energy & Research Institute(TERI)
New Delhi - 110 003 / India
Tel. 468 2100 and 468 2111
Fax 468 2144 or 468 2145
Email nkarrir@teri.res.in
Web www.teriin.org