1) Supply chain management (SCM) involves managing the network of businesses involved in providing products and services to end customers, including movement and storage of raw materials, work in process inventory, and finished goods. 2) An effective supply chain ensures high customer service levels at optimal costs and working capital, while efficiently ensuring products are available for customers. 3) SCM spans the entire demand and supply chain from suppliers to customers and involves integrated business processes around demand and supply planning, ordering, inventory management, warehousing, and delivery.

1. Supply Chain ManagementLevel 1 TrainingBusiness IT Consulting

2. OverviewSCM is the management of a network of interconnected businesses involved in the ultimate provision of products and services to the end customersSCM spans all movement and storage of raw materials, work in process inventory and finished goods from point of origin to point of consumption2Business IT Consulting

3. Various views of Supply ChainModern ViewAn effective Supply Chain ensures high level of customer service at optimum level of working capital and costBusiness Partners ViewAn efficient Supply Chain that ensures that products are available on the shelf for sale, when shoppers come to buy them… all the time3Business IT Consulting

4. Customer Service Vs Costs4Customer Service ImpactedCosts out of ControlPoor ForecastingIncorrect Stock LevelsToo Many OrdersHigh Delivery CostsPoor Setup of DataErrors in picking/deliveryPoor Delivery Paper WorkCash collection impactedBusiness IT Consulting

5. Supply Chain Concept5Streamlined OperationsDemand & Supply PlanningData IntegrityOrder & Query ManagementStock ManagementPOS & DisplayWarehousing &DeliveryInvoicing & Cash CollectionCustomer FocussedSupply Chain is integration of business processes and organizations around the Entire demand and supply chain in servicing our customers and managing ourinventoriesBusiness IT Consulting

6. Global Supply Chain Management (GSCM)GSCM is the trend of the day due to increased globalization and offshore outsourcingSupplier and Customer chains are spread geographically and GSCM reflects thatMulti-modal Logistics connecting various players is an integral part of GSCM6Business IT Consulting

7. Demand Planning Roles & ResponsibilitiesCreation of a base forecastEstablishing communicating channelsEnsuring forecast integrityEnsuring forecast consistencyReporting7Business IT Consulting

8. Supply PlanningInventory management and parametersDeployment planning to DCsPlanning promotions/ co-packingPlanning product customizationNew Products coordinationExcess stockPhase in/ Phase outOOS and expeditingMaster Production SchedulingStock Allocation8Business IT Consulting

9. Automotive Supply Chain SystemOEMIndependent Service StationsTier ½SupplierFinancialServicesCaptiveFinance9Business IT Consulting

10. Automotive Supply Chain System10Inbound LogisticsIn-Plant LogisticsOutbound LogisticsBusiness IT Consulting

11. Master Production System11Well designed Master Production System optimizes the Supply Chain effectivelyClear and unambiguous linkage between Engineering Parts List, Production Parts List is a must and has to be communicated often to Suppliers and CustomersBusiness IT Consulting

12. Automotive Suppliers ProcessesSuppliers & PartnersProcurementManufacturingSales & DistributionCustomer ServiceCustomer & ChannelsEngineeringOEM Relationship ManagementCollaborative EngineeringKey Account ManagementTime to MarketNew Product Development& IntroductionLife Cycle Data ManagementSupplier CollaborationStrategic SourcingOperational Procurement & Inbound LogisticsMake to Order/ Make to StockSupply to LineOutbound LogisticsEnterprise Asset ManagementManufacturingSales Order ManagementDemand & Order SchedulingOrder Execution & Receipt SettlementCustomer ServiceWarranty ManagementService Parts PlanningService Parts FulfillmentEnterprise Management & SupportAnalyticsFinancialsHuman Capital ManagementCorporate ServicesOperations Support12Business IT Consulting

13. SCM Best Practices13Pepsico, Waste Management, McDonalds, WalMartBusiness IT Consulting

14. SCM Cost14Costs associated with Logistics, Ordering and Inventory ManagementBusiness IT Consulting

15. Supplier Collaboration15Supplier collaboration can actively reduce costsSuppliers have to keep their customers well informed and give quick updates on potential problemsEvery customer is in fact a supplier downstreamBusiness IT Consulting

16. Supplier Consolidation16Companies are pruning the number of Suppliers to reduce transaction and relationship costsThey build better, more partner like relationships with the suppliers who remainBusiness IT Consulting