UNIT 1 SCM INTRODUCTION PPT For Management

1. SUPPLY CHAIN
MANAGEMENT

2. SUPPLY CHAIN
MANAGEMENT
 A supply chain is a global network used to deliver products and services
from raw materials to end customer through information flow, physical
distribution and cash.
 Supply chain involved all the stages directly or indirectly in fulfilling a
customer request which includes manufacturers, suppliers, transporters,
warehouses, retailers and customers.
 It is the integration of demand and supply.
 Examples of supply chain activities include farming, refining, design,
manufacturing, packaging, and transportation.

3. DEFINITION
 A supply chain may be defined as an integrated process
wherein a number of various business entities like
• Suppliers
• Manufacturers / Producer
• Dealers, Retailers, Customer etc.,
 Work together in an effort to
• Acquire raw materials
• Convert these raw materials into specified final products, and
• Deliver these final products to retailers.

4. DIFFERENT TYPES OF GENETIC
SUPPLY CHAINS

5. OBJECTIVES OF SUPPLY CHAIN
MANAGEMENT
 To maximize overall value generated
 To meet consumer demand for guaranteed delivery of
high quality and low cost with minimal lead time
 To fulfill customer demand through efficient resources
 To maximize efficiency of distribution side
 Helps in better decision

6. FUNCTIONS OF SUPPLY CHAIN
MANAGEMENT
 Customer Relationship Management: Consistent focus on end
customer demands to meet the increasing customer requirements
and ensures a high degree of flexibility.
 Flexibility and demand-oriented production: Continuous cost
reduction and resource optimization across all stages of the value
chain.
 Synchronization of supply and demand: Increasing the
adaptability and development capability of the supply chain.

7. IMPORTANCE OF SUPPLY
CHAIN MANAGEMENT
 Improves Customer Services
✓ Customers expect to receive the correct product mix and quantity to be
delivered on time
✓ Products need to be on hand in the right location
✓ Follow up support after a sale must be done quickly
 Reduce Operating Costs
✓ Decreases Purchasing Cost
✓ Decrease Production Cost
✓ Decrease Total Supply Chain Cost
 Improves Financial Position

8. ADVANTAGES OF SUPPLY
CHAIN MANAGEMENT
 Develops better customer relationship and service.
 Creates better delivery mechanisms for products and services in
demand with minimum delay.
 Improvises productivity and business functions.
 Minimizes warehouse and transportation costs.
 Minimizes direct and indirect costs.
 Assists in achieving shipping of right products to the right place at
the right time.

9. ADVANTAGES OF SUPPLY
CHAIN MANAGEMENT
 Enhances inventory management, supporting the successful
execution of just-in-time stock models.
 Assists companies in adapting to the challenges of globalization,
economic changes, expanding consumer expectations, and related
differences.
 Assists companies in minimizing waste, driving out costs, and
achieving efficiencies throughout the supply chain process.

10. CHARACTERISTICS OF SUPPLY
CHAIN MANAGEMENT
 Focuses more on the customer
 Sourcing of raw materials or finished goods from anywhere
in the world
 Centralized global business
 Ability to manage information not only within a company
but across industries and enterprises.
 Responsibility of multiple flow in supply chain network
both upward and downward