Supply chain management involves the flow of goods and information from raw materials to the customer. It includes procurement, production, and distribution. Key drivers are production, inventory, location, transportation, and information. The components are plan, develop, make, deliver, and return. Products, information, and funds flow between customers and suppliers. Supply chain management aims to coordinate activities among organizations to trade off costs, service, time, risk, and other metrics across the chain.

1. UNIT-1
SUPPLY CHAIN MANAGEMENT

2. Definition
Facilities, activities, associated with flow and transformation
of goods and services from raw material to customer as well
as information flows.
It is the management of the flow of goods
It includes the movement and storage of raw materials,
work-in-process inventory, and finished goods from point of
origin to consumption.

3. Process
Procurement
Production
Distribution

4. Drivers in SCM
Production
Inventory
Location
Transportation
Information

5. Components
Plan
Develop
Make
Deliver
Return

6. Flows in a supply chain
Customer
Information
Product
Funds

7. Key Observations
Integrated activity:
* Among functions such as logistics, manufacturing, distribution,
design/engineering, marketing, finance,etc.
* Multiple organizations,i.e., suppliers, customers& 3 PL providers
* Coordination of conflicting goals, metrics, etc.
Responsible for multiple flows:
* Information (orders, status, contracts)
* Physical (finished goods, raw material, w.i.p.)
* Financial (payment, credits, etc.)

8. Key Observations (continued)
Most analysis involves trade-offs
* Across different entities
* Across metrics: Cost, Service, Time, Risk, etc.
Each interface in the supply chain represents
* Movement of goods
* Information flows
* Transfer of title
* Purchase and sale

9. Features
Inventory Management
Technology
End to End operations
Maximize cost productivity
Increase productivity
Order management
Logistics
Forecasting and planning

10. Strategic Issues
Effects of Globalization
Issues of Infrastructure
Mergers, Acquisition and Alliances
Safety and Security
Leveraging Human Capital
Responding to customers
Exploiting technology.

11. SCM Current Scenario
Pre and Post modelling
Pre and Post practising

12. Outline
Supply-Chain Management of “Yesterday”
How Modeled
How Practiced
Supply-Chain Management of “Today”
How Practiced
How Modeled

13. SCM Practice of “Yesterday”
Single-Owner Chains Took a Centralized Perspective
Single Objective Function: F(x1, x2, x3, ...)
De-Centralized Decision-Making
Information: Not Available or, at best, “Asymmetric”
Implementation: De-Centralized; NOT Contractible
Examples
USAF Logistics Command Consumable Inventory System
IBM Service-Parts Inventory System

14. “Yesterday’s” Relationship:
“Mismatched”
Models
Too Specialized
Required More Information than Practice Had
Practice
Inexperienced with Models & Computers
Confused by Models

15. SCM Practice “Today”
The Beginnings of “Real” SCM for Single-Owner Chains
Ex: Wal-Mart’s, Tesco and ASDA Retail Link
Target’s Partners OnLine
Capabilities
Broadcast SKU-level Data Across the Chain
Observe Status ==> Implemetation “Contractible”

16. Results
Huge Reductions in Buffers ==> Lower Operating Costs
Improved Competitiveness
 Lower Prices
 More Customization
 Higher Availability
Development of Technologies to Support Multiple-Owner SCM
 Internet is Providing Experience
 E-Markets
 Providing Buyer-Supplier Linkages
 Data Standardization.
Using simple models based on “pull down” menus in ERP systems

17. Value Chain Management
VCM is also concerned the flow of goods to consumers but
takes a different approach
Consumer to source
Value chain managers are typically responsible to analysing
issues and providing in order to maximize value created for a
business.

18. Activities in VCM
Primary
-Logistics
-Production
Secondary
-HR
-Marketing
-IT

19. CRM-Definition
“The approach of identifying, Establishing, Maintaining and
enhancing lasting relationships with customers”
“Formation of bonds between a company and its customers”
“An Integrated approach to identifying, acquiring and
maintaining customers”

20. History
1980’s-Database Marketing Emerges
1980’s-Database helped larger organization rather than small
who only go survey type info
1990’s-CRM appears as a two way communication device
1990’s-CRM leads to programs such frequent flyer miles and
bonus points on credit cards
2000’s to till now-Internet has helped expand from stagnant
and database and allows offsite information storage

21. CRM what it does?
Builds a Database that describes the customer and the
relationship they hold with the company.

22. Benefits of CRM
Decrease cost of customer
Increase sales
Increase efficiencies
Better and more accurate data
Data security

23. TOP CRM Manufactures and its Products
1.Microst-Microsoft Dynamics CRM 3.0
2.SAP America-SAP Business One.
3.Sage Software-Saleslogix CRM
4.Parature Inc-Parature
5.Entellium CRM-Entellium