Supply chain management involves all activities in the value chain including production, marketing, logistics, R&D, human resources and information systems with the objective of lowering costs and adding value by meeting customer needs effectively. It can be viewed as an end-to-end process of getting the right product, quality, cost and time to the consumer. A key factor in determining supply chain effectiveness is collaboration across departmental and company boundaries.

1. Supply Chain Management
Naveed M. Khan
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2. What is Supply Chain
Management
All activities in value chain including production,
marketing, logistics, R& D, human resource and
information systems
Objective:
Lower the cost of value creation
Adding value by serving customer need in effective
manner
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3. Consumer
needs
1
Product
Design
2
Product
Developmen
t
3
Raw material
sourcing
Custom 4
Clearanc
e
7 Factory
Sourcing
Wholesale 5
r Shipping
8 Control
Consumer 6
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4. When You Hear SCM What Comes
in Your Mind ?
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5. End to End Process
• Rightproduct
• Right quality
• Right cost
• Right time
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6. New Definition
Supply Chain
Is
People
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7. What Determines Effectiveness?
Collaboration
The ability of people to work
together
across departmental and
company boundaries
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8. What You Can Take Away
 How do I ensure ideas get
implemented?
 How do I bring other people
with me?
 How do I make my supply chain
process
more effective
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9. Finding the Right Suppliers
 Company strategy
 Supply chain strategy
 Commodity plans
 Sourcing teams
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10. Company Strategy
Customers and markets
New products
Core competencies
 Organization structure
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11. Supply Chain Strategy
Customer service
 Manufacturing /Outsourcing
Strategic sourcing
 Transportation, distribution,
and logistics
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12. Strategic Sourcing
Alignment of Supply Chain
Strategy
with Company Strategy
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13. How to Work Effectively with
Suppliers
 Build Trust
Share Information
Develop Joint Programs
Measure Results
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14. Results of Supply Chain
Management
 Process Efficiency
 Reduce Cycle Time
 Lean Production
 Asset Utilization
 Low Inventory
 Improve Visibility
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