SCM_HDA_D1

Supply Chain ManagementLet’s Get Started…

Supply Chain Management in HDA

Class Time: 10:05 – 11:30, 11:40 – 1:10, Wednesday [Room # 301]

Marks Distribution- Mid-term: 20%

Presentation and Report: 10%

Attendance: 10%

Final Exam: 60%

Total Class: 11 Weeks (Sept, Oct, Nov)

Final Exam Date: December 2015

Introduction to SCM

Objectives

• Understanding the emergence of

Supply Chain Management

• Defining Supply Chain

Management

• Objectives of Supply Chain

Management

• Importance and benefits of Supply

Chain Management

• Describe different components of

supply chains

• Understanding the Decisions in

Supply Chain

• Trends of SCM and its Future

• Expected Results and Benefits

from SCM

Supply Chain

Ford car-Supply Chain

Ford Parts Supply & Logistics (PS&L)Business OverviewPS&L operates a network consisting of:

• 198K unique part numbers, over 1M SKUs (part/location)

• Wide mix of velocity, size, and value

• Vehicle base - 50 million vehicles on the road, 35 model years

• Logistics network - 2,000 suppliers and 5,900 authorized dealerships

• 18 HVCs, 3 HCCs, 1 LV/LC, 1 PRC, and 1 NPD

• Service Parts - US, Canada, Mexico and direct global export

Complex logistics hubs, many containers, railcars, suppliers, packagers, sources/destinations, and paths

High degree of magnitude and complexity

SUPPLIERS PACKAGERSREDISTRIB.CENTER

REGIONALDISTRIBUTION

DEALERS

Emergence of Supply Chain Management

• First appeared in the early 1980s

• Article written by Oliver and Webber in 1982 describing the

range of activities performed by the organisation in procuring

and managing supplies

• Focused on activities related to purchasing and cost reduction

• Supply chain integration and supplier-buyer relationship came in

1990s

Evolutionary Timeline of SCM

Defining SCM

“The design and management of seamless, value-added process across

organisational boundaries to meet the real needs of the end customer”

- Institute for Supply Management

“Managing supply and demand, sourcing raw materials and parts,

manufacturing and assembly, warehousing and inventory tracking, order

entry and order management, distribution across all channels, and delivery

to the customer.”

-The Supply Chain Council

SCM Model

Competition is no longer between Companies:

It is between supply chains

LM vs SCM

Flows in SCM

• Material Flow

• Information Flow

• Finance Flow

• Commercial flow

Decisions in SCM

1) Location• Geographic placement of production facilities, stocking points, and sourcing

points

2) Production• What products to produce,

• In which plants to produce

• Allocation of suppliers to plants

3) Inventory

4) transportation (distribution)• Transportation choice

• Transportation is more than 30 percent of the logistics costs

• Operating efficiently makes good economic sense