SUPPLY SUPPLY CHAIN CHAIN MANAGEMENT MANAGEMENT
SUPPLY SUPPLY CHAINCHAINMANAGEMENTMANAGEMENT
SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT
THE PROCESS OF PLANNING, ORGANISINGTHE PROCESS OF PLANNING, ORGANISING AND CONTROLLING THE FLOW OF MATERIALSAND CONTROLLING THE FLOW OF MATERIALS
AND SERVICES FROM SUPPLIERS TOAND SERVICES FROM SUPPLIERS TO
END USERS / CUSTOMER DELIVERING.END USERS / CUSTOMER DELIVERING.
What Is Supply Chain Management?What Is Supply Chain Management?
LEVEL OF SCMLEVEL OF SCM
0-LEVEL0-LEVEL
1-LEVEL1-LEVEL
2-LEVEL2-LEVEL
3-LEVEL3-LEVEL
RELATIONSHIPRELATIONSHIPBETWEENBETWEEN
DEMANDDEMAND
SUPPLYSUPPLY
When is a product made? Where it is made or sourced? How much or How many made or acquired? How is it delivered?
When is the product desired? Where is the product desired? How much or how many are needed? How is it desired?
PERFOMANCE OF SCM
Increase Speed
Improve Quality
Reduced Cost
ObjectivesObjectives
Optimize pre and post productionOptimize pre and post production
Provide flexible planning and control Provide flexible planning and control mechanismmechanism
Minimizing transport costMinimizing transport cost
Constant serviceConstant service
Tracking the inventoryTracking the inventory
To deliver goods fasterTo deliver goods faster
Objectives Contd…
STRATEGIESSTRATEGIESOFOF
SUPPLY CHAINSUPPLY CHAINMANAGEMENTMANAGEMENT
Why is a supply chain strategy Why is a supply chain strategy so important?so important?
Distribution centersDistribution centers Cross docking & third-party logisticsCross docking & third-party logistics Information Technology Information Technology Where & what-to-make-or-buy decisionsWhere & what-to-make-or-buy decisions
Factors on which SCM strategies depend
Understand the Business StrategyUnderstand the Business Strategy
Assess the Extended Supply ChainAssess the Extended Supply Chain
Keep Communicating with Your Partners
Developing a Supply Chain Developing a Supply Chain Strategy Strategy
Lack of ownershipLack of ownership
communication within organizationcommunication within organization
communication with external supplierscommunication with external suppliers
ChallengesChallenges
ROLE OF I.T. IN SCM STRATEGIES:-
keep records of raw materials
keep information about the goods supplied
to keep details about the traders etc
Software vendors of SCMSoftware vendors of SCM
• I2 TechnologiesI2 Technologies
• SAP AGSAP AG
• Oracle CorporationOracle Corporation
• Manhattan AssociatesManhattan Associates
• InfosysInfosys
• IBMIBM
Role of ITRole of IT
• Information is key supply chain driver.Information is key supply chain driver.
• Information is crucial to supply chain Information is crucial to supply chain performance.performance.
• IT serves as the eyes & ears of IT serves as the eyes & ears of management in supply chain.management in supply chain.
GOALS OF SUPPLY CHAIN ITGOALS OF SUPPLY CHAIN IT
Collect informationCollect information
Analysis based on supply chain dataAnalysis based on supply chain data
Collaborate the supply chain partnersCollaborate the supply chain partners
WHY IS SCM IMPORTANT ?WHY IS SCM IMPORTANT ?
1.) Strategic Advantage – It Can Drive Strategy
Manufacturing is becoming more efficient.
SCM offers opportunity for differentiation (Dell).
DELL’S MANTRA
Better, Faster, Cheaper
DELL’S GOLDEN RULES
Always listen to the customer
Never sell indirect
Suppliers Customers
2.) Globalization – It Covers The World
Global base of suppliers.
PROBLEM AREA :
Coordination becomes difficult.
At the company level, supply chain management impacts
3.) COST
4.) SERVICE – For many products, performance factors such speed of delivery are critical to customer satisfaction.
TECHNOLOGIES USED IN SCM :
ELECTRONIC DATA INTERCHANGE
INTERNET
RADIO FREQUENCY IDENTIFICATION
EXAMPLE OF SAP
• This is index of of software.
It is protected by passward.
Sonudevi SharmaSonudevi Sharma
Rahul ChakrapaniRahul Chakrapani
Rajesh DaveRajesh Dave
Paresh RekhiParesh Rekhi
Prachi DikondwarPrachi Dikondwar
Dipal PethadDipal Pethad
Nitin RaskarNitin Raskar
ANY QUESTIONS…??
THANK YOU