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SUPPLY SUPPLY CHAIN CHAIN MANAGEMENT MANAGEMENT
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SUPPLY SUPPLY CHAINCHAINMANAGEMENTMANAGEMENT

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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.

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What Is Supply Chain Management?What Is Supply Chain Management?

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LEVEL OF SCMLEVEL OF SCM

0-LEVEL0-LEVEL

1-LEVEL1-LEVEL

2-LEVEL2-LEVEL

3-LEVEL3-LEVEL

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RELATIONSHIPRELATIONSHIPBETWEENBETWEEN

DEMANDDEMAND

SUPPLYSUPPLY

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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?

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PERFOMANCE OF SCM

Increase Speed

Improve Quality

Reduced Cost

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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

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Constant serviceConstant service

Tracking the inventoryTracking the inventory

To deliver goods fasterTo deliver goods faster

Objectives Contd…

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STRATEGIESSTRATEGIESOFOF

SUPPLY CHAINSUPPLY CHAINMANAGEMENTMANAGEMENT

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Why is a supply chain strategy Why is a supply chain strategy so important?so important?

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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

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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

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Lack of ownershipLack of ownership

communication within organizationcommunication within organization

communication with external supplierscommunication with external suppliers

ChallengesChallenges

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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

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Software vendors of SCMSoftware vendors of SCM

• I2 TechnologiesI2 Technologies

• SAP AGSAP AG

• Oracle CorporationOracle Corporation

• Manhattan AssociatesManhattan Associates

• InfosysInfosys

• IBMIBM

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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.

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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

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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).

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DELL’S MANTRA

Better, Faster, Cheaper

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DELL’S GOLDEN RULES

Always listen to the customer

Never sell indirect

Suppliers Customers

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2.) Globalization – It Covers The World

Global base of suppliers.

PROBLEM AREA :

Coordination becomes difficult.

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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.

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TECHNOLOGIES USED IN SCM :

ELECTRONIC DATA INTERCHANGE

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INTERNET

RADIO FREQUENCY IDENTIFICATION

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EXAMPLE OF SAP

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• This is index of of software.

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It is protected by passward.

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Sonudevi SharmaSonudevi Sharma

Rahul ChakrapaniRahul Chakrapani

Rajesh DaveRajesh Dave

Paresh RekhiParesh Rekhi

Prachi DikondwarPrachi Dikondwar

Dipal PethadDipal Pethad

Nitin RaskarNitin Raskar

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ANY QUESTIONS…??

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THANK YOU