Scm -Trends and Challenges

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Challenges – of Supply Chain Management

Complex Supply Chain Global Business Computerization / Automation New Technologies Operational Productivity

Future trend -Supply Chain

Management

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1. Reason for growth

1. Growth of IT

2. Growth of Infrastructure

3. Air traffic development

21 st Century Supply Chain

Management

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1. Computerization – CRM/DRP/MRP/SCM

2. RFID / Universal Bar-coding

3. Robotics / FMS / Automation

4. Zero Inventory / Zero Defect / LeanMfg /JIT

5. Electronic Fund transfers / Internetbanking

6. Outsourcing 3 PL/ 4

Nature of SCM IN 21ST  Century

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Customer service AND

Supply Chain Management Core Product expectations

Quality

Product features

 Technology

Durability

Customer service expectations Delivery lead time & flexibility

Delivery reliability and consistency Single point of contact

Ease of doing business

After sales - Support

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Customer service AND

Supply Chain Management Customer service elements

Pre transactional elements

Transactional Elements

Post transactional elements

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Customer service AND

Supply Chain Management Customer service elements

Pre transactional elements

Written customer service policy

Accessibility

Organization structure

System flexibility

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Customer service AND

Supply Chain Management Customer service elements

 Transactional elements

Order cycle time

Inventory availability

Order fill rate

Order status information

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Customer service AND

Supply Chain Management Customer service elements

Post-Transactional elements

Availability of spares Call out time Product tracing / Warranty Customer complaints / claims

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 customer service /

satisfaction Setting customer service priority

Setting stock availability matrix

Managing product service levels

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 customer service /

satisfaction Setting customer service priority

ABC

AAB

C

C

SALES

CUSTOMERS

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 customer service /

satisfaction Setting

stock

availabilitymatrix

Stock AvailabilityMatrix

Products StockAvailability

A 99%B 97%

C 90%

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 customer service /

satisfaction Managing

product

servicelevels

Volume

(bySKU)

HI

Q1 > Seekcost

reduction

Q2 > ProvideHigh Stockavailability

LO Q3 > Review Q4 > JIT

Deliveries

LO HI

PROFIT

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 customer service /

satisfaction Setting customer service standards

Order Cycle Time

Stock Availability

Order size constrains Ordering Convenience

Frequency of Delivery

Delivery Reliability

Documentation Quality

Claims Procedures

Order Completeness

Technical support

Order status information