Supply Chain Managemen t Educational Series-Part 1 Author-Gourab Ray
Supply chain management-Introduction-Part 1
Aug 08, 2015
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
- 1. Supply Chain Management Educational Series-Part 1 Author-Gourab Ray
- 2. Content Supply Chain Management Definition Integrated Supply Chain Framework Logistics Management Overview of Logistics Logistics Work
- 3. Supply Chain Management-History in perspective Colonization by European powers-India, Sri Lanka, African countries & etc. Reason: SCARCITY if raw materials- Cotton, Food grains, precious metals, oil, coal and etc.. Securing supply chains for raw materials needed to sustain Industrial revolution New markets for finished goods. Colonization gave both administrative control over the sourcing and over the market.
- 4. Supply Chain Management-Definition A supply chain is a sequence of organizations - their facilities, functions and activities - that are involved in producing and delivering a product or service. Supply chain management deals with linking the organizations within the supply chain in order to meet demand across the chain as efficiently and low cost as possible. It is one of the oldest disciplines in management that had been subconsciously used in the history of Mankind.
- 5. Supplier Supplier Supplier Storage} Mfg. Dist. Retailer CustomerStorage Supply Chain Management simplified flow (contd) Supplier Supplier Supplier Storage} Mfg. Dist. Retailer CustomerStorage
- 6. Supply Chain Management (contd) Why is supply chain management so important? To gain efficiencies from procurement, distribution and logistics To make outsourcing more efficient To reduce transportation costs of inventories To meet competitive pressures from shorter development times, more new products, and demand for more customization To meet the challenge of globalization and longer supply chains To meet the new challenges from e-commerce To manage the complexities of supply chains To manage the inventories needed across the supply chain Why is supply chain management difficult? Different organizations in the supply chain may have different, conflicting objectives Manufacturers: long run production, high quality, high productivity, low production cost Distributors: low inventory, reduced transportation costs, quick replenishment capability Customers: shorter order lead time, high in-stock inventory, large variety of products, low prices
- 7. Integrated Supply Chain Framework M A T E R I A L S S u p p l y N e t w o r k s I n t e g r a t e d E n t e r p r i s e M a r k e t D i s t r i b u t i o n N e t w o r k D1 D2 D3 Procurem ent Customer Accomodati on Manufactu ring R1 R2 R3 C U S T O M E R BIDIRECTIONAL FLOW OF INFORMATION, SERVICES, FINANCIAL & KNOWLEDGE, UNIDIRECTIONAL FLOW OF MATERIALS, PRODUCT
- 8. Conceptual Supply Chain Management Diagram (simplified)
- 9. LOGISTICS MANAGEMENT Logistics is the management of the flow of goods/ materials/ services from point of origin to the consumer in order to meet some requirements, of customers or corporations. Also defined as getting products/ services where they are needed at the right time. (Right Time, right place and right quantity) Logistics is part of Supply Chain Management but alone does not comprise Supply Chain Management.
- 10. LOGISTICS MANAGEMENT (Contd) Logistics Order Management Inventory Management Transportation Warehousing, Packaging & Material Handling Logistics is the combination of: Order Management Inventory Management Transportation Warehousing, Material Handling and Packaging.
- 11. LOGISTICS MANAGEMENT (Contd) It is also defined as the responsibility to design and administer systems to control movement and geographical positioning of raw materials or work-in-progress (unfinished goods) or finished goods at the lowest total cost. Marketing, Manufacturing and International commerce depend on Logistics Management. Dependence of other faculties on Logistics
- 12. LOGISTICS MANAGEMENT Goal of Logistics is to support: Procurement Manufacturing Customer requirement and satisfaction. Operational Requirement Product Innovation (R&D) Logistics Procurement Customer satisfaction Operational requirement Manufacturing
- 13. LOGISTICS WORK MANAGEMENT 1. Order Processing 2. Inventory Management. 3. Transportation 4. Warehousing, Material Handling & Packaging 5. Facility Network Facility Network Order Processing Inventory Management Transportation Warehousing, Packaging & MH
- 14. LOGISTICS WORK MANAGEMENT (contd) 1. Order Processing: a. Foremost starting point of logistics process. b. Receiving & processing orders from customers via mail, email, mobile apps, telephones or hard copy forms. c. Processing of orders involve managing customer requirement, initial order receipt, delivery, invoicing & collection Order Processing via app
- 15. LOGISTICS WORK MANAGEMENT (contd) 2. Inventory Management: a. Processed goods at depot/ warehouse which are ready for customers. b. Inventory strategy is to achieve desired customer satisfaction with minimum inventory commitment. c. Inventory Cost: Are huge and risky and leads to huge losses.
- 16. LOGISTICS WORK MANAGEMENT (contd) 2. Inventory Management (contd): d. 80/20 Rule: Less than 20% of all the products marketed account for 80% of the total profit. e. Product stocking plan or Raw material stocking plan at a particular depot/ warehouse has direct impact on profitability. f. It is best to stock materials based upon their requirement location.
- 17. LOGISTICS WORK MANAGEMENT (contd) 3. Transportation: a. It is defined as the geographical movement & positioning of inventory. b. It has high visibility and higher costs than all other works and hence it is the most focussed area for financial control.
- 18. LOGISTICS WORKS MANAGEMENT (contd) 3. Transportation (contd): c. The following are the factors for transportation management: Total Costs (including labour, fuel and rent and maintenance). Speed (movement speed of in- transit inventory). Consistency/ Dependability (variation in time required to perform a specific movement over a number of shipment)
- 19. LOGISTICS WORK MANAGEMENT (contd) 4. Warehousing, Material Handling & Packaging: a. Warehouse is the local/ regional depot where the goods are stocked or stored. b. Within warehouse, material handling is the major activity. c. Products must be received, moved, stored, sorted, assembled and packed to meet order requirement. d. WMS: Warehouse management system-used to manage all activities in warehouses.
- 20. LOGISTICS WORK MANAGEMENT (contd) 5. Facility Network Design: a. Deals with strategic placement of warehouses and facilities and overall network design for efficient business operation. b. Requires determining the optimized number of warehouses and facilities over a given geographical location to peform logistics works at minimal total cost. c. Facilities can consists of: Manufacturing plants Warehouses Retail stores
- 21. Fictional Facilities Network Of e-Commerce Legends: Retail Outlet Warehouse
Related Documents
