Professional Documents
Culture Documents
CUSCM208
Introduction
Overview
Learning Objectives
Introduction
Definitions
Types of supply chains
Essential features of Supply chain
Objectives of Supply chain Management
Components of Supply chain management
Factors influencing supply chain management
Conclusions
References
11/14/2018 2
Learning Outcomes
To define Supply Chain Management
To explain the evolution of supply chain
management
Explain the essential features of Supply
chain management
Evaluate the factors influencing the
existence of supply chain management
11/14/2018 3
Introduction
The concept of supply chain
management(SCM) appeared as a hot
topic during the pervious years, especially
during the decade of 90’s , which was
characterized by the shift of power
from the manufacturer towards the
customer, using friendly technology, and
shifting the process of making profit from
outside the organization to the inside
environment.
11/14/2018 4
Introduction
After the Second world war ,production
exceeded demand .
The war emphasized the importance of reaching
the right product ,at the right time and at the
right amount and quality.
This supply chain was referred to as “The
Logistics management”.
History shows that logistic capabilities have
helped countries win wars, The case of the USA
and allies winning the gulf war was due to the
effective logistics, on the
other hand the defeat of Napoleon in Russia
Was due to poor logistics.
11/14/2018 5
Discussion : What is a Supply Chain
Management ?
11/14/2018 6
Definitions
“A supply chain is a network of supplier,
manufacturing, assembly, distribution and logistics
facilities that perform the functions of
procurement of materials, transformation of these
material into intermediate and finished products,
and the distribution of these products to
customers.
According to Professor Douglas M Lambert.“
Supply Chain Management as the integration of
business process from the end user through
original supplier who provide products, services
and information that adds value for the
customers. ”
11/14/2018 7
Continued....
According to Ganeshan & Harrison. “A
supply chain is a network of facilities and
distribution options that perform the
function of procurement of material
transformation of these materials into
intermediate and finished products, and
the distribution of these finished products
to customers. ”
11/14/2018 8
Continued
11/14/2018 9
Three key areas in Supply chain management
Product
Flow
Information Finance
Flow Flow
Right Product At Right Place
11/14/2018 13
Raw Material Supply Chains
Very basic type, found in small scale
industries, loosely organized , not enough
cooperation between units of the
organization.
11/14/2018 14
Internal Supply chain
This type is the most common type , here
the organization has implemented ERP
(Enterprise resource planning),they are
well-organized from the inside, but not
connected to the suppliers or distributors
11/14/2018 15
Self monitored supply chain
This type of supply chain is company
centric not customer centric, it brings all
partners together, it can achieve a
considerable speed to market, but it is
not because of total optimization.
Aims at achieving company objectives
11/14/2018 16
Production oriented Supply chain
This type of supply chains focuses its
energy on production by optimizing the
capacity and labor,
Low value items are made and sold
through various channels, marketing and
distribution are not issues.
Aimed at optimizing low
cost of production
11/14/2018 17
Market oriented supply chain
This type of supply chain is triggered when
a customer places an order.
It is highly flexible because it focuses more
on the customer
Example: computer hardware sector or
clothing sector
11/14/2018 18
Essential features of supply chain
management
a. Integrated behaviour- SCM incorporates and
integrates stakeholders that is suppliers to
customers.
b. Mutually sharing information- For effective SCM
mutually sharing information among channel
members is required, especially for planning and
monitoring processes.
c. Co-operation- Co-operation among channel
members is required for effective SCM.
Co-operation refers to similar or complimentary
co-ordinated activities performed by the
organisation in a business relationship to produce
superior mutual outcomes or singular outcomes
that are mutually expected over time.
11/14/2018 19
…..Contd
d. Focus on serving customers – Supply chain
succeeds if all the members of supply chain have the
same goal and the same focus of serving customers.
- Establishing the same goal and same focus among
Supply chain members is a form of policy integration.
e. Integration of Processes – The implementation of
SCM needs the integration of processes from
sourcing to manufacturing and to distribution across
the supply chain.
- The integration can be accomplished through cross
functional terms, in plant supplier personnel and
third party service provider.
11/14/2018 20
…..Contd
f. Partners to Build and Maintain Long
Term Relationship – Successful
relationships aim to integrate channel
policy to avoid redundancy and overlaps
while seeking a level of co- operation
that allow participants to be more
effective at lower cost levels.
- Policy integration is possible if there
are compatible cultures and management
techniques among the chain members.
11/14/2018 21
Objectives of Supply Chain
Management
Service Orientation.
System Orientation.
Competitiveness and Efficiency.
Minimizing the Time.
Minimizing Work in Progress.
Improving Pipeline Visibility.
Improving visibility Demand.
Improving Quality.
Reducing Transportation Cost.
Reducing Warehousing Cost.
11/14/2018 22
Continued.....
Service Orientation – (that is services to
customers) the very basis of supply chains has
been to provide superior customer service.
-Service is all about the value that the customer
gets, which in turn depends upon his own
perception about what constitutes value.
- The design, the alignment, the integration of the
companies on the supply chain and the co-
ordination between them are all for the
customer- the ultimate customer, and these are
performed as such.
11/14/2018 23
System Orientation- system orientation is at
the existence of any supply chain. Synergy due to
co- operation and coordination is the main gain
of a supply chain.
11/14/2018 24
Continued.....
Minimizing the time – efficient supply chain in
an organization reduces the time required for
converting orders into cash.
So there is minimal time lag and increase in
productivity of the organization.
Minimizing Work in Progress- supply chain
minimizes total work in process as a result of
coordinated effort
Improving Pipeline Visibility – efficient supply
chain improves the visibility of each one of the
activities of the supply chain by each one of the
partners.
.
11/14/2018 25
Continued....
Improving visibility Demand- Efficient
supply chain improves visibility of demand by
each one of the partners
Improving Quality- Efficient supply chain
management helps in improving the quality
of operation of the organization.
TQM has become a major commitment
throughout all facet of industry.
Overall commitment to TQM is one of the
major commitment throughout all facets of
industry.
11/14/2018 26
Factors Influencing the existence of
Supply chain Management
Consumer Demand.
Globalization.
Competition.
Information and communication.
Government Regulation.
Environment.(PESTEL)
11/14/2018 27
Conclusion
Supply chain is an enabler of business
strategy
The objectives of SC is to be efficient
and cost effective through the entire SC
system
Due to its complex nature, SC
management faces a number of challenges
SC managers need to understand how
they can develop SC strategies
11/14/2018 28
References
Happeck, S., (2005). Supply Chain Strategy:
The importance of aligning your
strategies. UPS Supply Chain Solutions
www.ups-
scs.com/solutions/white_papers/wp_supply_
chain.pdf