SUPPLY CHAIN MANAGEMENT

Introduction Supply Chain

A sequence of organizations their facilities, functions, and activities that are involved in producing and delivering a product of service.

A value chain is another name for a supply chain.

Introduction Supply Chain Management

Supply Chain Management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying customer service requirements. Its the strategic coordination of the supply chain for the purpose of integrating supply and demand management.

Need For Supply Chain Management

Improve operations Increasing levels of outsourcing Increasing transportation costs Competitive pressures Increasing globalization Increasing importance of e-commerce Complexity of supply chains Manage inventories

Benefits Of Effective Supply Chain Management

SCM provides strategies and methods for integrating separate organizations. Lower inventories. Lower cost. Higher productivity. Greater agility. Shorter lead times. Higher profits . Greater customer loyalty.

Elements of Supply Chain Management

Determining what products and/or services customers want.

Customer Forecasting
Predicting the quantity and timing of customer demand.

Incorporating customers, wants, manufacturability and time to market

Design Capacity Planning

Matching supply and demand.

Controlling quality, scheduling work.

Processing Inventory
Meeting demand requirements while managing the costs of holding inventory.

Evaluating suppliers & making timely purchases for production

Purchasing Suppliers
Managing supply and supplier relations

Determining the best location for the facility

Location Logistics
Deciding the best way to move information & materials

Logistics
The part of supply chain involved with the forward and reverse flow of goods, services, cash, and information. The movement of materials, services, cash and information in a supply chain.

Logistic Types
Logistics types
Movement

within the faculty Incoming and Outgoing shipments



Traffic management

Distribution

requirements planning (DRP) 3-PL (Third party logistics) Reverse logistics

Gate keeping  Avoidance


Steps In Creating Effective Supply Chain

Develop strategic objectives and tactics Integrate internal activities Integrate activities with suppliers & customers Coordinate planning & execution across the supply chain. Forming of strategic partnerships.

Evaluation of Supply Chain

Quality Cost Customer service Flexibility Velocity

Challenges for Supply Chain Units

Barriers to Integration of Separate rganizations Getting Top Management nboard Dealing with Trade ffs Variability and Uncertainty

Lot size-Inventory trade ff. Inventorytransportation cost trade- ff. Lead timetransportation cost trade-off. Cost-customer service trade-off

Response Time

Purchasing

Purchasing Interface
Operations Suppliers Legal

Purchasing Receiving Accounting

Design

Data Processing

Purchasing Cycle

Requisition received

Supplier selected

Order is placed

Monitor orders

Receive orders

Supplier Management