Challenges and Opportunities of SCM

8/2/2019 Challenges and Opportunities of SCM

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Challenges And Opportunities Of SCM

By: Andrea Ponsek MBA(TT)

Roll No:4




What is SCM?

Supply chain management (SCM) is the management

of a network of interconnected businesses involvedin the ultimate provision of product andservice packages required by end customers.

(Harland, 1996)

http://en.wikipedia.org/wiki/Supply_chain

http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Supply_chain




SUPPLY CHAIN CHALLENGES

• Growth in contract manufacturing.• Shifting global manufacturing.

• Unpredictable global demand.

• Supply chain instability.

• Increasing customer requirements.

• Many new SCM technologies like RFID are inthe nascent stage and for them ROI is not yetidentified.

• JIT inventory- cant afford to have errors orsupply chain disruption that will causemanufacturing to halt.




• Short product lifecycles-one has toconstantly set up new supply chains. Eachproduct has its own supply chain; the morefinished product and inventory are lyingdead in your supply chain the faster youwill get obsolete.

• Faster order cycle time-less margin forerror or delay in the supply chains.




Supply chain opportunities

IT

SCMS RFIDE-

Choupal

ERP




Enterprise Resource Planning

• ERP is the battering ram that integrates all thatinformation together in a single application, andSCM application benefit from having a single

major source to go to for up-to-date information.• ERP systems assist enterprises in automating

and integrating corporate cross functions.


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SUPPLY CHAIN MANAGEMENT

SOFTWARE

• Supply chain management software(SCMS) is a business term which

refers to a range of software tools ormodules used in executing supplychain transactions, managingsupplier relationships and controlling

associated business processes.



Features Of SCMS

• Customer requirement processing

• · Purchase order processing

• · Inventory management

• · Goods receipt and warehousemanagement

• · Supplier management/sourcing



RADIO FREQUENCY IDENTIFICATION

• RFID tags are essentially barcodes onsteroids.

• RFID tags can tell where the product is,where it has been, when it expires, whatever information someone wishes toprogramme with it.

• It will be able to produce piles ofinformation about when and wheremerchandise is manufactured, picked,packed and shipped.



• Its is also be able to tell retailers about theexpiration dates of their perishable items-numbers that will have to be stored,transmitted in real-time and shared withwarehouse management, inventorymanagement, financial and otherenterprise systems.

• Another benefit of RFID is that, unlikebarcodes, RFID tags can be readautomatically by electronic readers.



E-Choupal

• E-Choupal links the Indian farmer withconsumers in local and global markets, by

• leveraging ITC’s time-tested and provencompetencies in marketing and distribution.

• In the process many overheads likemultiple transportation and handling,bagging etc are erased.



E-Financial SCM• Cross border transactions, decreasing cost

of technology, speed of transaction and a24 hour 365 day facility has lead todevelopment of e-financial supply chain.

• Proper financial supply chain managementusing e-payment mechanism can reducethe cost of working capital and improve

supplier relationship management byproviding speedy payment.



SCM in Pharmaceuticalindustry

• Pharmaceutical companies have a longoutsourced function such as manufacturing,packaging, clinical trials and sales forcemobilization.

• Benefits of outsourcing:

• Outsourcing reduces the overall cost by 30to 35 percent

• Reduces problems faced during theregulatory process

• Improve manufacturing efficiencies• Improve net earnings and cash flow

• Fast and cheaper to have discovery workoutsourced as it reduces the drug

development cost.



Thank you !

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Challenges and Opportunities of SCM