Ppt - Supply Chain Management

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    By:Anchal Bhatia (32)

    Tanvi thareja (37)

    Daphne Joan Pierce (41)

    Swadha Agarwal (42)

    Hooriya Zaidi (54)

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    What is supply chain? A supply chain is a network of facilities and distribution

    options that performs the functions of procurement of

    materials, transformation of these materials into intermediate

    and finished products, and the distribution of these finishedproducts to customers.

    Supply chains exist in both service and manufacturing

    organizations, although the complexity of the chain may vary

    greatly from industry to industry and firm to firm. Supply chain is the system by which organizations source,

    make and deliver their products or services according to market

    demand.

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    Three Flow in SC There are three kinds of f low in supply chain

    management.

    They include:

    MATERIAL FLOWS

    INFORMATION FLOWS

    FINANCIAL FLOWS

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    A network of facilities including:

    Material flow from suppliers and their upstream

    suppliers at all levels Transformation of material to semi finished and

    finished (internal process).

    Distribution of products and customers and their

    downstream customers at all levels.

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    Supply chain has two functions:

    Physical

    Market mediation

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    Supply Chain ManagementUnderlying Principles

    Compression (Planning/Manufacturing/Supply)

    Conformance (Forecasts/Plans/Distribution)

    Co-operation (Cross -Functional) Communication (Real Time Data)

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    Supply Chain Management Set of processes and sub-processes that which attempt

    to implement and optimise the functions, connectedentities and interacting elements of the supply chain.

    Involves:

    Organisations, procedures , people

    Activities:Purchasing, delivery, packaging,checking ,warehousing,etc

    Establishment of long term relationships with suppliers

    and distributors

    Effective flow of information through the supply chain

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    The steps involved

    Step1- Designing the supply chain Determine the supply chain network

    Identify the levels of service required

    Step 2 - Optimizing the supply chain

    Determine pathways from suppliers to the end customer Customer markets to Distribution centers

    Distribution centers to production plants

    Raw material sources to production plants

    Identify constraints at vendors, plants and distribution centers

    Get the big picture Plan the procurement, production and distribution of product

    groups rather than individual products in large time periods-quarters or years

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    Step 3- Material flow planning

    Determine the exact flow and timing of materials

    Arrive at decisions by working back from the projected

    demand through the supply chain to the raw material

    resources

    Techniques

    ERP

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    Step 4 - Transaction processing and

    short term scheduling

    Customer orders arrive at random

    This is a day to day accounting system which tracks and

    schedules every order to meet customer demand

    Order entry, order fulfillment and physical replenishment

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    Supply-Chain Strategies Plans to help achieve company mission

    Affect long-term competitive position

    Strategic options Many suppliers

    Few suppliers

    Keiretsu network

    Vertical integration Virtual company

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    Plan

    1995 Corel Corp.

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    Supply-Chain Strategies Negotiate with many suppliers; play one supplier

    against another

    Develop long-term partnering arrangements with afew suppliers who will work with you to satisfy the endcustomer

    Vertically integrate; buy the actual supplier

    Keiretsu - have your suppliers become part of acompany coalition

    Create a virtual company that uses suppliers on an as-needed basis.

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    The Supply-Chain

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    Consumer

    Retailer

    Manufacturing

    Material Flow

    VISA

    Credit Flow

    Supplier

    Supplier Wholesaler

    Retailer

    CashFlow

    OrderFlowSchedules

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    Problems in supply chain Delay in production and distribution.

    Expensive inventories.

    lack of partners coordination. Poor production.

    Interference with production.

    Poor demand forecast.

    Uncertainty in deliveries.

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    Global Supply-Chain IssuesSupply chains in a global environment must be:

    Flexible enough to react to sudden changes inparts availability, distribution, or shippingchannels, import duties, and currency rates

    Able to use the latest computer andtransmission technologies to schedule andmanage the shipment of parts in and finishedproducts out

    Staffed with local specialists to handle duties,trade, freight, customs and political issues

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    Benefits Of SCM Reduce uncertainty along the chain

    Proper inventory levels in the chain

    Minimise delays Eliminate rush(unplanned) activities

    Provide good customer service

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    Thank you.