Saurabh Nair(8)

Siddhant Kolwalkar(18)

Rohit Patel(15)

Supply Chain Management System

1. A supply chain is a network of organizations for procuring raw materials and transforming them into finished products

2. It links Suppliers,Manafacturers,Retail Outlets and Customers through consumption

Supply Chain Management systems helps managing relations with suppliers by a constant exchane of information

Aim: To get Right amount of products in Least amount of time at lowest cost

Bullwhip Effect Distortion of information along the chain

Eg: Pampers Diapers

Aggressive Price, High Inventories

Strategies Just in Time Strategy

Contnd….

Use of internet and constant communication between the system.

To balance and synchronize the distribution of product.

What is Wal-Mart??????

Wal-Mart Stores, branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores.

The company is the world’s third largest public corporation, according to the Fortune Global 500 list in 2012, the biggest private employer in the world with over two million employees, and is the largest retailer in the world.

walmarts supply chain strategyWalmart’s supply chain begins with strategic sourcing to find products at

the best price from suppliers who are in a position to ensure they can meet demand.

Walmart establishes strategic partnerships with most of their vendors, offering them the potential for long-term and high volume purchases in exchange for the lowest possible prices.

Suppliers then ship product to Walmart’s distribution centers where the product is cross docked and then delivered to Walmart stores.

Cross docking, distribution management, and transportation management keep inventory and transportation costs down, reducing transportation time and eliminating inefficiencies.

Technology plays a key role in Walmart’s supply chain, serving as the foundation of their supply chain.

Walmart has the largest information technology infrastructure of any private company in the world.

Its state-of-the-art technology and network design allow Walmartto accurately forecast demand, track and predict inventory levels, create highly efficient transportation routes, and manage customer relationships and service response logistics.

benefits of the strategy Wal-Mart’s supply chain management strategy has

provided the company with several sustainable competitive advantages, including lower product costs, reduced inventory carrying costs, improved in-store variety and selection, and highly competitive pricing for the consumer.

This strategy has helped Walmart become a dominant force in a competitive global market. As technology evolves, Walmart continues to focus on innovative processes and systems to improve its supply chain and achieve greater efficiency.

Supply Chain Management

Supply side- raw materials, inbound logistics andproduction processes

Demand side- outbound logistics, marketing andsales.

WHAT IS SUPPLY CHAIN MANAGEMENT?" Is the strategic management of activities involved in

the acquisition and conversion of materials to finished

products delivered to the customer"

Supplier

Management

Schedule /

ResourcesConversion

Stock

DeploymentDelivery

Customer

Management

Leads to Business Process Integration

Material Flow

Information Flow

Information flows in Supply Chain Management

• Information is overriding element

• Need for databases

• Master files: Information about customers, products, materials, suppliers, transportation, production and distribution data- do not require frequent processing

• Status files- heart of transaction processing- track orders and infrastructure status- updated daily.

• Essentially using the same information to make all plans right from structuring the network to processing every day supply chain tasks.

• Before Internet, supply chain coordination hampered by difficulties of using disparate internal supply chain systems

• Enterprise systems supply some integration of internal supply chain processes but not designed to deal with external supply chain processes

• Intranets and Extranets

• Intranets: To improve coordination among internal supply chain processes

• Extranets: To coordinate supply chain processes shared with their business partners

Global Supply Chains and the Internet

• Supply chain management systems

• Push-based model (build-to-stock)

• Schedules based on best guesses of demand

• Pull-based model (demand-driven)

• Customer orders trigger events in supply chain

• Sequential supply chains

• Information and materials flow sequentially from company to company

• Concurrent supply chains

• Information flows in many directions simultaneously among members of a supply chain network

Supply chain objectives may differ from situation tosituation.

For functional products, cost efficiency is the criticalfactor.

For innovative products, responsiveness is theimportant factor.

Supply Chain Structure

Information Flow

Raw Materials

RETAILERFACTORY DC RDCSUPPLIER

Finished Goods

Supply Chain and Demand Chain

Demand chain is defined as the system by which

organizations manage sales and distribution of products

and services to end users.

Conceptually incorrect to look at demand chain separately