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Supply Chain Management

Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

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Page 1: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Supply Chain

Management

Page 2: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

It is a cross-functional approach to

managing the movement of raw materials

into an organization and the movement of

finished goods out of the organization

toward the end-consumer.

Supply Chain Management ?

Page 3: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Elements of Supply Chain Management

Deciding how to best move and store materialsLogistics

Determining location of facilitiesLocation

Monitoring supplier quality, delivery, and relationsSuppliers

Evaluating suppliers and supporting operationsPurchasing

Meeting demand while managing inventory costsInventory

Controlling quality, scheduling workProcessing

Incorporating customer wants, manufacturing, and timeDesign

Predicting quantity and timing of demandForecasting

Determining what customers wantCustomers

Typical IssuesElement

Page 4: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Typical Supply Chains

PurchasingReceiving Storage Operations Storage

Production Distribution

Page 5: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Supplier

Supplier

Supplier

Storage} Mfg. Storage Dist. Retailer Customer

Typical Supply Chain for a Manufacturer

Page 6: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

1. Improve Operations

2. Increasing Levels of Outsourcing

3. Increasing Transportation Costs

4. Competitive Pressures

5. Increasing Globalization

6. Increasing Importance of E-commerce

7. Complexity of Supply Chains

8. Manage Inventories

Need for Supply Chain Management

Page 7: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

It addresses the following issues -

Distrubution Network Configuration:

Number and location of suppliers, production facilities, distribution centers, warehouses and customers.

Distribution Strategy:

Centralized versus decentralized, direct shipment, cross docking, pull or push strategies, third party logistics.

Information:

Integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation.

Supply chain management

Page 8: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Benefits of Supply Chain Management

• Lower Inventory

• Higher Productivity

• Greater Agility

• Shorter Lead Times

• Higher Profits

• Greater Customer Loyalty

Page 9: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Key Learning Areas

     Supply Chain Design, Development and Evaluation

         Logistics Management

         Managing Contracts

         Application of Statistical Tools for Supply Chain Management Decisions

Application of IT and E-business tools

Page 10: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

• Purchase / Vendor Development Manager• Material Management Executive / Manager• Team Leader / Technical Leader / Logistics

Manager / Logistics Executive• Warehouse Manager• Functional Outside Consultant

Career

Page 11: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

• Software Services• IT Enabled Services • Automobile Components• Cement / Construction / Engineering / Metals / Steel / Iron• Consumer FMGC / Foods / Beverages• Retailing / Oil & Gas / Infrastructure / Power / Non-

conventional energy / Bio-Tech. / Pharma / Life Sciences • Telecom / ISP / Consumer Durables / Home Appliances

Industry

Page 12: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Quality Management

Page 13: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

What is quality?

It is the ability of a product or service to consistently meet or exceed customer’s

expectations.

The quality of a developed product is influenced by the quality of the production process.

Page 14: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

It is the policy and associated procedures, methods and standards required for the control of projects.

The purpose of quality management is to increase certainty by reducing the risk of project failure. It also provides the opportunity for continuous improvement.

Quality Management

Page 15: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

The Consequences of Poor Quality

• Loss of Business

• Liability

• Productivity

• Costs

Page 16: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Quality management activities• Quality assurance

– Establish organisational procedures and standards for quality.

• Quality planning– Select applicable procedures and standards for a particular

project and modify these as required.

• Quality control– Ensure that procedures and standards are followed by the

software development team.

( Quality management should be separated from project management to ensure independence. )

Page 17: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Dimensions of Quality

• Performance - main characteristics of the product / service

• Aesthetics - appearance, feel, smell, taste

• Special Features - extra characteristics

• Conformance - how well product / service conforms to customer’s expectations

Page 18: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Dimensions of Quality

• Reliability - consistency of performance

• Durability - useful life of the product / service

• Perceived Quality - indirect evaluation of quality (e.g. reputation)

• Serviceability - service after sale

Page 19: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

• Requisites for Quality Management• Quality Management in Manufacturing• Process Capability Studies• Six Sigma Approaches• Quality Management in Services• Service Quality in Airlines• Service Quality in Hotel industry

• Service Quality in Health Care industry

Key Learning and Application Areas:

Page 20: Supply Chain Management. It is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished

Career Options

            Pharma Industry         IT / ITES Industry           Manufacturing Industry           Service Industry           Corporate o Quality Manager o Quality Assurance Manager o Quality Control Manger