Supply Chain MAnagement- MIS- 29 11 2015

8/16/2019 Supply Chain MAnagement- MIS- 29 11 2015

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PRESENTATION BY AKHILESH GUPTA(48)

DILEEP KR JHA(28)C N MAHESHWARI(31)

PAWAN MAKKAR(30)

SANDEEP KUMAR(27)

3! S"# MBA(W""$"%!) S"&'A

Supply Chain Management



2

Supply Chain Management

• Efcient and eective integration o

suppliers, manuacturers, warehouses,stores, and transportation intermediaries intoa seamless value chain.

• Merchandise is produced and distriuted inthe right !uantities" to the right locations"and at the right time.

• Minimi#ation o system wide

costs, while satisying theservice levels theircustomers re!uire.

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• %o reduce the physical supply chain lin&s

• %o de'ne supply chain responsiilities to acore service competency

• %o decrease the time and cost o gettingend user customer products in re!uired!uantity at the place o re!uirements.



(

)usiness valuegoals*

+apid demandul'llment.

Collaorativesupply chainplanning and

eecution.

Customer valuegoals*

-ive customerwhat they want ,

when and how theywant it , at low

cost.

Enterprisecoordination omanuacturingand usiness

process.

Eective

distriutionsystem

+esponsiveness

andaccountaility to

customers.

/ectives o SCM





W +- SCM I#.*5%*6(&.%*+%"!)

8

9t the company level, supply chainmanagement impacts

1 COST : ;or many products, 2<= to (<= o total

product costs are controllale logistics costs.1 SER:ICE : ;or many products, perormanceactors such as inventory availaility and speed odelivery are critical to customer satisaction.



>

What is Supply Chain Planning ?

There is need for a mechanism through which the

execution of various business activities along a supply

chain can be planned in an integrated fashion.

The supply chain planning is an effort to achieve the

primary goal of “ producing and distributing the

merchandise at the right quantity, to the rightlocations, and at the right time with minimum system

wide cost ” in the presence of conflicting goals of various

business units



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upstream

downstream

'g* an eample o supply chain.

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Supply Chain Planning Processes

Demand PlanningMaterial Reuirement Planning

Demand !orecasting

"upplier Plant #arehouse $ogistics Retailer

Production

Plan

%omponent

Reuirement

&rder Management

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Dynamics of Order Flow















AA

Dynamics of Material Flow












A2



D"#5%! !+,"% - &5+%-

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Bush versus pull ased supply chain models*P- #.!";

Supply to production ased inventory ased stoc& asedpurchase what

;orecast on orecast on orecast on orecast isavailale

P #.!";

Supply to produce to order automatically automaticallycustomer

rder replenish replenish stoc&orders

warehouse

Supplier

SupplierManuactur

eristriute

r +etailer

Manuactur

er

istriute

r

+etailerCustome

r

Customer



I%/.#5*+.% --*"# 5%!SCM

A(

Supply chain activities cover every thing romproduct development , sourcing , production andlogistics as well as inormation system.

%he organi#ations that ma&e up supply chains areDlin&ed through physical 7ow and inormation 7ow.

Bhysical 7ow involves transormation , movementand storage o goods F materials .6normation 7ow allows various supply chain

partners to co4ordinate their long term plans andcontrol day to day 7ow o goods and materials

orward and ac&ward.ne o the strategy to eective mgmt o supply

chain is D/ust4in4time strategy.



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H.= +%/.#5*+.% --*"# /5&++*5*"SCM

A8

6normation rom supply chain management

system helps 'rmsecide when and what to produce , store and

move

+apidly communicate others

%rac& the status o ordersChec& inventory availaility and monitor inventory

levels.

+educe inventory , transportation and warehouse

cost %rac& shipments

Blan production ased on actual customer demand

+apidly communicate changes in product design.



S &5+% #5%5"#"%*-./*=5"

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Supply chain planning system* it enales the 'rmsto model its eisting supply chain , generatedemand orecast or product and develop opticalsourcing and manuacturing plans.

Supply chain eecution system* it manage the7ow o products through distriution centers and

warehouse to ensure that products are deliveredto right location in most efcient manner.

Supply chain management sotware vendors areS9B , racle BeopleSot, Manugistics , i2technologies etc.



A?

• )ullwhip Eect 4 %he uilt up inventory inan uncoordinated channel where retailersand vendors do not coordinate their supplychain activities

• 3hat Causes a )ullwhip EectG

• elays in transmitting orders and receiving

merchandise• ver4reacting to shortages

• rdering in atches rather than generating

a numer o small orders



GLOBAL SUPPLY CHAIN ANDINTERNET

A@

6ntranet is used y 'rms to improvecoordination among their internal supplychain process and they use etranet tocoordinate among usiness partners and

customers .



2<

Suppliers

Blanningand

schedulingrderprocessing

Shipping

6nventory

Broduction

Brocurement

Hogisticsservice

istriutors

+etailers

Customer

s

ISE ; 6J%E+JE% 6J SCM



<*" +%*"%"* !+,"% - &5+%."5*"- +$" 5 !++*5 %",.- --*"#>

2A

Hogisticsechange

Brivateindustrialnetwor&s

Jet mar&etplace

Contractmanuactures

Kirtualmanuacturer

s

Suppliers

Manuacturers

istriutors

+etailers

Customers

Hogisticprovider

s



Incertainty in Supply Chain

22

3rong ;orecastsHate eliveries

Boor Luality

Machine )rea&downsCanceled rders

Erroneous inormation



M5%5+% U%&"*5+%*

A. Boint orecasts are invarialy wrong?

Blan or orecast range : use 7eilecontracts to go updown.

2. 9ggregate orecasts are more accurate

?

9ggregate the orecast :postponementris& pooling

2$



M5%5+% U%&"*5+%*(&.%*@!)$. Honger term orecasts are less accurate

?

Shorten orecasting hori#ons : multipleorders" early detection

(. 6n many cases, someody else &nowswhat is going to happen

?

Collaorate

2(



C.#"+*+"- I%,.,"! +%S C5+% M5%5"#"%* %he supply chain is a comple networ&

o acilities and organi#ations withdierent, con7icting o/ectivesMatching supply and demand is a ma/or

challengeSystem variations over time are also an

important considerationMany supply chain prolems are new

and there is no clear understanding oall the issues involved

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%han& Nou

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Supply Chain MAnagement- MIS- 29 11 2015