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Supply Chain Management

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Topics to study

Introduction of SCM

Domain application of SCM

SCM – The breakthrough article

 Views on supply chain

Bullwhip effect in SCM

Collaborative supply chain

Inventory Management in supply chain

Financial supply chain

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Needs and objectives

Reduction of inventory

Enhancement of participation level and empowermentlevel

Increase in functional effectiveness of existing systems like

ERP, accounting software, financial report, ISO documents

Effective integration of multiple systems like ERP,communication systems, documentation system & security

Design / research & development systems

Better utilization of resources like men, materials,equipment and money

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Optimization of money f low cycle within the organisationas well as from external agencies

Enhancement of value of products, operations, service

Enhancement of satisfaction level of customers and clients,supporting institutions, statutory control agencies,suppliers and vendors, employees and executives.

Enhancement of f lexibility in the organisation to help ineasy implementation of schemes involving modernisation,expansion and divercification

Enhancement of coverage and accuracy of managementinformation systems

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Domain application SCM can be easily applied and integrated with :

- ERP systems

-Design systems like auto CAD, Pro

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 E- R & D systems

- ISO 9000 systems

-  Accounting and financial systems

- Costing systems- Manufacturing systems

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Implementation of SCM Study the strengths and weakness of org as well as external

agencies involved.

Understand the organisation objectives

Study the existing systems and identify the gaps andpropose solutions to plug the loopholes.

Evolve consensus and test fire individual solutions

Integrate solutions which are adjudged successfully intothe mainstream

Study overall impact after all proposals in a section areimplemented, review consensus.

Finalise SCM document, circulate and implement.

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SCM –

 breakthrough article Supply chain is a network of facilities and distribution

options that performs the function of procurement ofmaterials, transformation of it into products, and

distribution to customers. It exist in both service and manufacturing organisation.

Step – 1 Raw materials procured from vendors

Step – 2 Transformed to finished goods

Step – 3 Transported to distribution centres

Step – 4 Supplied to customers

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Supply chain decisions Strategic decisions – made over a longer time horizon &

closely linked to the corporate strategy and guide supplychain policies from a design perspective.

Operational decisions–

 made for short term, focus on dayto day basis.

4 major decisions are – location, production, inventory,transportation.

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Location decision – 

- Geographical placement of production facilities, stockingpoints, and sourcing points.

- Imp points to watch are production costs, taxes, duties,duty drawback, tariffs, local content, distribution costs,production limitation.

Production decision – 

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