Prepared BY:Gurukrushna Patnaik

What is Supply Chain

MEANING & DEFINATION

A supply chain is a network of supplier, manufacturing, assembly,

distribution, and logistics facilities that perform a functions of procurement

of materials, transportation of these materials into intermediate and

finished products, and distribution of these products to customers.

Supply chain management (SCM) is the management of the flow of

goods. It includes the movement and storage of raw materials, work-in-

process inventory, and finished goods from point of origin to point of

consumption

SUPPLY CHAIN

Supplier Manufacturer Distributor Retailer Customers

SUPPLY CHAIN MANAGEMENT

Supply Chain Management is the design and management of processes across organizational boundaries with the goal of matching supply and demand in the most cost effective way.

Supply Demand

Mission impossible: Matching Supply and Demand

TYPES OF SUPPLY CHAINRaw Supply ChainRipe Supply ChainInternal Supply ChainExtended Supply ChainSelf-monitored Supply ChainOutsourced Supply ChainProduction-Oriented Supply ChainFinancial-Oriented Supply ChainMarket-Oriented Supply Chain

OBJECTIVE OF SUPPLY CHAIN MANAGEMENT

Service OrientedSystem OrientedCompetitiveness and EfficiencyMinimizing the timeMinimizing Work-In-ProgressImproving visibility of DemandImproving QualityReduces TransportationReduces Warehousing

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COMPONENTS OF SCM

Supplier partnershipMaterial planningMaterial SchedulingProcurement Methodology

Capacity planningProduction schedulingJIT inventory systemFlexibility-Volume and Varieties

Demand planningResponsivenessPostponementDistribution networking

Procurement Processing Distribution

Information Flow

Inventory Flow

Supplier Customers

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FUNCTIONSSupply chain activities can be grouped into strategic, tactical, and Operational

level of activities:

1. Strategic Functions:

i. Strategic network optimization.

ii. Product design co-ordination.

iii. Strategic partnership.

iv. Information Technology infrastructure.

v. Where-to-make & What-to-make or buy decisions.

vi. Aligning overall organizational strategy with supply strategy.

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FUNCTIONS2. Tactical Functions:

i. Sourcing contracts and other purchasing decision.

ii. Production decision.

iii. Inventory decision.

iv. Transportation strategy.

v. Milestone payments

vi. Focus on customer demand

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FUNCTIONS3. Operational Functions:

i. Daily production and distribution planning.

ii. Production scheduling.

iii. Demand planning and forecasting.

iv. Inbound operations

v. Outbound operations.

vi. Order promising.

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PROCESS OF SCMCUSTOMER

RELATIONSHIP MANAGEMENT

CUSTMOER SERVICE MANAGEMENT

DEMAND MANAGEMENT

MANUFACTURING FLOW MANAGEMENT PROCUREMENT

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FACTOR INFLUENCING SCM

Customer demand

Globalization

Competition

Information and communication

Government regulation

Environment

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IMPORTATNCE Reduce inventory cost

Provide better medium for information sharing among the partners.

Improves customer satisfaction as well as service.

Maintains better trust between partner.

Provide efficient manufacturing strategy.

Improve process integration.

Improves quality and gives higher profit margin.

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