IntroductionSUPPLY CHAIN MANAGEMENT

Session ObjectivesTo enable the learner to understand: What is a Supply Chain? What are logistics and supply chain

management? Perspectives of SCM

Supply chain of these varied items have common supply

chain elements

Supply chain of these varied items have common supply

chain elements

Supply chain of these varied items have common supply

chain elements

Supply chain of these varied items have common supply

chain elements

What is a Supply Chain?

Two or more parties linked by a flow of resources – typically material, information, and

money – that ultimately fulfill a customer request.

Information (order)

Information (status)

Material (delivery)

Money (payment)

The supply chain encompasses all activities associated with the flow & transformationof goods from the raw materials stage (extraction) , through to the end user, as well

as the associated information flows.

Mission of SCM“To get the right goods or services to the right

place, at the right time, and in the desired condition , while making the greatest

contribution to the firm.”

What is a Supply Chain?

The primary purpose of a SC is to satisfy customer needs.

Only one source of revenue – the customer Payments between parties are just fund exchanges Division of intra-SC payments are a function of

power, market conditions, etc.

Supply Chains try to maximize the total value generated

= ( What customer pays ) – ( Total effort expended to

fulfill )

Supply Chain Process

Logistics versus Supply Chain Management

“Managing the flow of items, information , cash & ideas through the coordination of supply chain processes and through the strategic addition of place, period and pattern values.”

“Deals with the management of materials, information, and financial flows in a network consisting of suppliers , manufacturers, distributors, & customers.”

Logistics

Supply Chain Management

Supply Chain Perspectives

Suppliers

Manufacturers

Distributors

Customers

Process View of Supply Chains

Four Primary CyclesCustomer Order CycleReplenishment cycleManufacturing CycleProcurement Cycle

Cycles Occur Between Stages

Interactions differ at each stageNot every SC will have all 4

Cycles

Supplier • Procurement cycleManufactur

er• Manufacturing

cycle

Distributor • Replenishment cycleRetailer • Customer Order

Cycle

Customer

Video on How a SCM Company Works

https://www.youtube.com/watch?v=XoC5mI1Jk7A

Let’s SummarizeSupply chain management focuses on the customers at

the end of supply chain which is flexible and responsive.

It is the flow of goods, services & information from the point of origin to the point of consumption efficiently to provide optimal customer delight.

It comprises of four cycles primarily. The performance of supply chains is usually measured

in terms of overall corporate goals for success.