scm compiled studentversion

7/29/2019 SCM Compiled Studentversion

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Supply Chain Management

BC312 Enterprise Computing

Presented by Team Reuters:

Valerie Tan Ying Qi

Wee Jia Yi

Ding HaohangNguyen Ngoc Huy


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Lesson Outline

Introduction to Supply Chain ManagementA classroom simulation of a supply chainGo in-depth to individual components of

Supply Chain

Supply chain integrationConclusion


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Key Players

- A supply chain consists of

- Aims to match supply anddemand, profitably for productsand services

SUPPLY SIDE DEMAND SIDE

Supplier Manufacturer Distributor Retailer Customer


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achieves

=++ ++ +


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Hiccups in a Supply Chain

Eliminating inefficiencies in supply chains can savemillions of dollars


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MotivationGlobalisation + Lower cost of ITOutsourcing and Offshoring became popularForm huge and complex supply network across

the globe

To remain competitive, SCM became veryimportant


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Real life Examples

Compaq estimates it lost $0.5 B to $1 B in sales in1995 because laptops were not available whenand where needed


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Definition

Design, Planning, Execution, Control, andMonitoring of supply chain activities

Objective: Creating Building a Leveraging Synchronizing with Measuring globally


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Key Activities


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Procurement


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Procurement

Why important? Food -> Healthy body Supply -> Healthy supply chain


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Procurement

Why important?Whats the key consideration?


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Manufacturing and Operations


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Considerations

Cost Quality Speed Flexibility

Trade-off Resources Facility Process


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Not a

CoreActivity?

Outsourcing

FranchisingOffshore


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Transportation


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Primary mode of Transportation E.g.

Procedure to transport the goods E.g. Packaging, documentation, insurance, storage, export

and import regulation

Sometimes, may need to E.g. Freight forwarder who guides you through the complex

details, depending on your industry

Key issues in transportation


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Implications on Logistics

Very important because the transportationprocess will dictate the logistical planningprocess.

Each item is different.

EVERY PRODUCT HAS THEIR OWN STORY!!


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Retail


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Key issues in Retail

SCM: Get the right product to the right place,at the right time, in the most efficient manner.

Customers want the products ,not warehouse, distribution centers, orelsewhere.

What makes up excellent retail experience? price, clean facilities, good customer service, fast

waiting line, fast payment, easy return policies.


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What do retail stores need toconsider?

Materials, operations, logisticsCapacity, productivity and valueConsistently effective, efficient, ready to adapt to what

the market demands.

Interesting facts: Each Big Box American retail store typically sells between

$500,000 - $1.5m worth of products each week

Big Box Store manager earn 6-figure income


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Retail isnt just about physicalgoods

What do Hospitals, Airlines, Banks, Hotels have incommon?

no different from retail stores!

They can all make use of SCM


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Retail Services can all benefit fromSCM too!


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Integrating Supply Chain Activities


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Integrating SC Activities

Involves Buyers and suppliers Joint product development Common systems Shared information

Continuous


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SC in the Business Process

Strategic Number, location, size of facilities

Partnerships Suppliers, distributors, customers Create communication channel

Integrating products into SC

IT chain operations Where-to-make, make-buy decisions


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Tactical Sourcing contracts etc.

Quantity, location, quality

Frequency, route, contracting

Benchmarking Against competitors Implement best practices throughout the enterprise


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Operational Daily production and distribution planning Production scheduling (minute by minute) Demand Coordinate demand forecast of customers Share forecast with suppliers

Sourcing planning Current inventory and forecast demand


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Operational (continued) operations Transportation between suppliers and receiving

inventory

Production operations Consumption of materials and flow of goods

operations

Fulfillment activities, warehousing, transportation tocustomers


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Example Wal-Mart + P&G

Make use of Information Technology Share data across their mutual supply chains

Effective partnership channel Channel activities well coordinated

Reduced needs for inventory with increased sales Focus on selling what customers want

Supply chain adopted a much better customerfocus through channel partnership

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