Supply Chain Management

Supply Chain Management

Basic materials

Link to salesorganisation

Delivery tocustomerProduct

Attract customers

Open awebsite

Vertical Supply Chain

Physical Supply Chain

Different Categories of Supply Chains

Raw Materialsupplier Manufacturer Wholesaler Retailer

supplies supplies supplies

Orders Orders Orders

Benefits of SCM

i. Get the right product at the right place at the least cost

ii. Keep Inventory as low as possible and still offer superior customer service

iii. Reduce cycle times

Goals of SCM To cut costs Increase profits Improve performance in

relationships with customers and suppliers

Develop value added services that give a company a competitive edge

Supply Chain Management

Supply ChainManagement

Channel Management

Sales forceProductivity

Distribution Management

Supplier Management

PaymentManagement

InventoryManagement

Financial Management

Suppliers/Company

Flexibility Speed

Quality Cost

Critical Relationship of Suppliers/Company

suppliersCustomer

(starting point)Your

company

Reverse flow of

Information

Downstream part of the value chain

Upstream parts of the value chain

Tracking of the needs

Product specs that your suppliers must adhere to

Fourth Strategy

Supply Chain Design

plants

suppliersDistribution centres customers

Current StateGlobal BusinessEnvironmentUsers define MarketsTechnology dominates Capital InvestmentBusiness AlliancesFocus on ValueDe-regulation andPrivatization

Previous StateNation state Environment

Producers Define Markets Manufacturing dominates

Capital InvestmentIndependent Businesses

focus on PriceGovernment Control/

Regulation

Waves of Future (Economic Change)

Late90s

Mid90s

50s 60s

70s

80s

Early90s

Strategic Alliances & value chain Integration

Customer satisfaction & Growth Strategies

Re-engineering & Downsizing

Quality & TQM

Productivity Improvement

Producer-driven Economy

Power Shift Response Trends

VCM Architecture

Systems

knowledge

Corecompany

End UsersVCMas a layer

Repository

Characteristics of SCM - 1 Sourcing of raw materials or finished

goods from anywhere in the world Centralised global business &

management strategy with hem less local execution

On-line, real time distributed information processing providing total supply chain information visibility

Ability to manage information not only within a company but across industries & enterprises

Characteristics of SCM - 2

Seamless integration of all supply chain processes including third party suppliers, information systems, cost accuringstandards and measurement systems

Development & implementation of accounting models

Reorganisation of the supply chain organisation into high-performance teams

Factors hindering re-combinantbusiness models

Disparate data models

Disparate trading partner capabilities

Disparate process models

Semantic heterogeneity

Integration as trading partner lockin

Proprietary standards Inertia & fear of

change Competitiveness

based on business process differences

Point to point interfaces

SCP Tools

Strategic planning tools

Executive & implementation tools

Tactical planning tools

Tactical Planning

Network Available to Promise(ATP) Capable to Promise (CTP) Capacity planning Demand planning Distribution planning Deployment planning Sales & operation

Transportation & Scheduling

Manufacturing

Enterprise Collaboration

Goals

Communicate

Coordinate

Collaborate

Supply Chain Foundation

E

EU INTERNET PLANT

HEAD QUARTERS

INTRANET (AT THE ENTERPRISE)

WAREHOUSE

ERP SFA

MARKETINGPDM

APPLICATIONS/

FUNCTIONSINTEGRATION

COMMUNICATIONS

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Supply Chain ManagementSupply Chain ManagementDifferent Categories of Supply ChainsBenefits of SCMGoals of SCMSupply Chain ManagementCritical Relationship of Suppliers/CompanyFourth StrategySupply Chain DesignWaves of Future (Economic Change)Power Shift Response TrendsVCM ArchitectureCharacteristics of SCM - 1Characteristics of SCM - 2Factors hindering re-combinant business modelsSCP ToolsTactical PlanningEnterprise CollaborationSupply Chain Foundation