Supply Chain Management

A presentation

by

Kritika chhatwal

SUPPLY CHAIN MANAGEMENT

Supply-chain management is the integration of business processes from end user through original suppliers, that provide products, services, and information that add value for customers.

1) Value Chain

2)Supply side- raw materials, inbound logistics and production processes

3) Demand side- outbound logistics, marketing and sales.

WHAT IS SUPPLY CHAIN MANAGEMENT

" Is the strategic management of activities involved in the acquisition and conversion of materials to finished products delivered to the customer"

SupplierManagement

Schedule /Resources Conversion

Stock Deployment Delivery

CustomerManagement

Leads to Business Process Integration

Material Flow

Information Flow

• Supply chain is the system by which organizations source, make and deliver their products or services according to market demand.

• Supply chain management operations and decisions are ultimately triggered by demand signals at the ultimate consumer level.

• Supply chain as defined by experienced practitioners extends from suppliers’ suppliers to customers’ customers.

• SUPPLY CHAIN INCLUDES :

– MATERIAL FLOWS

– INFORMATION FLOWS

– FINANCIAL FLOWS

Supply Chain

Vendor

Purchase

StoresRM

Customer

Warehousing

StoresFG

Inbound Logistics Out bound logistics

OPERATIONSProcurement

Distribution

Material flow Material flow

Information flow

SUPPLY CHAIN ELEMENTS

• Supply Chain Design• Resource Acquisition• Long Term Planning (1 Year ++)

Strategic

• Production/ Distribution Planning• Resource Allocation• Medium Term Planning (Qtrly,Monthly)

Tactical

• Shipment Scheduling• Resource Scheduling• Short Term Planning (Weekly,Daily)

Operational

• Supply Chain Goals

Efficient supply chain management must result in tangible business improvements. It is characterized by a sharp focus on – Revenue growth– Better asset utilization – Cost reduction.

Reduce Overall Cycle Time : Improve Response

Supply Chain Management Principles

Compression

Conformance

Co-operation

Communication

(Planning/Manufacturing/Supply)

(Forecasts/Plans/Distribution) (Cross -Functional)

(Real Time Data)

. The steps involved

• Step1- Designing the supply chain– Determine the supply chain network– Identify the levels of service required

Step 2 - Optimizing the supply chain• Determine pathways from suppliers to

the end customer– Customer markets to Distribution centers– Distribution centers to production plants– Raw material sources to production plants– Identify constraints at vendors, plants and

distribution centers– Get the big picture– Plan the procurement, production and

distribution of product groups rather than individual products in large time periods- quarters or years

Step 3- Material flow planning

• Determine the exact flow and timing of materials

• Arrive at decisions by working back from the projected demand through the supply chain to the raw material resources

• Techniques• ERP

Step 4 - Transaction processing and

short term scheduling

• Customer orders arrive at random• This is a day to day accounting system which

tracks and schedules every order to meet customer demand

• Order entry, order fulfillment and physical replenishment

IMPORTANCE of Information in Supply Chain Management

• Information is overriding element• Need for databases• Master files: Information about customers, products,

materials, suppliers, transportation, production and distribution data- do not require frequent processing

• Status files- heart of transaction processing- track orders and infrastructure status- updated daily.

• Essentially using the same information to make all plans right from structuring the network to processing every day supply chain tasks.

Thank You