supply chain management. participants introduction supply chain management
TRANSCRIPT
SUPPLY CHAIN MANAGEMENT
PARTICIPANTS INTRODUCTION
SUPPLY CHAIN MANAGEMENT
LEARNING OBJECTIVES> INTRODUCTION TO SUPPLY CHAINS
> SUPPLY CHAIN MANAGEMENT
> COMPONENTS OF SUPPLY CHAIN
> SUPPLY CHAIN PROCESSES
> SUPPLY CHAIN FLOWS
> PIT FALLS IN SUPPLY CHAIN MGMT
INTRODUCTION TO SUPPLY CHAINS
INTRODUCTION TO SUPPLY CHAINS
Aircraft spares
INTRODUCTION TO SUPPLY CHAINS
Unilever ice cream
A TYPICAL SUPPLY CHAIN
WHY SUPPLY CHAIN MANAGEMENT
CHANGES IN USER REQUIREMENTS
CHANGES IN PRODUCT/ SERVICE
SEASONALITY
THE RIGHT PRODUCT
IN RIGHT QUANTITY
AT RIGHT TIME
AT THE RIGHT PLACE
MANAGING SUPPLY CHAIN IS A COMPLEX PROCESS
AN EFFICIENT AND RELIABLE SUPPLY CHAIN IS BUSINESS WINNER
IT CONSIST OF A LOT OF INTER AND INTRA COMPANY ACTIVITIES
IT’S A RELAY
WHY SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT
The term supply chain refers to the entire network of companies that work together to design, produce, deliver, and service products.
“The integration of key business processes from end user through original suppliers that provides products, services, and information and add value for customers and other stakeholders."
COMPONENTS OF SUPPLY CHAIN
Suppliers. Source of raw materials, component parts, semi-manufactured products, and other items that occur early in the supply chain - unfinished or non-consumable products. Manufacturers. Makers of products. Suppliers produce components or subassemblies, while manufacturers perform the task of final assembly or product integration. Distributors. Responsible for the storing, and handling of materials at receiving docks, warehouses, and retail outlets. Retailers. These are the manufacturer's customers - the stores that buy the actual products. Consumers. This is you - the person who actually buys the product for consumption.
COMPONENTS OF SUPPLY CHAIN
Majority of the companies use these Components:
Stereo manufacturing Company
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A
XY
Z
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2
Part Suplier-1
Part Suplier-1
Part Suplier-1
Dis
trib
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Retailers
Consumersassembled, packaged, labeled
SUPPLY CHAIN IN SERVICES
Supply chains also exist for services, For example, a commercial bank has a supply chain,
Inventory is represented by each bank teller's capacity, or time to serve customers.
A major challenge for banks is to effectively manage this availability of its teller resources.
Trucking and logistics companies.
Capacity is available only for specific period of times.
Are you Involved In a SC? In What capacity?
Is Anyone Else Involved in the Supply Chain?
OTHER PLAYERSLogistics providers.
Transporting products.Operating strategically placed warehousing or distribution operations.Sometimes, logistics providers offer multiple integrated services.
Contract manufacturers. Provide subcontract manufacturing for manufacturers.
Information-based service providers. Software or other information technologies providersInformation-based service providers may include IT firms, which provide and manage systems for individual firms and for overall supply chains.
Financial institutions. Includes banks and other financial institutions, freight payment and billing, inventory financing, and inter-firm transaction management.
SUPPLY CHAIN PROCESSESPurchasing. Activities related to the purchase of all goods and
services.
Order processing. Fill customers' orders, such as order receipt, order picking, and order shipment.
Demand planning. Forecasts, actual sales, and current inventory levels.
Inventory mgmt. Forecasting, proper positioning of stock, and the active observation of product age and availability.
Warehousing. The holding of goods with an emphasis on moving product into, through, and out of warehouses in a timely manner.
Transportation. Movement of products from one specific destination to another.
Customer service. Includes all sales or after-sales related activities.
PURCHASING
•Component parts, •Raw materials, •Operating suppliers, •Support equipment, •Process equipment,•Services
Focus on:•Total Cost of ownership•Exploiting the Capabilities of Information Technology •Supplier Relationships •Consolidation of Suppliers
ORDER PROCESSING
•Customer places order •Order received by manufacturer •Order processed •Credit checked and verified •Order picked and packed •Order shipped to customer •Order received by customer and placed in inventory
Focus on:•Reduction of order Cycle Time•Use of Electronic Data Interchange (EDI)
DEMAND PLANNING
•Forecasting•Production Planning•Material planningProduct
SupplyProduct Demand
•Number of units of a specified product to be produced •Time intervals over which production will occur •Availability of materials and machines to produce the number of units required within the specified time frame
Main Concerns:
INVENTORY MANAGEMENT
Inventorylevels
Customer ServiceLevel
Inventory has a cost & low customer service levels have consequences.
Techniques:•Just-in-Time (JIT)•Vendor-Managed Inventory (VMI) •Continuous Replenishment Program (CRP)
WAREHOUSING
• Movement • Storage • Information transfer
TRANSPORTATION
FLOWS
FUTURE FOCUS
•Departmental silos•Finger pointing•Conflicting Objectives•Inefficient SC•SC unresponsive to customer needs
•Create Value not just save money•Use of inf. Technology in:
•Redefining SC structure.•Designing new product•Reaching new customer segments
PITFALLS OF POOR SC DESIGN
–Inefficient Process Design
–Inadequate or Wrong Information Flow
–Inappropriate Performance Measures
PITFALL RESULTS
Inefficient Process Design
Uncoordinated & Ineffective Network Operations
Inadequate or Inaccurate Information Flow
Inappropriate Performance Measures
Misaligned value chain
Overly-complex network
Mismatched processes
Inadequate product designs
Inefficient linkages between components of the supply chain
Disjointed production planning
Outdated inventory stocking policies
Uncoordinated actions
Poor quality controls Inefficient
procurement policies Inefficient
distribution methods
Inadequate, inaccurate, and outdated data
Inconsistent data Non-responsiveness
from players within the supply chain
Barriers to inter-functional communication
Inefficient retrieval of needed information
Distortion of company results
Develop a Supply Chain Wide Technology Strategy
CENTRAL WAREHOUSE
REGIONAL WAREHOUSE
WORKSHOP STORES
CUSTOMERS
Develop a Supply Chain Wide Technology Strategy
OSP1 CUSTOMER INQUIRY RESPONSE PROCESS
RW
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WS
CW
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US
TO
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CUSTOMER INQUIRY RESPONSE
TO INQUIRY
Reception
Reception
Reception
DPC Account Cards
DPC Account cards
Account cardsDPC
Develop a Supply Chain Wide Technology Strategy
ROSP1 CUSTOMER INQUIRY
RW
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CW
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TO
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CUSTOMER INQUIRY RESPONSE
TO INQUIRY
CENTRAL DATA NETWORK
Dou you think that as supply chain manager you need to “wonderlaized” the management of the THREE FLOWS.
Are there other processes in a supply chain that we have studied namely……
Jazb-e-Baham or athletics relay refers to what concept in a supply chain.