Supply Chain Management
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Supply Chain Management is a practice adopted by companies to get the right product at the right time to the customers, reduce cycle times, keep the inventory as low as possible and still offer superior customer service. Some of the goals of SCM are cut costs, increase profits,improve performance in relationships with suppliers and customers, develop value added services that gives company a competitive edge.
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Supply Chain Management
- 2. Supply Chain Management Physical Supply Chain Basic Delivery to Product customer materials Vertical Supply Chain Open a Attract Link to sales website customers organisation
- 3. Different Categories of Supply Chains Orders Orders Orders Raw Material Manufacturer Wholesaler Retailer supplier supplies supplies supplies
- 4. 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
- 5. 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
- 6. Supply Chain Management Inventory Supplier Management Distribution Management Management Supply Chain Sales force Management Productivity Financial Payment Channel Management Management Management
- 7. Critical Relationship of Suppliers/Company Cost Quality Suppliers/ Company Flexibility Speed
- 8. Fourth Strategy Product specs that your suppliers must Tracking of adhere to the needs Your Customer suppliers company (starting point) Downstream part of Reverse flow of Upstream parts of the value chain the value chain Information
- 9. Supply Chain Design plants Distribution suppliers customers centres
- 10. Waves of Future (Economic Change) Current State Global Business Previous State Environment Nation state Environment Users define Markets Producers Define Markets Technology dominates Manufacturing dominates Capital Investment Capital Investment Business Alliances Independent Businesses Focus on Value focus on Price De-regulation and Government Control/ Privatization Regulation
- 11. Power Shift Response Trends Strategic Alliances & value Late chain Integration ’90s Customer satisfaction & Growth Mid Strategies ’90s Early Re-engineering & Downsizing ’90s Quality & TQM ’80s Productivity ’70s Improvement Producer-driven ’50s – Economy ’60s
- 12. VCM Architecture Systems Core VCM End Users company as a layer knowledge Repository
- 13. 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
- 14. Characteristics of SCM - 2 • Seamless integration of all supply chain processes including third party suppliers, information systems, cost accuring standards and measurement systems • Development & implementation of accounting models • Reorganisation of the supply chain organisation into high-performance teams
- 15. Factors hindering re-combinant business models • Disparate data • Proprietary standards models • Inertia & fear of • Disparate trading change partner capabilities • Competitiveness • Disparate process based on business models process differences • Semantic • Point to point heterogeneity interfaces • Integration as trading partner lockin
- 16. SCP Tools • Strategic planning tools • Executive & implementation tools • Tactical planning tools
- 17. Tactical Planning • Network • Transportation & • Available to Promise(ATP) Scheduling • Capable to Promise (CTP) • Manufacturing • Capacity planning • Demand planning • Distribution planning • Deployment planning • Sales & operation
- 19. Supply Chain Foundation COMMUNICATIONS HEAD QUARTERS E INTRANET (AT THE U E INTERNET PLANT ENTERPRISE) WAREHOUSE ERP SFA PDM MARKETING APPLICATIONS/ INTEGRATION FUNCTIONS
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