A brief introduction to SCM and its implication in day to day activities

1. Introduction
SUPPLY CHAIN MANAGEMENT

2. Session Objectives
To enable the learner to understand:
 What is a Supply Chain?
 What are logistics and supply chain management?
 Perspectives of SCM

3. Supply chain of these varied items
have common supply chain elements

4. Supply chain of these varied items
have common supply chain elements

5. Supply chain of these varied items
have common supply chain elements

6. Supply chain of these varied items
have common supply chain elements

7. What is a Supply Chain?
Two or more parties linked by a flow of resources –
typically material, information, and money – that ultimately
fulfill a customer request.
Information (order)
Information (status)
Material (delivery)
Money (payment)
The supply chain encompasses all activities associated with the flow & transformation
of goods from the raw materials stage (extraction) , through to the end user, as well
as the associated information flows.

8. Mission of SCM
“To get the right goods or services to the right place,
at the right time, and in the desired condition , while
making the greatest contribution to the firm.”

9. What is a Supply Chain?
The primary purpose of a SC is to satisfy customer needs.
Only one source of revenue – the customer
Payments between parties are just fund exchanges
Division of intra-SC payments are a function of power, market
conditions, etc.

10. Supply Chains try to maximize the
total value generated
=
(What customer pays ) – (Total effort expended to fulfill )

11. Supply Chain Process

12. Logistics versus Supply Chain Management
“Managing the flow of items, information , cash & ideas through the
coordination of supply chain processes and through the strategic
addition of place, period and pattern values.”
“Deals with the management of materials, information, and
financial flows in a network consisting of suppliers , manufacturers,
distributors, & customers.”
Logistics
Supply Chain Management

13. Supply Chain Perspectives
Suppliers
Manufacturers
Distributors
Customers

14. ProcessView of Supply Chains
Four Primary Cycles
Customer Order Cycle
Replenishment cycle
Manufacturing Cycle
Procurement Cycle
Cycles Occur Between Stages
Interactions differ at each stage
Not every SC will have all 4 Cycles
Supplier • Procurement
cycle
Manufacturer • Manufacturing
cycle
Distributor • Replenishment
cycle
Retailer • Customer
Order Cycle
Customer

15. Video on How a SCM Company Works
https://www.youtube.com/watch?v=XoC5mI1Jk7A

16. Let’s Summarize
Supply chain management focuses on the customers at the end of
supply chain which is flexible and responsive.
It is the flow of goods, services & information from the point of
origin to the point of consumption efficiently to provide optimal
customer delight.
It comprises of four cycles primarily.
The performance of supply chains is usually measured in terms of
overall corporate goals for success.