1. Supply Chain
Management
PRESENTED BY:
ANKIT DABRAL

2. Supply Chain Management
Supply chain management is the management of
network of interconnected businesses involved in the
ultimate provision of goods and services required by the
end customer.
Supply chain management spans all movement and
storage of raw materials, work-in-process inventory and
finished goods from point-of-origin to point-of-
consumption.

3. Critical Aspect:
Everyone is involved
Systems approach to reducing
costs
Integration being the key

4. SCM in nutshell
Fundamentally, supply chain management
helps a company
Get the right products
To the right place
At the right time
In the proper quantity
At an acceptable cost

5. SCM is all about effective integration of…
Right Product
Right Quantity
Right Quality
 At Right Place
At Right Time
At Right Value

7. Goals of SCM
The goal of SCM is to efficiently:
Forecast demand
Control inventory
Enhance relationships with
customers, suppliers, distributors, and
others
Receive feedback on the status of every
link in the supply chain

8. Components of Supply Chain
Plan
Source
Make
Deliver
Return

9. PROCESS OF SCM
Customer Service Management :
 determine mutually satisfying goals for organization and customers
 establish and maintain customer rapport
 induce positive feelings in the organization and the customers
Procurement:
 Strategic plans are drawn up with suppliers to support the manufacturing
flow management process and the development of new products.

10. Cont…..
Product development and
commercialization:
 coordinate with customer relationship management to identify customer-articulated
needs;
 select materials and suppliers in conjunction with procurement; and
 develop production technology in manufacturing flow to manufacture and integrate
into the best supply chain flow for the given combination of product and market
Manufacturing flow management/support:
 This process manages activities related to planning, scheduling, and
supporting manufacturing operations, such as work-in-process
storage, handling, transportation, and time phasing of components, inventory
at manufacturing sites, and maximum flexibility in the coordination of
geographical and final assemblies postponement of physical distribution
operations.

11. Cont….
Physical distribution:
This concerns the movement of a finished product or service to
customers.
It links manufacturers, wholesalers, and retailers
Outsourcing / partnerships:
This includes not just the outsourcing of the procurement of
materials and components, but also the outsourcing of
services that traditionally have been provided in house

12. Cont…..
Performance Measurement:
As logistics competency becomes a critical factor in creating
and maintaining competitive advantage, measuring logistics
performance becomes increasingly important, because the
difference between profitable and unprofitable operations
becomes narrower.
Warehousing Management:
To reduce a company's cost and expenses, warehousing
management is carrying the valuable role against operations. In
the case of perfect storage and office with all convenient
facilities in company level, reducing manpower cost, dispatching
authority with on time delivery, loading & unloading facilities with
proper area, area for service station, stock management system

13. Goals and Objectives of SCM

14. Planning & Execution
Functions of SCM
Planning
Supply chain design
Collaborative demand and supply planning
Execution
Materials management
Collaborative manufacturing
Collaborative fulfillment
Supply chain event management
Supply chain performance management

15. Electronic Data Interchange
One of the earliest uses of information
technology for supply chain management
The electronic exchange of business
transaction documents between supply
chain trading partners
The almost complete automation of an e-
commerce supply chain process
Many transactions occur over the Internet,
using secure virtual private networks
15

16. Drivers of SCM
1. Facilities
2. Inventory
3. Transportation
4. Information
SCM provides metrics
by which we can
measure efficiency IT
metrics and
effectiveness IT metric
These metrics are
driven by the 4 drivers

18. Benefits of SCM
Key Benefits
Faster, more accurate order processing
Reductions in inventory levels
Quicker times to market
Lower transaction and materials costs
Strategic relationships with supplier

19. Challenges of SCM
Key Challenges
Lack of demand planning knowledge, tools,
and guidelines
Inaccurate data provided by other information
systems
Lack of collaboration among
marketing, production, and inventory management
SCM tools are immature, incomplete, and
hard to implement

20. Thank you