1. Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

2. I Know am trying
to understanding
X
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

3. Understanding
The
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

4. Start Thinking Out of The Box
 Supply Chain is not only Purchase or Inventory
 Supply chain is not only Logistics
 Supply Chain is not only Production
Supply Chain is Collaboration with every entities
Base on Planning, Sourcing, Making, Selling
at the end Customer Satisfactions
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).
).

5. History of Supply Chain Management
 1960’s - Inventory Management Focus, Cost Control
 1970’s - Operations Planning
 1980’s - JIT - Materials Management, Logistics
 1990’s - SCM - ERP - “Integrated” Purchasing,
Financials, Manufacturing, Order Entry
 2000’s - Optimized “Value Network” with Real-Time
Decision Support; Synchronized & Collaborative
Extended Network
 2010’s- Effective Cost Advantage & Customer
Service Level Optimized
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

6. FOUNDATION OF SUPPLY CHAIN
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

7. Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).
PROCESS OF SUPPLY CHAIN

8. Definitions
“SUPPLY CHAIN is defined as a set of
three or more entities (organizational or
individual) directly involved in the
upstream and downstream flow of
product, services, finances and
information from a source to customer”
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

9. A Generic Supply Chain
2nd
Tier
Suppliers
2nd
Tier
Suppliers
2nd
Tier
Suppliers
2nd
Tier
Suppliers
2nd
Tier
Suppliers
2nd
Tier
Suppliers
1st
Tier
Suppliers
1st
Tier
Suppliers
1st
Tier
Suppliers
1st
Tier
Suppliers
Assembly/
Manufacturing and
Packaging
Assembly/
Manufacturing and
Packaging
Distribution
Centers
Distribution
Centers RetailersRetailers CustomersCustomers
TheGenericProcess
Upstream Internal Downstream
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

10. Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

11. Supply Chain Integration – Push/Pull
Strategies
 Hybrid of “push” and “pull” strategies to overcome disadvantages
of each
 Early stages of product assembly are done in a “push” manner
 Partial assembly of product based on aggregate demand forecasts
(which are more accurate than individual product demand forecasts)
 Uncertainty is reduced so safety stock inventory is lower
 Final product assembly is done based on customer demand for
specific product configurations
 Supply chain timeline determines “push-pull boundary”
Supply Chain Timeline
Raw
Materials
End
Consumer
Push Strategy Pull Strategy
Push-
Pull
Boundary“Generic” Product “Customized” Product

12. Supply chain activities
 Forecasting demand
 Selecting suppliers
 Ordering material
 Managing inventory
 Scheduling production
 On time delivery
 Organizing information exchange
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

13. Why Is SCM Difficult?
 Uncertainty is inherent to every supply chain
 Travel times
 Breakdowns of machines and vehicles
 Weather, natural catastrophe, war
 Local politics, labor conditions, border issues
 Payment System
 The complexity of the problem to globally optimize a supply
chain is significant
 Minimize internal costs
 Minimize uncertainty
 Deal with remaining uncertainty
Plan Source Make Deliver Buy
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).
).

14. Challenges we face…..
Common Myth….
 Supply chain is nothing but fire fighting…
 Theory cannot be applied in solving practical
problem.
 May be we are not doing the best but we are doing is
not bad.
 High level of inventory is the key to minimize risk
of stock out.
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

15. Supply chain is not a job of one person or one
Department…(Multi-Functional Process)
Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).

16. Kumruddin Al Azad
(M.COM, PGD-SCM, CSCM).