Meaning of Supply Chain Management : an insight into process flow and linkage

Meaning of Supply Chain Management : an insight into process flow and
linkage
Presenter – Prasanth S.

www.edureka.co/supply-chain-managementSlide 2
Know your Instructor – Prasanth S.
Process leader at one of the largest manufacturing organization of the world.
A mechanical engineer from Birla Institute of Technology, Mesra, Ranchi, India.
An MBA grad from XLRI specializing in operations and finance
Process designer – Supply Chain Management
Worked on most of the modern day process improvement methodologies like CCPM, LEAN, TOC, TQM,
SCM, Six sigma, Business process re-engineering, SMED, Statistical tools and POOGi tools.
Conducted & Implemented SCM process designs across various domains of manufacturing and services.

Agenda
What is Supply Chain Management?
A brief history in time
Why should one learn about supply chain management?
Structure of Supply Chain Management system in brief
Top Organizations benefitting from supply chain management
Key features of the course and Edureka education platform
Questions and doubts

What is Supply Chain Management?

www.edureka.co/supply-chain-management
Supply Chain -Definition
All stages involved, directly or indirectly, in fulfilling a customer request
Includes manufacturers, suppliers, transporters, warehouses, retailers, and customers
Within each company, the supply chain includes all functions involved in fulfilling a customer request
(product development, marketing, operations, distribution, finance, customer service)
It involves dynamic and constant flow of information, products and funds between different stages and
stakeholders.
Customer is an most important and an integral part of the supply chain
A supply chain is typically consists of various sources and resources at various stages and hence we
may be right in calling it “supply network” or “supply web” more accurately.

Views of a Supply Chain
Supplier
stage market
product
Buyer stage
places order
Supply stage
receives
orders
Supply stage
supplies
orders
Buyer stage
receives
supply
Buyer
returns
reverse flows
to supplier
Sub processes in each Supply Chain process cycle
Interdependencies in a Supply Chain Management

A Brief History In Time

Evolution of supply chain management

Why Supply Chain Management?

Why Supply Chain management ?
To start with let us take an example of a typical industry which runs on a traditional /general
approach .
We will observe that it will primarily measure and focus on the following elements :
Freight Transportation
Inventory Expense
Administrative Expense
Logistics Related Activity
What do you think is the problem here ??

Why Supply Chain Management ? Another Scenario
Let me give you another scenario . Below is the expense split
in a typical manufacturing industry.
Profit 4%
Logistics Cost 21%
Marketing Cost 27%
Manufacturing Cost 48%
Do you see a problem here ? What is it ? And why ?
1-11

Why Supply Chain Management ?
Now lets see how things change when an industry applies the principles of Supply Chain Management in its
true sense .
Few examples.
1) It has been observed that a typical steel industry saves more than Rs 50 Crores ( USD 9.6 million
)by using effective logistics and supply chain strategies.
2) Dell saved billions just by changing its supply chain operations while Compaq estimated that it lost $.5
billion to $1 billion in sales in 1995 just because its laptops were not available when and where needed
3) Walmart a well known grocery brand thrives on the virtues of supply chain management only. It
reduced its operating cost drastically by practical and effective application of SCM.

Structure Of A Supply Chain
Management System

Structural buildup of a Supply Chain Process
SCM

Who Is Using And Benefitting From
Supply Chain Management
And How?

How does Supply Chain help ?

Beneficiaries

Popular Users

Course Features And Methodology
-Highlights

LIVE Online Class
Class Recording in LMS
24/7 Post Class Support
Module Wise Quiz
Project Work
Verifiable Certificate
Course Features

Questions

Meaning of Supply Chain Management : an insight into process flow and linkage

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Meaning of Supply Chain Management : an insight into process flow and linkage