This document provides a summary of key concepts in supply chain management. It discusses supply chains, supply chain management, value chain management, operations management, logistics management, lean supply chains, agile supply chains, and the objectives and decision phases of supply chains. It also covers integrated supply chain management, barriers to supply chain management implementation, attributes affecting implementation like technology and communication, and reasons for many versus few suppliers in a supply chain.

1. Supply Chain Management
Group-01
Presentation On Preliminary
Chapter First Half

2. Serial
No0
Name Id
1 Sotish Chandra Barman 13087418
2 Md.Mominul Islam 13107419
3 Rayhan Ibn Ali 13037425
4 Minhajur Rahman(Leader) 13037435
5 Most.Shabiha Khatun 13257463
6 Mithu Ahmed 13057465
7 Swapan Mandal 13057482
8 Md. Al-Amin 13097486
9 Kawsar Ahmed Sohag 13057491
10

3. Supply Chain
A supply chain is a network of facilities that procure raw materials, transforms them into
intermediaries goods and then final products, and deliver the products to customer
through distribution system.
A supply chain is a system of organizations, people, activities, information, and
resources involved in moving a product or service from supplier to customer. Supply
chain activities involve the transformation of natural resources , raw materials, and
components into a finished product that is delivered to the end customer.

4. Supply Chain Management :
Supply chain management , the management of the flow of goods and
services, involves the movement and storage of raw materials, of work
in process inventory, and of finished goods from point of origin to point
of consumption.

5. Supply Chain Management
In supply chains, the primary focus is on costs of materials and efficient delivery.
Effective supply chain management reduces costs to the consumer and increases
profits for the manufacturer.
Successful supply chain managers bring great value to their employers. They
contribute to the organization’s success by fulfilling roles such as:
• Choosing and managing suppliers of components or raw materials.
• Strategic planning for production and delivery to support marketing efforts,
special offers and seasonal demand.
• Monitoring inventory and product flow to avoid supply shortages.

6. Managing supply and demand, sourcing raw materials and parts,
manufacturing and assembly, warehousing and inventory tracking,
order entry and order management, distribution across all channels,
and delivery to the customer.
-The Supply Chain Council

7. Why study Supply Chain Management?
• A period of change in the history of the world, in terms of advances in
technology, globalisation of markets and stabilization of political economies
• Increasing number of competitors both domestically and abroad
• To stay competitive by improving internal and external process
• Focused on creating and capturing customer loyalty
• To produce and maintain high level of quality at a reasonable cost

8. Why study Supply Chain Management?
• To meet ever-changing customer needs
• To an increased focus on sourcing strategy
• To ensure the availability of right product at right time in right place
• To manage all upstream firms that provide inputs
• To manage network of downstream firms responsible for delivery
products

9. Value Chain Management
• Value chain management is concern with the flow of goods to
consumers, but takes a different approach. It is the complementary
view of the process. In value chain management the consumer is seen
as the source of value. Consumers create value for manufacturers
when they demand products. The focus is not on the cost of goods, as
in supply chain management ,but in creating value in the consumer’s
eyes.

10. Value chains are strategic, placing heavy focus on:
• Innovation
• Research and Development
• Product Testing
• Marketing
• Social Trend Analysis
• Economic Conditions

11. Operations Management
• Operations management refers to the administration of business
practices to create the highest level of efficiency possible within an
organization. It is concern with converting materials and labor into
goods and services as efficiently as possible to maximize the profit of
an organization. Operations management teams attempt to balance
the highest net operating profit possible.

12. Logistic Management
• Logistic management is a part of the supply chain, with a more
narrow scope . It often refers to activities involved from a product or
material’s point of departure to its final point of arrival.

13. Difference between VCM and SCM:
• A supply chain emphasize more on timing, quality and lower costs for
delivering goods or services to customers considering both short-
term and long-term needs.
• A value chain is the collection of activities ( production, marketing,
logistics, services) from a value adding viewpoint, which may focus on
all add-value process, including both the delivery of goods/services
and the improvement of goods/services.

14. Difference between SCM and OPM:
One distinct difference between SCM and OPM is that SCM is focused
externally. It focus on:
• Planning products that consumers will want to buy.
• Sourcing raw materials ,components and parts.
• Transporting and warehousing products.
• Delivering the goods to the point of purchase.
SCM and OPM are closely linked and dependent up[on each other. In most
organizations supply chain management is apart of operation management.
But one contrast between supply chain and operations management is that
operations management occurs internally.

15. Lean:
Lean means to create a value stream to eliminate all waste including time, inventory or unnecessary
costs and creates a production schedule. Lean Supply Chain emphasizes on the use of continuous
improvement activities that focus on eliminate all non-value added activities along the supply chain.
Agile:
The word agile means the ability of fast thinking with a clever method. It is a concept of maximum
flexibility. An agile organization should be able to respond to possible changes .Agility acts as a pillar to
improve competitiveness, to produce a broad range of low cost, high quality products with short lead time.
It is all about to respond rapidly. Agile supply chain includes companies which are legally separate but
terms of operations are linked.
Supply chain concept

16.  A first-party logistics provider (1PL) is a firm or an individual that needs to have cargo, freight, goods,
produce or merchandise transported from a point A to a point B.
 A second-party logistics provider (2PL) is an asset-based carrier, which actually owns the means of
transportation. Typical 2PLs would be shipping lines which own, lease or charter their ships
 A third-party logistics provider (3PL) provides outsourced or 'third party' logistics services to companies for
part or sometimes all of their supply chain management function.
 A fourth-party logistics provider (4PL) is an independent, singularly accountable, non-asset based integrator
who will assemble the resources, capabilities and technology of its own organization and other organizations
 A fifth party logistics provider (5PL) will aggregate the demands of the 3PL and others into bulk volume for
negotiating more favorable rates with airlines and shipping companies.
Supply chain concept

17. Supply chain concept
Bullwhip effect:
The bullwhip effect is a distribution channel phenomenon in which
forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory
in response to shifts in customer demand as one moves further up the supply
chain.
Contract logistics:
Contract logistics companies handle activities such as designing
and planning supply chains, designing facilities, warehousing, transporting and
distributing goods, processing orders and collecting payments, managing inventory
and even providing certain aspects of customer service
SCOR:
The supply chain operations reference model (SCOR) is a management tool
used to address, improve, and communicate supply chain management decisions
within a company and with suppliers and customers of a company (1). The model
describes the business processes required to satisfy a customer's demands

18. Objectives of supply chain:
There are some objectives of supply chain. These are given below-
• To maximize the overall value generated:
Supply chain value is difference between what the final product is worth to the
customer and the effort the supply chain expends in filling the customer’s request
• To look for sources(flows) of revenue and cost:
The appropriate management of these flows is a key to success
• To achieve a sustainable competitive advantages:
By managing the flows between and among supply chain stages to
maximize total supply chain profitability.
• Revenue generate:
example- Dell receives $2000 from a customer for a computer (revenue)

19. • Supply chain incurs costs:
(information, storage, transportation,
components, assembly, etc.)
• Difference between $2000 and the sum of all of these costs is the
supply chain profit
• Supply chain profitability is total profit to be shared across all stages
of the supply chain
• Supply chain success should be measured by total supply chain
profitability, not profits at an individual stage

20. Integrated Supply Chain Management:
An integrated supply chain can be defined as an
association of customers and suppliers who, using
management techniques, work together to optimize their
collective performance in the creation, distribution, and
support of an end product.

21. Integrated Supply Chain Management

22. Integrated Supply Chain Management
Supply chain integration is a continuous process that can be optimized
only when OEMs, customers, and suppliers work together to improve
their relationships and when all participants are aware of key activities
at all levels in the chain.

23. Decision phases of a supply chain
Supply strategy or
design
Supply chain
planning
Supply chain
operation

24. Supply strategy or design
• Decisions about the structure of the supply
chain and what processes each stage will
perform
• Strategic supply chain decision
• Supply chain design must support strategic
objectives
• Supply chain design decisions are long term and
expensive to revers mast take into account
market uncertainty

25. Supply chain planning
 Planning decision
• Which market will be supplied from which locations
• Planed buildup of innovation
• Subcontracting backup location
• Inventory policies
• Timing and size of market promotions
 Mast consider in planning decisions demand
uncertainty, exchange rate, competition over the time
horizon.

26. Supply chain operation
• Time horizon is weekly or daily
• Decisions regarding individual customer orders
• Supply chain configuration is fixed and operating
policies are determined
• Goal is to implement the operating policies as
effectively as possible.
• Allocate orders to inventory or production, set
order due dates, generate pick list at a
warehouse, allocate an order to a particular
shipment, set delivery schedule, place
replacement orders
• Much less uncertainty (short time horizon)

27. Process View of a Supply Chain:
• Cycle view:
processes in a supply chain are divided into a series of cycles, each
performed at the interfaces between two successive supply chain stages
• Push/pull view:
Pull processes are initiated by a customer order, whereas push
processes are initiated and performed in anticipation of customer order

28. Cycle View of Supply Chain Chains
28
Customer Order Cycle
Replenishment Cycle
Manufacturing Cycle
Procurement Cycle
Customer
Retailer
Distributor
Manufacturer
Supplier

29. Attributes Affecting SCM Implementation:
1. Customer Power
The Internet has given consumers power through information.
 Fast supply chain – emphasizes a speed and time component
 Agile supply chain – focuses on an organization's ability to respond to changes
in demand with respect to volume and variety
 Perfect orders - simultaneous achievement of relevant customer metrics such
as on-time delivery and correct order quantity

30. Attributes Affecting SCM Implementation:
2.Long-Term Orientation
Relational exchanges – Long-term relationships with at least one
company in the supply chain. “What's in if for us?”.
Key attributes: Trust, commitment, dependence, investment, and
shared benefits.
Transactional exchanges – Short-tern relationship with companies in
the supply chain. “What's in it for me?

31.  Attributes Affecting SCM Implementation
3. Leveraging Technology
 Computing Power and Internet –
allows fast, low-cost
mathematical solutions to
complex supply chain issues
Instant visibility and sharing
capability of logistics data with other
parties in the supply chain = more
proactive and less reactive, lower
inventories, improved profitability.

32. Attributes Affecting SCM Implementation:
4.Enhanced Communication across Organizations
oPOS (Point of Sale) information – example: retail point-of-sale
information can be transmitted directly to suppliers and translated
into orders for replenishment of products.
5.Inventory Control
oJAZ (just about zero) – reducing the bullwhip effect. Involves a
reduction in the amount of inventory in the supply chain.
Natural and man-made catastrophes can always disrupt the supply
chain.

33. Attributes Affecting SCM Implementation:
6.Inter organizational Collaboration
Primary objective of SCM is optimize the performance of the supply chain as
a whole.
Supply chain Collaboration - “cooperative, supply chain relationships –
formal or informal – between manufacturing companies and their suppliers,
business partners or customers, developed to enhance the overall business
performance of both sides.”

34. Barriers to SCM
1.Regulatory and political considerations
◦ Laws and Regulations
◦ War and government stability
2· Lack of top management commitment
o Top management has the ability to allocate the necessary resources for supply chain
endeavors and the power to structure, or restructure, corporate incentive policies to
focus on achieving organizational and inter organizational objectives.
3.Reluctance to share, or use, relevant information
o Proprietary information

35. Barriers to SCM
4.Incompatible information systems:
• Software incompatibility – one kind of software can't talk to an other
kind
• Single integrator approach – all relevant software is provided by a single
vendor (example: the complete Microsoft Office Suit)
• Best-of-breed approach – chooses the best application for a particular
function

36. Barriers to SCM
5. Incompatible corporate cultures:
“How we do things around here” simply don't match.
6. Globalization
◦ Global competition
◦ Longer and more unpredictable lead times – time from when an
order is placed until it is received for shipments
◦ Various errors (documentation, packaging, routing, etc)

37. Globalization of Supply Chains
Increasing globalization
• Lower priced materials and labor
• Global perspective of companies
• Development of global competition
Extremely difficult to execute due to differences
• Cultural, economic, and technological
• Political, spatial, and logistical

38. Why/when Many Suppliers in SC
 Commonly used for commodity
products
 Purchasing is typically based on
price
 Suppliers compete with one another
 Supplier is responsible for
technology, expertise, forecasting,
cost, quality, and delivery

39. Why/When Few Suppliers in SC
 Buyer forms longer term relationships
with fewer suppliers
 Create value through economies of
scale and learning curve
improvements
 Suppliers more willing to participate in
JIT programs and contribute design
and technological expertise
 Cost of changing suppliers is huge

40. Any question ..?