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Supply -Chain Management
The Spark Plugs
P. Date : December 10, 2019.
Supply-Chain Overview
Warehousing
Warehousing
Transportation
Transportation
Vendors/plants/ports
Transportation
Factory
Transportation Customers
Information
flows
What is Supply Chain?
A supply chain is the system of organizations, people, activities, information
and resources involved in moving a product or service from supplier to
customer. Supply chain activities transform raw materials and components
into a finished product that is delivered to the end customer.
OR
The network of external suppliers, internal processes, and external
distributors, and the links connecting them, that deliver a finished product or
service to the customer.
Supply Chain Management
Supply Chain Management entails:
• Making decisions regarding the structure of the supply chain
• Coordinating the movement of goods and delivery of services
• Sharing information between members of the supply chain.
Components of Supply Chain
External
Suppliers
Internal
Functions
External
Distributors
INFORMATION
External Suppliers
• External suppliers provide the necessary raw materials, services, and
component parts.
• Purchased materials & services frequently represent 50% (or more) of the
costs of goods sold.
• Suppliers are frequently members of several supply chains – often in
different roles.
Types of External Suppliers
• Tier one suppliers:
• Directly supplies materials or services to the firm that does business with
the final customer
• Tier two suppliers:
• Provides materials or services to tier one suppliers
• Tier three suppliers:
• Providers materials or services to tier two suppliers
Internal Functions
• Vary by industry & firm, but might include:
• Processing
• Purchasing
• Production Planning & Control
• Quality Assurance
• Shipping
Logistics & Distribution
•Logistics: getting the right material to the right place at
the right time in the right quantity:
• Traffic Management:
• The selection, scheduling & control of carriers (e.g.: trucks & rail) for
both incoming & outgoing materials & products
• Distribution Management:
• The packaging, storing & handling of products in transit to the end-
user.
Dairy Products Supply Chain
OUTSOURCING
• Entails paying third-party suppliers to provide raw materials and services,
rather than making them in-house.
• Outsourcing is increasing as many firms try to focus their internal operations
on what they do best.
The Role of WareHouses
• Warehouses are used for Long-Term storage of goods and play a vital role in
Supply Chain Management.
• Large warehouses make an industry responsive towards market.
Electronic Data Interchange
• The most common method of using computer-to-computer links
to exchange data between supply chain partners in a
standardized format.
• Benefits include:
• Quick transfer of information
• Reduced paperwork & administration
• Improved data accuracy & tracking capability
THANKS FOR YOUR ATTENTION!
The Spark Plugs

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Supply Chain Management

  • 1. Supply -Chain Management The Spark Plugs P. Date : December 10, 2019.
  • 3. What is Supply Chain? A supply chain is the system of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform raw materials and components into a finished product that is delivered to the end customer. OR The network of external suppliers, internal processes, and external distributors, and the links connecting them, that deliver a finished product or service to the customer.
  • 4. Supply Chain Management Supply Chain Management entails: • Making decisions regarding the structure of the supply chain • Coordinating the movement of goods and delivery of services • Sharing information between members of the supply chain.
  • 5. Components of Supply Chain External Suppliers Internal Functions External Distributors INFORMATION
  • 6. External Suppliers • External suppliers provide the necessary raw materials, services, and component parts. • Purchased materials & services frequently represent 50% (or more) of the costs of goods sold. • Suppliers are frequently members of several supply chains – often in different roles.
  • 7. Types of External Suppliers • Tier one suppliers: • Directly supplies materials or services to the firm that does business with the final customer • Tier two suppliers: • Provides materials or services to tier one suppliers • Tier three suppliers: • Providers materials or services to tier two suppliers
  • 8. Internal Functions • Vary by industry & firm, but might include: • Processing • Purchasing • Production Planning & Control • Quality Assurance • Shipping
  • 9. Logistics & Distribution •Logistics: getting the right material to the right place at the right time in the right quantity: • Traffic Management: • The selection, scheduling & control of carriers (e.g.: trucks & rail) for both incoming & outgoing materials & products • Distribution Management: • The packaging, storing & handling of products in transit to the end- user.
  • 11. OUTSOURCING • Entails paying third-party suppliers to provide raw materials and services, rather than making them in-house. • Outsourcing is increasing as many firms try to focus their internal operations on what they do best.
  • 12. The Role of WareHouses • Warehouses are used for Long-Term storage of goods and play a vital role in Supply Chain Management. • Large warehouses make an industry responsive towards market.
  • 13. Electronic Data Interchange • The most common method of using computer-to-computer links to exchange data between supply chain partners in a standardized format. • Benefits include: • Quick transfer of information • Reduced paperwork & administration • Improved data accuracy & tracking capability
  • 14. THANKS FOR YOUR ATTENTION! The Spark Plugs