2. SUPPLY CHAIN MANAGEMENT:
SCM is the management of an
interconnected between
network, channel and
node businesses involved in
the provision
of product and service packa
ges required by the end
customers in a supply chain
3. PUSH VS PULL IN SUPPLYCHAINS
Push or building to stock: Producing stock on the
basis of anticipated demand. Demand forecasting
can be done via a variety of sophisticated
techniques.
Pull or building to order: producing stock in
response to actual demand
4. BENEFITS OF SCM:
Reduce uncertainty along the chain
Proper inventory levels in the chain
Minimize delays
Eliminate rush (unplanned) activities
Provide good customer service
5. PROBLEMS ALONG THE SCM
Delays in production, distribution Etc.
Lack of partners co-ordination
Poor demand forecast
Interference with the production
Expensive inventories
7. UP STREAM:
MATERIAL: products , parts.
INFORMATION: capacity , delivery schedules
FINANCE: invoices , pricing ,credit terms.
DOWN STREAM:
MATERIAL : returns , repairs , after sales services.
INFORMATION: orders , point of sale data.
FINANCE : payments.
8. CASH FLOW:
funds flow from the
consumers to the
manufacturer, from
manufacturer to
supplier.
In up stream
direction credits
, consignments
, payment terms
, invoice.
In downstream
direction payments
, consignments.
12. INFORMATION FLOW:
Information flow is the sharing of information's
from the customer as well as supplier . It is both
directions
In upstream direction capacity, promotion plans
and delivery schedule included.
In downstream direction sales , orders , inventory
, quality & promotion.