Professional Documents
Culture Documents
MANAGEMENT ON
SUPPLY CHAIN
MANAGEMENT OF
COCA COLA
SUBMITTED TO:-
SUBMITTED BY:-
Prof. M S Kumar
Supply Chain Management (SCM) is the management of the flow of goods and
services. It includes the movement and storage of raw materials, work-in-process inventory,
and finished goods from point of origin to point of consumption. Interconnected or
interlinked networks, channels and node businesses are involved in the provision
of products and services required by end customers in a supply chain. Supply chain
management has been defined as the design, planning, execution, control, and monitoring of
supply chain activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with demand and
measuring performance globally.
Supply chain management is a cross-functional approach that includes managing the
movement of raw materials into an organization, certain aspects of the internal processing of
materials into finished goods, and the movement of finished goods out of the organization
and toward the end consumer. As organizations strive to focus on core competencies and
becoming more flexible, they reduce their ownership of raw materials sources and
distribution channels. These functions are increasingly being outsourced to other firms that
can perform the activities better or more cost effectively. The effect is to increase the number
of organizations involved in satisfying customer demand, while reducing managerial control
of daily logistics operations. Less control and more supply chain partners led to the creation
of the concept of supply chain management. The purpose of supply chain management is to
improve trust and collaboration among supply chain partners, thus improving inventory
visibility and the velocity of inventory movement.
Supply chain management professionals play a role in all kinds of organizations manufacturers, retailers, transportation companies, third party logistics firms, government
agencies and service firms.
Successful supply chain professionals are typically detailed-oriented with an ability to
prioritize, plan and organize. In addition, they are usually quick-learners, possess excellent
communication skills, can effectively manage relationships and work in teams, and effective
problem-solvers.
a desire to take responsibility for developing and implementing their own ideas
Supply chain business process integration involves collaborative work between buyers and
suppliers, joint product development, common systems, and shared information. Operating an
integrated supply chain requires a continuous information flow. However, in many
companies, management has concluded that optimizing product flows cannot be
accomplished without implementing a process approach. The key supply chain processes
stated by Lambert (2004)are:
Order fulfillment
Returns management.
One could suggest other critical supply business processes that combine
these processes stated by Lambert, such as:
Procurement
Physical distribution
Outsourcing/partnerships
Performance measurement
Warehousing management
Supplier
Management
Schedule/
Resources
Material
Flow/Inform
ation Flow
Customer
Management
Conversions
Delivery
Stock Deployment
Planning the plan process seeks to create effective long- and short-range supply
chain strategies. From the design of the supply chain network to the prediction of
customer demand, supply chain leaders need to develop integrated supply chain
strategies.
Procurement the buy process focuses on the purchase of required raw materials,
components, and goods. As a consumer, you're pretty familiar with buying stuff!
Distribution the move process manages the logistical flow of goods across the
supply chain. Transportation companies, third party logistics firms, and others ensure
that goods are flowing quickly and safely toward the point of demand.
Customer Interface the demand process revolves around all the issues that are
related to planning customer interactions, satisfying their needs, and fulfilling orders
perfectly.
Supply chain management (SCM) is the oversight of materials, information, and finances as
they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
Supply chain management involves coordinating and integrating these flows both within and
among companies. It is said that the ultimate goal of any effective supply chain management
system is to reduce inventory (with the assumption that products are available when needed)
Supply chain management (SCM) is the oversight of materials, information, and finances as
they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
Supply chain management involves coordinating and integrating these flows both within and
among companies. It is said that the ultimate goal of any effective supply chain management
system is to reduce inventory (with the assumption that products are available when needed).
As a solution for successful supply chain management, sophisticated software systems with
Web interfaces are competing with Web-based application service providers (ASP) who
promise to provide part or all of the SCM service for companies who rent their service.
Supply chain management flows can be divided into three main flows:
The product flow includes the movement of goods from a supplier to a customer, as well as
any customer returns or service needs. The information flow involves transmitting orders and
updating the status of delivery. The financial flow consists of credit terms, payment
schedules, and consignment and title ownership arrangements.
There are two main types of SCM software: planning applications and execution applications.
Planning applications use advanced algorithms to determine the best way to fill an order.
Execution applications track the physical status of goods, the management of materials, and
financial information involving all parties.
Some SCM applications are based on open data models that support the sharing of data both
inside and outside the enterprise (this is called the extended enterprise, and includes key
suppliers, manufacturers, and end customers of a specific company). This shared data may
reside in diverse database systems, or data warehouses, at several different sites
and companies.
Processes
Structure
Technology
Demand chain is defined as the system by which organizations manage sales and
distribution of products and services to end users.
Demanding customers
Shrinking product life cycles
Proliferating product offerings
Growing retailer power in some cases
Doctrine of core competency
Emergence of specialized logistics providers
Globalization
Information technology
Customers
Retailers
Wholesales/distributors
Manufacturers/ Plants
Essentially using the same information to make all plans right from structuring the network to
processing every day supply chain tasks.
Issues in customer management
Penetration vs Spread
A-B-C classification
Studying the demand and finding the best method for forecasting.
Ending up with the final inventory model, which will be solution for our problem
with numerical example.
Detecting and identifying the problems and the area for improvement.
Build the information system for the company with the improvements and
modifications.
Ending up with final information flow system, which will be the solution for our
problem.
The information model deals with the integration of supply chain members and
concentrates on the flow of information among the chain members.
Information technology plays a vital role for increasing collaboration among supply
chain members. From the information point of view the effective supply chain
management must provide the right amount of relevant information to the right person
at the right time.
Conclusion
In order to have successful and smooth supply chain process we should focus on following
factors:
Source strategically
A-B-C classification
Studying the demand and finding the best method for forecasting.
Ending up with the final inventory model, which will be solution for our problem
with numerical example.
Supply Chain Management (SCM) is the management of the flow of goods and
services. It includes the movement and storage of raw materials, work-in-process inventory,
and finished goods from point of origin to point of consumption. Interconnected or
interlinked networks, channels and node businesses are involved in the provision
of products and services required by end customers in a supply chain. Supply chain
management has been defined as the "design, planning, execution, control, and monitoring of
supply chain activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with demand and
measuring performance globally.
Supply Chain Management (SCM) includes all the activities that must take place to get the
right product into the right consumers hands in the right quantity and at the right time from
raw materials extraction to consumer purchase. SCM focuses on planning and forecasting,
purchasing, product assembly, moving, storage, distribution, sales and customer service.
SCM professionals are involved in every facet of the business process as they strive to
achieve a sustainable competitive advantage by building and delivering products better, faster
and cheaper.
Supply chain management professionals play a role in all kinds of organizations manufacturers, retailers, transportation companies, third party logistics firms, government
agencies and service firms.
Supply chain management, then, is the active management of supply chain activities to
maximize customer value and achieve a sustainable competitive advantage. It represents a
conscious effort by the supply chain firms to develop and run supply chains in the most
effective & efficient ways possible. Supply chain activities cover everything from product
development, sourcing, production, and logistics, as well as the information systems needed
to coordinate these activities.
The organizations that make up the supply chain are linked together through physical flows
and information flows. Physical flows involve the transformation, movement, and storage of
goods and materials. They are the most visible piece of the supply chain. But just as
important are information flows. Information flows allow the various supply chain partners to
coordinate their long-term plans, and to control the day-to-day flow of goods and material up
and down the supply chain.
Supply chain management is as much a philosophical approach as it is a body of tools and
techniques, and typically requires a great deal of interaction and trust between companies to
work. For right now, however, lets talk about three major developments that have
brought SCM to the forefront of managements attention.
Relationship management
A firms SCM efforts start with the development and execution of a long-term
supply chain strategy. Among other things, this strategy should:
Help managers understand how the firm will provide value to the supply
chain.
As firms struggle to understand what supply chains they compete in, it is often
valuable to map the physical flows and information flows that make up these
supply chains. From these maps, firms can begin to understand how they add
value, and what information is needed to make the supply chain work in the
most effective and efficient way possible.
Supply chain management flows can be divided into three main flows:
The product flow includes the movement of goods from a supplier to a customer,
as well as any customer returns or service needs. The information flow involves
transmitting orders and updating the status of delivery. The financial flow
consists of credit terms, payment schedules, and consignment and title
ownership arrangements.
There are two main types of SCM software: planning applications and execution
applications. Planning applications use advanced algorithms to determine the
best way to fill an order. Execution applications track the physical status of
goods, the management of materials, and financial information involving all
parties.
Some SCM applications are based on open data models that support the sharing
of data both inside and outside the enterprise (this is called the extended
enterprise, and includes key suppliers, manufacturers, and end customers of a
specific company). This shared data may reside in diverse database.
What kinds of people pursue SCM degrees?
The profiles of SCM professionals are varied, but in general, such individuals
possess many of the following traits:
Supplier
Management
Schedule Ss
/Resources
Material Flow
and Information
Flow
Customer
Management
Conversion
Delivery
Stock
Deployment