SUPPLY

CHAIN
MANAGEME
NT Presented By:
Nirmal Maloo
Vinay Lohiya
Khushnuma Bathena
Monika Bharara
Ankit Vajpayee
Shashi Kabra
 Contents
• Definition & Scope
• Partners in a Supply Chain
• Processes of Supply Chain
Management
• Advantages and Disadvantages
• Top 10 SCM Providers
• What is E-SCM?
• Emerging technologies
 What is Supply-Chain
Management?
Definition

• Supply-chain management is a
total system approach to managing
the entire flow of information,
materials, and services from raw-
material suppliers through factories
and warehouses to the end
customer.
 Supply Chain

VISA
VISA
®
®

Material Flow Credit

Credit Flow
Flow

Supplier
Supplier Mfg.
Mfg. Retailer
Retailer Consumer
Consumer

Supplier
Supplier Wholesaler
Wholesaler Retailer
Retailer

Order
Order Cash
Cash
Schedules
Schedules
Flow
Flow Flow
Flow
 Scope - Strategic
• Strategic network optimization, including the number,
location, and size of warehouses, distribution centers
and facilities.
• Strategic partnership with suppliers, distributors, and
customers, creating communication channels for
critical information and operational improvements
such as direct shipping, and third-party logistics.
• Product design coordination, so that new and existing
products can be optimally integrated into the supply
chain, load management
• Information Technology infrastructure, to support
supply chain operations.
• Where-to-make and what-to-make-or-buy decisions
• Aligning overall organizational strategy with supply
strategy.
 Scope - Tactical
• Sourcing contracts and other purchasing
decisions.
• Production decisions, including contracting,
locations, scheduling, and planning process
definition.
• Inventory decisions, including quantity,
location, and quality of inventory.
• Transportation strategy, including
frequency, routes, and contracting.
• Benchmarking of all operations against
competitors and implementation of best
practices throughout the enterprise.
• Milestone payments
 Scope - Operational
• Daily production and distribution planning, including all nodes in
the supply chain.
• Production scheduling for each manufacturing facility in the supply
chain (minute by minute).
• Demand planning and forecasting, coordinating the demand
forecast of all customers and sharing the forecast with all
suppliers.
• Sourcing planning, including current inventory and forecast
demand, in collaboration with all suppliers.
• Inbound operations, including transportation from suppliers and
receiving inventory.
• Production operations, including the consumption of materials and
flow of finished goods.
• Outbound operations, including all fulfillment activities and
transportation to customers.
• Order promising, accounting for all constraints in the supply chain,
including all suppliers, manufacturing facilities, distribution
centers, and other customers.
Supply Chain Management
Partners in a Supply Chain
• Suppliers
• Manufacturers
• Distributors
• Other Elements
Supply Chain Illustration
10-10
Processes of Supply Chain
Management
 Processes of Supply Chain
Management
• Demand Planning and
Forecasting
• Procurement
• Manufacturing and
Assembly
• Distribution
• Return
SCM Takes Care of :
 Advantages
• Reduce overhead charges
• Eliminates paperwork
• Increase the speed of transactions
• Facilitate Real-time data exchange
• Increase revenue
• Makes distribution more customer
friendly
• Receive regular forecasts for
execution of production and sales
plans
 Advantages
• Analyze different supply line models
and subsequently optimize them
• Automate warehouse inventory
management
• Connect elements of market analysis
and
• Friendly interface relations with
suppliers
• Economies of scale and scope
• Concentration to core competence
• Lead time reduction
 Disadvantages
• Supply chain management is tailored to
specific industry and particular company.
• Systems are often tightly integrated a
limited few suppliers and trading partners.
• The purposes of SCM is more of
collaboration than price negotiation.
• The cost of implementation is higher.
• Many mistakes are done at first.
• Has an internal resistance to change.
• It’s hard to gain trust from your suppliers
and partners.
 Top 10 SCM Providers
• SAP
• Oracle
• Infor
• Manhattan Associates
• i2 Technologies
• JDA Software
• RedPrairie
• IBS
• Epicor
• Aldata
What is E-SCM?
Build-to-order cars over the
Internet
Emerging technologies -
RFID
RFID
THANK
YOU !!!