Supply Chain Management (IT Prospective)

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Information about Supply Chain Management (IT Prospective)

Published on March 17, 2014

Author: AnkitDabral


Supply Chain Management PRESENTED BY: ANKIT DABRAL

Supply Chain Management Supply chain management is the management of network of interconnected businesses involved in the ultimate provision of goods and services required by the end customer. Supply chain management spans all movement and storage of raw materials, work-in-process inventory and finished goods from point-of-origin to point-of- consumption.

Critical Aspect: Everyone is involved Systems approach to reducing costs Integration being the key

SCM in nutshell Fundamentally, supply chain management helps a company Get the right products To the right place At the right time In the proper quantity At an acceptable cost

SCM is all about effective integration of… Right Product Right Quantity Right Quality  At Right Place At Right Time At Right Value

Goals of SCM The goal of SCM is to efficiently: Forecast demand Control inventory Enhance relationships with customers, suppliers, distributors, and others Receive feedback on the status of every link in the supply chain

Components of Supply Chain Plan Source Make Deliver Return

PROCESS OF SCM Customer Service Management :  determine mutually satisfying goals for organization and customers  establish and maintain customer rapport  induce positive feelings in the organization and the customers Procurement:  Strategic plans are drawn up with suppliers to support the manufacturing flow management process and the development of new products.

Cont….. Product development and commercialization:  coordinate with customer relationship management to identify customer-articulated needs;  select materials and suppliers in conjunction with procurement; and  develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the given combination of product and market Manufacturing flow management/support:  This process manages activities related to planning, scheduling, and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites, and maximum flexibility in the coordination of geographical and final assemblies postponement of physical distribution operations.

Cont…. Physical distribution: This concerns the movement of a finished product or service to customers. It links manufacturers, wholesalers, and retailers Outsourcing / partnerships: This includes not just the outsourcing of the procurement of materials and components, but also the outsourcing of services that traditionally have been provided in house

Cont….. Performance Measurement: As logistics competency becomes a critical factor in creating and maintaining competitive advantage, measuring logistics performance becomes increasingly important, because the difference between profitable and unprofitable operations becomes narrower. Warehousing Management: To reduce a company's cost and expenses, warehousing management is carrying the valuable role against operations. In the case of perfect storage and office with all convenient facilities in company level, reducing manpower cost, dispatching authority with on time delivery, loading & unloading facilities with proper area, area for service station, stock management system

Goals and Objectives of SCM

Planning & Execution Functions of SCM Planning Supply chain design Collaborative demand and supply planning Execution Materials management Collaborative manufacturing Collaborative fulfillment Supply chain event management Supply chain performance management

Electronic Data Interchange One of the earliest uses of information technology for supply chain management The electronic exchange of business transaction documents between supply chain trading partners The almost complete automation of an e- commerce supply chain process Many transactions occur over the Internet, using secure virtual private networks 15

Drivers of SCM 1. Facilities 2. Inventory 3. Transportation 4. Information SCM provides metrics by which we can measure efficiency IT metrics and effectiveness IT metric These metrics are driven by the 4 drivers

Benefits of SCM Key Benefits Faster, more accurate order processing Reductions in inventory levels Quicker times to market Lower transaction and materials costs Strategic relationships with supplier

Challenges of SCM Key Challenges Lack of demand planning knowledge, tools, and guidelines Inaccurate data provided by other information systems Lack of collaboration among marketing, production, and inventory management SCM tools are immature, incomplete, and hard to implement

Thank you

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