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SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT
PAPER CODE M B A 031PAPER CODE M B A 031U. P. TECHNICAL UNIVERSITYU. P. TECHNICAL UNIVERSITY
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If you study to remember, you willIf you study to remember, you will
forget, but, If you study toforget, but, If you study tounderstand, you will rememberunderstand, you will remember..
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OverviewOverview-- Till 1950Till 1950
Manufacturing
Inventory control Sales
ProcurementDistribution
Maximization of profit by
sales
Aggressive preaching skills
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Manufacturing
management
Physical
distribution and
Sales
management
Material
management
Cost control Price based competition
19601960--19701970
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Manufacturing
management
Marketing
management and
distribution
management
Material
management
Maximization of profitable
sales volume and cost
reduction
Increased productivity,
profitability and market share
19801980
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Vendors
CustomersLogistics
Core competency Customer value and
harmonious relationship
19901990
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MARKETING CHANNELSMARKETING CHANNELS
RAW MATERIALS
COMPONENTS
FINISHED GOODS
FINAL BUYERS
INTERMEDIARY
THE SUPPLY CHAIN
FINISHED GOODS
INTERMEDIARIES
FINAL BUYERS
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THE SUPPLY CHAINTHE SUPPLY CHAIN
The integration of key business processThe integration of key business processfrom the end user through originalfrom the end user through original
suppliers that provides products, servicessuppliers that provides products, servicesand information that add value forand information that add value forcustomers.customers.
Organization that successively transformOrganization that successively transformraw material into intermediate goods, thenraw material into intermediate goods, thento final goods and deliver them toto final goods and deliver them to
customer.customer.
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SEAMLESS S C MSEAMLESS S C M
CAPITAL EQUIP. RAW MATERIALCOMPONENTS
FINISHED GOODSSUPPLIERS
COMPONENTS
RAW MATERIAL
DISTRIBUTORS
WHOLESALERS
RETAILERS
CONSUMER
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CONCEPTSCONCEPTS
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FEATURESFEATURES
Single EntitySingle Entity Consolidated planning of every function ofConsolidated planning of every function of
management.management.
Reduces delaysReduces delays
Increases empathyIncreases empathy
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Inventory PerspectiveInventory Perspective Reduces inventory level to minimal a quantumReduces inventory level to minimal a quantum
leap in perspective.leap in perspective.
Reduces lead timeReduces lead time
Reducing uncertaintyReducing uncertainty
Improves qualityImproves quality
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Strategic decision makingStrategic decision making
Collaborative approachCollaborative approach-- making partners alongmaking partners along
the way.the way.
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System approachSystem approach Linking every function into interlinkedLinking every function into interlinked
interdependent sub systemsinterdependent sub systems
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Doing the best one canDoing the best one can
Supply chain relationshipsSupply chain relationships
Flexible approachFlexible approach
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Improving process qualityImproving process quality
Minimizing varietyMinimizing variety
Managing demandManaging demand
Delaying differentiationDelaying differentiation
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FLOWS IN SCMFLOWS IN SCM
Value flowValue flow QualityQuality
Cost quick responseCost quick responseAvailabilityAvailability
ConsistencyConsistency
Goods flowGoods flow Raw materialRaw material
Work in progressWork in progress
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Information flowInformation flow Backward flowBackward flow
Forward flowForward flow
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Cash flowCash flow
Life blood of the companyLife blood of the company
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THE KNOWLEDGE OFTHE KNOWLEDGE OF
THE WORLD IS ONLYTHE WORLD IS ONLYTO BE ACQUIRED INTO BE ACQUIRED IN
THE WORLD, AND NOTTHE WORLD, AND NOT
IN A CLOSET.IN A CLOSET.
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