scm i unit
TRANSCRIPT
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UNIT - I
Introduction
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Meaning SCM is the process of planning, implementing and
controlling the oper ations of the supply chain as
eff iciently as possible. SCM spans all movement and stor age of r aw
mater ials, work in process inventory and f inished
goods from point-of-or igin to point-of-consumption.
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The Supply Chain
Source of Supply Plant / Oper ations Customer s
Business Logistics
Physical Supply
(Mater ials Management)Physical Distr ibution
Tr ansportation
Inventory management
Or der Processing War ehousing
Mater ials Handling
Infor mation maintenance
Tr ansportation
Inventory management
Or der Processing War ehousing
Mater ials Handling
Infor mation maintenance
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A Model / Infr astr uctur e of SCM
The Supply Chain
The Global Environment
Inter-corpor ate Coor dination
Inter-
functional
Coordination
Supply
Chain
Flows
Products
Services
Infor mation
Finance
Demand
Supplier¶s Supplier Supplier Focal Fir m Customer
Customer¶s Customer
Customer¶s
Satisf action
Marketing
Sales
Finance
Customer Service
R & D
For ecasting
Production
Purchasing
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Objectives of SCM Reduce inventory control
Improve customer service
Mor e eff icient use of human r esource
Ensur e better delivery through r educed cycle time Incr easing the shar ing of infor mation & technology
among the participants in the supply chain
Decr ease the time r equir ed to market new product.
Enable f ir m to focus on cor e competences. Enhance the public image of the company
Incr ease shar e holder s value
Gain competitive advantage over other s.
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Elements of SC Str ategy Demand flow str ategy
Customer Service str ategy
Collabor ative str ategy
IT str ategy
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Models of SCM Pull Model
(Moder n Model / Build-to-or der)
Push Model(Tr aditional Model / Build-to-stor age)
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Push Vs Pull Model
Manuf actur er
Retail Distr ibution Center
Retail Stor e
Consumer Purchase
Merchandise
Consumer Purchase
Merchandise
Retail Stor e
Retail Distr ibution Center
Manuf actur er
Push Model Pull Model
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Fr amework of SCM
Under standing the SC.
Evaluating the or ganizational position in SC.
Building the SC infr astr uctur e needed for successf ul integr ation.
Cr eate & communicate common SC vision.
Develop integr ative mechanism.
Constantly r eevaluate & continuously improve.
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Approaches
Resource focus
Outsourcing
Compar ative planning
Integr ative Cross f unctional
Exter nal integr ation
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Activities of SCM
Key Activity
Supporting Activity
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Key activities Customer Service
Tr ansportation
Inventory Management
Infor mation Flow and or der processing
Integr ation SCM and partner s
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Supporting Activities
War ehousing management
Mater ial handling
Purchasing
Protective packaging
Cooper ate with production/ oper ations Infor mation maintenance
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Supply Chain flows
Value flow
Infor mation flow Cash flow
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Flows of Supply Chain
Supplier Manuf actur er Wholesaler Retailer Customer
Infor mation Flow
Physical Flow
Cash Flow