supply chain management. participants introduction supply chain management

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SUPPLY CHAIN MANAGEMENT

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Page 1: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

Page 2: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

PARTICIPANTS INTRODUCTION

SUPPLY CHAIN MANAGEMENT

Page 3: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

LEARNING OBJECTIVES> INTRODUCTION TO SUPPLY CHAINS

> SUPPLY CHAIN MANAGEMENT

> COMPONENTS OF SUPPLY CHAIN

> SUPPLY CHAIN PROCESSES

> SUPPLY CHAIN FLOWS

> PIT FALLS IN SUPPLY CHAIN MGMT

Page 4: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

INTRODUCTION TO SUPPLY CHAINS

Page 5: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

INTRODUCTION TO SUPPLY CHAINS

Aircraft spares

Page 6: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

INTRODUCTION TO SUPPLY CHAINS

Unilever ice cream

Page 7: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

A TYPICAL SUPPLY CHAIN

Page 8: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

WHY SUPPLY CHAIN MANAGEMENT

CHANGES IN USER REQUIREMENTS

CHANGES IN PRODUCT/ SERVICE

SEASONALITY

THE RIGHT PRODUCT

IN RIGHT QUANTITY

AT RIGHT TIME

AT THE RIGHT PLACE

Page 9: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

MANAGING SUPPLY CHAIN IS A COMPLEX PROCESS

AN EFFICIENT AND RELIABLE SUPPLY CHAIN IS BUSINESS WINNER

IT CONSIST OF A LOT OF INTER AND INTRA COMPANY ACTIVITIES

IT’S A RELAY

WHY SUPPLY CHAIN MANAGEMENT

Page 10: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

The term supply chain refers to the entire network of companies that work together to design, produce, deliver, and service products.

“The integration of key business processes from end user through original suppliers that provides products, services, and information and add value for customers and other stakeholders."

Page 11: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

COMPONENTS OF SUPPLY CHAIN

Suppliers. Source of raw materials, component parts, semi-manufactured products, and other items that occur early in the supply chain - unfinished or non-consumable products. Manufacturers. Makers of products. Suppliers produce components or subassemblies, while manufacturers perform the task of final assembly or product integration. Distributors. Responsible for the storing, and handling of materials at receiving docks, warehouses, and retail outlets. Retailers. These are the manufacturer's customers - the stores that buy the actual products. Consumers. This is you - the person who actually buys the product for consumption.

Page 12: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

COMPONENTS OF SUPPLY CHAIN

Majority of the companies use these Components:

Stereo manufacturing Company

A

A

XY

Z

1

2

Part Suplier-1

Part Suplier-1

Part Suplier-1

Dis

trib

utor

s

Retailers

Consumersassembled, packaged, labeled

Page 13: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN IN SERVICES

Supply chains also exist for services, For example, a commercial bank has a supply chain,

Inventory is represented by each bank teller's capacity, or time to serve customers.

A major challenge for banks is to effectively manage this availability of its teller resources.

Trucking and logistics companies.

Capacity is available only for specific period of times.

Are you Involved In a SC? In What capacity?

Is Anyone Else Involved in the Supply Chain?

Page 14: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

OTHER PLAYERSLogistics providers.

Transporting products.Operating strategically placed warehousing or distribution operations.Sometimes, logistics providers offer multiple integrated services.

Contract manufacturers. Provide subcontract manufacturing for manufacturers.

Information-based service providers. Software or other information technologies providersInformation-based service providers may include IT firms, which provide and manage systems for individual firms and for overall supply chains.

Financial institutions. Includes banks and other financial institutions, freight payment and billing, inventory financing, and inter-firm transaction management.

Page 15: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN PROCESSESPurchasing. Activities related to the purchase of all goods and

services.

Order processing. Fill customers' orders, such as order receipt, order picking, and order shipment.

Demand planning. Forecasts, actual sales, and current inventory levels.

Inventory mgmt. Forecasting, proper positioning of stock, and the active observation of product age and availability.

Warehousing. The holding of goods with an emphasis on moving product into, through, and out of warehouses in a timely manner.

Transportation. Movement of products from one specific destination to another.

Customer service. Includes all sales or after-sales related activities.

Page 16: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

PURCHASING

•Component parts, •Raw materials, •Operating suppliers, •Support equipment, •Process equipment,•Services

Focus on:•Total Cost of ownership•Exploiting the Capabilities of Information Technology •Supplier Relationships •Consolidation of Suppliers

Page 17: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

ORDER PROCESSING

•Customer places order •Order received by manufacturer •Order processed •Credit checked and verified •Order picked and packed •Order shipped to customer •Order received by customer and placed in inventory

Focus on:•Reduction of order Cycle Time•Use of Electronic Data Interchange (EDI)

Page 18: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

DEMAND PLANNING

•Forecasting•Production Planning•Material planningProduct

SupplyProduct Demand

•Number of units of a specified product to be produced •Time intervals over which production will occur •Availability of materials and machines to produce the number of units required within the specified time frame

Main Concerns:

Page 19: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

INVENTORY MANAGEMENT

Inventorylevels

Customer ServiceLevel

Inventory has a cost & low customer service levels have consequences.

Techniques:•Just-in-Time (JIT)•Vendor-Managed Inventory (VMI) •Continuous Replenishment Program (CRP)

Page 20: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

WAREHOUSING

• Movement • Storage • Information transfer

Page 21: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

TRANSPORTATION

Page 22: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

FLOWS

Page 23: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

FUTURE FOCUS

•Departmental silos•Finger pointing•Conflicting Objectives•Inefficient SC•SC unresponsive to customer needs

•Create Value not just save money•Use of inf. Technology in:

•Redefining SC structure.•Designing new product•Reaching new customer segments

Page 24: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

PITFALLS OF POOR SC DESIGN

–Inefficient Process Design

–Inadequate or Wrong Information Flow

–Inappropriate Performance Measures

Page 25: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

PITFALL RESULTS

Inefficient Process Design

Uncoordinated & Ineffective Network Operations

Inadequate or Inaccurate Information Flow

Inappropriate Performance Measures

Misaligned value chain

Overly-complex network

Mismatched processes

Inadequate product designs

Inefficient linkages between components of the supply chain

Disjointed production planning

Outdated inventory stocking policies

Uncoordinated actions

Poor quality controls Inefficient

procurement policies Inefficient

distribution methods

Inadequate, inaccurate, and outdated data

Inconsistent data Non-responsiveness

from players within the supply chain

Barriers to inter-functional communication

Inefficient retrieval of needed information

Distortion of company results

Page 26: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

Develop a Supply Chain Wide Technology Strategy

CENTRAL WAREHOUSE

REGIONAL WAREHOUSE

WORKSHOP STORES

CUSTOMERS

Page 27: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

Develop a Supply Chain Wide Technology Strategy

OSP1 CUSTOMER INQUIRY RESPONSE PROCESS

RW

HM

WS

CW

HC

US

TO

ME

R

CUSTOMER INQUIRY RESPONSE

TO INQUIRY

Reception

Reception

Reception

DPC Account Cards

DPC Account cards

Account cardsDPC

Page 28: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

Develop a Supply Chain Wide Technology Strategy

ROSP1 CUSTOMER INQUIRY

RW

HM

WS

CW

HC

US

TO

ME

R

CUSTOMER INQUIRY RESPONSE

TO INQUIRY

CENTRAL DATA NETWORK

Page 29: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT
Page 30: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT
Page 31: SUPPLY CHAIN MANAGEMENT. PARTICIPANTS INTRODUCTION SUPPLY CHAIN MANAGEMENT

Dou you think that as supply chain manager you need to “wonderlaized” the management of the THREE FLOWS.

Are there other processes in a supply chain that we have studied namely……

Jazb-e-Baham or athletics relay refers to what concept in a supply chain.