Successful Implementation of Supply Chain Solutions

Sanoon MohideenDIPPCA/2014/15/024

SUPPLY CHAIN MANAGEMENT

A supply chain is the system oforganizations, people, activities,information and resourcesinvolved in moving a product orservice from supplier tocustomer. Supply chain activitiestransform raw materials andcomponents into a finishedproduct that is delivered to theend customer.

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WHAT IS A SUPPLY CHAIN?

•A supply chain is dynamic and involves the constant flow of information, product, and funds between different stages.

•Walmart & Dell examples

•Customer is integral to supply chain.

•Primary purpose from the existence of any supply chain is to satisfy customer needs, in the process generating profits for itself.

•Supply chain activities begin with a customer order and end when a satisfied customer has paid for his or her purchase.

FUTURE VALUE CHAIN TRENDS

•Increased urbanization

•Aging population

•Increasing spread of wealth

•Technology adaptation and the rise of social media

•Consumer service demands

•Importance of health and wellbeing

•Growing consumer concerns about sustainability

FUTURE VALUE CHAIN TRENDS

•Shifting of economic power

•Scarcity of natural resources

•Increase in regulatory pressure

•Rapid adoption of supply chain technology capabilities

•Impact of Next-Generation Information Technologies

•Risks, disruptions, contingencies and continuity

SUPPLY CHAIN COMPETENCIES

COMPLEXITY

•Network complexity•Process complexity•Range complexity•Product complexity•Customer complexity •Supplier complexity

MINIMIZING COMPLEXITY

• Improving demand management, forecasting, and logistics management abilities through a decision platform supported by SCM solutions.

High number and variety of SKUs

(necessary complexity)

• Offering a limited range of products High number and variety of SKUs

(unnecessary complexity)

• Measuring product complexity in terms of SC impacts,

• Redesigning the products that have a high complexity indexProduct complexity

• Implementing a customized Software as a Service logistics solution

High variety of requirements to be met by the IT solution

•Developing and implementing a new planning system

•Making process and technological adjustments

•Developing new performance metrics

Incapable and incompatible planning systems

• Implementing a SC planning software modified to handle planning requirements

Large planning models

• Profiling uncertain demand

• Planning of operations on a daily basis Demand uncertainty/ demand

volatility

MINIMIZING COMPLEXITY• Forming a partnership with a partner that has expertise in

transportation management

•Adopting new technology and processes

Incapable transportation management and technology

• Redesigning the SC,

• Reorganizing the distribution network,

• Collaboration with suppliers

Incapable SC operations, incompatible SC design

• Supplier integration

•Gaining visibility into operations through B2B platformOutsourcing of manufacturing

•Developing an end to end procurement process

• Integrating the procurement processes and systems with the ERP system

Lack of a well defined

procurement system

• Forming a partnership with a partner that has the know how

•Outsourcing the operations to a partner that has the experienceLack of experience

• Automating decision making process using a business rules management system

Lack of effective means of control over the processes

•Reducing number of outsourcing partners

•Working in close collaboration with the outsourcing partners Lack of control due to

outsourcing

• Adapting to changes by providing synchronized services Changing requirements of the

industry

•Adopting adaptive SC strategiesMarket pressure and changing

customer requirements

QUESTIONS?

Thank you