Ppt - Supply Chain Management
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Transcript of Ppt - Supply Chain Management
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7/30/2019 Ppt - Supply Chain Management
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By:Anchal Bhatia (32)
Tanvi thareja (37)
Daphne Joan Pierce (41)
Swadha Agarwal (42)
Hooriya Zaidi (54)
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What is supply chain? A supply chain is a network of facilities and distribution
options that performs the functions of procurement of
materials, transformation of these materials into intermediate
and finished products, and the distribution of these finishedproducts to customers.
Supply chains exist in both service and manufacturing
organizations, although the complexity of the chain may vary
greatly from industry to industry and firm to firm. Supply chain is the system by which organizations source,
make and deliver their products or services according to market
demand.
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Three Flow in SC There are three kinds of f low in supply chain
management.
They include:
MATERIAL FLOWS
INFORMATION FLOWS
FINANCIAL FLOWS
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A network of facilities including:
Material flow from suppliers and their upstream
suppliers at all levels Transformation of material to semi finished and
finished (internal process).
Distribution of products and customers and their
downstream customers at all levels.
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Supply chain has two functions:
Physical
Market mediation
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Supply Chain ManagementUnderlying Principles
Compression (Planning/Manufacturing/Supply)
Conformance (Forecasts/Plans/Distribution)
Co-operation (Cross -Functional) Communication (Real Time Data)
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Supply Chain Management Set of processes and sub-processes that which attempt
to implement and optimise the functions, connectedentities and interacting elements of the supply chain.
Involves:
Organisations, procedures , people
Activities:Purchasing, delivery, packaging,checking ,warehousing,etc
Establishment of long term relationships with suppliers
and distributors
Effective flow of information through the supply chain
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The steps involved
Step1- Designing the supply chain Determine the supply chain network
Identify the levels of service required
Step 2 - Optimizing the supply chain
Determine pathways from suppliers to the end customer Customer markets to Distribution centers
Distribution centers to production plants
Raw material sources to production plants
Identify constraints at vendors, plants and distribution centers
Get the big picture Plan the procurement, production and distribution of product
groups rather than individual products in large time periods-quarters or years
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Step 3- Material flow planning
Determine the exact flow and timing of materials
Arrive at decisions by working back from the projected
demand through the supply chain to the raw material
resources
Techniques
ERP
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Step 4 - Transaction processing and
short term scheduling
Customer orders arrive at random
This is a day to day accounting system which tracks and
schedules every order to meet customer demand
Order entry, order fulfillment and physical replenishment
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Supply-Chain Strategies Plans to help achieve company mission
Affect long-term competitive position
Strategic options Many suppliers
Few suppliers
Keiretsu network
Vertical integration Virtual company
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Plan
1995 Corel Corp.
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Supply-Chain Strategies Negotiate with many suppliers; play one supplier
against another
Develop long-term partnering arrangements with afew suppliers who will work with you to satisfy the endcustomer
Vertically integrate; buy the actual supplier
Keiretsu - have your suppliers become part of acompany coalition
Create a virtual company that uses suppliers on an as-needed basis.
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The Supply-Chain
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Consumer
Retailer
Manufacturing
Material Flow
VISA
Credit Flow
Supplier
Supplier Wholesaler
Retailer
CashFlow
OrderFlowSchedules
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Problems in supply chain Delay in production and distribution.
Expensive inventories.
lack of partners coordination. Poor production.
Interference with production.
Poor demand forecast.
Uncertainty in deliveries.
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Global Supply-Chain IssuesSupply chains in a global environment must be:
Flexible enough to react to sudden changes inparts availability, distribution, or shippingchannels, import duties, and currency rates
Able to use the latest computer andtransmission technologies to schedule andmanage the shipment of parts in and finishedproducts out
Staffed with local specialists to handle duties,trade, freight, customs and political issues
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Benefits Of SCM Reduce uncertainty along the chain
Proper inventory levels in the chain
Minimise delays Eliminate rush(unplanned) activities
Provide good customer service
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Thank you.