Contents Supply Chain ManagementManagement of Business LogisticsDemand Management & Customer ServiceProcurement and Supply ChainPPRA RulesManaging InventoriesWarehouse ManagementTransportation ManagementUse of Information Technology for Managing Supply ChainSCOR Model

Learning ObjectivesFamiliarization with concept & Techniques of SCStrengthen knowledge of SCKnowledge that can be used in Work EnvironmentKnowledge which provide basis for further study leading to National/ International Certifications i.e. Certified Supply Chain Manager (CSCM) by International Supply Chain Education Alliance (ISCEA) and Certified in Production & Inventory Management (CPIM) by The Association for Operations Management (APICS)

Reference BookThe Management of Business Logistics: A Supply Chain Perspective By Coyle, Bardi & Langley

What is Supply ChainIntegration of Activities/PROCESSStarts from Suppliers.SupplierTo Customers..Customer

Always focus on Customer

What is Supply ChainIts Management of network of interconnected businesses involved in supply of Product or Service.It starts from Procurement of Raw Material, Work in Progress Inventory and Transportation of Finished Goods from point of origin to point of consumption.

APICS Definition of Supply Chain Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."

What is Supply Chain An Effective SC ensures high level of Customer Service at optimum level of working capital & cost.

An Efficient SC that ensures products are on the shelf, available for sale..when shopper come to buy.

THE BASIC SUPPLY CHAINManufacturing Plan & ControlMaterial Requirement Plan (MRP)Production Activity Control (PAC)PurchaseBUSINESS PLANSALES & OPERATIONS PLAN MASTER PRODUCTION SCHEDULE (MPS)Product FlowCash FlowInformationPhysical SupplyMaterial MgtUp-Stream CustomerInbound LogisticsPhysical DistributionDown-Stream CustomerOutbound Logistics

Tech TermsBusiness Plan: Org goals of sale, reasons to attain and plan E.g. UnileverSales & Operations Plan: Individual goals/targets for individual products/SBU. E.g. Milk, yog, butter etc.

Master Production Schedule: What we have & what we want to do based on order/demand.

Material Requirement Plan (MRP): What ingredients /components we require for production.

Production Activity Control (PAC): Individual production priority/order

*Supply Chain Management: IntroductionSupply chain management now part of the business vocabulary.Impact of global marketplace drastically changed the landscape of business.Change was rapid and continuous in the 1990s.Doing business in the comfort zone was no longer synonymous with success.

*The Changing Business Landscape: Five Driving ForcesThe Empowered ConsumerPower Shift in the Supply ChainDeregulationGlobalizationTechnology

*The Changing Business Landscape: Five Driving ForcesThe Empowered ConsumerImpact on logistics is more direct.Informed consumers have low tolerance for poor quality in products and services.Changing demographics commands 24/7 service.Increased customer service increases the importance of logistics and supply chains.

*The Changing Business Landscape: Five Driving ForcesPower Shift in the Supply ChainLarge retailers more demanding and commanding. Focus upon distribution costs and their impact on everyday low prices.Changing logistics and supply chain strategies resulted from shifts in the balance of economic power.

*The Changing Business Landscape: Five Driving ForcesDeregulationChanging economic controls empowered creativity and competition.Changes in transportation fewer or no economic controls over rates and services.Change in financial institutions blurred traditional differences and increased competition.Change in the communications industry also resulted in more competition.Changes in the utility industry allows more competition.

*The Changing Business Landscape: Five Driving ForcesGlobalizationGlobal marketplace conceptGlobal network sourcing, manufacturing, marketing, Warehousing and distributionGlobal alternatives have blossomedNo geography --- access available to the worldSupply chain challengesMcDonald challenges

*The Changing Business Landscape: Five Driving ForcesTechnologyInformation Age provides new and unrestricted access to the place aspect of business.My time, my placeWarehouse technology has changed dramatically with computer devices in use from the office space to the forklifts.

*The Changing Business Landscape: The Supply Chain ConceptDevelopment of the ConceptTotal systems cost - remains an important element of logistics analysis.Outbound logistics - was the initial focus with higher value finished goods.Inbound logistics deregulation allowed new focus on coordination of inbound and outbound movements.Value chain analysis integrated logistics activities.Terminology growing as supply chain concept matures.

*Figure 1-1 A View of Business Logistics in a Firm

*Figure 1-2 Integrated Logistics Management

*Figure 1-3Generic Value Chain

*The Changing Business Landscape: The Supply Chain ConceptBusiness Case for Supply Chain Management: Why so much attention on supply chain management?ECR and Best-in-class studies (see next two slides)Complexity of the supply chainExtended enterprise conceptTwo-way flow of:ProductsInformationCashInventory visibility

*Figure 1-5: Comparison of Average Throughput Time of Dry Grocery Chain before and after ECR Implementation

*Figure 1-6: Total Supply Chain Management Cost --- All Sectors

Revenue %

*Figure 1-7: Integrated Supply Chain

*The Changing Business Landscape: The Supply Chain ConceptCharacteristics of Supply Chain ManagementInventory VisibilityPull systemsLanded CostCompanies must realize that their strategies may affect the landed cost.Coordination of supply chain activities may lower the landed cost.

*The Changing Business Landscape: The Supply Chain ConceptCharacteristics of Supply Chain ManagementReal-time two way information flowsCustomer service levels must be tailored to each customernot all customers require the same serviceSupply chain relationshipsCollaborative planningShare risks and rewards

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