supply chain supply chain managementmanagement

Prepared by:Prepared by: Jehad Qudih Jehad Qudih Lecturer:Lecturer: Mr. EzzElarab Mr. EzzElarab

ElawoorElawoor

What is supply chain What is supply chain managementmanagement??

“Supply Chain Management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements.”

Supply chain Supply chain managementmanagement: : the impact the impact

and importance 1and importance 1

.Estimated that the grocery industry can provide approximately 30 billion dollars, using effective strategies for the supply of logistics and supply chain:

-Take the arrival of a box of cornflakes Felix 104 days from the factory-to-sales

-The arrival of a car takes 15 days from the factory to the seller

Supply chain managementSupply chain management: : the impact and importance the impact and importance

22

.The volatility (change) is a Laura Ashley stock 10 times a year, or five times faster than it was before 3 years.

.Compaq estimates it lost 0.5 - 1 billion dollars in sales in 1995 because laptops were not available when and where the

demand…

The characteristics of a The characteristics of a series of poor supplier series of poor supplier performanceperformance

.a surplus of stockthe time of a large panel of .

repeat the entry into force of the product

.scheduling of time-effective in the business

.Payload capacity is less than

The performance of supply The performance of supply chainchain: : the matching the matching strategy Strategic Fitstrategy Strategic Fit

How can we achieve the matching strategy?

understanding the customer .

.understanding of the supply chain .matching the achievement of

strategy

Understanding of the Understanding of the customer: the levels of customer: the levels of

distrust in the applicationsdistrust in the applications

Low High

PriceResponsiveness

Customer Need

Implied Demand Uncertainty

Detergent High Fashion

Understanding of the supply chain: the Understanding of the supply chain: the border between the cost - the responseborder between the cost - the response

High Low

Low

High

Response

Cost

Matching the Matching the achievement of strategicachievement of strategic

Spectrum of suspicion

Responsive supply chain

Effective supply chain

Requests for firm

Requests for non-firm

Spectrum response

Region match

ing

strateg

y

Factors affecting the Factors affecting the performance of the supply performance of the supply

chainchain .Inventory

.Transportation .Facilities

.Information

What matters in the influential What matters in the influential factors in the supply chainfactors in the supply chain

Psychotropic

Effectiveness Response

Stock Cost of holding

Availability

Transport

Consolidation

Speed

Platforms Consolidation / Dedicated

Proximity

Information What information is best suited for each

objective

Success storiesSuccess stories.With the success of some of the results follows

the principles of supply chain management:-Reduced inventory by 50%

-Reduction in total supply chain cost of revenue by 20%

-Increase the proportion of times the time of delivery specified by 40%

-Increase revenues by 17% -The stock change turns up twice, and reduced

incidents of stock out-of-stock rate of 9 times

Nokia to supply Nokia to supply managementmanagement

.characterized by repeated and rapid introduction of new products.

.supply chain management with Nokia is very flexible and very effective.established Nokia:

-Manufacture of high-speed -The supply of logistical quick delivery

-The general supply chain between suppliers and enterprises, and support the strategic orbit of the stock before vendors.

Dell computersDell computers

.use of e-commerce sales, marketing, and billing applications .

.suppliers to the site after 15 minutes of the business in Texas (Round Rock)

.inventory equivalent to 13 days of sales (compared to 25 days in the case of Compaq)

.that can break the prices of competing 10-15%

.reduced the number of suppliers from 204 in 1992 to 47 in 1997.

E-Business in Supply E-Business in Supply SsalspSsalsp

E-business is the implementation of business transactions over the Internet.

FactorySupplier Retail sellerSeller Customer

Pro

duct

The role of e-business in the The role of e-business in the supply chainsupply chain

.Supply chain transactions, which can be done via the Internet :

-Provide information through the supply chain -Negotiating with clients and suppliers on prices

and contracts (tenders electronic e-auctions and electronic markets, e-marketplaces)

-Enable customers to develop applications -Enabling customers to pursue the requests

-Termination requests and delivery to customers -Recognizes the cost of customers

ConclusionConclusion

.Supply chain management is more than just technology.

.The need to develop supply chain management procedures and the use of technologies.

.Integrated supply chain and supply chain management require major organizational changes.

The core issues in the The core issues in the supply chainsupply chain

Supply strategy Supplier Relationship Management Demand Forecasting Inventory: Value of Information &

Inventory Control Logistics Information Technology for SCM Supply Chain Performance

Measurement Supply Chain Integration