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Presented By:

Arpit Rastogi

Anshul Chhabra

SUPPPLY CHAIN MANAGEMENT

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Copyright 2006 John Wiley &Sons, Inc.10-2

Supply Chain

Management (SCM)

Managing flow of information through supplychain in order to attain the level ofsynchronization that will make it moreresponsive to customer needs while loweringcosts

Keys to effective SCM information communication cooperation trust

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SUPPLY CHAIN INFLOW

Products

Services

Information

Financial resources

Demand forecasts

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SUPPLY CHAIN PROCESS

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Copyright 2006 John Wiley &

Sons, Inc.10-5

Supply Chain for Service

Providers

More difficult than manufacturing

Does not focus on the flow of physical goods

Focuses on human resources and support

services

More compact and less extended

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SUPPLY CHAIN DRIVERS

Why sudden interest? Demanding customers

Shrinking product life cycles

Proliferating product offerings

Growing retailer power in some cases

Doctrine of core competency

Globalization

Information technology

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SUPPLY CHAIN ELEMENT

Supply Chain Design Resource Acquisition

Long Term Planning (1 Year ++)

Production/ Distribution Planning

Resource Allocation

Medium Term Planning (Quaterly monthly)

Shipment Scheduling

Resource Scheduling

Short Term Planning (Weekly Daily)

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SUPPLY CHAIN GOAL

Efficient supply chain managementmust result in tangible business

improvements. It is characterized by a

sharp focus on

Revenue growth

Better asset utilizationCost reduction.

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TYPES OF SUPPLY CHAIN

EFFICIENT Focus on cost , Economy of scale.Supply and demand is uncertainty low.

RESPONSIVE Flexible to need of customer

RISK HEDGING Sharing of resources in supply

chain to avoid risk

AGILE Combine responsiveness and risk

hedging strategy

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INFORMATION FLOWS IN SCM

Information is overriding element

Need for database

Master files: Information about customers, products,materials, suppliers, transportation, production and

distribution data- do not require frequent processing.

Essentially using the same information to make all plansEssentially using right from structuring the network to

processing every day supply chain tasks.

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KEY PROBLEM IN SCM

Design a supply chain

network that delivers high quality

products to the right customersat the right time at minimum cost

IMPORTANT POINTS TO BE KEPT IN

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IMPORTANT POINTS TO BE KEPT IN

MIND

Segment customers based on service needs.

Modify the supply chain to meet these service

requirements profitably.

Develop forecasts collaboratively involving everylink of the supply chain.

Locate the leverage point where the product is

unalterably configured to meet a single

requirement

Delay product differentiation till the last possible

moment.

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