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BY:
1. ARUN BANSAL2. ABHISHEK BIRMAAN3. MANULAL K.4. RAJESH AGARWAL5. RUCHY SINGH
6. SULABH JAIN
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" Is the strategic management of activities involved in
the acquisition and conversion of materials to finished
products delivered to the customer"
Supplier
Management
Schedule /
ResourcesConversion
Stock
Deployment Delivery
Customer
Management
Material Flow
Information Flow
SUPPLY CHAIN MANAGEMENT
ABC
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In a
Pull View of SCM
in
Pull-based systems are often difficult to implement when lead timesAre demand information
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` Reduce operatingcosts
` Reduceinefficiencies inthe Supply Chain Improvedelivery serviceandexecute JIT
Increaseassetutilization Matchdemand with supply
` Help make better purchasingand schedulingdecisions
5
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Enco
ing &Ingesting
VaultingProcessingand
ransformationPac aging&Distribution
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Apples digital supply chain
Brick Mortar Pure Play
iTunes uses bothupstream anddownstream supplychain.
iTunes is calledas hub of Apples digital supply chain.
ProcuringContent Processing to
digital format
iTunes store
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` How the igital Supply Chain Made AppleNo. 1onthe Supply Chain :
1. Pull & Push Supply Model2. Value Network
3. Supply Chain Efficiency
4. Inventory Management
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ResultsHad revived Apple sales 2.5 times from 2004
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` Customer Service
` Huge Fleet
` Maintenanceissues
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` To ensurethatSouthwestalways hastherightreplacement
parts availableattherighttimetominimize oreliminateflightdelays, the
airlineimplementedi2 solutions (SCMSolution).
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` Return of Investment: Southwest Airlinesreporteda $5 million benefit withinthefirst sixmonths ofimplementingi2
` Inventory Control: Approximately $30m (15percent) ofexcess inventory has beenidentifiedas aresult ofusingthei2tools.
` Low-cost Airline:
` Reduced Cost in Analysis` Better Planning:
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AmalgamatedAmalgamatedBeverage IndustriesBeverage Industries
LtdLtd ((ABI Ltd.)ABI Ltd.)Implementing mySAP SCM
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` To combat competition from substitute products, ABI increased the
number of noncarbonated drinks it sold.
` At the same time, ABI restructured its manufacturing operations and
consolidated several independent departments into one supply
chain team.` This team transformed ABIs disconnected manufacturing planning
and forecasting processes into an integrated collaborative process.
` This transformation of planning processes, and their ability to
handle the increasing complexity of the business was enabled by the
capabilities of mySAP Supply Chain Management.
` In April 2003, they went live with the supply network planning
(SNP).
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` Much improved forecast accuracy, despite an increase in SKUs from
120 to 285.
` Achieved on-time delivery rate of 92% from previously lower
levels.
` Reduced lost sales, due to stock-outs, by 5% .` Reduced inventory levels by 26%, reduced days of inventory from
16 to 11, and reduced inventory arraying costs by 26%.
` Reduced product overstocks by 15% by eliminating seasonal
overstocks and obsolete inventory.
` Developed forecasting and planning processes to enable an
increased rate of new product introductions.
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` Supply chain Management helps in improving
Network design
Information sharing
Visibility
Proactive measurement and monitoring
Supply Chain Management can lead to shorter cash-to-
cash cycle times.
SCM lowers operational expenses with timely planning
for procurement, manufacturing and transportation.
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` THANK YOU
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