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Introduction to Supply Chain Management

Supply chain management involves integrating suppliers, manufacturers, warehouses, and distribution centers to efficiently produce and distribute products in the right quantities, to the right locations, and at the right time, while minimizing system-wide costs and meeting service requirements. It is difficult due to the inherent uncertainty in factors like travel times, breakdowns, and weather. Today's marketplace requires personalized services, collaborative planning with partners, real-time commitments, flexible logistics, and shared visibility across the supply chain.

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Niharika Satyadev Jaiswal
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88 views10 pages

Introduction to Supply Chain Management

Supply chain management involves integrating suppliers, manufacturers, warehouses, and distribution centers to efficiently produce and distribute products in the right quantities, to the right locations, and at the right time, while minimizing system-wide costs and meeting service requirements. It is difficult due to the inherent uncertainty in factors like travel times, breakdowns, and weather. Today's marketplace requires personalized services, collaborative planning with partners, real-time commitments, flexible logistics, and shared visibility across the supply chain.

Uploaded by

Niharika Satyadev Jaiswal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Supply Chain Management

An Introduction

TR PANDEY
Dimensions of Supply Chain Management

• Knowledge Factor
• Information Technology
• Human Contacts
What Is the Supply Chain?

• Also referred to as the logistics network


• Suppliers, manufacturers, warehouses, distribution
centers and retail outlets – “facilities”
Suppliers Manufacturers Warehouses & Customers
Distribution Centers

and the

• Raw materials
• Work-in-process (WIP) inventory
• Finished products
Transportation Transportation
Costs Costs
Material Costs Transportation
Manufacturing Costs Inventory Costs
Costs

that flow between the facilities

3
The Supply Chain
Suppliers Manufacturers Warehouses & Customers
Distribution Centers

Transportation Transportation
Costs Costs
Material Costs Transportation
Manufacturing Costs Inventory Costs Costs
4
The Supply Chain – Another View

Plan
Plan Source
Source Make
Make Deliver
Deliver Buy
Buy

Suppliers Manufacturers Warehouses & Customers


Distribution Centers

Transportation Transportation
Material Costs Costs Costs Transportation
Manufacturing Costs Inventory Costs Costs

5
What Is Supply Chain Management (SCM)?

Plan Source Make Deliver Buy

• A set of approaches used to efficiently integrate


– Suppliers
– Manufacturers
– Warehouses
– Distribution centers
• So that the product is produced and distributed
– In the right quantities
– To the right locations
– And at the right time
• System-wide costs are minimized and
• Service level requirements are satisfied

6
Why Is SCM Difficult?

Plan Source Make Deliver Buy

• Uncertainty is inherent to every supply chain


– Travel times
– Breakdowns of machines and vehicles
– Weather, natural catastrophe, war
– Local politics, labor conditions, border issues

• The complexity of the problem to globally optimize a supply


chain is significant
– Minimize internal costs
– Minimize uncertainty
– Deal with remaining uncertainty

7
The Importance of Supply Chain Management

• Shorter product life cycles of high-technology products


– Less opportunity to accumulate historical data on customer
demand
– Wide choice of competing products makes it difficult to predict
demand
• The growth of technologies such as the Internet enable greater
collaboration between supply chain trading partners
– If you don’t do it, your competitor will
– Major buyers such as Wal-Mart demand a level of “supply chain
maturity” of its suppliers
• Availability of SCM technologies on the market
– Firms have access to multiple products (e.g., SAP, Baan, Oracle, JD
Edwards) with which to integrate internal processes

8
Today’s Marketplace Requires:

• Personalized content and services for their


customers
• Collaborative planning with design partners,
distributors, and suppliers
• Real-time commitments for design, production,
inventory, and transportation capacity
• Flexible logistics options to ensure timely fulfillment
• Order tracking & reporting across multiple vendors
and carriers Shared visibility for
trading partners
9
Importance of Supply Chain Management

• Time Factor
• Internal Operations and Improvement
• Supply Chain Philosophy

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