Supply Chain Management
Dr. Jayashree Dubey IPE
Topics For Discussion:
Defining the SCM Objective of supply Chain Functions of supply Chain Supply Chain partners Drivers Types
What is SCM?
SCM 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, at the right time, in order to minimize system wide costs while satisfying service level requirements. Chain management deals with the control of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers” ...view middle of the document...
g. Oil Company)
Chemical manufacturer (e.g. Oil Company)
Flows in Supply Chain
Flow of information, order, fund, material, ownership,
Manufacturers, Suppliers, Customers, Transporters, Warehouses, Retailers.
The Objective of a Supply Chain
Maximize overall value created Supply chain value: difference between what
the final product is worth to the customer and the effort the supply chain expends in filling the customer’s request Value is correlated to supply chain profitability (difference between revenue generated from the customer and the overall cost across the supply chain)
Functions of supply Chain
Physical function: includes converting raw
materials into products and transportation from one point in the supply chain to the next; the costs lie within production, transportation and inventory storage. Market mediation function: to make sure that the products reaching the market place matches consumer demand
SC Strategy SC Planning SC Operation
SC Profitability/ Surplus
Strategic network optimization, including the number,
location, and size of warehouses, distribution centers and facilities. Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics. Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management Information Technology infrastructure, to support supply chain operations. Where to make and what to make or buy decisions Align overall organizational strategy with supply strategy
Sourcing contracts and other purchasing decisions. Production decisions, including contracting, locations,
scheduling, and planning process definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise. Milestone payments
Daily production and distribution planning, including all nodes in the
supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Outbound operations, including all fulfillment activities and...