Supply Chain Management - An Overview - RG.ppt - Supply Chain Management An Overview Dr Manmohan Rahul Professor Some Definitions Supply Chain

Supply Chain Management - An Overview - RG.ppt - Supply...

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Supply Chain Management: An Overview Dr. Manmohan Rahul Professor
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Some Definitions Supply Chain Management encompasses every effort Supply Chain Management encompasses every effort involved in producing and delivering a final product involved in producing and delivering a final product or service, from the supplier’s supplier to the or service, from the supplier’s supplier to the customer’s customer. customer’s customer. Supply Chain Management includes managing Supply Chain Management includes managing supply and demand, supply and demand, sourcing raw materials and parts, sourcing raw materials and parts, manufacturing and assembly, manufacturing and assembly, warehousing and inventory warehousing and inventory tracking tracking , , order entry and order management, distribution across all order entry and order management, distribution across all channels, and delivery to the customer channels, and delivery to the customer . . The Supply Chain Council, U.S.A.
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Supply Sources: plants vendors ports Regional Warehouses : stocking points Field Warehouses : stocking points Customers, demand centers sinks Production/ purchase costs Inventory & warehousin g costs Transportati on costs Inventory & warehousin g costs Transportati on costs
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Flows in a supply chain Customer Information Product Product Funds
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Some More Definitions
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Some More Definitions
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Key Observations
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Key Observations (continued)
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Notable Quotes In the end, all business comes down to Supply Chain vs. Supply Chain Robert Rodin, CEO, Marshall Industries Japanese Manufacturing Industry owes its Competitive Advantage and Strength to its Sub-Contracting Structure. Ministry of International Trade and Industry, Japan (1992) Manufacturing now competes less on product and quality – which are often comparable – and more on inventory turns and speed to market. John Kasarda, Forbes, 1999
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Philosophy of SCM
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Efficiency: Basis of Production Management Efficiency leads to lower costs Lower cost implies Lower Price => Greater demand => Better market growth => Higher profits => Product/ Process development => Better market share 1980s and 1990s: Era of achieving excellence at the firm level (JIT, TQM, TPM, BPR, ERP, etc) 2000s: Era of achieving excellence at the value chain level (SCM, CRM, E-Commerce, etc.)
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Evolution of SCM
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Why is SCM Important? Strategic Advantage It Can Drive Strategy * Manufacturing is becoming more efficient * SCM offers opportunity for differentiation (Dell) or cost reduction (Wal-Mart or Big Bazaar) Globalization It Covers The World * Requires greater coordination of production and distribution * Increased risk of supply chain interruption * Increases need for robust and flexible supply chains
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Why is SCM Important? (continued) At the company level, supply chain management impacts * COST – For many products, 20% to 40% of total product costs are controllable logistics costs.
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