5. supply chain management

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Supply ChainManagement

Christ University, Bangalore-29 Rishikesh. K. B.


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What Is the Supply Chain?

Also referred to as the logistics network Suppliers, manufacturers, warehouses,

distribution centers and retail outletsfacilities

and the

Raw materials

Work-in-process (WIP) inventory

Finished products

that flow between the facilities

Is altogether referred to as Supply Chain

Suppliers Manufacturers Warehouses &

Distribution Centers

Customers

Material Costs

Transportation

CostsTransportation

Costs

Transportation

CostsInventory CostsManufacturing Costs



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The Supply Chain

Suppliers Manufacturers Warehouses &

Distribution Centers

Customers

Material Costs

Transportation

CostsTransportation

CostsTransportation

CostsInventory CostsManufacturing Costs



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What Is Supply Chain Management (SCM)?

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

Advantages: System-wide COSTS are minimized and, SERVICE

LEVEL requirements are satisfied

Plan Source Make Deliver Buy



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SUPPLY CHAINMANAGEMENT SCM):Supply chain management helps a company toget the right products to the right place, at the

right time, in proper quantity at an acceptable

cost. The goal of SCM is to:

Forecast demand

Control inventory

Enhance relationships with customers,suppliers, distributors, and others

Receive feedback on the status of every link in

the supply chainChrist University, Bangalore-29 Rishikesh. K. B.


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What Is the Supply Chain?



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Supply Chain Management



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Benefits of Supply Chain

Collaboration


CustomersMaterial

Suppliers

Service

Suppliers


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Benefits of Supply Chain

Collaboration

CUSTOMERS MATERIALSUPPLIERS

SERVICESUPPLIERS

Reduced inventory

Increased revenue

Lower ordermanagement costs

Higher Gross Margin

Better forecastaccuracy

Better allocation ofpromotional budgets

Reduced inventory

Lower warehousing

costsLower materialacquisition costs

Fewer stock outconditions

Lower freight costs

Faster and more

reliable deliveryLower capital costs

Improved customer service

More efficient use of human and material resources



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Roles and Activities of SCMin Business



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Key Benefits: Include,

Faster, more accurate order processing

Reductions in inventory levels

Quicker times to market

Lower transaction and materials costsStrategic relationships with supplier




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Challenges: Include,Lack of demand planning knowledge, tools,

and guidelines

Inaccurate data provided by otherinformation systems

Lack of collaboration among marketing,

production, and inventory management

SCM tools are immature, incomplete, and

hard to implement




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EDI: Electronic Data

Interchange

What is EDI?

Exchange of electronic data between

companies using precisely definedtransactions

Set of hardware, software, and standardsthat accommodate the EDI process



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EDI Benefits:



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EDIsoftware is used to convert a companys own

document formats into standardised EDI formats as

specified by various industry and international

protocols. Formatted transaction data are transmitted

over network links directly between computers

without paper documents or human intervention.

Thus EDI streamlines processes, saves time and

increases accuracy. It is an example of complete

automation of an e-commerce supply chain process.



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Electronic Data Interchange

Suppliers, manufacturers, and retailers cooperate in some of the most successful

applications of EDI.



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Electronic Data Exchange How does EDI work?

Suppliers proposal sent electronically to

purchasing organization.

Electronic contract approved over network. Supplier manufactures and packages goods,

attaching shipping data recorded on a bar

code.

Quantities shipped and prices entered in

system and flowed to invoicing program;

invoices transmitted to purchasing organization



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Electronic Data Exchange

Manufacturer ships order.

Shipment notice EDI transaction sent

Purchasing organization receives packages,

scans bar code, and compares data to invoicesactual items received.

Payment approval transferred electronically.

Bank transfers funds from purchaser tosuppliers account using electronic fund

transfer (EFT).



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Electronic Data Interchange

Figure 11.4



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Decide thanMe

Decide]Christ University, Bangalore-29 Rishikesh. K. B.

Enterprise Collaboration

System: How to work together?


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Enterprise CollaborationSystemThe goal of Enterprise Collaboration System is to

enable and work together more easily and

effectively by helping in:

a. Communicate: Sharing information with each

other

b. Coordinate: Coordinating our individual work

efforts and use of resources with each other

c. Collaborate: Working together cooperatively

on joint projects and assignments



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Groupware for EnterpriseCollaboration System:Experts define Groupwareas collaboration

software, that is, software that helps teams

and workgroups work together in a varietyof ways, to accomplish joint projects and

group assignments.

For example: Lotus Notes, Novell GroupWise,Microsoft Exchange, Netscape

Communicator, and Microsoft soft Project.



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Communication Technology

Christ Universit Ban alore-29 Rishikesh. K. B.Video Conferencing


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Christ Universit Ban alore-29 Rishikesh. K. B.Cellular (mobile) Phone


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Christ Universit Ban alore-29 Rishikesh. K. B.

SMS

(Short Message Service)


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Voice Mail


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Christ Universit Ban alore-29 Rishikesh. K. B.Fax


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Christ Universit Ban alore-29 Rishikesh. K. B.Blue Tooth, E-mail (Electronic Mail)


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Questions?s .... if any.



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5. supply chain management

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