Download - Supply Chain Management Ppt Final_edited
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FLOW OF PRESENTATION
INTRODUCTION OF SCM SCM MYTH THE EVOLVING STRUCTURE OF SUPPLY CHAIN SUPPLY CHAIN PROCESS PARTICIPANTS IN SUPPLY CHAIN SCM STRUCTURE COMPONENTS OF SCM ADVANTAGES OF SCM PHARMACEUTICAL SCM - SANDOZ
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WHAT IS SCM ?
Supply chain management is the coordination ofproduction, inventory, location, andtransportation among the participants in a supplychain to achieve the best mix of responsivenessand efficiency for the market being served.
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THE DEFINITION
The systemic, strategic coordination of the traditional business functions and thetactics across these business functions within a particular company and acrossbusinesses within the supply chain, for the purposes of improving the long-termperformance of the individual companies and the supply chain as a whole.from Mentzer, DeWitt, Deebler, Min, Nix, Smith, and Zacharia in their
article Defining Supply Chain Management in the Journal of Business Logistics (Mentzer, John T.,William
DeWitt, James S. Keebler, Soonhong Min, Nancy W. Nix, Carlo D. Smith, and Zach G. Zacharia, 2001,
Defining Supply Chain Management,Journal of Business Logistics,Vol. 22, No. 2, p. 18)
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THE SCM MYTH
SCM same as LogisticsTWO major differences between Logistics & SCM:
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LOGISTICS SUPPLY CHAIN MANAGEMENT Activities that occur within the
boundaries of a single organization
Networks of companies that work
together and coordinate their actions to
deliver a product to market
Focuses on activities such as
procurement, distribution, maintenance,
and inventory management
Acknowledges all of traditional
logistics + includes activities such as
marketing, new product development,
finance, and customer service
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THEEVOLVINGSTRUCTUREOFSUPPLYCHAINS
Old Supply Chains versus New :FORD motors (For eg.) in 1900followed the Old Supply chainapproach called the Verticallyintegrated supply chains.But as the markets grew andcustomers became more articularabout the kind of products theywanted, this model began to breakdownInstead of vertical integration,companies now practice VirtualIntegration. Companies findother companies who they canwork with to perform the activitiescalled for in their supply chains.
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DECISION MAKING IN SCM
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PRODUCTION INVENTORY LOCATIONTRANSPORTATION INFORMATION
RESPONSIVENESSV\SEFFICIENCY
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COMPONENTS OF SCM
Plandevelopment, monitoring
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SourcesuppliersMake produce, test, package, qualitylevel, output Delivery product to customers,network with service providers Returncustomers return
Plan
Source
MakeDelivery
Return
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PARTICIPANTSINTHESUPPLYCHAIN
A simple supply chain is composed of A company The Suppliers The Customers
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Extended SCM contains 3 more participantsSuppliers supplierCustomers customer Service Providers
Ultimate Supplier ProducersSuppliers DistributorsA CompanyCustomer RetailerUltimate Customer Consumer
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SCM STRUCTURE
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Reduced Cost
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Increases Efficiency Increases Output Responsiveness to Demand Optimized Stock Levels Accurate Costing & Scheduling Quality Advantage
CHALLENGES
Distribution Strategy-Operating Control- Mode of transport Inventory Management Cash Flow Information
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DEPARTMENTS INVOLVED
PLANNING PURCHASE CUSTOMER SERVICE WAREHOUSING PACKAGING AND
DEVELOPMENT LOGISTICS
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PHARMACEUTICAL - SCM
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CUSTOMER SERVICE
Forecasting/demand planning New product launches
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PLANNING
Forecast planning Material procurement planning Production planning Dispatch planning
PURCHASE
Purchase of raw materials andpackaging material and expeicients Import clearance
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PACKAGING AND DEVELOPMENT
Blister pack Bottle pack( Plastic/Glass) Alualu pack Bulk pack
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WAREHOUSING
Receipts Issues Dispatches: Data logger, tyveck cover, Pallets Inventory management
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LOGISTICS
Customs clearance Excise clearance Octroi clearance Negotiations with airlines, transporters,freight forwarders,
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VENDORMANAGEMENT INVENTORY
A means of optimizing Supply Chain performance in which the manufacturer is responsiblefor maintaining the distributors inventory levels. The manufacturer has access to thedistributors inventory data and is responsible for generating purchase orders Under the typical business model: When a distributor needs product, they place an orderagainst a manufacturer. The distributor is in total control of the timing and size of theorder being placed. The distributor maintains the inventory plan. Vendor Managed Inventory model: The manufacturer receives electronic data that tells himthe distributors sales and stock levels. The manufacturer can view every item that the
distributor carriers as well as true point of sale data. The manufacturer is responsible forcreating and maintaining the inventory plan
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