scm

24
www.a2zmba.com

Upload: debashish-banerjee

Post on 20-Jan-2015

1.619 views

Category:

Business


1 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Scm

www.a2zmba.com

Page 2: Scm

www.a2zmba.com

Page 3: Scm

Definitions “SUPPLY CHAIN is defined as a set of three

or more entities (organizational or individual) directly involved in the upstream and downstream flow of product, services, finances and information from a source to customer”

www.a2zmba.com

Page 4: Scm

www.a2zmba.com

It is the process of planning and controlling

the efficient ,cost-effective flow and storage of raw materials, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirement

Page 5: Scm

www.a2zmba.com

.

Example: A detergent supply chain:

Customer

ChemicalManufacturer

Manufacturer(P&G)

Wal-MartDC

Wal-MartStore

Plastic Producer

TennecoPackaging

PaperManufacturer

TimberIndustry

OilIndustry

Page 6: Scm

www.a2zmba.com

Printer Supplier

MonitorSupplier

Sub-component

Supplier

Dell Assembly

Plant

CustomerMaterial Flow

Information Flow

Page 7: Scm

www.a2zmba.com

Customer

Retailer

Retailer

Retailer

Distributor

Distributor

Distributor

Manufactu-rer

Manufactu-rer

Manufactu-rer

Supplier

Supplier

Supplier

Customer

Customer

Carriers

MaterialInformationFunds

Page 8: Scm

Goals and Purpose of SCM

Supply chain is to maximize the overall value generated

Reduce uncertainty & risks, inventory, cycle time

Improve business processes, customer service

Increased profits & competitiveness

www.a2zmba.com

Page 9: Scm

Decision phases in supply chainSupply chain strategy or designSupply chain planningSupply chain operation

www.a2zmba.com

Page 10: Scm

Process view of supply chainCycle view

- Customer order cycle- Replenishment cycle- Manufacturing cycle- Procurement cycle

Push / pull view

www.a2zmba.com

Page 11: Scm

Supply chain activitiesForecasting demandSelecting suppliersOrdering materialManaging inventoryScheduling productionShipping and deliveryOrganizing information exchange

www.a2zmba.com

Page 12: Scm

Selecting a SupplierIn selecting a supplier, a number of factors

must be analyzed:pricequalityreliabilitycredit termsshipping costs.

www.a2zmba.com

Page 13: Scm

Forecasting demandDemand planning and sales forecasting is critical

function for Manufacturers, distributors, retailers, & other supply chain members

Effective demand planning and sales forecasting across the supply chain can bring a host of benefits in SCM

It can help improve labor productivity, reduce the head count, cut inventories, speed up product flow and increase revenues and profits

Forecasts can be long term , short term or aggregate

Forecasts methods vary depending on type of Industry vertical

Accurate forecasts is essential for FMCG type of Industry, while for other types like made to order heavy Engg Industry this is planned with simple techniques

www.a2zmba.com

Page 14: Scm

Purchasing and procurementPurchasing: implies the monetary transaction.Procurement: the responsibility for acquiring

the goods and services the organization needs:goods:

raw materials production parts maintenance, repair and operating supplies (MRO)

services: consulting services utilities workers health care benefits

www.a2zmba.com

Page 15: Scm

Production planning and controlNumber of units of a specific product to be

producedTime intervals over which production will

occurAvailability of equipment, materials and work

forceCost effective inventory and resource

management.

www.a2zmba.com

Page 16: Scm

Material HandlingMoving of goods between incoming transport,

storage, processes and outgoing transportThe set of activities that move production

inputs and other goods within plants, warehouses and transportation terminals.

The task for the materials handling manager is to find the methods, the routes, the layouts and the right components to minimize handling.

www.a2zmba.com

Page 17: Scm

Inventory managementObjectives of inventory management:

minimize costs: working capital carrying costs scrap and rework

highest level of customer service.Inventory management tasks:

make decisions about: safety stock replenishment production runs excess stock.

www.a2zmba.com

Page 18: Scm

Inventory management continued..Inventory must be managed differently for:

independent demand: influenced by market conditions

dependent demand: derived from the production of parent items.

www.a2zmba.com

A

B C

D E

Independent demand

Dependentdemand

Page 19: Scm

Distribution Distribution is the activity that is concerned with receiving

parts or finished goods, storing them until they are required and then delivering them to the customer.

Functions of distribution: inventory management order processing warehousing: materials handling Transportation

Methods of transport: trucks railroads water airways pipelines

www.a2zmba.com

Page 20: Scm

Customer serviceCustomer service issues include:

accurate understanding of customer’s needs and wants

the ability to deliver necessary customer service levels

variations between plans and their actual implementation

effective communications with the customer’s

www.a2zmba.com

Page 21: Scm

Key Issues in Supply Chain Mgt.Supply Chain Integration and Strategic

Partnering – information sharing and operational planning are keys to successfully integrated supply chain. But what info. will be shared? How will it be used? What level of integration is needed? What partnerships can be implemented?

www.a2zmba.com

Page 22: Scm

Key Issues in Supply Chain Mgt.Customer Value – the measure of a

company’s performance to its customer, based upon the entire range of products, services, and intangibles that constitute the company’s offerings. Effective supply chain mgt. is critical if company’s objective is to fulfill the ultimate consumer needs and provide value.

www.a2zmba.com

Page 23: Scm

Key Issues in Supply Chain Mgt.Information Technology and Decision-

Support Systems – much of the current interest in supply chain mgt. is motivated by the opportunities that appeared due to the abundance of data and the savings that can be achieved by sophisticated analysis of these data.

www.a2zmba.com

Page 24: Scm

Supply chain best practices Retain only core work (products, services & solutions) Improve Supplier Selection process Reduce the number of suppliers Improve demand forecast accuracy Increase inventory turns (velocity) Decrease outsourcing costs per/unit by leveraging major suppliers for

lower prices Increase standardization of products, as much as possible and

appropriate Increase global sourcing, especially in geographic areas of lower

labor costs Maximize economies of scale Seek global demand for products & services Increase automation and database integration between business

partners using Enterprise Resource Planning (ERP) software tools and web-based trade exchanges.

Use technology tools to increase speed to market, reduce costs, and obtain real-time accurate information.

www.a2zmba.com