supply chain management. introduction – supply chain a sequence of organizations – their...
TRANSCRIPT
SUPPLY CHAIN MANAGEMENT
Introduction – Supply Chain
A sequence of organizations – their facilities, functions, and activities – that are involved in producing and delivering a product of service.
A value chain is another name for a supply chain.
Introduction – Supply Chain Management
Supply Chain Management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying customer service requirements.
Its the strategic coordination of the supply chain for the purpose of integrating supply and demand management.
Need For Supply Chain Management
Improve operations
Increasing levels of outsourcing
Increasing transportation costs
Competitive pressures
Increasing globalization
Increasing importance of e-commerce
Complexity of supply chains
Manage inventories
Benefits Of Effective Supply Chain Management
SCM provides strategies and methods for integrating separate organizations.
Lower inventories.
Lower cost.
Higher productivity.
Greater agility.
Shorter lead times.
Higher profits .
Greater customer loyalty.
Elements of Supply Chain Management
Customer
Forecasting
Design
Capacity Planning
Processing
Inventory
Purchasing
Suppliers
Location
Logistics
• Determining what products and/or services customers want.
• Predicting the quantity and timing of customer demand.
• Incorporating customers, wants, manufacturability and time to market • Matching supply and
demand.
• Controlling quality, scheduling work.
• Meeting demand requirements while managing the costs of holding inventory.
• Evaluating suppliers & making timely purchases for production
• Managing supply and supplier relations
• Determining the best location for the facility
• Deciding the best way to move information & materials
Logistics
The part of supply chain involved with the forward and reverse flow of goods, services, cash, and information.
The movement of materials, services, cash and information in a supply chain.
Logistic Types
Logistics types Movement within the faculty Incoming and Outgoing shipments
Traffic management Distribution requirements planning (DRP) 3-PL (Third party logistics) Reverse logistics
Gate keeping Avoidance
Steps In Creating Effective Supply Chain
Integrate internal activities
Integrate activities with suppliers & customers
Forming of strategic partnerships.
Evaluation of Supply Chain
Quality Cost Customer service Flexibility Velocity
Challenges for Supply Chain Units
Barriers to Integration of Separate Organizations
Getting Top Management Onboard
Dealing with Trade OffsLot size-Inventory trade Off.
Inventory- transportation cost trade-Off.
Lead time-transportation cost trade-off.
Cost-customer service trade-off
Variability and Uncertainty
Response Time
Purchasing
Responsibility •Responsible for obtaining the materials, parts, supplies and services needed to produce a product or provide a service.
Importance •Cost of Goods purchased•Quality of goods & Services•Timing of deliveries of goods & services.
Goal •Develop and implement purchasing plans for products & services that support operations strategies.
Duties •Identifying sources supply•Negotiating contracts.•Maintaining database of suppliers
Purchasing Interface
Purchasing
Operations
Legal
Accounting
Data Processing
Design
Receiving
Suppliers
Purchasing Cycle
Requisition
received
Supplier selected
Order is placed
Monitor orders
Receive orders
Supplier Management
Choosing Suppliers
Suppliers Audit
Supplier Certification
Supplier Partnerships
Supplier Relationships