SUPPLY CHAIN

MANAGEMENT
PRESENTED BY-
NIKHIL MISHRA
PGIB/03/35
 What is supply chain?
 The system of
suppliers,manufacturers,transportation,
distributors, and vendors that exists to
transform raw materials to final products
and supply those products to customers.
 That portion of supply chain which comes
after the manufacturing process is
sometimes known as the distribution
network.
 Goal of the SCM
 SCM is 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 location
-at the right time
 In order to
-Minimize total system cost
-Satisfy customer service requirements
 Supply Chain Drivers
 Facilities
-places where inventory is
stored,assembled or fabricated
-production sites and storage sites
 Inventory
-raw materials,WIP,finished goods within a
supply chain
-inventory policies
 Transportation
-moving inventory from point to point in a supply
chain
-combinations of transportation modes and
routes
 Information
-data and analysis regarding
inventory,transportation,facilities throughout the
supply chain
-potentially the biggest driver of supply chain
performance
 A Framework for Structuring
Drivers
Efficiency Responsiveness

Supply
Supply chain structure
chain structure

Inventory Information
Transportation
Facilities
 Considerations for Supply Chain
Drivers
Drivers Efficiency Responsiveness
Inventory Cost of holding Availability
Transportation Consolidation Speed
Facilities Consolidation/ Proximity/
Dedicated Flexibility
Information With information is best suited for
each objective
 An Ultimate Supply Chain
INITIAL SUPPLIER

FINANCIAL
PROVIDER
SUPPLIER MARKET
RESEARCH
COMPANY K FIRM

THIRD-PARTY LOGISTICS
SUPPLIER CUSTOMER

ULTIMATE
CUSTOMER
 Information :Role in the
Supply Chain
 The connection between the various
stages in the Supply chain – allows
coordination between stages
 Crucial to daily operation of each stage in
a supply chain – e.g., production
scheduling, inventory levels
 Components of Information
Decisions
 Push (MRP) versus Pull (demand information
transmitted quickly throughout the supply chain)
 Coordination and information sharing
 Forecasting and aggregate planning
 Enabling technologies
- EDI
- Internet
- ERP systems
- SCM software
 Overall trade-off : Responsiveness versus efficiency
THANK YOU.