Welcome

Objective
Goals of a supply chain Impact of supply chain decision on the success of a firm. Key supply chain decision phases Cycle description & push\pull views of a supply chain Classification of the supply chain macro processes in a firm.

What is Supply chain

Supply chain is a process of delivering goods & services from manufacturers to the end consumer. It consists of all parties involved directly or indirectly in executing customer request. Supply chain includes Manufacturers Suppliers Transporters Warehouses Retailers Customers

Supply Chain Model

Raw material Supplier Money Manufacturer Money Wholesaler Product

Products

Products
Money

Money
Consumer Products Retailer

Features of Supply Chain

Supply chain should be dynamic There should be constant flow of Information Products Funds All parties of the chain should be profitable

Objective of Supply Chain

The objective of any supply chain is to maximize the overall value generated. Value generated = Cost of final product cost incurred in supply chain Higher the supply chain profitability more successful is the chain Supply chain profitability means over all profit of chain not an individual. Its really important to chose right type of channel

Decision phases in supply chain

Successful supply chain management requires many decisions relating to flows. Each decision should be made to raise the supply chain surplus. These decisions falls into below mentioned three phases. Supply chain strategy or design Supply chain planning Supply chain operation

Decision phases in supply chain

Supply chain strategy or design: In this phase the company decides the structure of the supply chain depending upon the marketing & pricing plan of the products. Planning is normally done for several years. Major decision includes: Outsourcing or in-house process Location & capabilities of production & warehousing facilities Product manufacturing or storage at various locations Modes of transportation from different locations. Type of information system to be used.

Decision phases in supply chain

Supply chain planning :In this phase the company decides on the parameters of the supply chain to maximize the surplus. Planning is done at least for a quarter. Major decisions includes Forecasting for different markets for different periods Logistics Feeding units Subcontracting of manufacturing Inventory policies Timing & size of marketing & price policies

Decision phases in supply chain

Supply chain operations: This phase includes day to day activities for executing the demands of end consumer. It helps in reduction of uncertainty & optimization of performance. Planning is done on weekly or daily basis. Major decision includes: Allocation of inventory Generate pick up list at ware house Set delivery schedules Place replenishment orders

Process Views of Supply Chain

Cycle View Push \ Pull View

Cycle View
Customer Order Cycle Replenishment Cycle Manufacturing Cycle Procurement Cycle

Customer
Retailer Distributor

Manufactures

Supplier

Process Views of Supply Chain

In cycle view there are 4 process cycles
Customer order cycle Replenishment cycle Manufacturing cycle Procurement cycle

The objective of each cycle is to ensure product availability & achieve economics of scale in ordering. In this view the supplier attempts to forecast & tries to reduce the cost of receiving the order.

Process Views of Supply Chain

Push or pull view: In this view the processes of supply chain are divided into two categories Pull process are initiated by customer orders. They can also be termed as reactive process Push processes are initiated in anticipation of customer orders. They can also be termed as speculative process

Macro Process of Supply Chain

All supply chain processes can be classified into three macro processes.
Supplier
SRM

Firm
ISCM

Customer
CRM

Source Negotiate Buy Design Collaboration Supply Collaboration

Strategic planning Demand planning Supply planning Fulfillment Field service

Market Price Sell Call Center order Management

Macro Process of Supply Chain

Customer Relationship Management (CRM) : All processes that focus on the interface between the firm and its customers. The main objective of CRM is to Generate customer demand Placement & tracking of orders Marketing Preparation of POP materials (catalogues) Pricing Sales Call center management

Macro Process of Supply Chain

Internal supply chain management (ISCM) : All internal process of a firm related to supply chain The main objective of ISCM is to execute customer orders in a timely manner & at a lowest possible cost Processes include Planning of internal production & storage Preparation of demand & supply plans Fulfillment of orders Planning of location & size of warehouses Inventory management Packaging & shipping management

Macro Process of Supply Chain

Supply Relationship Management (SRM): All processes that focus on interface between the firm & its suppliers. The main objective of SRM is to arrange & manage supply chain sources for various goods & services. The process includes: Evaluation & selection of suppliers Negotiation of supply terms Communication for new products & orders with suppliers Placement of replenishment products

The main objective of any supply chain is to executive consumer demands in timely manner at the lowest possible cost & at the same time highest supply surplus. It can only be achieved with integrated efforts of all macro processes. Better the coordination better the achievement of Firm GOALs

Thank You