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Supply Chain Management

Topics to study

Introduction of SCM Domain application of SCM SCM The breakthrough article Views on supply chain Bullwhip effect in SCM Collaborative supply chain Inventory Management in supply chain Financial supply chain

Needs and objectives


Reduction of inventory Enhancement of participation level and empowerment

level Increase in functional effectiveness of existing systems like ERP, accounting software, financial report, ISO documents Effective integration of multiple systems like ERP, communication systems, documentation system & security Design / research & development systems Better utilization of resources like men, materials, equipment and money

Optimization of money flow cycle within the organisation

as well as from external agencies Enhancement of value of products, operations, service Enhancement of satisfaction level of customers and clients, supporting institutions, statutory control agencies, suppliers and vendors, employees and executives. Enhancement of flexibility in the organisation to help in easy implementation of schemes involving modernisation, expansion and divercification Enhancement of coverage and accuracy of management information systems

Domain application
SCM can be easily applied and integrated with :
- ERP systems - Design systems like auto CAD, Pro E - R & D systems - ISO 9000 systems - Accounting and financial systems - Costing systems

- Manufacturing systems

Implementation of SCM
Study the strengths and weakness of org as well as external

agencies involved. Understand the organisation objectives Study the existing systems and identify the gaps and propose solutions to plug the loopholes. Evolve consensus and test fire individual solutions Integrate solutions which are adjudged successfully into the mainstream Study overall impact after all proposals in a section are implemented, review consensus. Finalise SCM document, circulate and implement.

SCM breakthrough article


Supply chain is a network of facilities and distribution

options that performs the function of procurement of materials, transformation of it into products, and distribution to customers. It exist in both service and manufacturing organisation. Step 1 Raw materials procured from vendors Step 2 Transformed to finished goods Step 3 Transported to distribution centres Step 4 Supplied to customers

Supply chain decisions


Strategic decisions made over a longer time horizon &

closely linked to the corporate strategy and guide supply chain policies from a design perspective. Operational decisions made for short term, focus on day to day basis. 4 major decisions are location, production, inventory, transportation.

Location decision
- Geographical placement of production facilities, stocking

points, and sourcing points. - Imp points to watch are production costs, taxes, duties, duty drawback, tariffs, local content, distribution costs, production limitation. Production decision -

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