Strategic

Supply
Chain
Management
AN OVERVIEW , BY S . S . C . M . MANAGER
HAMDARD INSTITUTE OF MANAGEMENT SCIENCE

vSara Rashid
vNausheen Younus
vOmaid Ansari
vMuhammad Kamran
vMoin Ul Amjad
vWhat Is the Supply Chain?
vAlso referred to as the logistics network
v
vSuppliers , manufacturers , warehouses ,
distribution
centers and retail outlets –
“ facilities ” and the
v
vRaw materials
v
vWork - in - process ( WIP ) inventory
v
vFinished products that flow between the
facilities
vThe Supply Chain?
Suppliers Manufacturers Warehouses & Customers
Distribution Centers

Transportation Transportation
Costs Transportation
Costs Costs

Material Costs Manufacturing Costs Inventory Costs

vImportance of supply chain
management
vDealing with uncertain environment
, matching supply
and demand
v
vThe growth of technologies such as he
internet enable
greater collaboration between supply
chain trading
partners .
v
vForecasting doesn't help
vOur customer are not …
vNOT this …
vBut more like this …
 Key Operational Functions under
ONE Umbrella Streamlined

Supply Chain Concept

Order
Order
Demand
Demand Whousing
Whousing Invoicing
Invoicing
Data
Data &
& Stock
Stock POS
POS &&
&& Supply
Supply &
& && Cash
Cash
Integrity
Integrity Query
Query Mgmt
Mgmt Display
Display
Planning
Planning Delivery
Delivery Collection
Collection
Mgmt
Mgmt

CUSTOMER FOCUSSED
Supply Chain is integration of our business processes and organisations
around “the entire demand and supply chain”
in servicing our customers and managing our inventories
 Understand your customer ...
The Ritz remember things
about you others do not

Standard sofa setting

Special sofa setting
Results Of a Poorly Managed Supply Chain

Poor service

Poor forecasting Empty shelves

Supply Chain Thinking
The Primary “ Drivers ” for achieving
Strategic fit in Supply Chain
Strategy
Corporate Strategy

Supply Chain Strategy

Efficiency Responsiveness

Facilities Inventory Transportation Information Market

Segmentation
vAlign the Supply Chain Strategy with
the
Business Strategy
vSCM should always support the intent of the business
strategy of the
Business strategy
vCompany & Organizational Culture plays a Key Role , in
Developing &
Executing a S . Chain Strategy
vWhat Strategy for your products?
vIs your product functional or innovative?
vShould your SC be physically efficient or
responsive to the
market?
vWhere in the SC to position inventory and
available
production capacity in order to hedge
against uncertain
demand?
05/15/11
05/15/11
05/15/11
vThe Characteristics of Push , Pull and Push / Pull
Strategies
PUSH PULL
Objective Minimize Cost Maximize Service Level

Complexity High Low

Focus Resource Allocation Responsiveness

Lead Time Long Short

Processes Supply Chain Planning Order Fulfillment

vChoosing Between Push / Pull Strategies

Pull Industries where: Industries where:

High Where do the following
•Customization is High •Demand is uncertain industries fit in this
•Demand is uncertain •Scale economies are High model:
•Scale economies are Low •Low economies of scale
Demand Uncertainty

>Automobile?
Computer Furniture >Aircraft?
equipment >Fashion?
>Petroleum refining?
Industries where: Industries where: >Pharmaceuticals?
•Uncertainty is low •Standard processes are the >Biotechnology?
•Low economies of scale norm >Medical Devices?
•Push-pull supply chain •Demand is stable
•Scale economies are High >

Books, CD’s Grocery,

Beverages
Push Low
Low Economies of Scale High

Pull Push
vExecuting Supply Chain Strategy
vExecution involves closely following your
implementation plan &
applying good project governance
vPerformance goals should be used to communicate
business
expectations to outside entities as well
vKeep communicating with your Partners
vOrganization may be able to move at speed other
supply chain entities
are unable to maintain , resulting in misalignment
and poor efficiencies
vGood communication can keep the extend supply chain
in synchronize
vGoal of Supply chain components and those that you
deal with must be
similar and conducted at the same speed
vConclusion
vStrategic Supply Chain Mgt . moves from
“ Cost focus to Customer focus ”
vSuccess of a
“ Strategy is only as good as the Company ’ s
ability to fully and
properly execute it ”
vA great supply chain strategy …
“ can provide success for not only the
company in question
but also its partners and customer ”