Challenges And Opportunities Of SCM

By: Andrea Ponsek MBA(TT) Roll No:4

Copyright Wondershare Software

What is SCM? Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. (Harland, 1996)
Copyright Wondershare Software

SUPPLY CHAIN CHALLENGES

Growth in contract manufacturing. Shifting global manufacturing. Unpredictable global demand. Supply chain instability. Increasing customer requirements. Many new SCM technologies like RFID are in the nascent stage and for them ROI is not yet identified. JIT inventory- cant afford to have errors or supply chain disruption that will cause manufacturing to halt.
Copyright Wondershare Software

 Short product lifecycles-one has to constantly set up new supply chains. Each product has its own supply chain; the more finished product and inventory are lying dead in your supply chain the faster you will get obsolete. Faster order cycle time-less margin for error or delay in the supply chains.

Copyright Wondershare Software

Supply chain opportunities

IT
ERP SCMS RFID EChoupal

Copyright Wondershare Software

Enterprise Resource Planning

ERP is the battering ram that integrates all that information together in a single application, and SCM application benefit from having a single major source to go to for up-to-date information. ERP systems assist enterprises in automating and integrating corporate cross functions.

Copyright Wondershare Software

SUPPLY CHAIN MANAGEMENT SOFTWARE Supply chain management software (SCMS) is a business term which refers to a range of software tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes.

Copyright Wondershare Software

Features Of SCMS
Customer requirement processing Purchase order processing Inventory management Goods receipt and warehouse management Supplier management/sourcing

Copyright Wondershare Software

RADIO FREQUENCY IDENTIFICATION

RFID tags are essentially barcodes on steroids. RFID tags can tell where the product is, where it has been, when it expires, what ever information someone wishes to programme with it. It will be able to produce piles of information about when and where merchandise is manufactured, picked, packed and shipped.
Copyright Wondershare Software

 Its is also be able to tell retailers about the expiration dates of their perishable itemsnumbers that will have to be stored, transmitted in real-time and shared with warehouse management, inventory management, financial and other enterprise systems. Another benefit of RFID is that, unlike barcodes, RFID tags can be read automatically by electronic readers.
Copyright Wondershare Software

E-Choupal
E-Choupal links the Indian farmer with consumers in local and global markets, by leveraging ITCs time-tested and proven competencies in marketing and distribution. In the process many overheads like multiple transportation and handling, bagging etc are erased.

Copyright Wondershare Software

E-Financial SCM
Cross border transactions, decreasing cost of technology, speed of transaction and a 24 hour 365 day facility has lead to development of e-financial supply chain. Proper financial supply chain management using e-payment mechanism can reduce the cost of working capital and improve supplier relationship management by providing speedy payment.

Copyright Wondershare Software

SCM in Pharmaceutical industry

Pharmaceutical companies have a long outsourced function such as manufacturing, packaging, clinical trials and sales force mobilization. Benefits of outsourcing: Outsourcing reduces the overall cost by 30 to 35 percent Reduces problems faced during the regulatory process Improve manufacturing efficiencies Improve net earnings and cash flow Fast and cheaper to have discovery work outsourced as it reduces the drug development cost.
Copyright Wondershare Software

Thank you !

Copyright Wondershare Software