1. T.C. İSTANBUL KÜLTÜR UNIVERSITY
SINTROME 2012
Workshop: Supply Chain Management
September 24, 2012
Technological Education Institute of Larissa, Greece 1

2. SINTROME 2012 Dr. Nükhet Tunçbilek Beti Büyükdemirci Eylül Çaprazlı
Gizem Apak
Levent İrengün
Tarcan Kaçan

3. T.C. İSTANBUL KÜLTÜR UNIVERSITY
SINTROME 2012
Presentation of İstanbul Kültür University
September 24, 2012
Technological Education Institute of Larissa, Greece

4. AGENDA Presentation of İstanbul Kültür University
Presentation about Supply Chain Management
Introduction to “Beer Game”
Lunch Break
Selection of “Beer Game-Team Members”
Playing Beer Game
Entry of game results to computer
Debriefing of Beer Game
Announcing the WINNER team

5. What we mention in this workshop
What is the “Supply Chain”?
What is the “Supply Chain Management”?
The main objectives of “Supply Chain Management”
Three main flows in Supply Chain Management
“Bullwhip Effect”

6. What is the Supply Chain?
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system. (Lee and Billington)

7. Supply Chain Suppliers Manufacturers Warehouses & Distribution Centers
Customers

8. Basic Supply Chain flow diagram
Customer Customer Customer
Supplier Supplier Supplier
Retailer
Wholesaler
Distributor
Factory

9. What is the Supply Chain Management?
Supply Chain Management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

10. Supply Chain Management can be divided into three main flows:
The material flow
The information flow
The finances flow

11. Material flow MATERIAL FLOW Suppliers Manufacturer Distributors
The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs.
Suppliers
Manufacturer
Distributors
Retailer
Customer

12. Information flow INFORMATION FLOW Suppliers Manufacturer Distributors
The information flow involves transmitting orders and updating the status of delivery.
Suppliers
Manufacturer
Distributors
Retailer
Customer

13. Finances flow CASH FLOW Suppliers Manufacturer Distributors Retailer
Customer
The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.
CASH FLOW

14. Materials flow one way; cash (ideally) flows in the opposite direction and information needs be visible throughout to give control over what is happening in the chain.

15. Information sharing across Supply Chain
Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise.
This shared data may reside in diverse database systems, or data warehouses, at several different sites and companies.

16. Information sharing across Supply Chain
By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a company's clients), SCM applications have the potential to
improve the time-to-market of products,
reduce costs,
allow all parties in the supply chain to better manage current resources and plan for future needs.
Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution. A number of major Web sites offer e-procurement (tedarik) marketplaces where manufacturers can trade and even make auction (açık artırma) bids with suppliers.

17. The main objectives of Supply Chain Management
To increase customer satisfaction,
To reduce cycle time,
To reduce costs that related to inventory and stocks,
To reduce defect ratio of the product,
To reduce operating costs.
With the changing world, now the competition is not only just between companies but also between companies’ supply chains at the same time.

18. BULLWHIP EFFECT
It refers to the effect that the amount of periodical orders increases as one moves towards the production end.
Even in the face of stable customer demand small variations in demand at the retail end tend to dramatically amplify upstream the supply chain with the effect that order amounts are very irregular.
Order amounts can be very high in one week and almost zero in the next week.

19. As you can see; the retailer’s quantitiy of order is less than distributor’s quantitiy that is ordered. In this scenario distributor is increasing the quantity of orders to make safety stock but it effects manufacturer’s production. In order to make more safety stock; manufacturer will produce more than retailer needed. And we are calling this situation as “Bullwhip Effect”.

20. High (safety) stock levels, Poor customer service levels,
As a consequence of the bullwhip effect a range of inefficiencies occur throughout the supply chain:
High (safety) stock levels,
Poor customer service levels,
Poor capacity utilization,
Aggravated problems with demand forecasting,
Ultimately high cost and low levels of inter-firm trust.

21. In conclusion…
The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement.
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22. REFERENCE