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NextEnd. Supply Chain Management – Definitions Supply chain management is the management of a network of interconnected businesses involved in the ultimate.

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Presentation on theme: "NextEnd. Supply Chain Management – Definitions Supply chain management is the management of a network of interconnected businesses involved in the ultimate."— Presentation transcript:

1 NextEnd

2 Supply Chain Management – Definitions Supply chain management 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). Importance of Supply Chain Management To compete in the global market and networked economy. Inter-organizational supply network can be acknowledged as a new form of organization. The network structure fits neither "market" nor "hierarchy" categories Previous NextEnd Introduction

3 Evolution of Supply Chain Management Studies: Six major movements can be observed in the evolution of supply chain management studies: 1. Creation era Supply chain management was first coined by a U.S. industry consultant in the early 1980s. Supply chain management include the need for large-scale changes, re-engineering, downsizing driven by cost reduction programs. Previous NextEnd

4 2. Integration era Development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems. 3. Globalization era The third movement of supply chain management development, the globalization era, can be characterized by the attention given to global systems of supplier relationships and the expansion of supply chains over national boundaries and into other continents. Previous NextEnd

5 4. Specialization era Phase I: Outsourced Manufacturing and Distribution In the 1990s, industries began to focus on “core competencies” and adopted a specialization model. Companies abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. Previous NextEnd

6 5. Specialization Era Phase II - Supply Chain Management as a service Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management, and non-asset-based carriers and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution and performance management Previous NextEnd

7 Supply Chain Management Activities 1. Determine channel strategy and level of distribution intensity 2. Manage relationships in the supply chain 3. Manage the logistical components of the supply chain 4. Balance the costs of the supply chain with the service level demanded by customer Previous NextEnd

8 Components of Supply Chain Management Integration  Planning and control  Work structure  Organization structure  Product flow facility structure  Information flow facility structure  Management methods  Power and leadership structure  Risk and reward structure  Culture and attitude Previous Next End

9 Role of Supply Chain Management Communicator of Customer demand from point of sale to supplier Physical flow process that engineers the movement of goods Supply Chain Management and its Benefits Reduction of product losses in transportation and storage. Increasing of sales. Dissemination of technology, advanced techniques, capital and knowledge among the chain partners. Previous Next End

10 Better information about the flow of products, markets and technologies. Transparency of the supply chain. Tracking & tracing to the source. Better control of product safety and quality. Large investments and risks are shared among partners in the chain. Previous NextEnd Contd……

11 Supply Chain Modeling Approaches  Network Design Methods  Rough Cut Methods  Simulation methods Critical drivers in a Supply Chain 1.Inventory 2.Transportation 3. Facilities 4. Information Previous NextEnd

12 Agricultural Supply Chain Management at global level Cross-border Supply Chain INPUT SUPPPLIER FARMER FOOD INDUSTRY AGRI INDUSTRY RETAILER CONSUMER Previous NextEnd


14 Infra Structure For Horticultural Supply Chain Management Cold Chain Facilities  Industrial cold stores in the Production zones  Refrigerated vehicles for long distance transport  Refrigerated room in wholesale markets Field Heat facilities  Product temperature upon harvest  Major fraction of the heat load to be removed  Influences the rate of reactions during storage Previous NextEnd

15 Pre-Cooling facilities 1.Necessary for removal of field heat 2.Slow down the temperature dependent metabolic processes 3.Ensures longer storage and better product quality Refrigerated Cooling Hydro Cooling Vacuum Cooling Previous NextEnd

16 Supply Chain Umbrella i. Purchasing ii. Quality control iii. Demand and supply planning iv. Material or inventory control v. Order processing vi. Production planning, scheduling and control vii. Warehousing / distribution viii. Customer service Previous NextEnd

17 Previous India is going through a retail revolution. Food being perishable item, for the retailer to be successful the key is proper supply chain management. Planning and control, Work structure, Organization structure, Product flow facility structure, Information flow facility structure Management methods, Power and leadership structure, Risk and reward structure Culture and attitude are the main components of supply chain management. Awareness and rising activities, Institution building, Chain pilot projects, Tool and case descriptions are the main cycle for supply chain development. Supply chain management help to effective utilization of inputs and improve distribution of output. Let us sum Up

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