1. SUPPLY CHAIN MANAGEMENT

2. Introduction – Supply Chain
A sequence of organizations – their facilities, functions, and activities – that are involved in producing and delivering a product of service.
A value chain is another name for a supply chain.

3. Introduction – Supply Chain Management
Supply Chain Management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying customer service requirements.
Its the strategic coordination of the supply chain for the purpose of integrating supply and demand management.

4. Need For Supply Chain Management
Improve operations
Increasing levels of outsourcing
Increasing transportation costs
Competitive pressures
Increasing globalization
Increasing importance of e-commerce
Complexity of supply chains
Manage inventories

5. Benefits Of Effective Supply Chain Management
SCM provides strategies and methods for integrating separate organizations.
Lower inventories.
Lower cost.
Higher productivity.
Greater agility.
Shorter lead times.
Higher profits .
Greater customer loyalty.

6. Elements of Supply Chain Management
Determining what products and/or services customers want.
Customer
Forecasting
Design
Capacity Planning
Processing
Inventory
Purchasing
Suppliers
Location
Logistics
Predicting the quantity and timing of customer demand.
Incorporating customers, wants, manufacturability and time to market
Matching supply and demand.
Controlling quality, scheduling work.
Meeting demand requirements while managing the costs of holding inventory.
Evaluating suppliers & making timely purchases for production
Managing supply and supplier relations
Determining the best location for the facility
Deciding the best way to move information & materials

7. Logistics
The part of supply chain involved with the forward and reverse flow of goods, services, cash, and information.
The movement of materials, services, cash and information in a supply chain.

8. Logistic Types Logistics types Movement within the faculty
Incoming and Outgoing shipments
Traffic management
Distribution requirements planning (DRP)
3-PL (Third party logistics)
Reverse logistics
Gate keeping
Avoidance

9. Steps In Creating Effective Supply Chain
Develop strategic objectives and tactics
Integrate internal activities
Integrate activities with suppliers & customers
Coordinate planning & execution across the supply chain.
Forming of strategic partnerships.

10. Quality Cost Customer service Flexibility Velocity
Evaluation of Supply Chain
Quality
Cost
Customer service
Flexibility
Velocity

11. Barriers to Integration of Separate Organizations
Challenges for Supply Chain Units
Barriers to Integration of Separate Organizations
Getting Top Management Onboard
Dealing with Trade Offs
Lot size-Inventory trade Off.
Inventory- transportation cost trade-Off.
Lead time-transportation cost trade-off.
Cost-customer service trade-off
Variability and Uncertainty
Response Time

12. Purchasing
Responsibility
Responsible for obtaining the materials, parts, supplies and services needed to produce a product or provide a service.
Importance
Cost of Goods purchased
Quality of goods & Services
Timing of deliveries of goods & services.
Goal
Develop and implement purchasing plans for products & services that support operations strategies.
Duties
Identifying sources supply
Negotiating contracts.
Maintaining database of suppliers

13. Purchasing Interface Purchasing Operations Legal Accounting
Data Processing
Design
Receiving
Suppliers

14. Purchasing Cycle Requisition received Supplier selected
Order is placed
Monitor orders
Receive orders

15. Supplier Management Choosing Suppliers Suppliers Audit
Supplier Certification
Supplier Partnerships
Supplier Relationships