1. Supply Chain Management AN INITIATIVE BY: VAINY GOEL BBA 1 MODI COLLEGE

2. Outline of the Talk  What is Supply Chain Management  Supply Chain Management Process  Supply Chain Management Decisions  Software Tools  Conclusions

3. What is Supply Chain Management ? Supply Chain is a set of activities (e.g. purchasing, manufacturing, logistics, distribution, marketing) that perform the function of delivering value to end customer Traditionally, all the business units along a supply chain have their own objectives and these are often conflicting There is no single plan to carry out supply chain activities

4. What is Supply Chain Management ? There is need for a mechanism through which the execution of various business activities along a supply chain can be planned in an integrated fashion. The supply chain management is an effort to achieve the primary goal of “producing and distributing the merchandise at the right quantity, to the right locations, and at the right time with minimum system wide cost” in the presence of conflicting goals of various business units

5. Statics of Material Flow Supplier PlantWarehouseLogisticsRetailer

6. Dynamics of Order Flow Supplier PlantWarehouseLogisticsRetailer

7. Supply Chain Management Processes Demand PlanningMaterial Requirement Planning Demand Forecasting SupplierPlantWarehouseLogistics Retailer Production Plan Component Requirement Order Management

8. Supply Chain Management Decisions OPERATIONAL TACTICAL STRATEGIC ProcurementDistributionManufacturingLogistics

9. Supply Chain Management Decisions Vehicle Routing Finished Goods Inventory Production Schedule Scheduling on Machines Workload Balancing Vehicle Routing Fleet Size Customer Allocation Distribution Policy Warehouse Allocation Inventory Decisions Manufacturing Policy Procurement Policy Mode of Shipment Port Selection Location, Number, Size of Warehouses Location, Number, Capacity of Plants What Products to Produce Which Plants to Produce them Supplier Selection Allocation of Suppliers to the Plants

10. Software Packages i2 Six: A comprehensive solution suite for spend/ production/ revenue/ logistics/ fulfillment optimization Solution suites for network design & optimization/ manufacturing planning & scheduling/ global logistics management/ service & parts management JD EDWARD: The advanced planning software to synchronize demand & planning/ network Optimization/ production & distribution planning

11. Software Packages ARIBA Spend Management: It helps companies driving down enterprise wide spend mySAP SCM: A complete supply chain planning solution iBann: A complete solution suite from demand collaboration to order management

12. Results Companies that utilized best-in-class SCM solutions have  Reduced inventory levels by 10-15%  Reduced markdown & scrap by 10-15%  Improved delivery reliability by 95-95%  Used resources10-20% more efficiently  Reduced transportation cost by 10-15%  Reduced cycle time by 10-20%  Reduced outages to 0-5%

13. Conclusions  Supply Chain Planning: A critical factor in the success and profitability of a company  Short Product Life Cycle: Improper planning can take the company out of business  Bad News: Planning is an hard problem to formulate as well as solve  Good News: Plethora of Commercially available software for supply chain planning

14. Thank You