03-10-2012, 03:22 PM
SCM-INTRODUCTION
SCM-INTRODUCTION.ppt (Size: 269.5 KB / Downloads: 23)
What is a Supply Chain?
Supply chain is a network of suppliers, manufacturing plants, warehouses, distribution centers, retailers and customers. It exists to fulfill the customer requests for products and services. They transform and move the products from suppliers to customers.
Supply Chain
A supply chain is normally referred with a lead organization (e.g. Dell’s supply chain)
It is not linear but network of enterprises
An organization may be part of many supply chains
It supports new product development
Now competition is between supply chains
Supply chains are essentially a series of linked suppliers and customers; every customer is in turn a supplier to the next downstream organization until a finished product reaches the end customer.
SCM-Definition
SCM is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs, while satisfying service level requirements.
SCM-elements
SCM covers every facility that have impact on costs
It requires strong relationship between partners
It is just like a cricket team
Ultimately it serves customers and it should enhance value for the customer
Basic tasks of supply chain
Product design
Procurement/Sourcing
Production
Demand management
Distribution
Reverse logistics
Multi-echelon inventory management
Network design and management
Objective of a Supply Chain
To maximize the overall value generated
The value is called as supply chain profitability
The difference between the revenue and the overall cost of the supply chain-SCP
Linking supply chain with customers
An important component in fulfilling customer needs and providing value
It determines the availability of products, pace of arrival and at what cost
It also impact the customer value of price by reducing costs(Wal-Mart, Dell)
Customer determine the type of supply chain
Value creation through supply chain
Creating availability and selection
Efficient SC for functional items
Responsive SC for fashion items
More varieties for better product selection
Special stores for product selection
Exclusive stores