24-01-2013, 02:33 PM
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN.ppt (Size: 746 KB / Downloads: 74)
Value Chain
Supply side- raw materials, inbound logistics and production processes
Demand side- outbound logistics, marketing and sales.
WHAT IS SUPPLY CHAIN MANAGEMENT
Supply chain is the system by which organizations source, make and deliver their products or services according to market demand.
Supply chain management operations and decisions are ultimately triggered by demand signals at the ultimate consumer level.
Supply chain as defined by experienced practitioners extends from suppliers’ suppliers to customers’ customers.
Supply chain serves two functions:
Physical
Market mediation
Supply chain objectives may differ from situation to situation.
For functional products, cost efficiency is the critical factor.
For innovative products, responsiveness is the important factor.
Leanness + Agility together make up Leagility
Supply Chain and Demand Chain
Demand chain is defined as the system by which organizations manage sales and distribution of products and services to end users.
Conceptually incorrect to look at demand chain separately
Look at the pipe as a whole.
But is there a pipe at all?
More a network
Not necessarily linear
Value chain orchestration rather than controlling the flow through the pipe
A network of independent and interdependent organizations mutually and cooperatively working together to control, manage and improve the flow of materials and information from suppliers to end users
Critical Success Factors today
Cross functional management and planning skills
Ability to define, measure and manage service requirements by market segment
Information systems
Relationship management and win win orientation
IS THE SUPPLY CHAIN WORKING?
Does our manufacturing strategy increase product line flexibility while continuing to drive down overall production costs?
When was the last time we measured lost sales to end customers?
Do we have an efficient system to get POS data from retailers?
Are we testing our products with end customers? Do we use the resulting data to adjust our forecasting and supply positions?
Is the ratio of returned orders to sales increasing?