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Supply Chain Management: Zia Shaukat Nisar Ahmed Nisar Najam-Us Saqib

A well define presentation on supply chain management, it was presented by Zia, Najam and Nisar, the students of RIU, Islamabad

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Nisar Ahmed Nisar
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393 views

Supply Chain Management: Zia Shaukat Nisar Ahmed Nisar Najam-Us Saqib

A well define presentation on supply chain management, it was presented by Zia, Najam and Nisar, the students of RIU, Islamabad

Uploaded by

Nisar Ahmed Nisar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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By:

Zia Shaukat
Supply Chain Nisar Ahmed Nisar
Management Najam-us Saqib
MBA-Modular
What is a Supply Chain?

A supply chain is a network of facilities and


distribution options that performs the functions
of:
1. Procurement of materials,
2. Transformation of these materials into
intermediate and finished products,
3. The distribution of these finished products
to customers.
Why implementing supply chain
management……
Supply chain management is a two-way
based strategy to link across enterprise
business operations to achieve a shared
vision of market opportunity.

1) Supply chain management is a


collaborative effort that combines many
parties or processes in the product cycle.

2) Supply chain management can cover the


entire product cycle from the introduction of
raw materials to the point at which the
consumer purchases the product.
Why implementing supply chain
management……
Why implementing supply chain
management……
Why implementing supply chain
management……
What is a Supply Chain?
Components of Supply Chain Management

1. Plan: Companies need a strategy for managing


all the resources that go toward meeting
customer demand for their product or service.

2. Source: Selection of Suppliers. Pricing, delivery


and payment processes with suppliers.
Processes for managing goods and services
inventory, including receiving and verifying
shipments, transferring them to the
manufacturing facilities and authorizing supplier
payments.

3. Make: Schedule the activities necessary for


production, testing, packaging and preparation
for delivery.
Components of Supply Chain Management

4. Deliver: Coordination of receipt of orders from


customers, develop a network of warehouses,
pick carriers to get products to customers and set
up an invoicing system to receive payments.

5. Return: Responsive and flexible network for


receiving defective and excess products back
from their customers and supporting customers
who have problems with delivered products.
Issues in Supply Chain
Management:
The classic objective of a supply chain is to be able to have:
• the right products
• in the right quantities
• at the right place
• at the right moment
• at minimal cost.
Issues in Supply Chain
Management:
Bullwhip effect
•Distortion of information about the demand for a
product as it passes from one entity to the next
across the supply chain.

•More accuracy from the Supply chain management


system can help in overcoming the bullwhip effect.

•With Perfect information about demand and


production, a firm can implement an effective just-in
time (a Japanese concept), delivering goods in the
right amount and at the right time as they are
needed.
Bull Whip Effect

•Inaccurate information can


cause minor fluctuations in
demand for a product to be
amplified as one moves further
back in the supply chain.

• Minor fluctuations in retail


sales for a product can create
excess inventory for distributors,
manufacturers, and suppliers.
Information Technology in SCM

• E-enabled SCM is emerging as a core strategy.

• Importance of IT in supply chain management.

• E-business has enhanced both supply chain


efficiency & responsiveness.

• SCM software
SCM software, or Supply Chain Management software addresses one or more
issues, mainly the planning, sourcing, production, delivery and return of goods.
Supply Chain Management software involves real-time data from all links of the
chain, with the internet being a vital ingredient to greater supply chain visibility.
SCM software will allow companies to track demand, supply, manufacturing
status, logistics and distribution of their products.
Information Technology in SCM
• Quicker customer response & fulfillment rates

• Greater productivity & low rate

• Reduced inventory throughout the chain

• Improved forecasting precision

• Enhanced inter operational communication and co-operation

• Fewer suppliers & shorter planning cycle

• More reliable financial system


Information Technology in SCM

INFORMATION
SHARING BY
HOOKING UP
SOFTWARE SYSTEM
Developments in SCM

• Creation Era,
Term SCM was introduced in early 1980s

• Integration Era,
Developed through 1990s by introduction of ERP systems, this era
continued to develop into 21st century based on internet based
collaborative systems

• Globalization Era,
Expansion of supply chains over national boundaries and into other
continents
Developments in SCM

• Specialization Era- Phase-I: Outsourced


manufacturing & Distribution ,
Late 1990’s industries began to focus on core competencies, sold
off non core operations and outsourced those functions to others

• Specialization Era- Phase-II: SCM as Service,


Establishment of specialized companies for handling different tasks
of supply chain management

• Supply Chain Management 2.0 (SCM 2.0)


Web 2.0 based SCM
Supply Chain Management
Systems:
Classified into two types:

a). Supply chain planning system:


1). Generate demand forecasts for a product.
2). Develop sourcing and manufacturing plans for that product
3). Make adjustments to production and distribution plans
4). Share that information with relevant supply chain members.

One of the most important supply chain planning functions is


demand planning, which determines how much product a
business needs to make to satisfy all of its customers'
demands.
Supply Chain Management
Systems:

b). Supply chain execution system:

Physical flow of products through distribution centers and


warehouses to ensure that products are delivered to the
right locations in the most efficient manner.
Supply Chain Management
Systems:
Today, using intranets and extranets, all members of the supply
chain can instantly communicate with each other, using up-to-date
information to adjust purchasing, logistics, manufacturing,
packaging, and schedules.
Supply Chain Management
Systems:
Concurrent supply chain system (SCM through Internet)

Concurrent supply chain is where


information flows in many directions
Simultaneously
among members of a supply chain network.

The Internet could create a "digital logistics


nervous system" throughout the supply chain to
permit simultaneous, multidirectional communication
of information about participants' inventories, orders,
and capacities
Supply Chain Management
Systems:
Concurrent supply chain system (SCM through Internet)
Supply Chain Models:

Push-based model (also known as build-to-stock)


Earlier supply chain management systems were driven by a push-based
model (also known as build-to-stock)

In this model production master schedules are based on forecasts or best


guesses of demand for products,
and products are "pushed" to customers

Supplier Manufacturer Distributor Retailer Customer


Supply Chain Models:

Pull-based model (or demand-driven model or


build-to-order):

With Web-based tools, supply chain management follows a pull-based


model (or demand-driven model (or build-to-order), in which actual
customer orders or purchases trigger events in the supply chain

Supplier Manufacturer Distributor Retailer Customer


Benefits of SCM:

•Timely Product Supplies


•Accurate Pricing Discounts
•Simplified and faster payment process
•Online information (Purchases, sales, inventory,
financials)
•Less duplication of work for Human Resource
•Better warehousing and transportation management
•Better plant maintenance
•Easy access to data / information
Thank You !

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