Supply Chain Management And Logistics PowerPoint Presentation Slides

Supply Chain
Management and
Logistics
Your company name
1

Deck Outline
Introduction
Supply Chain Management Process
SCM Decision Phases
Strategic Sourcing Process
Logistics & IT
Planning & Forecasting
Inventory Management
Inventory Management Models
Performance Measures
Common Problems with SCM
2

Introduction
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your audience's attention.
Supply Chain
Components
SCM Process
Flow
SCM
Implementation
Steps
Advantages
Goals
SCM
Introduction
3

Introduction (1 of 2)
Finances
Information
Product
Finances
Information
Product
Supplier Manufacturer Distributor ShopperRetailer
It is the management of flow of
products and services, which
begins from the origin of products
and ends at the product’s
consumption
It also comprises movement and
storage of raw materials that are
involved in work in progress,
inventory and fully furnished
goods
This can be done by companies
with a very good and tight hold
over internal inventories,
production, distribution, internal
productions and sales
It uses different strategies and
approaches to view the entire
chain and work efficiently at
each and every step involved
in the chain
To monitor and relate
production, distribution,
and shipment of products
and services
Objectives
4

Introduction (2 of 2)
Second Tier
Customer
First Tier
Customer
Second Tier
Supplier
First Tier
Supplier
END CUSTOMERDEMAND SIDESUPPLY SIDE
Supply Chain Management
Purchasing And
Supply Management
Physical Distribution
Management
Materials
Management
Logistics
Information Flow
Physical Flow
5

Components Of The Supply Chain
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attention.
attention.
attention.
attention.
Supply Manufacturing
Distribution
& Warehousing
Retail Consumer
Supply Chain Management
6

Components Of The Supply Chain
Outbound
Logistics
Inbound
Logistics
Internal
Logistics
Bottle
Manufacturing
Plant
Oil
Drilling
Plastic
Manufacturer
Label Printer
Maker
Paper
Manufacturer
Tree
Plantation
Juice Butting
Plan
JuicingFarm
National
Distribution
Center
Focal
Firm
Regional
Distribution
Center
Shops
Supermarkets
Vending
7

Company Timeline
Vendor
Sourcing
Inbound Storage/
Transport Data
Operation
Outbound Storage/
Transport Data
Consumer Distribution
Consumer
MATERIAL FLOW
INFORMATION FLOW
MONEY FLOW
• Material flow through various warehouses
among distributors, dealers and retailers.
• Main challenge is in ensuring that the material
flows as inventory quickly without any stoppage
through different points in the chain
MATERIAL FLOW
• It comprises the request for quotation,
purchase order, monthly schedules,
engineering change requests, quality
complaints and reports on supplier performance
from customer side to the supplier
INFORMATION FLOW
• On the basis of the invoice raised by
the producer, the clients examine the
order for correctness. If the claims are
correct, money flows from the clients
to the respective producer
MONEY FLOW
This slide demonstrates
the flow of Material,
Information & Money
across the value chain
and showcases all the
important steps in the
SCM process
8

SCM
Advantages
Develops better customer relationship
and service
Creates better delivery mechanisms for
products and services in demand with
minimum delay
Improvises productivity and business
functions
Minimizes warehouse and transportation
costs
Minimizes direct and indirect costs
Assists in achieving shipping of right
products to the right place at the right
time
Enhances inventory management,
supporting the successful execution of
just-in-time stock models
9

SCM Implementation Steps
Project Management And Communication
Developing an
SCM Vision
Assessing
Supply Chain
Opportunities
Developing An
SCM Strategy
Creating The
Optimum SCM
Organizational
Structure
Establishing
The SCM
Information
And
Communication
Network
Translating
The SCM
Strategy Into
Actions
Concept Phase Conversion Phase Execution Phase
10

SCM Goals
To leverage inventory as a shared resource and
utilize the distributed order management technology
to complete orders from the optimal node in the
supply chain
Cost efficient and cheap products are necessary, but
supply chain managers need to concentrate on value
creation for their customers
To maximize resource productivity, construct
standardized processes, remove duplicate efforts
and minimize inventory levels
Increased expectations of clients for higher product variety,
customized goods, off-season availability of inventory and
rapid fulfillment should be matched
Minimization of supply chain expenses
is very essential
Step 01
Step 02
Step 03
Step 04
Step 05
11

Supply Chain Management Process
01
Plan
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02
Source
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03
Execute
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04
Deliver
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05
Return
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capture your
There are six important
steps involved in Supply
chain management
process. Each of these
steps have been
discussed separately in
the later slides.
12

01
Plant
Location
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02
Plant
Size
03
Warehouse
Designing Plan
04
Delivery
Models
05
IT
Solutions
06
Transportation
Cost Modeling
SCMProcess-
Plan
13

SCM Process - Plan
S.No. Supplier Name RM Procured
Annual
Amount
Key Benefits Derived
1 Name 1 Iron
2 Name 2 Steel
3 Name 3 Aluminum
4 Name 4 Plastic
5 Name 5 Desktop
6 Name 6 Mouse Pad
7 Name 7 Rod
At this stage of supply chain
management, the emphasis is on to
ascertain the most reliable of suppliers
for raw materials so that production
process would never jeopardize. a
capable supplier is one thing, but
there should be a tangible system in
place for the continuous development
of suppliers which would boost their
efficiency as well.
14

SCM Process - Execute
S.No. Manager Name
Area of
Responsibility
Key Strategies under
each Supervisor
1 Name 1 Testing
2 Name 2 Packaging
3 Name 3 Delivery
4 Name 4 Procurement
5 Name 5 Logistics
6 Name 6 Finance
7 Name 7 Marketing
This is the stage where well
designed processes are
implemented so that a
perceivable shape is given to
existing plans in the form of
manufactured products which
are ready for testing,
packaging, and delivery.
15

SCM Process - Deliver
S.No. Manager Name
Area of
Responsibility
Key Strategies under
each Supervisor
1 Name 1 Warehousing Networks
2 Name 2 Inventory Models
3 Name 3 Invoice Receipts
4 Name 4 Payment Receipts
5 Name 5 Road Shipment
6 Name 6 Sea Shipment
7 Name 7 Air Freight
The managers have a task at
hand to deliver the product/service
in the right quantity, at the right
place and right time by employing
suitable carriers. Supply chain
managers should be fully
equipped with modern IT tools to
keep a track on the following
parameters
16

The decision to be made here is a long term prediction and
involves price of goods that are very expensive if it goes
wrong. It is very important to study the market conditions at
this stage
Supply Chain Strategy
Supply chain planning should be done according to the demand and
supply view. In order to understand customers’ demands, a market
research should be done. The second thing to consider is awareness
and updated information about the competitors and strategies used by
them to satisfy their customer demands and requirements
Supply Chain Planning
The objective behind this decisional phase is minimizing uncertainty and
performance optimization. Starting from handling the customer order to
supplying the customer with that product, everything is included in this
phase.
Organizational Strength
SCM
Decision
Phases
Strategy, Planning &
Operations are the three
important steps of SCM
decision process. This is a
summary slide and guidelines
have been mentioned in the
boxes which will further help in
writing the key points under
each step
17

Strategic Sourcing Process
Understanding the
Spent Category
Supplier Market
Assessment
Supplier
Survey
Building the
Strategy
RFx RequestCommunication
with new suppliers
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These are the important
steps in the strategic
sourcing process from
your vendor. Each of this
steps have been
discussed in separate
slides
18

Understanding The Spent Category
In this first stage, the team needs to do a complete survey on the total expenditure
The five major segments that are analyzed in the
first stage are as follows
Complete previous expenditure records and volumes
Expenditures divided by items and sub items
Expenditures by the supplier
Expenditures by division, department or user
Future demand projections or budgets
19

Supplier Market Assessment
The second step includes frequent assessment
of the supplier market for pursuing substitute
suppliers to present incumbents
A thorough study of the supplier marketplace
dynamics and current trends is done
The major element of the key products design
is should-cost.
Along with it, an analysis on the major suppliers’
sub-tier marketplace and examination for any
risks or new opportunities are also important
The should-cost analysis supplies a valuable
tool that drives minimizing of cost and regular
progress efforts of the supplier
20

Supplier Survey
Your Text Here
Maturity
Your Text Here
Feasibility
Your Text Here
Capability
Your Text Here
Capacity
The third step is developing a supplier analysis for both incumbent and potential
substitute suppliers01
This analysis assists in examining the skills and abilities of a supplier02
Data collected from incumbent suppliers is used for verifying spend information
that suppliers have from their sales systems03
Key factors to be looked for in a Supplier
21

How willing is the
marketplace to oppose the
supplier?
Your Text Here
How supportive are the
clients of a firm for testing
incumbent supplier
relationships?
Your Text Here
What are the substitutes to
the competitive
assessment?
Your Text Here
Building
The
Strategy
22

Strategic Sourcing – Next Steps
01 02 03
In this approach, a
request for proposal or
bid needs to be prepared
(e.g., RFP, RFQ, eRFQ,
ITT) for most spend
classifications or groups.
In this approach, a
request for proposal or bid
needs to be prepared
(e.g., RFP, RFQ, eRFQ,
ITT) for most spend
classifications or groups.
After informing the winning
supplier(s), communication
plan will be set up, including
any modification in
specifications and
improvements in delivery,
service or pricing models
23

Order Fulfillment Process 24
Order
Goods
Submit
Order
Prepare
Payment
On
Hand?
Check
Inventory
Pick And
Side
Goods
Check
Credit
Send
Invoice
Credit
Ok?
Customer Sales Department Credit & Billing Shipping

Steps of Order Fulfillment
Order ManagementCustomer Merchant
Customer
Return
Fulfillment
Fulfillment
& Delivery
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25

Logistics & IT
Transportation
Challenges
Transportation
Medium
IT in
SCM
26

Information Technology in a Supply Chain: Analytical Applications
Strategic
Planning
Operational
Supplier Manufacturer Distributor Retailer Customer
Supplier
Apps
SCM
Transport execution & WMS
Transport & Inventory
Planning
MES
APS Dem Plan
CRM/ SFA
These circles demonstrates
the most commonly used
IT/ERP tools in each stage
of the supply chain
management. You can edit
it as per the tools used in
your company
27

Transportation Medium
Plane Truck Rail Ship Electronic
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28

Transportation Challenges
Labor Laws
Economic Uncertainty
Changing Transportation
Industry
Improvised Technologies
Globalization
Customer’s Expectation
Varying Fuel Prices
CHALLENGE
29

Planning & Forecasting
Budget
Forecasting
attention.
Demand
Forecasting
attention.
Sales
Forecasting
attention.
Production
Planning
attention.
30

Supply Chain Management Budget Forecasting
Budget Forecasting
Your Text Here +0.00 $
Your Text Here 55$
Your Text Here 65$
Your Text Here $25
Your Text Here 35$
45%
30%
15%
10%
Sales
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Enter your projected
quarterly sales and the
budget forecasted for the
key categories
31

Demand Forecasting
0
200
400
600
800
1000
1200
1400
1600
1800
0 2 4 6 8 10 12 14
DemandQuality
Months
Stable Demand
Trend
Dynamic Demand
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
32

Sales Forecasting (Option 1 of 2)
2014 Sales 2015 Forecast
January 420
February 440
March 410
April 424
May 467
June 755
July 720
August 800
September 780
October 960
November 1200
December 1100
January 1150 1150
February 1240
March 1280
April 1310
May 1360
June 1370
1
1.2
1
1.8
2
3
2.9
3.8
5.4
4.9
5
5.22
5.38 5.39
6
6.2
33

2
5
12
3
9
10
12
4
5
3
7
4
-10
-5
0
5
10
15
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Forecasting (Option 2 of 2) 34

Master Production Planning (Option 1 of 2)
Products
2017
Units
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Product $391
Product 1 $234
Product 2 $354
Product 3 $543
Product 4 $300
Product 5 $694
Product 6 $358
35

Master Production Planning (Option 2 of 2)
Week 1 Week 2 Week 3 Week 4 Week 5
Demand Forecast(in Units) 120 240 300 480 600
Customer Order(committed) 400 200 150 300 435
Initial Inventory in Period week=0 750
Net inventory before mps 250 100 500 960 320
Master Production Schedule(MPS) 1200 800
Projected on hand Inventory 250 800 650 350 330
36

1. Introduction
2. EOQ Model
3. EOQ Model Cost Curves
4. EOQ Cost
5. EOQ Important Characteristics
6. EOQ Basic Assumptions
37

Manufactures
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Warehouse
Distributors
Wholesalers
Customers
01
02
0304
05
38

Economic Order Quantity (EOQ) Model
Reorder Point, R
Order Quantity, Q
Order
Placed
Order
Placed
Order
Received
Order
Received
0 TimeLead
Time
Lead
Time
Demand
Rate
InventoryLevel
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Re-plot this graph after
calculating all the factors
which are described in
the later slides
39

EOQ Model Cost Curves
Slope = 0
Total CostAnnual
Cost ($)
Minimum
Total Cost
Order Quantity, QOptimal Order Q*
Ordering Cost = SD/Q
Holding Cost = HQ/2
This slide calculates all
the cost related to the
EOQ model. After
calculation, replot the
graph as per the data
point.
40

EOQ Cost Model
2DS
HQ*=√
D Annual Demand
Order QuantityQ
S Cost Of Placing Order
H
Annual Per-unit Holding
Cost
Ordering cost = SD/Q
Holding cost = HQ/2
Total Cost = SD/Q + HQ/2
41

Important Characteristics Of The EOQ Cost Function
• At EOQ, the annual holding cost is the same as annual ordering cost
• The total cost curve is flat near EOQ. So, the total cost does not change much with a slight change in the order quantity
2DSH
Q
DS
2
HQ
costannualTotal
2
DSH
H
2DS
DS
Q
DS
costorderingAnnual
2
DSH
H
2DS
2
H
2
HQ
costholdingAnnual
*
*
*
*
=+=
===
===
42

Demand occurs at a constant rate of D items per year
Ordering Cost is $S per order
Holding Cost is $H = $CiI per item in inventory per year (note holding cost is
based on the cost of the item, Ci)
Purchase Cost is $C1 per item if the quantity ordered is between 0 and x1,
$C2 if the order quantity is between x1 and x2, etc
Delivery time (lead time) is constant
Optimal order quantity: The procedure for determining Q*
will be demonstrated
Number of orders per year: D/Q*
Time between orders (cycle time): Q*/D years
Total annual cost: [(1/2)Q*H] + [DS/Q*] + DC
(holding + ordering + purchase)
EOQ
Assumptions
43

Inventory
Management Models
Bi-Level Optimization
audience’s attention.
Stochastic Modeling
Uncertainty Modeling
44

Stochastic Modeling
It is a mathematical approach of representing data or
predicting outcomes in situations where there is randomness
or unpredictability to some extent
Parameters like input materials, reliability of machine and
competence within the employees have an impact on the
outcome of the manufacturing process but it is impossible to
measure them with absolute values
This modeling strategy helps in predicting the result of this
process with some defined error rate by considering the
unpredictability of these factors
45

Uncertainty Modeling
0
1000
2000
3000
4000
5000
6000
Return Period
High Medium Low
Loss
While using a realistic modeling approach, the system has to
take uncertainties into account. The uncertainty is evaluated to
a level where the uncertain characteristics of the system are
modeled with probabilistic nature
We use uncertainty modeling for characterizing the uncertain
parameters with probability distributions
It takes dependencies into account easily as input just like
Markov chain or may use the queuing theory for modeling the
systems where waiting has an essential role
Replace the image with
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derived after using the
analytical tools. Details &
Benefits of uncertainty
modeling has been
mentioned in the below
comments
46

Bi-Level Optimization
A bi-level issue arises in real
life situations whenever a
decentralized or hierarchical
decision needs to be made
In these types of situations,
multiple parties make decisions
one after the other, which
influences their respective profit
47

Non-Financial Measures
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Financial Measures
Performance
Measures
48

Supply Chain Lead Time
It can be simply defined as the end-to-end
delay in a business process
Order-To-Delivery Lead Time
Time of delay in the middle of the placement of
order by a customer and the delivery of
products to the customer
Cycle Time
Customer Service Level
It is the reverse of order fill rate
and marks the portion of orders
lost because of a stock out
Stock Out Rate
Gauge of total number of orders
waiting to be filled
Backorder Level
It is the portion of customer orders that
are completed on-time, i.e., within the
agreed-upon due date.
Probability Of On-
Time Delivery
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and add the relevant
details there
49

Inventory
Level Spare Parts
Mention the amount of spare
parts consumed & leftover in the
company
Raw Material
Enter the amount of raw material
consumed & left-out
Finished Goods
Enter the amount of Finished goods; both
in weight & value terms
Work-in-progress
Enter the amount of WIP that is in
stock
Replace the text from
the comments box
and add the relevant
details there
50

Manufacturing Resources
Include the machines, material handlers, tools, etc.
Storage Resources
Comprise warehouses, automated storage and retrieval systems
Logistic Resources
Engage trucks, rail transport, air-cargo carriers, etc.
Human Resources
Consist of labor, scientific and technical personnel
Financial Resources
Include working capital, stocks, etc..
Resource
Utilization
The main motto is to utilize
all the assets or resources
efficiently in order to
maximize customer service
levels, reduce lead times
and optimize inventory
levels. So, Enter the
required parameters
51

Financial Measures
Cost of Raw Material
Revenue from Goods Sold
Inventory Holding Cost
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Transportation Cost
Cost of Expired
Perishable Goods
Cost of Goods Return
By Customer
Cost of Goods
Return By Customer
The measures taken for
gauging different fixed and
operational costs related to a
supply chain are considered
the financial measures. Finally,
the key objective to be
achieved is to maximize the
revenue by maintaining low
supply chain costs.
52

Lack Of Relevant SCM Metrics: How To Measure Responsiveness?
Major problem for
furniture retailers
Theft Transaction Errors
Retailers with inaccurate
inventory records for 65%
of SKUs
Information Delays
dated information,
incompatible info.
systems
Misplaced Inventory
16% of items cannot be
found at a major retailer
Product Quality
And Yield
Spoilage
active ingredients in the
products are losing their
properties
Lack Of Visibility In SCS
• Do you know the inventory your
distribution centers hold?
• Do you know the inventory your
fellow retailer holds?
Poor Inventory Status Information
53

Common
Problems With
SCM
01 Poor Delivery Status Information
Not knowing the order status
02
Poor IT Design
• Unreliable, duplicate data
• Security problems: too much or too little
03
Internal Customer Discrimination
Giving lower priority to internal customers than external customers
04 Poor Integration
05
Elusive Inventory Costs
Accounting systems do not capture opportunity costs
54

Supply Chain Optimization
Raw Material
And Component
Suppliers
Customer
Product Flow
Demand Signal
Transportation
Sourcing
Procurement
Central
Manufacturing
Distribution,
Assembly And
Repair
Sales
Marketing
And
Customer
Service
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Supply Chain Optimization
01
02
03
04
05
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Donut Pie Chart
• Product 1
your needs and capture your audience's
attention.
• Product 2
attention.
• Product 3
attention.
50%
30%
20%
58

100% Stacked Line
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY01 FY02 FY03 FY04
Inpercentage
• Product 1
attention.
• Product 2
attention.
• Product 3
attention.
59

Filled Radar
0
5
10
15
20
25
30
35
02-05-2017
07-05-2017
12-05-201716-05-2017
22-05-2017
• Product 1
attention.
• Product 2
attention.
60

Line Chart
0
20
40
60
80
100
120
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inpercentage
98%
55%
• Product 1
attention.
• Product 2
attention.
61

Our Mission
63

Our Team
attention.
Mary Parker
CEO & Founder
attention.
Robin Clark
Designer
attention.
Jess Leo
Finance Manager
attention.
Peter Tucker
Accountant
64

This is a representative image, and should be replaced by your own
image. Just right click and replace image.
Quotes
Great things in business
are never done by one
person. They’re done
by a team of people.
-Steve Jobs
66

Dashboard
0% 50%
100%
0%
50%
100%
75%This slide is 100% editable. Adapt it to
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67

Location
United States China
Brazil
Australia
25%
45%
35%
70%
68

Our Goal
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Comparison
PC users in
2017
attention.
Mobile users in
2017
attention.
Laptop users in
2017
attention.
50% 75%
80%
70

Silhouettes
04
03
01
02
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71

Name
Designation
Name
Designation
Name
Designation
Name
Designation
Name
Designation
Name
Designation
Name
Designation
Hierarchy 72

Timeline
2013
01
Text Here
2014
02
Text Here
2015
03
Text Here
2016
04
Text Here
2017
05
Text Here
73

Mind Map
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Great Think
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Puzzle
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Text
Here
01
02
03
04
05
75

Business IDEA
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Address
# street number, city, state
Contact Numbers:
0123456789
Email Address:
emailaddress@123.com
Thank You
77

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