Supply chain management involves coordinating the production, delivery, and sales of a product to customers. It includes integrating suppliers, distributors, and customers into a cohesive process. Information systems are important for facilitating supply chain management by allowing organizations to track inventory levels, monitor orders, plan production based on demand, and communicate changes quickly. Uncertainties in supply can be reduced through accurate information sharing across the supply chain network. Common supply chain management software helps model supply chains and generate optimal sourcing and manufacturing plans.
2. WHAT IS SUPPLY CHAIN MANAGEMENT ?
ROHIT 2
• A supply chain is a process
under which product are
created and delivered to
customers, from a structural
standpoint.
3. MEANING:
ROHIT 3
Supply chain:
Network of organizations and business process for
procuring materials, transforming raw materials into the
finished products and distributing the finished products
to the customers.
Supply chain management :
Integration of suppliers , distributors and customer
logistics into one cohesive process.
4. What?
Establish policies , objectives and
operating footprints.
How much?
Deploy resources to match supply with demand
.
When ? Where?
Schedule , monitor , control
and adjust production.
Do:
Build and transport.
Objectives.
Supply policies(service levels).
Network design.
Demand forecast
Production ,procurement &logistic plan
Inventory target.
Work center scheduling
Order/inventory tracking
Order cycle
Material movement.
SCM OBJECTIVES: SCM OUTCOMES:
ROHIT 4
Strategic
Tactical
Operational
Execution
5. INFORMATION SYSTEM AND SCM
ROHIT 5
• Supply chain activities cover every thing from product
development , sourcing , production and logistics as
well as information system.
• The organizations that make up supply chains are
“linked” through physical flow and information flow.
Physical flow involves transformation , movement and
storage of goods & materials . Information flow allows
various supply chain partners to control day to day
flow of goods and materials. .
6. ROHIT 6
• Some uncertainties in supply chain are
uncertain product demand , late shipment
from suppliers , defective parts or raw
materials , production process break down.
Inaccurate information can cause minor
fluctuations in demand for the product to
be amplified as one moves further back to
supply chain. Minor fluctuation in retail
sales for a product can create excess
inventory for distributors , manufacturers
and suppliers.
7. HOW INFORMATION SYSTEM FACILITATE SCM
ROHIT 7
• Information from supply chain management system helps firms
Decide when and what to produce , store and move
Rapidly communicate others
Track the status of orders
Check inventory availability and monitor inventory levels.
Reduce inventory , transportation and warehouse cost
Track shipments
Plan production based on actual customer demand
Rapidly communicate changes in product design.
8. SUPPLY CHAIN MANAGEMENT SOFTWARE
ROHIT 8
• Supply chain planning system: it enables the
firms to model its existing supply chain ,
generate demand forecast for product and
develop optical sourcing and manufacturing
plans.
. Supply chain management software vendors
are SAP , Oracle PeopleSoft , Manugistics , i2
technologies etc.
9. ROHIT 9
Each interface in the supply chain represents:
Movement of goods
Information flow
Transfer of title
Purchase and sale
Strategic SCM consists of
developing smarter ways to:
Choose
Buy from and
Sell to your business partners
Raw material
Component
Manufacturer
Retailer
Consumer
10. SCM ADDRESSES CHALLENGES THROUGH SEVERAL AREAS.
ROHIT 10
SCM
Logistics
Supply chain
strategy
Supply chain
planning
Supply chain
enterprise
application
Procurement
Product life cycle
management
Assets
management
11. GLOBAL SUPPLY CHAIN AND INTERNET
ROHIT 11
• Intranet is used by firms to improve
coordination among their internal
supply chain process and they use
extranet to coordinate among
business partners and customers .
13. ROHIT 13
Supplier
Supplier Manufacturer Distributer Retailer
Manufacturer Distributer Retailer Customer
Customer
Push versus pull based supply chain models:
Push model:
Supply to production based inventory based stock based purchase what
Forecast on forecast on forecast on forecast is available
Pull model:
Supply to produce to order automatically automatically customer
Order replenish replenish stock orders