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Supply Chain Management

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  1. Supply Chain Management AN INITIATIVE BY: VAINY GOEL BBA 1 MODI COLLEGE

  2. Outline of the Talk • What is Supply Chain Management • Supply Chain Management Process • Supply Chain Management Decisions • Software Tools • Conclusions

  3. What is Supply Chain Management ? Supply Chain is a set of activities (e.g. purchasing, manufacturing, logistics, distribution, marketing) that perform the function of delivering value to end customer Traditionally, all the business units along a supply chain have their own objectives and these are often conflicting There is no single plan to carry out supply chain activities

  4. What is Supply Chain Management ? There is need for a mechanism through which the execution of various business activities along a supply chain can be planned in an integrated fashion. The supply chain management is an effort to achieve the primary goal of “producing and distributing the merchandise at the right quantity, to the right locations, and at the right time with minimum system wide cost” in the presence of conflicting goals of various business units

  5. Statics of Material Flow Supplier Plant Warehouse Logistics Retailer

  6. Dynamics of Order Flow Supplier Plant Warehouse Logistics Retailer

  7. Supply Chain Management Processes Demand Forecasting Material Requirement Planning Demand Planning Component Requirement Production Plan Retailer Supplier Plant Warehouse Logistics Order Management

  8. Supply Chain Management Decisions STRATEGIC TACTICAL OPERATIONAL Procurement Manufacturing Distribution Logistics

  9. Supplier Selection • Allocation of Suppliers to the Plants • Location, Number, Capacity of Plants • What Products to Produce • Which Plants to Produce them • Location, Number, Size of Warehouses • Mode of Shipment • Port Selection • Procurement Policy • Warehouse Allocation • Inventory Decisions • Manufacturing Policy • Customer Allocation • Distribution Policy • Vehicle Routing • Fleet Size • Production Schedule • Scheduling on Machines • Workload Balancing • Finished Goods Inventory • Vehicle Routing Supply Chain Management Decisions

  10. Software Packages i2 Six: A comprehensive solution suite for spend/ production/ revenue/ logistics/ fulfillment optimization Solution suites for network design & optimization/ manufacturing planning & scheduling/ global logistics management/ service & parts management JD EDWARD: The advanced planning software to synchronize demand & planning/ network Optimization/ production & distribution planning

  11. Software Packages ARIBA Spend Management: It helps companies driving down enterprise wide spend mySAP SCM: A complete supply chain planning solution iBann: A complete solution suite from demand collaboration to order management

  12. Results • Reduced inventory levels by 10-15% • Reduced markdown & scrap by 10-15% Companies that utilized best-in-class SCM solutions have • Used resources10-20% more efficiently • Improved delivery reliability by 95-95% • Reduced outages to 0-5% • Reduced cycle time by 10-20% • Reduced transportation cost by 10-15%

  13. Conclusions • Supply Chain Planning: A critical factor in the success and profitability of a company • Short Product Life Cycle: Improper planning can take the company out of business • Bad News: Planning is an hard problemto formulate as well as solve • Good News: Plethora of Commercially available software for supply chain planning

  14. Thank You