This video is presented by USEP's BSCS student Alvin Mark U. Cabeliño under Mr. ND Arquillano as a partial fulfilment for Elective 4 -Supply-Chain Management.

2. • Value Chain
• Supply side- raw materials, inbound logistics
and production processes
• Demand side- outbound logistics, marketing
and sales.

3. WHAT IS SUPPLY CHAIN MANAGEMENT
" Is the strategic management of activities involved in
the acquisition and conversion of materials to finished
products delivered to the customer"
Supplier Material Flow Customer
Management Management
Information Flow
Schedule /
Conversion Delivery
Resources Stock
Deployment
Leads to Business Process Integration

4. • 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.

5. • SUPPLY CHAIN INCLUDES :
– MATERIAL FLOWS
– INFORMATION FLOWS
– FINANCIAL FLOWS

6. • SUPPLY CHAIN MANAGEMENT IS
FACILITATED BY :
– PROCESSES
– STRUCTURE
– TECHNOLOGY

7. • Supply chain serves two functions:
– Physical
– Market mediation

8. • 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

9. Supply Chain Structure
SUPPLIER FACTORY DC RDC RETAILER
Raw Materials
Finished Goods
Information Flow

10. 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.

11. • 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

12. SUPPLY CHAIN DRIVERS
Not new. Value system of Michael Porter
• Why sudden interest?
– Demanding customers
– Shrinking product life cycles
– Proliferating product offerings
– Growing retailer power in some cases
– Doctrine of core competency
– Emergence of specialized logistics providers
– Globalization
– Information technology

13. SUPPLY CHAIN ELEMENTS
• SupplyChain Design
Strategic • Resource Acquisition
• Long TermP lanning (1 Year ++)
• Production/Distribution Planning
Tactical • Resource Allocation
• MediumTermP lanning (Qtrly,Monthly)
• Shipm ent Scheduling
Operational • Resource Sched uling
• Short TermP lanning (Weekly,Daily)

14. • Supply Chain Goals
Efficient supply chain management
must result in tangible business
improvements. It is characterized by a
sharp focus on
– Revenue growth
– Better asset utilization
– Cost reduction.

15. Supply Chain
Management
Underlying Principles
Compression (Planning/Manufacturing/Supply)
Conformance (Forecasts/Plans/Distribution)
Co-operation (Cross -Functional)
Communication (Real Time Data)
Reduce Overall Cycle Time : Improve Response