by Ishan Rajani (Asst, Prof. at Darshan Institute of Engineering & Technology)

1. Supply Chain Management

2. • It plays an important role in keeping eye on production,
Cost,
delivery
• Increases overall efficiency
• Supply chain sometimes also called value chain.

3. Some definitions of SCM :
• “ It is the management of the flow of material and information so that
highest level of customer satisfaction can be provided at lowest
level of cost ”
• “ It is systemic and strategic co-ordination of traditional business and
tactics across these business functions within a particular company
and across businesses within the supply chain, for the purposes of
improving the long-term performance “
• “ It is integration of key business processes across the supply chain
for the purpose of creating value for customers and stakeholders ”

4. • Council of SCM Professionals (CSCMP)
It encompasses the planning and management of all activities involved
in
sourcing,
procurement,
conversion,
collaboration
and logistic managements
E-procurement : It is B2B or B2C or B2G purchase and sale of supplies,
work and services through the internet as well as other information
and networking systems, such as EDI and ERP.

6. • Seven main types of E-procurement :
- Web based ERP : Creating and approving
purchasing, requisitions, placing purchase orders and receiving
goods and services by using software systems.
- E-MRO (Maintenance, Repair, and Overhaul)
Its non-product but related to maintenance.
- E-sourcing : Identifies new suppliers for a specific category of
purchasing requirements using IT.

7. - E-tendering : Sending requests for information and
prices to suppliers and receiving the responses of
suppliers using IT.
- E-reverse auctioning : Using IT to buy goods and
services from a number of known or unknown suppliers.
- E-informing : Gathering and distributing purchasing
information both from internal and external parties using
IT.
- E-marketing sites :

8. • Tools for SCM :
– Includes modules used to execute
• Supply chain transaction
• Supplier relationship
• Control associated business process

9. Key elements of SCM
1. Production
2. Supply
3. Inventory
4. Location
5. Transportation
6. Information

10. Benefits of SCM :
• Improves network
• Lower costs
• Improved collaboration
• Study of cycle time
• Proper response of conflicts
• Increase revenue
• Retain customers
• Minimized delays

11. Trends in SCM :
1. Demand Planning
2. Globalization
3. Increased competition and price pressures
4. Outsourcing
5. Shortened and more complex product life cycle
6. Closer integration and collaboration