Basics of Supply Chain Management

1. UNIT-1
SUPPLY CHAIN MANAGEMENT

2. Definition
Facilities, activities, associated with flow and transformation
of goods and services from raw material to customer as well
as information flows.
It is the management of the flow of goods
It includes the movement and storage of raw materials,
work-in-process inventory, and finished goods from point of
origin to consumption.

3. Process
Procurement
Production
Distribution

4. Drivers in SCM
Production
Inventory
Location
Transportation
Information

5. Components
Plan
Develop
Make
Deliver
Return

6. Flows in a supply chain
Customer
Information
Product
Funds

7. Key Observations
Integrated activity:
* Among functions such as logistics, manufacturing, distribution,
design/engineering, marketing, finance,etc.
* Multiple organizations,i.e., suppliers, customers& 3 PL providers
* Coordination of conflicting goals, metrics, etc.
Responsible for multiple flows:
* Information (orders, status, contracts)
* Physical (finished goods, raw material, w.i.p.)
* Financial (payment, credits, etc.)

8. Key Observations (continued)
Most analysis involves trade-offs
* Across different entities
* Across metrics: Cost, Service, Time, Risk, etc.
Each interface in the supply chain represents
* Movement of goods
* Information flows
* Transfer of title
* Purchase and sale

9. Features
Inventory Management
Technology
End to End operations
Maximize cost productivity
Increase productivity
Order management
Logistics
Forecasting and planning

10. Strategic Issues
Effects of Globalization
Issues of Infrastructure
Mergers, Acquisition and Alliances
Safety and Security
Leveraging Human Capital
Responding to customers
Exploiting technology.

11. SCM Current Scenario
Pre and Post modelling
Pre and Post practising

12. Outline
Supply-Chain Management of “Yesterday”
How Modeled
How Practiced
Supply-Chain Management of “Today”
How Practiced
How Modeled

13. SCM Practice of “Yesterday”
Single-Owner Chains Took a Centralized Perspective
Single Objective Function: F(x1, x2, x3, ...)
De-Centralized Decision-Making
Information: Not Available or, at best, “Asymmetric”
Implementation: De-Centralized; NOT Contractible
Examples
USAF Logistics Command Consumable Inventory System
IBM Service-Parts Inventory System

14. “Yesterday’s” Relationship:
“Mismatched”
Models
Too Specialized
Required More Information than Practice Had
Practice
Inexperienced with Models & Computers
Confused by Models

15. SCM Practice “Today”
The Beginnings of “Real” SCM for Single-Owner Chains
Ex: Wal-Mart’s, Tesco and ASDA Retail Link
Target’s Partners OnLine
Capabilities
Broadcast SKU-level Data Across the Chain
Observe Status ==> Implemetation “Contractible”

16. Results
Huge Reductions in Buffers ==> Lower Operating Costs
Improved Competitiveness
 Lower Prices
 More Customization
 Higher Availability
Development of Technologies to Support Multiple-Owner SCM
 Internet is Providing Experience
 E-Markets
 Providing Buyer-Supplier Linkages
 Data Standardization.
Using simple models based on “pull down” menus in ERP systems

17. Value Chain Management
VCM is also concerned the flow of goods to consumers but
takes a different approach
Consumer to source
Value chain managers are typically responsible to analysing
issues and providing in order to maximize value created for a
business.

18. Activities in VCM
Primary
-Logistics
-Production
Secondary
-HR
-Marketing
-IT

19. CRM-Definition
“The approach of identifying, Establishing, Maintaining and
enhancing lasting relationships with customers”
“Formation of bonds between a company and its customers”
“An Integrated approach to identifying, acquiring and
maintaining customers”

20. History
1980’s-Database Marketing Emerges
1980’s-Database helped larger organization rather than small
who only go survey type info
1990’s-CRM appears as a two way communication device
1990’s-CRM leads to programs such frequent flyer miles and
bonus points on credit cards
2000’s to till now-Internet has helped expand from stagnant
and database and allows offsite information storage

21. CRM what it does?
Builds a Database that describes the customer and the
relationship they hold with the company.

22. Benefits of CRM
Decrease cost of customer
Increase sales
Increase efficiencies
Better and more accurate data
Data security

23. TOP CRM Manufactures and its Products
1.Microst-Microsoft Dynamics CRM 3.0
2.SAP America-SAP Business One.
3.Sage Software-Saleslogix CRM
4.Parature Inc-Parature
5.Entellium CRM-Entellium