2. Supply chain management is a set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses, and stores, so that merchandise is produced and distributed at
the right quantities, to the right locations, and at the right time, in order to minimize system
wide costs while satisfying service level requirements.
SUPPLY CHAIN MANAGEMENT
Warehousing Transportation Carriers
3. SUPPLY CHAIN MANAGEMENT
For an Individual Firm
Warehouse TransportationTransportationGoods from Vendor Customer
4. SUPPLY CHAIN MANAGEMENT
The Need
Greater Competitive Advantage Faster and smaller deliveries to intermediate
customers
Greater Value to Customers
Introduces the concept of increased Shareholder
value
Reduces Lead Time Gap
5. SUPPLY CHAIN MANAGEMENT
Objectives
BUSINESS GOALS:
(Co-ordination of
Manufacturing and Business
Processes)
Rapid demand fulfillment
Collaborative Supply chain
planning and execution
CUSTOMER GOALS:
(Responsiveness and
accountability to Customers)
Give the customer what they
want, how they want and when
they want at lowest price
Effective
Distribution
System
6. SUPPLY CHAIN MANAGEMENT
India
ESTIMATES FOR INDIA
* Logistics Spend … IN Rs. 2,40,000 crores (approx. US $ 50 Billion)
* Share of GDP …….…… 12-13 %
* Major Elements are ( Percentage of Total)
* Transportation ……… 35
* Inventories ……… 25
* Packaging ……… 11
* Handling & Warehousing ....….. 9
* Others & Losses ……… 14
