1. Supply Chain Management
Presented by- Upendra kumar
Roll no-46
MBA 3rd Sem

2. The Supply Chain
It encompasses all activities associated with the
flow and transformation of goods and services
from the raw material stage through to the end
user as well as associated information flow.
It consist of four fundamental process
a) Acquiring customers orders
b) Procuring materials and components from the
suppliers
c) Producing or manufacturing products
d) Filling customers demand

3. Supply Chain Management
It focuses on managing the flow of goods and
services and information through the supply
chain in order to attain the level of
synchronization that will make it more responsive
to customer needs while lowering total costs.
Synchronization requires close coordination,
cooperation and communication plus timing
among supply chain members in order to be
effective.

4. Material Flow
Material Flow
Supplier Material Flow Customer
Management Management
Information Flow
Schedule / Stock
Conversion Delivery
Resources Deployment

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

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

7. Importance of SCM
• Getting products to customers faster than the
competitor will improve a company's competitive
position. To remain competitive, companies must seek
new solutions to important Supply Chain Management
issues such as modal analysis, supply chain
management, load planning, route planning and
distribution network design.
• Faster product availability is key to increasing sales.
• "If you can be there first, you are likely to get more
orders and more market share." The ability to deliver a
product faster also can make or break a sale. "If two
alternative [products] appear to be equal and one is
immediately available and the other will be available in
a week, which would you choose?

8. IT and SCM
• Information is the essential link between all supply chain processes
and activities including suppliers, producers, distributors, retailers
and customers. Computer and IT allows real time , on-line
communication throughout the supply chain.
IT can provide following function to improve Supply chain
management
• Centralized coordination of information flow
• Integration of transportation, distribution, ordering and production
• Direct access to both domestic and global transportation and
distribution channel.
• Locating and tracking the movement of every item in supply chain
• Intercompany and Intracompany information access
• Data Interchange
• Instantaneous updating of inventory level in real time.

9. Application of IT in SCM
• E- Business
• Electronic Data Interchange
• Bar Code
• E-Procurement
• E-Market places

10. E-Business
It is replacement of physical processes with
electronic ones. In E-Business, transactions
are conducted via a variety of electronic
media including e-mail, electronic fund
transfer, electronic publishing, image
processing, electronic bulletin boards, shared
database, bar code, voice mail, CD ROM and
Internet.

11. Features of E-Business
• Cost saving and lower transaction cost
• Reduction or elimination of the role of
intermediaries and even retailers and services
providers
• Shortening supply chain transaction times for
ordering and delivery
• Increase visibility of company
• Greater choices and more information to
customers
• Instant accessibility to services.

12. Electronic data Interchange
• EDI is computer to computer exchange of business
documents. It describes the capability and practices of
communicating information between two
organizations electronically instead of by traditional
forms- courier or fax.
• EDI links supply chain member together for order
purchasing, accounting, production and distribution
• It provides quick access to information, allows better
customers services, reduces paperwork, allow better
communication, increase productivity, improves
tracking and expediting, reduces labor cost for printing
and handling papers and reduces telephone and fax
transmission cost.

13. Bar Code
• Computer readable codes are attached to items
flowing through the supply chain including products,
containers and packages.
• Bar code contains identifying information about the
item. It might include product description, item
number, its source destination, special handling
procedures, cost, order number etc. when it scanned it
provides critical information to supply chain members
about its location in supply chain.
• It also creates Point-of-sale data an instantaneous
computer record of the sale of a product. It instantly
transmitted throughout the supply chain to update
inventory record. It is important for suppliers,
producers and distributors.

14. E-Procurement
• It is the part of Business-to-Business (B2B)
commerce being conducted on internet, in which
buyer make a purchases directly from suppliers
through their websites by using software
packages, e hubs and trading exchange.
• It speed up the purchase order and transaction
process from companies, lower transaction cost
associated with purchasing, lower prices for
goods and services and faster ordering and
delivery times.

15. E-Market places
• It is initiated by Weirton Steel Corporation in
1996 called MetalSite. E-market places are being
found by industry specific companies and
suppliers to provide a ground on net where
companies can streamline supply chains and find
new partners. It is projected that 35% of B2B
internet trade was done by e-market places by
2005.
• Delphi Automotive system corporation, largest
auto supplier in US who joined e-market in 2000
and save $70 million by purchase parts and
materials by this platform.

16. Warehouse Management System
• It is sophisticated, highly automated system to
run day to day operations of distribution
center and keep track of inventories.
Features of WMS
• Transportation management
• Order management
• Yard management
• Labor management
• Warehouse optimization

17. • Transportation management:- it is to track
inbound and outbound shipments, to consolidate
and build economical loads, and to select the best
carrier based on cost and service.
• Order management:- it enables to add, modify or
cancel orders in real time.
• Yard management:- controls activities at the
facility dock and schedules dock appointment to
reduce bottleneck.
• Labor management:- plans, manages and reports
the performance level of warehouse personnel.
• Warehouse optimization:- optimizes the
warehouse placement of items called “slotting”,
based on demand, product groupings and the
physical characteristics of the item.

18. Vendor management inventory
• In this management manufacturers, instead of
distributors generate orders. Under VMI
manufacturers receive data electronically via net
about distributors sales and stock levels.
Manufacturers can see which items distributors
carry, as well as several years of point-of-sale
data, expected growth, promotion, new and lost
business and inventory goals and use this
information to create and maintain forecast and
inventory plan.
• Due to shifting of responsibility from distributor
to manufacturers they have lower stockouts and
also have the right product at the right time.