Description
A very simple PPT describes on supply chain management and logistics.It covers the concepts and trends.
Supply Chain Management
Agenda for the presentation
• • • • • • What is SCM? Dynamics of SCM New Supply Chain Framework for SCM Measuring Supply Chain Performance Case Study
What is SCM?
• Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible • Supply chain management can be compared to a wellbalanced and well-practiced relay team
Supplier Manufacturer Whole Seller
Consumer
Retailer
SCM Flows
• Product Flow - movement of goods from a supplier to a customer, as well as any customer returns or service needs
• Information Flow- transmitting order sent updating the status of delivery
• Finance Flow- credit terms, payment schedules, and consignment and title ownership arrangements.
Supply Chain
• A coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer • Various models- address both upstream & downstream• The SCOR (Supply Chain Operations Reference) model- It includes delivery and order fulfillment performance, production flexibility, warranty and returns processing costs, inventory and asset turns, and other factors in evaluating the overall effective performance of a supply chain. • Global Supply Chain Forum (GSCF) introduced another Supply Chain Model- This framework is built on eight key business processes that are both cross-functional and cross-firm in nature. • In the 1980s the term Supply Chain Management (SCM) was developed, to express the need to integrate the key business processes, from end user through original suppliers
Supply Chain
Sources: plants vendors ports Regional Warehouses: stocking points
Field Warehouses: stocking points
Customers, demand centers sinks
Supply
Inventory & warehousing costs
Production/ purchase costs Transportation costs Inventory & warehousing costs Transportation costs
SCOR MODEL
The Dynamics of the Supply Chain
Order Size
Customer Demand Retailer Orders
Distributor Orders
Production Plan
Time
SCM Problems
• • • • • Distribution Network Configuration Distribution Strategy Information Inventory Management Cash Flow
Supply Chain Activities
• Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end-consumer • Primarily 3 types of activities– Strategic – Tactical – Operational
Supply Chain Decisions
• Location
• Production • Inventory
• Transportation(Distribution)
Supply chain business process integration
– Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes Key supply chain processes – Customer Service Management – Procurement – Product Development – Manufacturing – Physical Distribution – Outsourcing/ Partnerships – Performance Measurements
Traditional Planning Approach
Characterized by Sequential, Decomposed, Slow
Procurement (Material)
Manufacturing (Capacity)
Sales & Distribution (Demand)
C U S T O M E R
Optimize to Mfg objectives
Optimize to Logistics obj
Optimize to Sales & Mktg obj
What’s New in Supply Chain?
• • • • • • Global competition More powerful well informed customers Customer expectations Shorter product life cycle New, low-cost distribution channels Internet and E-Business strategies
Supply Chain
Supply Chain excellence imperatives
Supply Chain should be directed at• Integration • Flow • Flexibility • Synchronization • Efficiency • Service
Supply Chain Processes
Critical Processes
Warehousing
Promotion Planning
Import Export Management Distribution Management
Transportation
Product Development
Manufacturing
Order Processing/Fulfillment Inventory Management
Demand Management Customer Service 0 1 2 3 Criticality Score 4 5
Supply chain strategies
DEMAND UNCERTAINTY
LOW( functional products)
S u p p y
High( Innovative Products)
Grocery, basic apparel, Food, oil and gas (Efficient Supply Chain)
Fashion Apparel, computers, Popular music (Responsive Suppy Chain)
u n c e r t a i n i t y
Hydroelectric power, some Food produce (Risk Hedging Supply Chain)
Telecom, High End Computers, Semiconductor (Agile Supply Chain)
Supply Chain Management Solution Case Study - For Hindustan Lever
• Fortune 500 company, more than 2000 suppliers, 100 brands, 100 plants • Wanted to move from the existing Push System and build a Pull Based system using- SCM solution • The following parameters were worked on– Shop-floor complexities (SKU-specific levels for bill of material, resource and capacity constraints) to arrive at a feasible production plan using discrete and continuous modes of consumption.
– Collaborative production planning optimizing individual plan utilization, time fences, customized threshold logic, and post-processing time for quality clearance at plants – Equitable demand fulfillment (both planned and extraordinary) for finished goods based on customer prioritization across the supply chain. – Periods of cover and safety stock at distribution centers for SKU rationalization, handling consumer promotions, etc – Handling in-transits on source-destination lane
– Meeting the demands from individual whole sales by direct dispatches from factories.
– Precise vehicle load plans for shipments from the factories and warehouses.
– Dynamic allocation of source factories to each distribution center – Implemented specific requirements through plug-in business rules in Supply Chain Planner such as workorder sizing and method (pro-duction/transportation) selection.
Results
• Stock availability, measured in terms of Stock Service Index, has significantly increased, moving from 65% to 90%. • In terms of volume, indirect dispatches from finished goods warehouses have come down from a range between 70-80% to between 3040%.
References
• Operations Mgmt- Jacob Chase • Supply Chain Management by Amy Zuckerman • www.wikipedia.com
THANK YOU
doc_926661306.ppt
A very simple PPT describes on supply chain management and logistics.It covers the concepts and trends.
Supply Chain Management
Agenda for the presentation
• • • • • • What is SCM? Dynamics of SCM New Supply Chain Framework for SCM Measuring Supply Chain Performance Case Study
What is SCM?
• Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible • Supply chain management can be compared to a wellbalanced and well-practiced relay team
Supplier Manufacturer Whole Seller
Consumer
Retailer
SCM Flows
• Product Flow - movement of goods from a supplier to a customer, as well as any customer returns or service needs
• Information Flow- transmitting order sent updating the status of delivery
• Finance Flow- credit terms, payment schedules, and consignment and title ownership arrangements.
Supply Chain
• A coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer • Various models- address both upstream & downstream• The SCOR (Supply Chain Operations Reference) model- It includes delivery and order fulfillment performance, production flexibility, warranty and returns processing costs, inventory and asset turns, and other factors in evaluating the overall effective performance of a supply chain. • Global Supply Chain Forum (GSCF) introduced another Supply Chain Model- This framework is built on eight key business processes that are both cross-functional and cross-firm in nature. • In the 1980s the term Supply Chain Management (SCM) was developed, to express the need to integrate the key business processes, from end user through original suppliers
Supply Chain
Sources: plants vendors ports Regional Warehouses: stocking points
Field Warehouses: stocking points
Customers, demand centers sinks
Supply
Inventory & warehousing costs
Production/ purchase costs Transportation costs Inventory & warehousing costs Transportation costs
SCOR MODEL
The Dynamics of the Supply Chain
Order Size
Customer Demand Retailer Orders
Distributor Orders
Production Plan
Time
SCM Problems
• • • • • Distribution Network Configuration Distribution Strategy Information Inventory Management Cash Flow
Supply Chain Activities
• Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end-consumer • Primarily 3 types of activities– Strategic – Tactical – Operational
Supply Chain Decisions
• Location
• Production • Inventory
• Transportation(Distribution)
Supply chain business process integration
– Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes Key supply chain processes – Customer Service Management – Procurement – Product Development – Manufacturing – Physical Distribution – Outsourcing/ Partnerships – Performance Measurements
Traditional Planning Approach
Characterized by Sequential, Decomposed, Slow
Procurement (Material)
Manufacturing (Capacity)
Sales & Distribution (Demand)
C U S T O M E R
Optimize to Mfg objectives
Optimize to Logistics obj
Optimize to Sales & Mktg obj
What’s New in Supply Chain?
• • • • • • Global competition More powerful well informed customers Customer expectations Shorter product life cycle New, low-cost distribution channels Internet and E-Business strategies
Supply Chain
Supply Chain excellence imperatives
Supply Chain should be directed at• Integration • Flow • Flexibility • Synchronization • Efficiency • Service
Supply Chain Processes
Critical Processes
Warehousing
Promotion Planning
Import Export Management Distribution Management
Transportation
Product Development
Manufacturing
Order Processing/Fulfillment Inventory Management
Demand Management Customer Service 0 1 2 3 Criticality Score 4 5
Supply chain strategies
DEMAND UNCERTAINTY
LOW( functional products)
S u p p y
High( Innovative Products)
Grocery, basic apparel, Food, oil and gas (Efficient Supply Chain)
Fashion Apparel, computers, Popular music (Responsive Suppy Chain)
u n c e r t a i n i t y
Hydroelectric power, some Food produce (Risk Hedging Supply Chain)
Telecom, High End Computers, Semiconductor (Agile Supply Chain)
Supply Chain Management Solution Case Study - For Hindustan Lever
• Fortune 500 company, more than 2000 suppliers, 100 brands, 100 plants • Wanted to move from the existing Push System and build a Pull Based system using- SCM solution • The following parameters were worked on– Shop-floor complexities (SKU-specific levels for bill of material, resource and capacity constraints) to arrive at a feasible production plan using discrete and continuous modes of consumption.
– Collaborative production planning optimizing individual plan utilization, time fences, customized threshold logic, and post-processing time for quality clearance at plants – Equitable demand fulfillment (both planned and extraordinary) for finished goods based on customer prioritization across the supply chain. – Periods of cover and safety stock at distribution centers for SKU rationalization, handling consumer promotions, etc – Handling in-transits on source-destination lane
– Meeting the demands from individual whole sales by direct dispatches from factories.
– Precise vehicle load plans for shipments from the factories and warehouses.
– Dynamic allocation of source factories to each distribution center – Implemented specific requirements through plug-in business rules in Supply Chain Planner such as workorder sizing and method (pro-duction/transportation) selection.
Results
• Stock availability, measured in terms of Stock Service Index, has significantly increased, moving from 65% to 90%. • In terms of volume, indirect dispatches from finished goods warehouses have come down from a range between 70-80% to between 3040%.
References
• Operations Mgmt- Jacob Chase • Supply Chain Management by Amy Zuckerman • www.wikipedia.com
THANK YOU
doc_926661306.ppt