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SUPPLY CHAIN MANAGEMENT THE PROCESS OF PLANNING, ORGANISING AND CONTROLLING THE FLOW OF MATERIALS AND SERVICES FROM SUPPLIERS TO END USERS / CUSTOMER DELIVERING.
What Is Supply Chain Management?
LEVEL OF SCM 0-LEVEL 1-LEVEL 2-LEVEL
3-LEVEL
RELATIONSHIP BETWEEN
DEMAND
SUPPLY
When is the product desired? Where is the product desired? How much or how many are needed? How is it desired?
When is a product made? Where it is made or sourced? How much or How many made or acquired? How is it delivered?
PERFOMANCE OF SCM Increase Speed
Improve Quality Reduced Cost
Objectives Optimize pre and post production Provide flexible planning and control mechanism Minimizing transport cost
Objectives Contd… Constant service Tracking the inventory
To deliver goods faster
STRATEGIES OF SUPPLY CHAIN MANAGEMENT
Why is a supply chain strategy so important?
Factors on which SCM strategies depend
Distribution centers Cross docking & third-party logistics Information Technology Where & what-to-make-or-buy decisions
Developing a Supply Chain Strategy Understand the Business Strategy Assess the Extended Supply Chain Keep Communicating with Your Partners
Challenges Lack of ownership communication within organization communication with external suppliers
ROLE OF I.T. IN SCM STRATEGIES:keep records of raw materials
keep information about the goods supplied to keep details about the traders etc
Software vendors of SCM • I2 Technologies • SAP AG • Oracle Corporation • Manhattan Associates • Infosys • IBM
Role of IT
• Information is key supply chain driver. • Information is crucial to supply chain performance. • IT serves as the eyes & ears of management in supply chain.
GOALS OF SUPPLY CHAIN IT Collect information Analysis based on supply chain data Collaborate the supply chain partners
2.) Globalization – It Covers The World Global
base of suppliers.
PROBLEM AREA :
Coordination becomes difficult.
At the company level, supply chain management impacts 3.) COST
4.) SERVICE – For many products, performance factors such speed of delivery are critical to customer satisfaction.
TECHNOLOGIES USED IN SCM :
ELECTRONIC DATA INTERCHANGE
INTERNET
RADIO FREQUENCY IDENTIFICATION
EXAMPLE OF SAP
• This is index of of software.
It is protected by passward.
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