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Dr. Parikshit Charan

Supply Chain

Management: Some Contemporary Perspectives Contemporary Perspectives

Dr. PARIKSHIT CHARAN

1

Impetus For Supply Chain Management Management

Four key factors have provided the impetus for companies to take a broader view

New Customer Service Definition

Beyond perfect order-shifting

responsibilities/Vendor Managed Inventory

Escalating Logistics Cost

Cycle Time Compression--E-Commerce

Globalization--Worldwide rise in exports far exceed

Worldwide purchasing, manufacturing, and

selling.

Long and complex global pipelines.

Product proliferation.

Cultural adaptation

of their enterprise and its environment

Development of Supply Chain Management

Physical distribution (1960-1970)

• Focus : Management of inventories for the efficient delivery of finished goods to customers.

Integrated logistics management (1970-1980)

• Focus : INBOUND FLOW (materials management) & OUTBOUND FLOW (physical distribution)

• Challenges: deregulation of transportation, global competition, foreign sources of supply, and economic factors

Supply chain management (from 1990s)

• Focus : Three types of “flows” or basic processes -

Product, Information, and Money

• Managing supplier-to-customer material flow that add value to the

final product

Why SCM is Important now?•1970, Quality •1980, lean manufacturing •1990 and beyond, SCM –The Increased complexity of supply chain

•1970, Quality •1980, lean manufacturing •1990 and beyond, SCM

–The Increased complexity of supply chain

•Emergence of global supply chain •More demanding customers •Shorter production lifecycles •Outsourcing, decentralized control and more…

–Feasibilities

•radical improvement in information technology and communication capabilities

Background Supply Chain Material management(inbound logistics) The acquisition and storage of raw materials, parts, and
Background
Supply Chain
Material management(inbound logistics)
The acquisition and storage of raw materials, parts, and supplies
The complete cycle of material flow from the purchase and internal control of
production materials to the planning and control of WIP
Physical distribution(outbound logistics)
All outbound logistics activities related to providing customer service.
Order receipt and processing, inventory deployment, storage and handling,
outbound transportation, consolidation, pricing, promotional support, returned
product handling, and life cycle support…

LogisticsLogistics is that part of supply chain process that plans, implements, and controls the efficient,

Logistics is that part of supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customersrequirements.

Dr. Parikshit Charan

Logistics: Past The study of logistics has its roots in the military… The traditional view

Logistics: Past

The study of logistics has its roots in the military… The traditional view emphasized local optimization within functional silos and within individual corporations

But functional optimization leads to conflicts

7

Logistics - Evolution Most modern companies have recognized that to improve cost and performance to
Logistics - Evolution
Most modern companies have recognized that
to
improve cost and performance to the corporation
they must
Accounting
/
Manu-
Sales and
Finance
facturing
Marketing
Integrate internal logistics
activities
Integrate logistics with
other corporate functions
Production Planning
Material
Distribution
Planning
Planning
Inventory Control
Customers
Suppliers
Warehouse Operations
Customer
Service
Procurement
Transportation
Financial
Other Log.
Carriers
Institutions
Providers
but other pressures indicate that companies must
look outside their own four walls
9

Supply Chain Management

Supply Chain Management Supply chain management deals with the management of materials, information and financial flows

Supply chain management deals with the management of materials, information and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers (Stanford Supply Chain Forum,

1999)

Supply chain management is a set of approaches utilized efficiently to integrate suppliers, manufacturers, warehouses, and stores so that merchandise is 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 (Simchi-Levi et al., 2008)

In 1984
In 1984

Logistics

CLM formulated a new definition which refocused

the concept of logistics

CLM Definition

“The process of planning, implementing, and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.” This definition includes inbound, outbound, internal, and external movements.

CLM - Council of Logistics management -Adopted 1984

a new flow and process orientation not a set of discrete

activities and handoffs

8

Complexity in LogisticsMulti-location Multi-product Added Cost at various stages and locations Multi-modal transportation Different

Multi-location

Multi-product

Added Cost at various stages and locations Multi-modal transportation Different perspectives held by various stakeholders in the logistics !

10

The Functional Approach C U S T O M E R S Sales S U
The
Functional Approach
C
U
S
T
O
M
E
R
S
Sales
S
U
P
Distribution
P
L
I
Manufacturing
E
R
S
Purchasing
Traditional Approach: Functional, silo
based !
No attempt to look holistically!
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Dr. Parikshit Charan

GENERALGENERAL SUPPLYSUPPLY CHAINCHAIN NETWORKNETWORK Supplier 1 Supplier 2 Supplier n SOURCES Production Facilities
GENERALGENERAL SUPPLYSUPPLY CHAINCHAIN NETWORKNETWORK
Supplier 1
Supplier 2
Supplier n
SOURCES
Production
Facilities
Enterprise
Logistic
Facilities
SINKS
Customer 1
Customer 2
Customer
m
ENTERPRISEENTERPRISE SupplSupplyy ChainChain NETWORKNETWORK Supplier 1 Supplier 2 Supplier n SOURCES Production
ENTERPRISEENTERPRISE SupplSupplyy ChainChain NETWORKNETWORK
Supplier 1
Supplier 2
Supplier n
SOURCES
Production
Facilities
Enterprise
Logistic
Facilities
SINKS
Customer 1
Customer 2
Customer
m
INTEGRATEDINTEGRATED SUPPLYSUPPLY CHAINCHAIN NETWORKNETWORK Supplier 1 Supplier 2 Supplier n SOURCES Production
INTEGRATEDINTEGRATED SUPPLYSUPPLY CHAINCHAIN NETWORKNETWORK
Supplier 1
Supplier 2
Supplier n
SOURCES
Production
Facilities
IntegratorIntegrator
Logistic
Facilities
INTERMEDIARIES
SINKS
Customer 1
Customer 2
Customer
m
CONSUMERS
Issues in Management of Supply Chain Lead time Total cost Management of Inventory Material Handling

Issues in Management of Supply Chain

Lead time

Total cost

Management of Inventory

Material Handling

Performance Monitoring & Control

Sensitization about the Logistics cost to all the

stakeholders ! Information Sharing…………

14

C Integrated Supply Chain Approach U S T O M E R S Sales S
C
Integrated Supply Chain Approach
U
S
T
O
M
E
R
S
Sales
S
U
Distribution
P
P
L
Manufacturing
I
E
R
S
Purchasing
Looks at the entire chain
Global rather than local focus
Integrated rather than fragmented approach
16
Supply Supply
Supply Supply

Supply Chain Stages

Chain Chain encompassesencompasses allall activitiesactivities associatedassociated withwith thethe flowflow andand transformationtransformation ofof materialsmaterials andand informationinformation fromfrom thethe rawraw materialmaterial stagestage throughthrough toto thethe endend useruser

Supplier Manufacturer Distributor Retailer Customer 18
Supplier
Manufacturer
Distributor
Retailer
Customer
18

Dr. Parikshit Charan

Supplier Supplier Manufacturing Regional Field Retail Plants Warehouses Warehouses Outlets 19 Customers
Supplier Supplier Manufacturing Regional Field Retail Plants Warehouses Warehouses Outlets
Supplier
Supplier
Manufacturing
Regional
Field
Retail
Plants
Warehouses
Warehouses
Outlets

19

Customers

Supply Chain Management The clear implication is the need for further integration of all the

Supply Chain Management

The clear implication is the need for further integration of all the parties involved…

Accounting

/

Manu-

Sales and

Accounting

/

Manu-

Sales and

Finance

facturing

Marketing

Finance

facturing

Marketing

Production Planning Material Distribution Planning Planning Inventory Control Warehouse Operations Customer
Production Planning
Material
Distribution
Planning
Planning
Inventory Control
Warehouse Operations
Customer
Service
Procurement
Transportation
Production Planning Material Distribution Planning Planning Inventory Control Warehouse Operations Customer
Production Planning
Material
Distribution
Planning
Planning
Inventory Control
Warehouse Operations
Customer
Service
Procurement
Transportation

Integration Migration

to prosper in this dynamic environment

21

Suppliers

Suppliers Customers Suppliers Customers

Customers

Suppliers Customers Suppliers Customers

Suppliers

Suppliers Customers Suppliers Customers

Customers

Financial

Institutions

Carriers

Other Log.

Providers

Financial

Institutions

Carriers

Other

 

Log.

 

Providers

What Management Gets Customer Customer Demand Demand Production Production Plan Plan Time Source: Tom Mc
What Management Gets
Customer
Customer
Demand Demand
Production Production Plan Plan
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Order Size
Broadened Scope of Information and Coordination Plan Source Make Deliver Deliver Source Make Deliver Source
Broadened Scope of
Information and Coordination
Plan
Source
Make
Deliver
Deliver
Source
Make
Deliver
Source
Make
Deliver
Source
Suppliers’
Supplier
Customer
Customer’s
Your Company
Supplier
Customer
(internal or
(internal or
external)
external)
John Birchak, Intel Corp., National
Science Foundation, University of
Florida, October 1998
20
The Dynamics of the Supply Chain Customer Customer Demand Demand Retailer Orders Retailer Orders Distributor
The Dynamics of the Supply Chain
Customer
Customer
Demand Demand
Retailer Orders
Retailer Orders
Distributor Distributor Orders Orders
Production Production Plan Plan
Time
Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998
Order Size
What Management Wants… Production Plan Production Plan Customer Customer Demand Demand Time Volumes
What Management Wants…
Production Plan
Production Plan
Customer
Customer
Demand
Demand
Time
Volumes

Source: Tom Mc Guffry, Electronic Commerce and Value Chain Management, 1998

Dr. Parikshit Charan

ThereThere isis nono simplesimple keykey toto successsuccess You have to reduce inventories and other costs
ThereThere isis nono simplesimple keykey toto successsuccess
You have to
reduce
inventories and
other costs by
20% this year
My customer
wants it next
day
1 day more and
we save 10% in
transport costs
I want to see it
in stock before I
believe
Long production
runs reduce
costs
Others go to JIT
25
The Core Issues
in Supply Chain Management
Cycle Time
Alliances
Technology
Cost Management
Initiatives
Integration
Inbound, Operations
Environmental
& Outbound
Pressures
27
634
Tier 2 Non-core Critical Areas Core Tier 2 Tier 2 Competency . Areas Tier 1
Tier 2
Non-core
Critical
Areas
Core
Tier 2
Tier 2
Competency
.
Areas
Tier 1
Tier 1
.
Tier 2
.
Tier 1
Tier 1
Focal
Tier 2
.
Company
Tier 2
.
Closest Integration
Tier 1
.
*
Design team member
Tier 2
Tier 1
Tier 1
Tier 1
.
- R& D collaboration
.
* Prod/logistics info sharing
.
* Rare partnership
Tier 2
Close collaboration (less expensive than innermost core)
* Exchange design/development information
Tier 2
* Prod/logistics info sharing
* Increasing partnership
Non-strategic,
Non-critical Areas
Collaboration principally
via tier 1 suppliers
* Occasional direct
contact with focal company
Degree of integration
decreases
29
Degree of integration
decreases

PlanningPlanning ObjectivesObjectives Planning Planning Objectives - - Longer Longer perspective perspective brings brings in in more more -- LongerLonger perspectiveperspective bringsbrings inin moremore

SERVICE ASSETS TOTAL QUALITY COSTS TIME Profit ENVIRONMENT CASH INFORMATION
SERVICE
ASSETS
TOTAL
QUALITY
COSTS
TIME
Profit
ENVIRONMENT
CASH
INFORMATION

FLEXIBILITY

26

Supply Chain Network- Sample Structure Tier 3 to Initial Suppliers Tier 2 Tier 1 Tier
Supply Chain Network- Sample Structure
Tier 3 to
Initial Suppliers
Tier 2
Tier 1
Tier 1
Tier 2
Suppliers
Suppliers
Customers
Customers
Tier 3 to
Consumers/
End-Customers
1
1
1
n
2
1
n
1
2
n
1
2
1
n
3
2
1
n
3
2
n
n
n
1
Focal Company
n
28
Members of the Focal Company’s Supply Chain
nI
tii al Su pp
eli
sr
Tier 3 to n suppliers
Tier 3 t
n co
ts ou
rsem
Con us
em
/sr
E
C-nd
ustome sr
Four Flows withi n Supply Chain Supply chain management requires parallel control o f •

Four Flows within Supply Chain

Supply chain management requires parallel control of

Physical Goods

Logistics Information

Payments

Ownership Rights

8 8 8 Physical Distribution 888 8 8 8 8 8 8 Ownership Ownership Rights
8 8
8
Physical Distribution
888
8
8
8
8
8
8
Ownership Ownership Rights Rights
888
Customer
Customer
Production
Forecast
Procure
Manu-
Warehousing&
Transpor
Order
Network
Needs
Planning
-ing
-ment
facturing Inventory Materials Mgt.
Mgt.
-tation
Mgt.
Planning
Satisfaction
w ww
Payments
w
w
w
w
w
www
Logistics Information
www
30

Dr. Parikshit Charan

Goals of SCM •Maximize the overall value generated in the chain •Generate cost savings and
Goals of SCM
•Maximize the overall value generated in
the chain
•Generate cost savings and better
customer service over the entire supply
chain
•Ideal:
–Have the right product
–At the right
–At the right
–At the least
–In the right
place
time
cost
amount
Toshiba PC supply chain
upstream
Intel,
Seagate,
Microsoft,
AMD
IBM
Red Hat
Toshiba America
Irvine, California
North America DC
Europe DC
Toshiba Turkey
downstream
Enablers of Supply Chain Management There are two principal factors which make supply chain management

Enablers of Supply Chain Management

There are two principal factors which make supply chain management a reality

Increased Organizational Integration Internal External

Advances in Communications and Information Technology Capabilities EDI/XML/Internet RF/GPS/POS data capture Broadband Communications Integrated database management tools Cheaper and faster processing … Perspective

35

Typical supply chain upstream downstream How is SCM different? Builds on traditional fields such as
Typical supply chain
upstream
downstream
How is SCM different?
Builds on traditional fields such as production
management, operations management or logistics
management.
The key differentiator is the systems approach of
the supply chain management
SCM considers every stage and facility in the
supply chain and the interactions between them,
whether they belong to different companies or
different organizations within a company
SCM considers the total costs in the supply chain
Since SCM deals with all stages of the supply
chain and their integration, it encompasses the
firm’s activities at many levels: strategic, tactical
and operational
CASE 1: SCM COMPLEXITY 36

CASE 1: SCM COMPLEXITY

36

Dr. Parikshit Charan

Scope / Activities Supply Chain Management Materials Management & Transportation Manufacturing Packaging
Scope / Activities
Supply Chain Management
Materials Management & Transportation
Manufacturing
Packaging
Total Quality Management
Distribution Systems
37
Manufacturing Facilities - NHC
Powders
H
3 Factories
Nabha - Punjab
Rajahmundry - A.P.
Hamira - Punjab
N SD1
SD1 Project
R
Sonepat - Haryana
39
Manufacturing Facilities - NHC Solids B H 41 2 Biscuit sites Burdwan Hyderabad

Manufacturing Facilities - NHC Solids

B H 41
B
H
41

2 Biscuit sites

Burdwan

Hyderabad

Product Portfolio Oral Care Horlicks NHC Toothbrush Aquafresh Flex, FnD, FlexiKid Flexi friend Jordan JHlx
Product Portfolio
Oral Care
Horlicks
NHC
Toothbrush
Aquafresh
Flex, FnD, FlexiKid
Flexi friend
Jordan
JHlx CHlx MHlx EHlx Hlx P
Boost
Aquafresh mouthpaste
Viva
Maltova
x-fresh, F‘n M
Biscuits
Eno
Hlx
Boost
Regular, Lemon,
Std
Ch.Hlx
EB
Jaljeera
Elaichi
Crocin
Med

38

Packaging Facilities - Nutritional N NN HA N F CG C H CH 40 7

Packaging Facilities - Nutritional

N NN HA N F CG C H CH 40
N NN
HA
N
F
CG
C
H
CH
40

7 Packing Sites

Faridabad (F)

Calcutta (C)

Hyderabad (H)

Chennai (CH)

Nabha (N)

Hamira (HA)

Chittagong - Bangladesh (CG)

Mfring & Packing Facilities- Aquafresh N G 42 2 sites Goa (Tooth Brush) Nashik (Toothpaste)

Mfring & Packing Facilities- Aquafresh

N G 42
N
G
42

2 sites

Goa (Tooth Brush) Nashik (Toothpaste)

Dr. Parikshit Charan

Mfring & Packin g Facilities - OTC H 43 1 Site (ENO) Hyderabad

Mfring & Packing Facilities - OTC

H 43
H
43

1 Site (ENO)

Hyderabad

Supply Complexities Finished Goods Movement •250 vendors, 350 materials, 15 sites •P/S movement of avg
Supply Complexities
Finished Goods Movement
•250 vendors,
350 materials,
15 sites
•P/S movement
of avg
1200 kms
•Over 1000
consignments/
month shipped
•12 supply sites
catering to 37 markets
across 130
site-depot
•Primary freight cost
linkages
of Rs. 30 crore p.a.
45
Major Problems Forecast inaccuracy Un-organised transport sector Longer lead time for some raw materials

Major Problems

Forecast inaccuracy Un-organised transport sector Longer lead time for some raw materials Frequent change in statuary requirements Sales promotions disturbs the planning cycles some times leads to major write offs

47

Sales depots Sales depots 32 nos 44
Sales depots
Sales depots 32 nos
44

Supply Complexities

Export Supplies Nepal MiddleMiddle EastEast BangladeshBangladesh MyanmarMyanmar MauritusMauritus 46 SriSri
Export Supplies
Nepal
MiddleMiddle EastEast
BangladeshBangladesh
MyanmarMyanmar
MauritusMauritus
46
SriSri LankaLanka

Effective Supply Chain- Challenges Challenges

Effective Supply chain is not limited to manufacturing & distributing products only but also……

48

Dr. Parikshit Charan

Effective Supply Chain- Challenges Design product to its supply chain Supplier relationship Manufacturing:- should

Effective Supply Chain- Challenges

Design product to its supply chain Supplier relationship Manufacturing:- should it be in- house or to be out-sourced ? Least Product inventories Third Parties:- Partners can add significant value

49

Effective Supply Chain-ChallengesThen What’s the way out? 51

Then

What’s the way out?

51

Contemporary Logistics Strategies The competitive marketplace has given rise to logistics alliances Complementary
Contemporary Logistics Strategies
The competitive marketplace has given rise to
logistics alliances
Complementary
Capabilities
Sharing of risks
and resources
Competitive
Strategic
Advantage
Alliances
Focus on core
business
Effective Supply Chain - Challenges

Effective Supply Chain - Challenges

Distribution:- shippers should add value rather than mere transportation Work on the “Customer’s Pull” rather than “Push” Is consumer response is making its way into the chain ?

 

50

Contemporary Strategies

Contemporary Strategies

Successful businesses match market demand and core capabilities

 

Carriers had transport assets and systems trucks, cars, terminals, tracking and tracing systems, fleet management systems Shippers had critical need for more efficient logistics systems, but no expertise Shippers needed resources in their core areas

Result: Alliances in logistics--Third Party Logistics

 
Trends in Global Supply Chain Management Collaborative Product Development Risk Pooling Postponement Demand

Trends in Global Supply Chain Management

Collaborative Product Development Risk Pooling Postponement Demand signal closest to supplier and accurate

POS data capture and transmission and now RFID in each piece of product eliminating the need for line of sight scanning—Unilever

Dr. Parikshit Charan

Supply Chain Management and the Internet There are two conflicting views Relationships with suppliers will

Supply Chain Management and the Internet

There are two conflicting views

Relationships with suppliers will endure-- Web-based connectivity will enable the transaction network to become more efficient -- sharing of savings will take place New technology will impact business supply chains beyond recognition--Globalization will overpower existing relationships as companies access different suppliers in various countries and drive down prices

Auto SectorSupply Chain Integration Buy Side Supplier Integration Sell Side Re intermediation Relationship building with Customers

Supply Chain Integration

Buy Side

Supplier Integration

Sell Side

Re intermediation

Relationship building with Customers

Maruti Suzuki Extranet for Dealers - 150 Dealers, 9 Models, 1000 Sub-assemblies, Avg assembly, changes

Maruti Suzuki

Extranet for Dealers - 150 Dealers, 9 Models, 1000

Sub-assemblies, Avg assembly, changes avg

15 components per sub- 10 per week

Wrong Orders / Re-conciliation problems Wrong shipment Multiple Printed Catalog / Addendum and Errata

One ECatalog, Multiple Views, Ordering Modules, Dealer Service, back-ending into Enterprise systems

THERE IS ALREADY SIGNIFICANT ACTIVITY IN AUTO SECTOR Existing Planned/Announced Vendor market places Consortium of
THERE IS ALREADY SIGNIFICANT ACTIVITY IN AUTO SECTOR
Existing
Planned/Announced
Vendor market
places
Consortium of Bajaj Auto, M&M,
Telco, HM, Maruti, Hero Honda,
TVS Suzuki
Escorts, Kalyani
Vendor Integration
TELCO
Bajaj Auto, Ford, Fiat, Hyundai,
Hero Honda, TVS Suzuki, Toyota,
M&M
Internal
Connectivity
Almost All
Dealer Integration
Maruti, Fiat,
Daewoo, Hyundai, Hero Honda, TV
Ford, ALL
S Suzuki, Bajaj Auto, LML, Kinetic,
HM Lancer, M&M
Basic Website
Almost All
Piaggio, Greaves, Hero Honda
Sophisticated website
Daewoo, Honda
Fiat, Hyundai
with customisation,
cataloging
* Footnote
Source:Sources
Daewoo, Honda Fiat, Hyundai with customisation, cataloging * Footnote Source:Sources Supply Chain Management 10
Daewoo, Honda Fiat, Hyundai with customisation, cataloging * Footnote Source:Sources Supply Chain Management 10

Dr. Parikshit Charan

Prof. J.P. MacDuffie, IMVP & The Wharton School

Prof. J.P. MacDuffie, IMVP & The Wharton School

Supply Chain Integration - Dealing with Conflicting Goals Dealing with Conflicting Goals

Lot Size vs. Inventory Inventory vs. Transportation Lead Time vs. Transportation Product Variety vs. Inventory Cost vs. Customer Service

Emerging Issues in Supply Chain Management Chain Management

Vendor managed Inventory (VMI) - In

this case supplier decides on the appropriate inventory levels of each product and the inventory policies to

maintain these levels e.g. Campbell Soup, Maruti

Third party logistics(3PL) and Fourth party logistics(4PL) – This trancends from

Prahlad’s concept of core competence .It is simply the use of an outside company to execute part or complete materials management and product distribution function

of the firm e.g. Fed Ex, UPS

Barriers to Succe ss in Emerging SCM Resistance to change Poor data availability Supply chain

Barriers to Success in Emerging SCM

Resistance to change Poor data availability Supply chain design complexity Organization structure Poor cross-functional collaboration Lack of trust (suppliers, customers) Lack of E-commerce skills Unsure top management commitment

Source: Adapted from A.D. Lttle Survey, 1999

Future of Supply ChainMore Integration: Comfortable Core competence New Market evolution Increased variety-Low volume products

More Integration: Comfortable Core competence New Market evolution Increased variety-Low volume products Industry Maturity Power/Dominance Integration & Information sharing

Outsourcing- It means handing over certain logistics related to manufacturing to another company. Outsourcing ensures

Outsourcing- It means handing over certain logistics

related to manufacturing to another company. Outsourcing ensures strategic growth, adding technological strength and improving market access. Risk pooling – It mainly involves the concept of centralized warehousing. Centralized warehousing reduces safety stocks and average inventory in the system. This is clear from the argument that in case of unequal demand reallocation of inventory is easier from a central warehouse. The higher the coefficient of variation, the greater the advantage in keeping a central warehouse. Reverse Logistics

Cross Docking-may be defined as effective removal of Warehouse facilities of company. Product is directly transferred to customer. Warehouse is reduced from invty storage to an invty. Coordinating function

* Web enabled SCM / ERP etc.

Dr. Parikshit Charan

Goals of IT in SCM Collect and store information on each product from production to

Goals of IT in SCM

Collect and store information on each product from production to delivery/purchase point

Provide complete visibility Tracking Alerting

Access any data in the system from a single point of contact. This is complicated by the fact that one may need information which resides

in various locations within one company in different companies

Analyze and plan activities based on total supply chain information.

Decision Support Systems Advanced Planning Systems

THANK YOU 69

THANK YOU

69

Summary It is clear that the concept of Supply Chain Management provides companies and countries

Summary

It is clear that the concept of Supply Chain Management provides companies and countries a framework within which they can assess how the challenges of the competitive market

New customer service paradigms Decreasing cycle times/E-commerce Cost pressures Globalization & complexity

can be met through application of the offsetting enablers

Integration

Technology

making Logistics/SCM another element of competitive advantage.