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Shruti Agarwal(131) Manjot Singh(133) Akashdeep Mohanty(132) Aniket Das(271)
chain management (SCM) is the viewing of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
As the diagram shows it is a continuous process - the producer even after selling its product goes for feedback which helps to improve the efficiency of supply chain management process .Similarly the consumer also search for information before buying the product. Every party at each step is involved in rigorous interaction.
Inventory:
Inventory is spread throughout the supply chain and includes everything from raw material to work in process to finished goods that are held by the manufacturers, distributors, and retailers in a supply chain There are three basic decisions to make regarding the creation and holding of inventory: 1. Cycle InventoryThis is the amount of inventory needed to satisfy demand for the product in the period between purchases of the product. Companies tend to produce and to purchase in large lots in order to gain the advantages that economies of scale can bring.
2. Safety InventoryInventory that is held as a buffer against uncertainty. If demand forecasting could be done with perfect accuracy, then the only inventory that would be needed would be cycle inventory. But since every forecast has some degree of uncertainty in it, we cover that uncertainty to a greater or lesser degree by holding additional inventory in case demand is suddenly greater than anticipated 3. Seasonal InventoryThis is inventory that is built up in anticipation of predictable increases in demand that occur at certain times of the year
Location:
Location refers to the geographical setting of supply chain facilities. The responsiveness versus efficiency trade-off here is the decision whether to centralize activities in fewer locations to gain economies of scale and efficiency, or to decentralize activities in many locations close to customers and suppliers in order for operations to be more responsive. When making location decisions, managers need to consider a range of factors that relate to a given location including the cost of facilities, the cost of labor, skills available in the workforce, infrastructure conditions, taxes and tariffs, and proximity to suppliers and customers. Location decisions tend to be very strategic decisions because they commit large amounts of money to long-term plans. Location decisions have strong impacts on the cost and performance characteristics of a supply chain. Once the size, number, and location of facilities are determined, that also defines the number of possible paths through which products can flow on the way to the final customer. Location decisions reflect a companys basic strategy for building and delivering its products to market.
Transportation:
This refers to the movement of everything from raw material to finished goods between different facilities in a supply chain. There are six basic modes of transport that a company can choose from: Ship, Rail, Pipelines, Trucks, Airplanes, Electronic Transport Information:It is the connection between all of the activities and operations in a supply chain 1. Coordinating daily activities related to the functioning of the other four supply chain drivers: production; inventory; location; and transportation 2. Forecasting and planning to anticipate and meet future demands. Available information is used to make tactical forecasts to guide the setting of monthly and quarterly production schedules and timetables
MIS
Scm at various functional levels
Strategic level
SCM
Strategic network optimization, including the number, location, and size of warehousing, distribution centers, and facilities.
Strategic partnerships with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, andthirdparty logistics.
Product life cycle management, so that new and existing products can be optimally integrated into the supply chain and capacity management activities.
Information technology chain operations. Where-to-make and make-buy decisions. Aligning overall organizational strategy with supply strategy. It is for long term and needs resource commitment.
Tactical level
Sourcing contracts and other purchasing decisions. Production decisions, including contracting, scheduling, and planning process definition. Inventory decisions, including quantity, location, and quality of inventory. Transportation strategy, including frequency, routes, and contracting. Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise. Milestone payments. Focus on customer demand and Habits.
Operational level
Daily production and distribution planning, including all nodes in the supply chain. Production scheduling for each manufacturing facility in the supply chain (minute by minute). Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers. Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers. Inbound operations, including transportation from suppliers and receiving inventory. Production operations, including the consumption of materials and flow of finished goods. Outbound operations, including all fulfillment activities, warehousing and transportation to customers. Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers. From production level to supply level accounting all transit damage cases & arrange to settlement at customer level by maintaining company loss through insurance company.
2. Distributors:
Distributors are companies that take inventory in bulk from producers and deliver a bundle of related product lines to customers. Distributors are also known as wholesalers. For the customer, distributors fulfill the Time and Place function they deliver products when and where the customer wants them. A distributor is typically an organization that takes ownership of significant inventories of products that they buy from producers and sell to consumers
3. Retailers:
Retailers stock inventory and sell in smaller quantities to the general public. This organization also closely tracks the preferences and demands of the customers that it sells to
4. Customers:
Customers or consumers are any organization that purchases and uses a product.
5. Service Providers:
These are organizations that provide services to producers, distributors, retailers, and customers. Some common service providers in any supply chain are providers of transportation services and warehousing services. Financial service providers deliver services such as making loans, doing credit analysis, and collecting on past due invoices.
1. Plan
This refers to all the operations needed to plan and organize the operations in the other three categories 2. Source Operations in this category include the activities necessary to acquire the inputs to create products or services. We will look at two operations here. The first,
procurement, is the acquisition of materials and services. The second operation, credit and collections, is not traditionally seen as a sourcing activity but it can be thought of as, literally, the acquisition of cash. 3. Make This category includes the operations required to develop and build the products and services that a supply chain provides. Operations are included in this category are: product design; production management; and facility and management.
4. Deliver
These operations encompass the activities that are part of receiving customer orders and delivering products to customers. The two main operations are order entry/order fulfillment and product delivery
decomposition diagrams provide the processing logic and sequences to be used and indicate the kinds and volumes of data that the new system needs to handle. There are two kinds of system prototypes: user interface prototypes and technical architecture prototypes
The System Design Process Create the Detailed Project Plan Create the Detailed Project Budget The Decision to Proceed . . . or Not to Proceed The Project Office System Test and Roll Out