By: Anchal Bhatia (32) Tanvi thareja (37) Daphne Joan Pierce (41) Swadha Agarwal (42) Hooriya

Zaidi (54)

What is supply chain?

A supply chain is a network of facilities and distribution

options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Supply chain is the system by which organizations source, make and deliver their products or services according to market demand.

Three Flow in SC
There are three kinds of flow in supply chain

management.
They include:
MATERIAL FLOWS INFORMATION FLOWS FINANCIAL FLOWS

 A network of facilities including:

Material flow from suppliers and their upstream

suppliers at all levels Transformation of material to semi finished and finished (internal process). Distribution of products and customers and their downstream customers at all levels.

Supply chain has two functions:

Physical Market mediation

Supply Chain Management Underlying Principles

Compression (Planning/Manufacturing/Supply)
Conformance (Forecasts/Plans/Distribution) Co-operation (Cross -Functional)

Communication (Real Time Data)

Supply Chain Management

Set of processes and sub-processes that which attempt

to implement and optimise the functions, connected entities and interacting elements of the supply chain. Involves:
Organisations, procedures , people Activities:Purchasing, delivery, packaging,checking ,

warehousing,etc Establishment of long term relationships with suppliers and distributors Effective flow of information through the supply chain

The steps involved

Step1- Designing the supply chain
Determine the supply chain network Identify the levels of service required

Step 2 - Optimizing the supply chain

Determine pathways from suppliers to the end customer Customer markets to Distribution centers Distribution centers to production plants Raw material sources to production plants Identify constraints at vendors, plants and distribution centers Get the big picture Plan the procurement, production and distribution of product groups rather than individual products in large time periodsquarters or years

 Step 3- Material flow planning

Determine the exact flow and timing of materials Arrive at decisions by working back from the projected

demand through the supply chain to the raw material resources Techniques ERP

 Step 4 - Transaction processing and

short term scheduling

Customer orders arrive at random This is a day to day accounting system which tracks and

schedules every order to meet customer demand Order entry, order fulfillment and physical replenishment

Supply-Chain Strategies
Plans to help achieve company mission

Affect long-term competitive position

Strategic options Many suppliers Few suppliers Keiretsu network Vertical integration Virtual company

Plan

1995 Corel Corp.

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Supply-Chain Strategies
Negotiate with many suppliers; play one supplier

against another Develop long-term partnering arrangements with a few suppliers who will work with you to satisfy the end customer Vertically integrate; buy the actual supplier Keiretsu - have your suppliers become part of a company coalition Create a virtual company that uses suppliers on an asneeded basis.
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The Supply-Chain
VISA

Material Flow Credit Flow

Supplier

Manufacturing

Retailer

Consumer

Supplier

Wholesaler Schedules Order Flow

Retailer

Cash Flow
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Problems in supply chain

Delay in production and distribution.
Expensive inventories. lack of partners coordination.

Poor production.
Interference with production. Poor demand forecast. Uncertainty in deliveries.

Global Supply-Chain Issues

Supply chains in a global environment must be:
Flexible enough to react to sudden changes in

parts availability, distribution, or shipping channels, import duties, and currency rates Able to use the latest computer and transmission technologies to schedule and manage the shipment of parts in and finished products out Staffed with local specialists to handle duties, trade, freight, customs and political issues
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Benefits Of SCM
Reduce uncertainty along the chain
Proper inventory levels in the chain Minimise delays

Eliminate rush(unplanned) activities

Provide good customer service

Thank you.