SUPPLY CHAIN

MANAGEMENT
Made By: Daleep Kumar
MBA 3rd Semester
Introduction
Supply chain management means managing
the supply chain.
Supply chain management has become
increasingly important in last few years. SCM
is now regarded as a competitive tool. It is not
mere a technological issue, rather a business
strategy, that creates many new and innovative
opportunities for organizations.
 Definition of SCM

• Definition: chain consisting of multiple

organizations and organization units
operating as customer/supplier links
• Includes external suppliers and
subcontractors
• Involves internal manufacturing plants,
warehouses, and distribution
centers
Extends to final (external) customers
SUPPLY CHAIN INCLUDES :
MATERIAL FLOWS
includes the movement of goods from a supplier to a
customer, as well as customer returns.
INFORMATION FLOWS
involves transmitting orders and updating the status of
delivery
FINANCIAL FLOWS

consists of credit terms, payments and payment

schedules, plus consignment and title ownership.
SCM Issues
Strategic
Building the chain (suppliers, manufacturing
facilities, distribution centers, customers)
Establishing partnerships
Tactical
Inventory, procurement, logistics, quality policies
Operational
Production and inventory planning and control
Outsourcing
Quality control
Components of Supply Chains
Upstream Supply Chain
 Organization’s first tier suppliers & their suppliers.

Internal Supply Chain

 Processes used by an organization to transform their inputs to
outputs.
Downstream Supply Chain
 Processes involved in delivering the product to the final customers.
Factors Leading to SCM
Globalization
Competitive pressure
Cost reduction opportunities
Greater use of contract manufacturers
 Global Supply Chains
 Some of the issues
involved in global supply
chains;
 legal issues, customs fees
and taxes
Global Supply Chains =  language and cultural
Supply chains that involve differences
suppliers and/or customers in  fast changes in currency
other countries. exchange rates
 political instabilities.
Dell Designs the Ultimate Supply
Chain!
Dell Computer has been one of the
most successful PC retailers. Why? To
solve the problem of inventory becoming
obsolete, Dell’s solution:
Don’t keep any inventory! - All PC’s
are made to order and parts shipped
directly from manufacturers when
possible.
Benefits of SCM
Reduces uncertainty & risks in the supply chain.
This positively affects inventory levels, cycle time, business
processes & customer service.
Contributes to overall increase in profitability & competitive
advantage.
Orders can be communicated quickly.
THANK YOU