SUPPLY CHAIN

MANAGEMENT

PRESENTED BY:
RITU JAIN(A.P)
 Supply chain management (SCM)
• Supply chain management (SCM) implies having
the right product in the right place at the right
time, at the right price and of right type, and of
the right condition.
• “SCM is an integrated process wherein suppliers,
manufactures, distributors and retailers work
together in an effort to acquire raw materials,
convert these raw materials into specified final
products and deliver these final products.”
-Beamon
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 Features of SCM
• Responsibility of a Single Entity
• System Approach
• Strategic Decision Making
• Harmonious Relationship
• Flexible Approach
• Better Performance

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 Key process of SCM
• Supply chain planning system
• Supply chain execution system
• Supply chain performance measurement

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 Components of a supply chain
• Upstream supply chain
• Internal chain
• Downstream supply chain Customer

Supplier 1
Warehouse 1 Distributor Retailer
Manufacturing
Supplier 2
plan
Warehouse 2 Customer

Supplier 3

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 Significance of SCM
• It integrates suppliers, distributor and customer
logistics requirements into one cohesive process
to reduce time, redundant effort and costs.
• Faster decisions are quickly communicated
throughout the supply chain.
• Data and information flow readily to al parts of
the supply chain.
• It enhance customer satisfaction.
• It enhance firm’s profitability.

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 Supply Chain Decisions
• Location decisions
• Production decisions
• Inventory decisions
• Transportation decisions

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 Phases of SCM
• Identification of requirements
• Sourcing
• Pricing
• Post award activities

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 Push and pull Approaches to SCM
• Push based model is also known as build to stock
and pull based model as build to order. In push
based model, products are pushed to customers
and in pull based model, customers configure
their own products.

• Pull based model is a speculative process because

it responds to forecasted rather than the actual
demand of customer. Pull based model is a
reactive process because it reacts on the demand
of customers.

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 Principles of SCM
• Customers should be segmented based on the
service needs of distinct groups and adopt the
supply chain to serve these segments
profitably.
• Customize the logistics network to the service
requirements and profitability of customer
segments.
• Take the product closer to the customer and
ensure speed across the supply chain.

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• Manage sources of supply strategically to
reduce the total cost of owning materials and
services.
• Develop a supply chain wide technology
strategy that supports multiple levels of
decision making and gives a clear view of the
flow of products, services and information.
• Adopt channel spanning performance measure
to gauge collective success in reaching the end
user effectively and efficiently.

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 THANK YOU

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