Supply Chain Management

Achieving Supply Chain

Excellence
 Achieving Excellence in SCM
• How prepared you are to go to the main
market?
• How prepared are you to face the stiff
challenges posed by the market? and ,
• How ready are you to respond to the vagaries
of the market?
 Achieving Excellence in SCM
Supply chain is a means to achieve an end,
which obviously is winning the in the market.
SCE indicates the kind of preparedness with
which the manufacturer goes to the market.

“We are what we repeatedly do. Excellence,

the, is not an art, but a habit”.
 Achieving Excellence in SCM

STRATEGY
CUSTOMER

SCM
EXCELLENCE

RIGHT
PRODUCT
 Dimensions of SCE

• Market Dimension
• Collaborative Dimension
• Operational Dimension
• Strategic Dimension
Market Dimension
POLITICAL

R
A
W E
M N
A D
T U
E FIRM S
R E
I R
A
L
MARKET FORCES
 Collaborative Dimension
• Work jointly done
• Intellectual endeavors
• Achievement of same goals
• Relationship based
• Value based
• Prioritization
• Rewards
 Operational Dimension
• Smooth, error free methods for conversion,
• Waste proof: Minimizes overproduction,
waiting, transport, inappropriate processing,
unnecessary inventory, unnecessary motion
and defects,
• Quality and productivity,
• Reduces lead times and storage times.
 Strategic Dimension
• Plan of action driving the whole SCM process,
• Customer centric (customer requirements),
• Build competitive advantage,
• Minimize systematic costs,
 Achieving Excellence through
3 types of Supply Chains

• Emotional Supply Chain

• Physical Supply Chain
• Financial Supply Chain
 Emotional Supply Chain
• Mental Compatibility,
• Emotional Preparation,
• Ability to change, cooperate and participate in
joint efforts,
• Building, Maintaining and creating value
through relationships,
• Identifying partners, Creating relationships
and initiating business.
 Physical Supply Chain

• Actual distribution of goods and information,

• Echelons,
• Tighter bonds,
• Better understanding,
• Smoother flow of goods.
 Financial Supply Chain
• Explains or tracks money flow between
various partners,
• Penultimate step of process,
• Signifies the end of transactions,
• Faster settlements of bills and completion of
transactions,
 Checklist For Excellence
Achieving Internal Excellence:
• Breaking the internal walls,
• Knowledgeable/decision making cross-
functional team,
• Implementation of all aspects of SCM,
• Operational Requirements.
 Checklist For Excellence
Ensuring visibility and openness:
• Proper information sharing protocol,
• Identify the actual nature of the relationship,
• Supportive information in the relationship,
• Frequency of information sharing,
• Ready Information Systems.
 Checklist For Excellence
Ensuring Partnerships and Collaboration:
• Working together to achieve the same goal,
• Winning the end user,
• Business partner tuning in supply chain
participation,
• Information about the criticality of roles of
business partners in the supply chain,
• Technological infrastructure,
• “Walk with your supplier and let your supplier
walk with you.”
 Checklist For Excellence
Ensuring Amalgamation:
• Showing one single face to the customer,
• Blending or Synthesizing,
• Designing products according to customer
wants,
• Meeting customer deadlines/Servicing the
customer to the best of combined abilities.
 Checklist For Excellence
Momentum and Ascent:
• The ground is set to take off,
• Fast and smooth movement of material,
information and money should be ensured,
• Turn Around Time (TAT), i.e. faster conversion
of material into money,
 Excellence
• Consistently doing things right well,
• New Solutions,
• Focus on key business issues,
• Continuously measuring performance,
• Continuous Improvement,
• It is a Journey not a destination.
“There are various degrees of excellence. The
danger does not lie in failing to reach absolute
perfection. It lies in giving up the chase”