Supply Chain Management SCM

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Supply Chain Management (SCM)
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http//www.youtube.com/watch?v6rmV__Yrk7Q
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Objectives

• Purpose of Implementation
• Benefits of Implementation
• Primary functions/processes and modules
• Sample business process
• Case Study of Cooper Tire and Rubber Co.
• Reasons for implementation
• Benefits
• Issues

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Purpose of Implementation

• To keep up with globalization
• Maintain a competitive advantage
• Forecast demand for a companies products/services
• Help manage inventory
• Get products or services out before competitors
• Achieve maximum value in product and service
  quality

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Benefits of Implementation

• Companies can focus on their areas of specialty
• Forecast demand to better manage inventory
• Easily view status of companies orders and
  customers orders
• Improve efficiency in the business process by
  eliminating redundant activities
• Adds flexibility
• Improves business process
• Reduce costs associated with manufacturing
  products
• Maximize efficiency, effectiveness and value

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Functions/Processes

• Planning
• Sourcing
• Manufacturing
• Delivery
• Returns

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Modules

• Human Resources
• Sales
• Financial Accounting
• Material/Warehouse Management
• Procurement
• Engineering and Design
• Project Management

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Process Diagram
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Cooper Tire Rubber Co.

• Reasons for implementation
• A shift in the market resulted in a greater
  frequency of smaller orders shipping cost, per
  unit, increased.
• Added complexity and costs - placed great stress
  on the Legacy SCM
• Acquisitions of proprietary tire brands growth
  and more complexity.

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Cooper Tire Rubber Co.

• Benefits
• Increased order-to-promise reliability
• Simplified the process of adding new products
• Greater efficiency and flexibility of
  manufacturing throughput.
• Less labour-intensive (automation)
• Lowered transportation costs and analysis of
  their impact on the bottom line.
• Simplified integration of acquired companies.
• Issues
• Process of implementation was long
• Change
• Cost

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• Add value!!!