Introduction to Supply Chain Management

1
Introduction to Supply Chain Management

• By
• Ankur Garg
• Asheesh Choudhary

2
What is Supply Chain Management

• An integrated collection of organizations that
  manage information, cash and product flows from
  point of origin to a point of consumption with
  the goals of maximizing consumption satisfaction
  and minimizing the total costs of the
  organizations involved.
• Maximize Value
• Origin Production Consumption
• Supplier Manufacturer Customer

3
Evolution of Supply Chain Management
4
Goals of Supply Chain Management
Channel Satisfaction
Transaction Cost Revenue
Logistics Operations
Logistics Service
5
Benefits of SCM

• Siemens Medical Engg. Group Reduced cycle time
  from 22 weeks to 6 weeks.
• Gillette Achieved a 50-percent reduction in
  finished-goods inventory by packaging the blades
  to each retailers needs.
• Sears Cross-docking goods is nearly 10 percent
  cheaper than storing them in a warehouse.
• Future Supply Chain Requirements
• Always keep foremost, the needs and desires of
  the end customer.
• Decisions should be bottom line focused.
• Communicate, communicate, communicate all through
  the total supply chain.
• Design flexibility into the supply chain for
  rapid response to changing conditions.