Supply Chain Management

SUPPLY CHAIN MANAGEMENT
S. Ameer Hassan Rizvi
Instructors Profile
Name : Ameer Rizvi 1998-2001: Oracle Corp.
Presale, Business Consulting, Apps Trainer
2002-2003: Deloitte & Touch Consulting

Oracle Financials Training
2003-2005: Arthur Consulting

Oracle Financials Consultant
2006-2010: IBA
Permanent Faculty Member
Why Study SCM ?
Expectations from the Course?
Class Rules
SCM Course Outline

SCM Introduction Purchasing Management Supplier Relationship Demand Forecasting and Collaborative Planning Aggregate Planning
Inventory Management Process Management: JIT and Quality Management Designing Distribution Network Domestic and International Transportation Information Technology in SCM
Other Assignments
SCM Survey SCM Case Studies SCM Games SCM Articles and Videos (from the Internet) SCM Term Paper (Includes SCM Workbook)
Grading
1st & 2nd Term 30 Marks Final 30 Marks Term Report (Including Survey) 30 Marks Presentation 10 Marks
Total
100
Marks
SCM
1-9
What is a Supply Chain? Objectives of a Supply Chain. The Importance of Supply Chain Flows Tends in Supply Chain Decision Phases in a Supply Chain Process View of a Supply Chain Examples of Supply Chains
What is Supply Chain Management?

The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities also includes coordination with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. Council of Supply Chain Management Professionals
What is a Supply Chain?

A supply chain consists of the flow of products and services from: Raw materials manufacturers, to Component and intermediate manufacturers, to Final product manufacturers, to Wholesalers and distributors and then to Retailers
Connected by transportation and storage activities, and Integrated through information, planning, and process sharing activities Many large firms are moving away from in-house Vertically Integrated structures to Supply Chain Management
Product and Services flow
Recycling and Returns Raw material suppliers Intermediate components manufacturers
End-product manufacturer (or focal firm)
Wholesalers, distributors
Retailers
End Customer
Transportation & storage activities

Information/planning/activity integration and Funds
Managing Flows
Information Money
Supplier
Manufacturer
Distributor
Retailer
Customer
Supply chain management is the management of flows between and among supply chain stages to maximize total supply chain profitability
Channels of Distribution
Producer Agent/Broker Wholesaler Channel 1 Channel 2 Channel 3 Retailer Users
Consumer Consumer Consumer

Consumer Consumer/ Business Business Business Business Business Channels Consumer/ Business Channel Consumer Channels
Channel 4 Channel 5 Channel 6

Channel 7 Channel 8
What is Supply Chain
Organizational Scope of Supply Chain Management Demand Forecasting Purchasing & Supplier Management Production / Manufacturing Inventory Management Warehouse Management Logistics / Distribution New Product Development
The Value Chain ( Product and Information flow?)

Support activities
Primary activities
Inbound logistics Operations Outbound logistics Marketing and Sales Service Corporate infrastructure Human resources management Technology Development Procurement
Materials receiving, storing, and distribution to manufacturing premises Transforming inputs into finished products. Storing and distributing products Promotions and sales force Service to maintain or enhance product value Support of entire value chain, e.g. general management planning, financing, accounting, legal services, government affairs, and QM Recruiting, hiring, training, and development Improving product and manufacturing process Purchasing input
Flows in Supply Chain
Product Flow Information Flow Money
Exercise
Design a high level model of an Organization depicting the Product and Information flow within the departments of the organization
Customer is an integral part of the supply chain Includes movement of products, information, and funds in both directions Potential stages in a Supply Chain
Supplier
Manufacturer
Distributor
Retailer
Customer
Retailers
End Customer

Information/planning/activity integration

P&G or other manufacturer Jewel or third party DC Jewel Supermarket Customer wants detergent and goes to Jewel
1-22

Plastic Producer
Tenneco Packaging
Chemical manufacturer (e.g. Oil Company)
1-23

Plastic Producer
Tenneco Packaging
Paper Manufacturer
Timber Industry
1-24
Supply Chain Management
Old paradigm - Vertically integrated firm with

emphasis on short-term, company focused performance.
New paradigm - Focused activities in areas of

specialization; voluntary, trust-based relationships with suppliers and customers. All participants in the supply chain benefit. Boundaries extend from the firms suppliers suppliers to its customers customers (i.e., second tier suppliers and customers). Supply chains use reverse logistics to handle returned
No. of Supply Chain Partners
Impact on Supply Chains

Higher
the cost Longer the lead time More Inventory build ups (Higher Inventory Cost) Information mismanagement


Channel 7 Channel 8
Why Supply Chain Management?
What the Customer Wants ?
Responsivene ss
Affordabilit y
Quality
Poor Performing Supply Chain
Typical Problems along the Supply Chain

Frequent
Inventory Stock out or large Inventory
build ups Very Long Lead Times Poor Information Flow among supply chain partners Poor Material flow among supply chain partners Poor Demand Forecasting
Result is Increased operational cost and poor
Typical Issues in Organization
Poor Quality of the Finished Products Poor Supplier Management Excess Inventory Inventory Stockout Poor Production Scheduling Poor warehouse Management Lack of departmental Coordination Poor Demand Forecasting Poor Purchasing Management
SCM provides Solutions for Problems

Poor Quality of the Finished Products ( TQM and Six Sigma) Poor Supplier Management (Supplier evaluation & Certification) Excess Inventory (JIT, ERP Procurement and Visibility) Inventory Stockout (ERP Inventory Management) Poor Production Scheduling ( MRP Planning and Production) Poor warehouse Management ( ERP Warehouse Management) Lack of Partner Coordination (Supplier Management and
Why Supply Chain Management?
Helps in the Integration of all the departments of an organization (improve coordination and communication) Helps in the optimization of
Demand Forecasting Purchasing & Supplier Management Production Inventory Management Warehouse Management Logistics New Product Development
SCM helps in fulfilling the Customers Needs and Wants

Information replaces inventory throughout the supply chain
The further the information transfers up and down the supply chain

the more efficient the response the more timely the supply of goods resultant costs reduced
1-35
Supply Chain Management: The True Magnitude
Compaq estimates it lost $.5 billion to $1 billion in sales in 1995 because laptops were not available when and where needed When the 1 gig processor was introduced by AMD, the price of the 800 mb processor dropped by 30% P&G estimates it saved retail customers $65 million by collaboration resulting in a better match of supply and demand

Information replaces inventory throughout the supply chain if:

Relationships allow the trust to share Accuracy assures information is useful Responsiveness builds the relationships
Supply Chain Performance?
Poor Performance
Good Performance
Supply Chain Objective
Retailers
End Customer

Supply Chain Objectives
Reduce Cost
(Maintain/ Improve Quality and Customer Services level)
Optimize the profitability of all of the supply chain partners through customer satisfaction
The Objective of a Supply Chain
Example: Dell receives $2000 from a customer for a computer (revenue) Supply chain incurs costs (information, storage, transportation, components, assembly, etc.)
Difference between $2000 and the sum of all of these costs is the supply chain profit
Supply chain profitability is total profit to be shared across all stages of the supply chain
Supply chain success should be measured by total supply chain profitability, not profits at an individual stage
So how do we reduce Cost ?
Cost Factor in Supply Chain
Raw Material ( Supplier ) Internal Cost ( in the Value Chain) Information Management Cost Channel Members Markup Services
Cost in the Value Chain
Procurement Manufacturing Inventory Management Marketing Inbound and Outbound Logistics Warehousing Administrative Others
Cost in Supply Chain

Raw Material Supplier Component Manufacturer Finished Product Manufacturer Distributer / Wholesaler Retailer
Customer
Typical Series of Markups
Manufacturers Cost Manufacturers Markup Wholesalers Markup Retailers Markup Customers Price
$25.00 $3.75 $5.75 $25.88 $60.38

14 - 46
(15%) (20%) (75%)
Supply Chain Importance
Importance of Supply Chain Management

Firms have discovered value-enhancing and long term benefits by employing SCM principles and techniques
Who benefits most?
Firms with?
Large inventories Large number of suppliers Complex products Customers with large purchasing budgets
Importance of Supply Chain Management (Cont.)

Lower costs, better quality, and better customer service are
reasons to employ Supply Chain Management. Also:

Reduced
Bullwhip Effect- the magnified reduction of safety stock costs based on coordinated planning and sharing of information (Information replaces
inventory throughout the supply chain)

Collaborative
planning, forecasting, and replenishment activities reduce the Bullwhip Effect and lead to better customer service, lower inventory costs, improved quality, reduced cycle time, better production methods, and other benefits.
Supply Chain Elements
Course Content
Retailers
End Customer

Important Supply Chain Elements
Purchasing Trends:
Long
term relationships Supplier management- improve performance through

Supplier
evaluation (determining supplier capabilities) Supplier certification (third party or internal certification to assure product quality and service requirements)
Strategic
partnerships- successful and trusting relationships with top-performing suppliers

53
Operations Trends:
Demand
management- match demand to available capacity Linking buyers & suppliers via MRP and ERP systems Use JIT to improve the pull of materials to reduce inventory levels Employ TQM to improve quality compliance among suppliers
54
Wal-Mart and Procter & Gamble (P&G) SCM
INTEGRATING SCM, CRM, AND ERP
Data points where SCM, CRM, and ERP integrate
Distribution Trends:
Transportation
management- tradeoff decisions between cost & timing of delivery/customer service via trucks, rail, water & air Customer relationship managementstrategies to ensure deliveries, resolve complaints, improve communications, & determine service requirements Network design- creating distribution networks based on tradeoff decisions between cost & sophistication of distribution system 57
Important Elements of Supply Chain Management (Cont.)

Integration Trends:
Supply
Chain Process Integration- when supply chain participants work for common goals. Requires intrafirm functional integration. Based on efforts to change attitudes & adversarial relationships
Supply Chain Integration

59
Proper SCM
Proper SCM
Proper SCM and inventory management requires coordination of all activities and links in the supply chain to:
Ensure that goods move smoothly and on time from suppliers to customers Keep inventories low Keep costs down
The Value Chain

Support activities
Primary activities
Retailers
End Customer

Proper SCM (cont.)
Coordination is needed because:
Supply chain partners depend on each other Partners dont always work together toward the same goal
Proper SCM (cont.)
Information flow is a key: communications between business partners should be:

Effective Efficient
Support is needed to ensure this communication and is enabled by:

IT support EC support
Benefits of Proper SCM

Reduce uncertainty along the chain Proper inventory levels in the chain Minimize delays
Eliminate rush (unplanned) activities Provide superb customer service Major contributor of success (ever survival)
SCM
What is a Supply Chain Model ? What is the Distribution Model ? SCM Process ? What is Cycle View and Push & Pull View ? When to take the customer order ? How to determine Lead Time?
Retailers
End Customer



Channel 7 Channel 8
Process view of a supply chain
Retailers
End Customer

Process View of a Supply Chain
Cycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces between two successive supply chain stages Push/pull view: processes in a supply chain are divided into two categories:
Executed
in response to a customer order (pull) Executed in anticipation of a customer order (push)
Cycle View of Supply Chains

Customer
Customer Order Cycle
Retailer
Replenishment Cycle
Distributor
Manufacturing Cycle
Manufacturer
Procurement Cycle
Supplier
Cycle View of a Supply Chain
Each cycle occurs at the interface between two successive stages

Customer
order cycle (customer-retailer) Replenishment cycle (retailer-distributor) Manufacturing cycle (distributor-manufacturer) Procurement cycle (manufacturer-supplier)
Subprocesses in each SC Process

Supplier Stage Market Products Buyer returns reverse flow to suppliers or third party
Buyer Stage Places Order
Buyer Stage Receive Supplies
Supplier Stage Receive Order
Supplier Stage Supplies Order
Within each Cycle
The Goal of the buyer

Ensure

Product availability Achieve economies of scale Reduce the cost of receiving the order
The Goal of the Supplier

Accurate Customer order forecast Reduce the cost of receiving the order Fill the order on time Improve efficiency and accuracy of the order fulfillment
Cycle View of Supply Chains

Customer
Retailer
Replenishment Cycle
Distributor
Manufacturing Cycle
Manufacturer
Procurement Cycle
Supplier
Involves all processes directly involved in receiving and filling the customers order Customer arrival Customer order entry Customer order fulfillment Customer order receiving
Replenishment Cycle
All processes involved in replenishing retailer inventories (retailer is now the customer) Retail order trigger Retail order entry Retail order fulfillment Retail order receiving
Manufacturing Cycle
All processes involved in replenishing distributor (or retailer) inventory Order arrival from the distributor, retailer, or customer Production scheduling Manufacturing and shipping Receiving at the distributor, retailer, or customer
Procurement Cycle
All processes necessary to ensure that materials are available for manufacturing to occur according to schedule Manufacturer orders components from suppliers to replenish component inventories However, component orders can be determined precisely from production schedules (different from retailer/distributor orders that are based on uncertain customer demand) Important that suppliers be linked to the manufacturers production schedule
Wal-Mart and Procter & Gamble (P&G) SCM
Cycle View of a Supply Chain

Key Point
A cycle view of the supply chain clearly defines the process involved and the owners of each process. This view is very useful when considering operational decision because it specifies and responsibilities of each member of the supply chain and the desired outcome for each process.
Push and Pull View of the Supply Chain
The Value Chain ( Process Flow)

Support activities
Primary activities
Business Processes
Make to Stock ? Assemble to Order? Make to Order ? Design to Order ( Engineer to order)?
Where to Take the Customer Order?
Design to Order
Make to Order
Assemble to Order
Make to Stock
SCM Process building blocks

Fabricat e
Stock Standard Module as Inventory Procure (RM, Standard Component , ETC
Design
Test
Stock as Inventor y
Sub Assembl e
(Custom Design if required)
Design (Unique Engg. Design or Significant Customizatio n
Final Assembl e
Stock Compone nt Design & Standard Part
Pack and Ship
Procure
Design to Order
Make to Order
Assemble to Order
Make to Stock
Design to Order
Design (Unique Engg. Design or Significant Customizatio n Procure (RM, Standard Component , ETC Fabricat e Sub Assembl e Final Assembl e Pack and Ship
Test
Make to Order
Stock Compone nt Design Procure Design & Standard Part (Custom Design if required)
Fabricat e
Sub Assembl e
Final Assembl e
Test
Pack and Ship
Assemble to Order
Sub Assembl e
Design
Procure
Fabricate
Stock Standard Module as Inventory
Final Assembl e The Customer Selected Module
Test
Pack and Ship
Make to Stock
Design Procure Fabricate Sub Assembl e Final Assembl e Test Stock as Inventory Pack and Ship
Make to stock
Design
Sub Final Fabricat Procure Assembl Assembl e e e
Test
Stock as Inventor y
Pack and Ship
Make to stock
MAKE TO STOCK. Refers to a product environment where products can be and usually finished before receipt of a customer order. Customer orders are typically filled from existing stock, and production orders are used to replenish those stocks. This is mass manufacturing with pushing the sales philosophy. Stock
Sub Final Fabricat Procure Assembl Assembl e e e Test as Inventor y Pack and Ship
Design
Make to stock
Customer Order
Design
Sub Final Fabricat Procure Assembl Assembl e e e
Test
Stock as Inventor y
Pack and Ship L.T
Assemble to Order
Design
Final Stock Assembl Standar e Sub d The Fabricat Procure Assembl Module Custom e e as er Inventor Selecte y d Module
Test
Pack and Ship
Assemble to Order
Denotes a production environment where goods or service can be assembled after receipt of a customers order. The key components ( bulk, semi-finished , intermediate, subassembly, fabricated, purchased, packaging, etc.) used in the assembly or finishing process are planned and possibly stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products ( Final based on the selection of options and accessories) can be Stock Assembl assembled from common components. e Standar
Design Sub Fabricat Procure Assembl e e d Module as Inventor y The Custom er Selecte d Test Pack and Ship
Assemble to Order
Customer Order
Final Stock Assembl Standar e Sub d The Fabricat Procure Assembl Module Custom e e as er Inventor Selecte y d Module
Design
Test
Pack and Ship
L.T
Make to Order
Stock Compone nt Design Procure Design & Standard Part
Fabricat e
Sub Assembl e
Final Assembl e
Test
Pack and Ship
Make to Order
MAKE TO ORDER. In this environment, goods or service can be manufactured / offered after receipt of a customers order. The final product is usually a combination of standard items custom- designed to meet the special needs of the customer. This gives more option( as compared to assemble-toorder) to the customer in design, aesthetics, utility, accessories, etc.
(Custom Design if required) Fabricat e Sub Assembl e Final Assembl e Test Pack and Ship
Make to Order
Customer Order
Fabricat e
Sub Assembl e
Final Assembl e
Test
Pack and Ship
L.T
Design to Order
Procure (RM, Standard Component , ETC
Fabricat e
Sub Assembl e
Final Assembl e
Test
Pack and Ship
Design to Order
DESIGN TO ORDER. (ENGINEERING-TOORDER). This is a highly focused environment where the individual customer gives product specifications that require unique engineering design, significant customization in manufacturing, or even new purchased materials. Each customer order result in unique set of part numbers, bills of material, and routings. Design
(Unique Engg. Design or Significant Customizatio n Procure (RM, Standard Component , ETC Fabricat e Sub Assembl e Final Assembl e Test Pack and Ship
Design to Order
Customer Order
Procure (RM, Standard Component , ETC
Fabricat e
Sub Assembl e
Final Assembl e
Test
Pack and Ship
L.T
Custom er Order
Fabricat e
Sub Assembl e
Final Assembl e
Test
Pack and Ship
Custom er Order
Final Assemble The Customer Selected Module
Design
Procure
Fabricate
Sub Assemble
Stock Standard Module as Inventory
Test
Pack and Ship
Custom er Order
Sub Final Fabricat Procure Assembl Assembl e e e Stock as Inventor Pack and Ship
Design
Test
Integrated System
Sourcing and Purchasing
Packaging Material Handling
Raw Materials Inventory Inbound Transportation
Demand Forecasting Customers Customer
Push Pull
Manufacturing Customer Order Processing
Outbound Transportation
Packaging/ Finished Material Goods Handling Inventory Deployment
Push and Pull View of the Supply Chain
Process View of a Supply Chain
Cycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces between two successive supply chain stages Push/pull view: processes in a supply chain are divided into two categories:
Executed
in response to a customer order (pull) Executed in anticipation of a customer order (push)
Push/Pull View of Supply Chain Processes

Supply chain processes fall into one of two categories depending on the timing of their execution relative to customer demand Pull: execution is initiated in response to a customer order (reactive) Push: execution is initiated in anticipation of customer orders (speculative) Push/pull boundary separates push processes from pull processes Strategic supply chain decisions may lead to changing the push/pull boundary
Push/Pull View of L.L Beans Supply Chains

Procurement, Manufacturing and Replenishment cycles
PUSH PROCESSES
PULL PROCESSES
Customer Order Arrives
Push/Pull View of DELL Supply Chain

Procurement Cycle
Customer Order And Manufacturing cycle
PUSH PROCESSES Customer Order Arrives
PULL PROCESSES
Push and Pull Processes
Execution is initiated in the anticipation of a customer order Demand is not known and must be forecasted Speculative Process
Execution is initiated in response to a customer order Customer demand is known with certainty Reactive Process Pull processes are often constrained by the inventory and capacity decision that are made in the
Push and Pull View

Key Point
A push and pull view of the supply chain categories processes based on whether they are initiated in response to a customer order(pull) or in the in the anticipation of a customer order (push) . This view is very useful when considering strategic decisions relating to Supply Chain Design.
Push/Pull View of Supply Chains

Develop Push / Pull View for the following Buying Dell computer from the net. Buying a PC from a Retail store.
Decision Phase in Supply Chain
Decision Phases of a Supply Chain Supply chain strategy or design
Supply chain planning Supply chain operation
Decisions Generate pick list at the warehouse Timing and size of market promotions Allocate an order to a particular shipping mode and shipment Planned buildup of inventories Subcontracting, backup locations Set a date that an order is to be filled Allocate inventory or production to individual order Selection of Modes of transportation Set delivery schedules of trucks Inventory policies Products to be made or stored at various locations Outsourcing decisions Which markets will be supplied from which locations Locations and capacities of facilities (warehouse and Production) Information systems Place replenishment order
Strategic
Planning
Operational
Supply Chain Strategy or Design

Decisions about the structure of the supply chain and what processes each stage will perform What are some strategic supply chain decisions? Locations and capacities of facilities (warehouse and Production) Products to be made or stored at various locations Modes of transportation Information systems Outsourcing decisions Supply chain design must support strategic objectives Supply chain design decisions are long-term and
Supply Chain Planning
Definition of a set of policies that govern shortterm operations Fixed by the supply configuration from previous phase Starts with a forecast of demand in the coming year
Supply Chain Planning
What are some planning decisions?

Which
markets will be supplied from which locations Planned buildup of inventories Subcontracting, backup locations Inventory policies Timing and size of market promotions
Must consider in planning decisions demand uncertainty, exchange rates, competition over the time horizon
Supply Chain Operations
What are some Operation decisions?

Allocate inventory or production to individual order Set a date that an order is to be filled Generate pick list at the warehouse Allocate an order to a particular shipping mode and shipment Set delivery schedules of trucks Place replenishment order
The goal of the Supply Chain Operations is to handle the customer order in the best possible manner.
SCM Tools levels

Supply Chain Elements SCM Service Offering
Strategic Planning
Network Design Demand Planning Supply Planning Production Planning
Supply Chain Planning services configure operations to best meet projected demand levels The planning horizon ranges from developing a long term strategic outlook to developing a short term tactical production schedule
Tactical Planning Warehouse Management Transportation Management Order Management Operational Planning Inventory Management Event Management
Weeks / Months
Real time / Minutes
Hours / Days
Quarters
Years
Supply Chain Planning Tools
Supply Chain Execution Tools
Source: BAH
Supply Chain Execution services monitor and control production operations They provide real time tracking and alert notification
Supply Chain Planning Process

Demand Planning
Network Design
Design where to place production facilities and optimize the end to end chain Construct alternate flow scenarios that incorporate associated constraints
Anticipate demand based on historical trends and current conditions Perform what if analysis - highlight the impact of changing demand drivers
Production Planning
Production Scheduling
Supply Planning Balances unconstrained demand against high level supply chain constraints Reflect order priority and due dates
Decompose the supply plan into sub assembly / production needs by site Balance production capacity across sites
Optimize processing flows, sequence, and timing Produce a finite capacity production schedule
Planning Years Horizon
Quarters
Weeks / Months
Hours / Days
124
Supply Chain Execution Process

Order Management
Inventory Management
Warehouse
Transportation
Management
Management
Record customer orders and track status from receipt to final delivery Direct efficient response to orders with dynamic cost / benefit analysis of options
Streamline information movement and provide tight inventory control Inventories replenished using kanban, min-max, or reorder point
Optimization and management of warehouse processes
Optimize and track outbound and inbound shipping
Event Management

Monitor and manage critical planning and event information Broadcast alert notification and present response alternatives based on pre determined business rules
Retailers
End Customer

Best Practices & Trends
Current Trends in Supply Chain Management

Firms using Supply Chain Management: 1. Start working with key suppliers 2. Move on to other suppliers, customers, and shippers 3. Integrate second tier suppliers and customers (second tier refers to the customers customers and the suppliers suppliers)
127
Current Trends in Supply Chain Management

Expanding the Supply Chain Firms are expanding partnerships and building facilities in foreign markets The expansion involves:
breadth-
foreign manufacturing, office & retail sites, foreign suppliers & customers depth- second and third tier suppliers & customers
Current Trends in Supply Chain Management- Cont.

Reducing Supply Chain Costs Cost reduction achieved through:
Reduced
purchasing costs Reducing waste Reducing excess inventory, and Reducing non-value added activities
Continuous
Trial
Improvement through
copy competitors
Benchmarking-
& error Increased knowledge of supply chain processes (experience)
Current Trends in Supply Chain Management (Cont.)

Increasing Supply Chain Responsiveness
Firms
will increasingly need to be more flexible and responsive to customer needs Supply chains will need to benchmark industry performance and meet and improve on a continuous basis Responsiveness improvement will come from more effective and faster product & service delivery systems
Current Trends in Supply Chain Management (Cont.)

The Greening of Supply Chains
- Producing, packaging, moving, storing, delivering and other supply chain activities can be harmful to the environment Supply chains will work harder to reduce environmental degradation Large majority (75%) of U.S. consumers influenced by a firms environmental friendliness reputation Recycling and conservation are a growing alternative in response to high cost of natural 131

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SUPPLY CHAIN MANAGEMENT

S. Ameer Hassan Rizvi

2002-2003: Deloitte & Touch Consulting

2003-2005: Arthur Consulting

Why Study SCM ?

Expectations from the Course?

SCM Course Outline

What is Supply Chain Management?

What is a Supply Chain?

Product and Services flow

Recycling and Returns Raw material suppliers Intermediate components manufacturers

End-product manufacturer (or focal firm)

Transportation & storage activities

Consumer Consumer Consumer

Channel 4 Channel 5 Channel 6

What is Supply Chain

The Value Chain ( Product and Information flow?)

Flows in Supply Chain

Product Flow Information Flow Money

What is a Supply Chain?

Product and Services flow

Recycling and Returns Raw material suppliers Intermediate components manufacturers

End-product manufacturer (or focal firm)

Transportation & storage activities

What is a Supply Chain?

What is a Supply Chain?

Chemical manufacturer (e.g. Oil Company)

What is a Supply Chain?

Chemical manufacturer (e.g. Oil Company)

Chemical manufacturer (e.g. Oil Company)