SUPPLY CHAIN

MANAGEMENT
Supply chain management is designing, planning,
execution, control, and monitoring of supply chain
activities with the objective of creating net value,
building a competitive infrastructure, leveraging
worldwide logistics, synchronizing supply with
demand and measuring performance globally.
It combines the concepts of electronic business (ebusiness) and supply chain management (SCM), and
depicts how trade channel members are working
together to optimize resources and opportunities.

E SUPPLY CHAIN
MANAGEMENT
Electronic Supply Chain Management (e-SCM)
is an optimization of business processes and
business value in every corner of the
extended enterprise - right from the suppliers
supplier to the customers customer.
It combines the concepts of electronic
business (e-business) and supply chain
management (SCM), and depicts how trade
channel members are working together to
optimize resources and opportunities

NEED FOR E-SCM

Inventory levels: Firms keep track
of their existing and needed
inventory levels as the system can
provides early warning signs when
that product is running low.
Long-term relationship: As firms
open themselves, and their
information, up to each other they
are forced to align their own
strategies and goals.

 Speed: Speed and ability to

communicate can be seen
throughout the supply chain.
Cost: Decrease in cost of
communication, carrying inventory
and customer service.
Other: improved customer
relationship, eliminates stock outs,
encourages customer driven
demand, and efficiency in tracking of
delivery

BENEFITS OF E-SCM
Lower inventory, transportation, warehousing,
and packaging costs.
higher quality levels
higher customer satisfaction
more diverse product offerings
Greater supply chain flexibility
Higher revenues
Increased performance and profitability

E-Supply Chain Activities

E-Procurement
Supply chain monitoring and control
Collaborative planning
Collaborative design and product
development
E-Logistics

Seven Principles of Supply Chain

Management
1. Begin with the customer by
understanding the customers
values and requirements.
2. Mange logistics assets across the
supply chain, not just within the
enterprise.
3. Organize customer management so
that it provides one face to the
customer for information and
customer service.
4. Integrate sales and operations

5. Leverage manufacturing and

sourcing for flexible and efficient
operations.
6. Focus on strategic alliances and
relationship management across
channel partners.
7. Develop customer-driven
performance measures.