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Made By: Daleep Kumar

MBA 3rd

Semester

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Introduction

y Supply chain management means managing

the supply chain.y Supply chain management has become

increasingly important in last few years. SCM is

now regarded as a competitive tool. It is notmere a technological issue, rather a businessstrategy, that creates many new and innovativeopportunities for organizations.

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Definition of SCM

Definition: chain consisting of multiple

organizations and organization unitsoperating as customer/supplier links Includes external suppliers andsubcontractors

Involves internal manufacturing plants,warehouses, and distribution centersExtends to final (external) customers

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SUPPLY CHAIN INCLUDES :

y MATERIAL FLOWS

includes the movement of goods from a supplier to a

customer, as well as customer returns.y INFORMATION FLOWS

involves transmitting orders and updating the status ofdelivery

y

FINANCIAL FLOWSconsists of credit terms, payments and paymentschedules, plus consignment and title ownership.

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Components of Supply ChainsUpstream Supply Chain

Organizations first tier suppliers & their suppliers.

Internal Supply Chain

Processes used by an organization to transform their

inputs to outputs.

Downstream Supply Chain

Processes involved in delivering the product to the final

customers.

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Factors Leading to SCMyGlobalization

yCompetitive pressure

yCost reduction opportunities

yGreater use of contract manufacturers

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Global Supply Chains Some of the issues

involved in global supply

chains; legal issues, customs

fees and taxes language and cultural

differences fast changes incurrency exchangerates

political instabilities.

Global Supply Chains =

Supply chains that involvesuppliers and/or customers

in other countries.

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Dell Designs the Ultimate Supply

Chain!Dell Computer has been one of themost successful PC retailers. Why? To

solve the problem of inventory becomingobsolete, Dells solution:

Dont keep any inventory! - All PCs

are made to order and parts shippeddirectly from manufacturers whenpossible.

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Benefits of SCMy Reduces uncertainty & risks in the supply chain.

y This positively affects inventory levels, cycle time,

business processes & customer service.y Contributes to overall increase in profitability &

competitive advantage.

y Orders can be communicated quickly.

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THANK YOU