SUPPLY CHAIN MANAGEMENT

Presented By:-

HARSH TIWARI (AMF-13) ALISHA SIKRI (AMF-05)

What is a Supply Chain ?

All activities associated with the flow and transformation of goods form raw materials to end users.

A network of facilities including: Material flow from suppliers and their “upstream” suppliers at all levels, Transformation of materials into semi-finished and finished products, (internal process) Distribution of products to customers and their “downstream” customers at all levels.

Material Flow

SupplierManagement

Material Flow

Information Flow

CustomerManagement

Delivery

Stock DeploymentConversionSchedule /

Resources

Supply chain is the system by which organizations source, make and deliver their products or services according to market demand.

Information Flow

Raw Materials

RETAILERFACTORY DC RDC

SUPPLIER

Finished Goods

MATERIAL FLOWS

INFORMATION FLOWS

FINANCIAL FLOWS

• Demand forecasting practices• Min-max inventory management (reorder points to bring

inventory up to predicted levels)

• Lead time• Longer lead times lead to greater variability in estimates of

average demand, thus increasing variability and safety stock costs

• Price fluctuations• Promotion and discount policies

• Mainly because of lack of communication and coordination

• Delays in information and material flows

• Step1- Designing the supply chain

• Determine the supply chain network

• Identify the levels of service required

• Determine pathways from suppliers to the end customer

• Customer markets to Distribution centers

• Distribution centers to production plants

• Raw material sources to production plants

• Identify constraints at vendors, plants and distribution centers

•Determine the exact flow and timing of materials

•Arrive at decisions by working back from the projected demand through the supply chain to the raw material resources

•Techniques• ERP

•Customer orders arrive at random

•This is a day to day accounting system which tracks and schedules every order to meet customer demand

•Order entry, order fulfillment and physical replenishment

• Classical manufacturing supply chain strategy• Manufacturing forecasts are long-range

• Orders from retailers’ warehouses Inefficient use of production facilities (factories)

How is demand determined? Peak? Average? How is transportation capacity determined?

• Examples: Auto industry, large appliances, Large inventory safety stocksHigher Lead-time

• Production and distribution are demand-driven• Coordinated with true customer demand

• None or little inventory held• Only in response to specific orders

• Fast information flow mechanisms• Decreased lead times• Decreased manufacturer inventory• More efficient use of resources

• Examples: Dell, Amazon

• Hybrid of “push” and “pull” strategies to overcome disadvantages of each

• Early stages of product assembly are done in a “push” manner• Partial assembly of product based on aggregate

demand forecasts (which are more accurate than individual product demand forecasts)

• Uncertainty is reduced so safety stock inventory is lower

• Final product assembly is done based on customer demand for specific product configurations

• Supply chain timeline determines “push-pull boundary”Push-Pull

Boundary

Push Strategy Pull Strategy

Supply Chain Timeline

“Customized” Product“Generic” Product

EndConsumer

RawMaterials

DOMINOS SUPPLY CHAIN

1.Procurement of raw materials Raw materials like wheat, baby corn, tomatoes and

spices are got, out of which wheat was bought in from Jalandhar and then sent to the commissaries in refrigerated trucks.

4 commissaries (Regional Centralized Facilities)1.Delhi2.Bangalore3.Kolkata4.Mumbai

2.Distribution 

•Pizza dough processed from the wheat is then sent to the retail outlets again in refrigerated trucks. Logistics requirement for sending frozen foods, at a temperature of 18°C and of refrigerated trucks in which food is sent at a temperature range of between 1 to4°C .

3. Retail Outlets

• Regular stores• Super stores : High traffic, More counters• Express stores : those where people were

expected to walk in and order rather than ask for home delivery.

WHEAT RETAILOUTLET

REFRIGERATEDTRUCK

DOUGH

WAREHOUSE

ITEM PLACE

Wheat Jalandhar (Punjab)

Cheese Karnal (Haryana)

Tomatoes Bhubaneswar ,Orissa

Spice South India

Baby Corn Nepal

Exotic Vegetables Sri Lanka

Jalapeno Spain

Pepperoni Australia

• AMUL means "priceless” in Sanskrit. The brand name "Amul," from the Sanskrit "Amoolya," was suggested by a quality control expert in Anand.

• Amul products have been in use in millions of homes since 1946.

• Amul a leading food brand in India with turnover :Rs. 11668 Crores (US $2.5 Billion)

• Amul (ANAND MILK UNION LIMITED) formed in 1946 , is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organization, Gujarat cooperative milk Marketing Federation Ltd. (GCMMF) ,which today is jointly owned by some 2.6million milk producers in Gujarat, India

• Amul has installed over 3000 Automatic milk collection system units(AMCUS) at village societies to capture member information, milk fat content, volume collected and amount payable to each member.

• Each farmer is given a plastic card for identification

• Computer calculates amount due to farmer on the basis of fat content

• The value of the milk is then printed out on slip & handed over to the farmer, who collects the payment from adjacent window

• With the help of IT farmers receive their payment within minutes