SCC I Overview)

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Module ISupply Chain Competitiveness

SUPPLY CHAIN

COMPETITIVENESS


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How doesAMULget the milk to your table ?
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Supply Chain atAMUL


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Supply Chain atAMUL


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Supply Chain atAMUL


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With such a world class Supply Chain, is it a

wonder that AMUL is a true Champion ?


7/27Module ISupply Chain Competitiveness

Developments in Supply Chain Management

Creation era: post WW II and during industrialisation -

Creation of assembly line

Integration era: (1960s) Use of electronic data transfers,internet, Enterprise Resource Planning (ERP)

Globalisation era: (1980s) sourcing globally, expansion ofsupply chain across countries

Specialised era (I): (1990s) outsourced manufacturing,distributionfocus on core competencies

Specialised era (II): growth of SCM service providers

SCM 2.0: Increased use of Web 2.0 applications



Lets break up a typical organisations processes and functions

SUPPLIERS

Basic RawMaterials

Other primaryinputs

Basic RawMaterials



MANUFACTURER(OEM)

SUPPLIERS

Basic RawMaterials

Other primaryinputs

Basic RawMaterials

SUPPLIERS

Basic RawMaterials

Other primary

inputs

Basic RawMaterials

Semi finished

Sub-assemblies

Other resources(consumables, fuel, etc)



SUPPLIERS

Basic RawMaterials

Other primaryinputs

Basic RawMaterials

SUPPLIERS

Basic RawMaterials

Other primaryinputs

Basic Raw

Materials

MANUFACTURER(OEM)

DEALER

DISTRIBUTOR STORE

A simplified SUPPLY CHAIN


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Importance of Supply Chain

2. Smoother Distribution

3. Cut Costs

4. Give more attractive final product

1. Better planned overall production

ultimately leading to competitive edge
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Get ready to be..

The SUPPLY CHAIN DOCTOR



Defining Supply Chain

Product life-cycle processes comprising physical, information,

financial, and knowledge flows whose purpose is to satisfy end-

user requirements with physical products and services frommultiple and linked suppliers.






user requirements with physical products and services from

multiple and linked suppliers.

Product life-cycle: - selling life-cycle

- usage life-cycle

(Eg: Cars [usage life > selling life] Compare Fiat after sales

service & spares Vs Maruti)





financial, and knowledge flows whose purpose is to satisfy

end-user requirements with physical products and services from


* Physical flow of products/ spares / goods/ services

* Information flow- stocks/ forecasting/ order & delivery status

* Financial flow- payments/ rebates

* Knowledge flow- design & innovation inputs








Satisfy end-user requirements- fundamental mission of thesupply chainto match supply with demandacross segments








Multiple and linked suppliers- encompasses all members in thechain



Defining GLOBAL Supply Chain





When the supply chain spreads across countries to include

international suppliers, processes and end-users are themselves

globally located, it becomes a GLOBAL supply chain



The FLOWS in a typical Supply Chain



`

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SUPPLIERS

OEM

DISTRIBUTOR

RETAILER

UPSTREAM

DOWNSTREAM



Elements of a supply chain:

Customer: A supply chain starts and ends with him.

Requirement/demandorder(eg- Contact lenses)

Planning: Orders processed production plan

Purchasing: Bill of Materials Financial budgetingPO

Inventory: Receive raw material quality check store

Production: Manufacture Inspection packing

Transportation: Shipping to dealer/ distributor andultimately to end-user


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Defining Supply Chain Management (SCM)

Design, maintenance, and operation of supply chain processes,

including those for base and extended products, for satisfaction

of end-user needs.

Getting the RIGHT PRODUCT to the RIGHT PLACE at the

RIGHT TIME for PROFIT


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Supply Chain Competitiveness

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Documents

SCC I Overview)