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IntroductionSUPPLY CHAIN MANAGEMENT
Session ObjectivesTo enable the learner to understand: What is a Supply Chain? What are logistics and supply chain
management? Perspectives of SCM
Supply chain of these varied items have common supply
chain elements
Supply chain of these varied items have common supply
chain elements
Supply chain of these varied items have common supply
chain elements
Supply chain of these varied items have common supply
chain elements
What is a Supply Chain?
Two or more parties linked by a flow of resources – typically material, information, and
money – that ultimately fulfill a customer request.
Information (order)
Information (status)
Material (delivery)
Money (payment)
The supply chain encompasses all activities associated with the flow & transformationof goods from the raw materials stage (extraction) , through to the end user, as well
as the associated information flows.
Mission of SCM“To get the right goods or services to the right
place, at the right time, and in the desired condition , while making the greatest
contribution to the firm.”
What is a Supply Chain?
The primary purpose of a SC is to satisfy customer needs.
Only one source of revenue – the customer Payments between parties are just fund exchanges Division of intra-SC payments are a function of
power, market conditions, etc.
Supply Chains try to maximize the total value generated
= ( What customer pays ) – ( Total effort expended to
fulfill )
Supply Chain Process
Logistics versus Supply Chain Management
“Managing the flow of items, information , cash & ideas through the coordination of supply chain processes and through the strategic addition of place, period and pattern values.”
“Deals with the management of materials, information, and financial flows in a network consisting of suppliers , manufacturers, distributors, & customers.”
Logistics
Supply Chain Management
Supply Chain Perspectives
Suppliers
Manufacturers
Distributors
Customers
Process View of Supply Chains
Four Primary CyclesCustomer Order CycleReplenishment cycleManufacturing CycleProcurement Cycle
Cycles Occur Between Stages
Interactions differ at each stageNot every SC will have all 4
Cycles
Supplier • Procurement cycleManufactur
er• Manufacturing
cycle
Distributor • Replenishment cycleRetailer • Customer Order
Cycle
Customer
Video on How a SCM Company Works
https://www.youtube.com/watch?v=XoC5mI1Jk7A
Let’s SummarizeSupply chain management focuses on the customers at
the end of supply chain which is flexible and responsive.
It is the flow of goods, services & information from the point of origin to the point of consumption efficiently to provide optimal customer delight.
It comprises of four cycles primarily. The performance of supply chains is usually measured
in terms of overall corporate goals for success.