module 1 chap._1intro
TRANSCRIPT
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Module 1
Introduction and Strategic View
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INTRO TO SCM
GROUP 1~ AGUS WIYONO
~ EVI JUNIATI
~ ZULKIFLI
~ AKHMAD MUWAFIQUR RAKHMAN
~ BUDI MARIONO
~ IBNU KHOIRUL
DISUSUN OLEH EVI JUNIATI
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Chapter 1
Role of Supply Chain Management
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Content…..
• What is supply chain management?• Key concepts in SCM• The importance of the supply chain• Enablers of supply chain performance• Supply chain performance in India
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What is supply chain management?Suppliers Manufacturers Warehouses &
Distribution CentersCustomers
Material Costs
TransportationCosts
TransportationCosts
TransportationCostsInventory CostsManufacturing Costs
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• The supply chain encompasses all activities involved in the transformation of goods from the raw material stage to the final stage, when the goods and services reach the end customer
• SCM involves planning, design and control of flow of material, information and finance along the supply chain to deliver superior value to end customer in an effective and efficient manner
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Evolution of SCM
• The first revolution(1910-1920) Supply chain
• The second revolution (1960-1970) Supply chain
• The third revolution (1995-2000) Supply chain
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• First Revolution: (Ford Motor Co. 1910–1920)Single product, that is, no product varietyVertical integration
• Second Revolution: (Toyota Motor Co. 1960–1970)Wide VarietyLong-term relationship with suppliers (Keiretsu)
• Third Revolution: (Dell Computers 1995–Current)Customized productsMedium-term relationship with suppliersSuppliers have to maintain technology and cost
leadership
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Decisions in a supply Chain
• Design decision• Operation decision
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Key Concepts
• Concept of focal firm– The firm that provides identity to the products in
terms of brand has higher stakes in the chain, and such a firm is identified as the main entity. This main entity is known as focal firm or central node.
• Reverse Supply Chain– New product return– End-life product return
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Importance of supply chain
• Proliferation in product lines• Shorter product life cycles• Higher level of outsourcing• Shift in power structure in the chain• Globalization of manufacturing
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Enablers of supply chain performance
• Improvement in communication and IT• Entry of third party logistics provider
(3PL)• Enhanced inter-firm coordination
capabilities
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Challenges in maintaining a supply chain in India
• Taxation structure drives location decisions
• Poor state of logistics infrastructure
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The Supply Chain – Another View
planplan sumbersumber Make Make Deliver Deliver Buy Buy
Suppliers Manufacturers Warehouses &Distribution Centers
Customers
Material Costs
TransportationCosts
TransportationCosts Transportation
CostsInventory CostsManufacturing Costs
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Supply Chain Management – Key Issues
• Overcoming functional silos with conflicting goals
PurchasingManufacturingDistributionCustomer Service/Sales
Few change- overs
Stable schedules
Long run lengths
High inventories
High service levels
Regional stocks
SOURCE MAKE DELIVER SELL
Low pur-chase price
Multiple vendors
Low invent-ories
Low trans-portation