Supply Chain Management

BYJUNAID ASHRAF

What is Supply Chain Management?

Supply chain management is an effective tool for business process improvement. It begins

with the source of supply and ends at the point of consumption. Supply chain management covers the flow of materials and information from suppliers, through a number of value

adding processes and distribution channels, to the customer.

Continue…...A supply chain consists of three types of entities:• CUSTOMERS• PRODUCER• PRODUCER'S SUPPLIERS The extended supply chain includes• CUSTOMERS’ CUSTOMERS • SUPPLIERS’ SUPPLIERS

SUPPLY CHAIN MANAGEMENT SOFTWARE MODULES:

SCMS Commonly Includes Following Modules:

1. Customer requirement processing

2. Purchase order processing

3. Inventory management

4. Goods receipt and Warehouse management

5. Supplier Management/Sourcing

MODULES OF SCM

Continue…..

• Improve Customer Service

• Achieve A Balance Between Costs And Service

• Reduce Costs Throughout The Supply Chain

• Improve Relationships Between Buyers And Suppliers

• Enables the streamlining of the supply chain.

• Easy analysis of demand and supply of products or services.

• Sharing of sales-related information between all the parties.

• Give competitive advantage by earning the loyalty ;

of customers,

shareholders

and employees

Advantages of Supply Chain ManagementMARKETER’S BENEFITS;

CUSTOMERS’S BENEFISTS;

• Get the merchandise of their choice • Merchandise is ready before customer

entry. • Marketers respond to their customers in

real time.

Advantages of Supply Chain Management

Continue….

• The biggest disadvantage of supply chain management is the heavy investment of

time, money, resources needed to implement and overlook the supply chain.

• It is very difficult to decide, 'Outsource Or Not’’

• Integrating the supply chain and choosing the correct suppliers is much more difficult

Disadvantages:

Supply chain management fails if:

1. Power is retained.

2. lack of mutual co-operation.

3. killer software applications.

4. Technology can not synchronize every party.

5. Work still done by people.

6. Sales manager and ceo’s do not share.

7. Experience of Solectron corps.

Reasons for failure:

Latest software of SCM

‘Epicor 9’ by Epicor software's• Epicor 9 represents the convergence of Epicor's rich tool sets into

a single product.• Epicor 9 redefines the ERP experience, combining a full range of

enterprise, manufacturing and distribution functionality with the most collaborative, flexible service oriented architecture available.

‘Supplier Nonconformance Management ’by Intelex Technologies• Industry trusted since 1992• Intelex's web-based Supplier Management Software allows

organization's to track supplier performance, perform evaluations and generate reports in real-time.

Latest Software's of SCM

Continues…

‘ProActive Inventory Manager’ by Accuware

• Browser based Inventory Management solution. Built on Microsoft ASP.net

and Microsoft SQL server database.• Can be customized to your unique work flows.

‘ EnterpriseIQ’ by IQMS

• Can be designed, developed and supported with the unique industry

specifications in mind.• Its single database concept allows for a module and scalable approach

while eliminating third party applications

Venders of SCMS:

Dawlance slashes logistics costs by 35% for their new H-ZONE technology:

• DAWLANCE’S new h-zone technology costs one third the cost from DAWLANCE’S other appliances and required a new supply chain design with substantially reduced costs. They achieved this by revaluating every assumption and focusing on ways to reduce inventory levels.

• For its traditional appliances Dawlance operated on a nine-week order cycle time with many order changes from their customers which led to higher inventory levels and sub optimized factories. Dawlance focused on shifting to a make-to-order model with firm orders accepted and then delivered in two weeks instead of nine.

SCM stage 1

Currant supply chain improvements Supply chain, e commerce loosely coupled

SCM stage 2

Intranet/extranet links to trading partnersSupplier network expansion

SCM stage 3

• Collaborative planning and fulfillment• Extranet and exchanged base collaboration

Trends in SCM:

Trends in SCM Continued….

Processes.•Information sharing product/sales data sourcing help logistics order fulfillment

SCM stage

•Order management inventory management resource allocation system use and integration

SCM Stage

•Collaborative marketing sales and service Scm optimization collaborative design and delivery

SCM stage