Supply Chain Management (SCM)

Presented by:Chhatrapal Surve(160)

S.Y.BBA-III

What is Supply Chain Management?

A network of interconnected businesses. It spans all movement and storage of goods

from point of origin to point of consumption.

Includes design,planning,execution, control,and monitoring of supply chain activities.

Supply chain management must address the following problems:

Distribution Network Configuration Distribution Strategy Trade-Offs in Logistical Activities Information Inventory Management Cash-Flow

Objectives of SCM

Enhancing Customer Service Expanding Sales Revenue Reducing Inventory Cost Improving On-Time Delivery Reducing Order to Delivery Cycle Time Reducing Lead Time Reducing Transportation Cost Reducing Warehouse Cost Reducing / Rationalize Supplier Base Expanding Width / Depth of Distribution

Supply chain activities and their distinction

Strategic level Tactical level Operational level

Advantages of SCM

Reduced Costs Increased Efficiency Increased Output Increased Profits You can be more responsiveness Proper placement of product Unnecessary elements in the chain are removed Cash flow can be controlled

Case Study on TISCO*

Introduction of “SAP R/3” solutions Investment value and Return value by the company Raw material holding period has increased by 55% A reduction in lead time, now 18–20 days from

65–70 days earlier. Inventory carrying cost has deflated from Rs. 190

to Rs.155 per ton Labour productivity has multiplied three timesfrom

1999-2000 to 2008. Completed the orders in the said time thus

increasing customer loyalty.

*From “Supply Chain Management Practices In India” Submitted by Manoj Kumar Rakesh to MAHATMA GANDHI KASHI VIDYAPEETH