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PRESENTED BYKESAVAN 09MBA025BHARATH 09MBA011PADMANABHAN 09MBA125SIVA SHANMUGAM 09MBA109

GROUP 9

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WHAT IS SUPPLY CHAIN STRUCTURE" Is the strategic management of activities involved in

the acquisition and conversion of materials to finished

products delivered to the customer"

Supplier

Management

Schedule /

ResourcesConversion

Stock

Deployment Delivery

Customer

Management

Leads to Business Process Integration

Material Flow

Information Flow

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SUPPLIER MANAGEMENT:

CHOOSING THE SUPPLIERS

FACILITIES AVAILED BY THE SUPPLIERS

OTHER NEGOTIATIONS

RESOURCES:

RAW MATERIALS

MACHINES

OTHER RESOURCES

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CONVERSION:

THE RAW MATERIALS COLLECTED FROM

THE SUPPLIERS ARE CONVERTED IN TO

FINISHED GOODS

STOCK DEPLOYMENT:

SUPPLYING THE PRODUCTS TO

DISTRIBUTORS.

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DELIVERY:

DELIVERY OF THE PRODUCTS AND SERVICES

TO END CUSTOMERS

CUSTOMER MANAGEMENT:

GETTING FEED BACK

UNDERSTANDING THEIR NEW WANTS

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Supply Chain Structure

Information Flow

Raw Materials

RETAILERFACTORY DC RDCSUPPLIER

Finished Goods

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SUPPLY CHAIN ELEMENTS Supply Chain Design Resource Acquisition Long Term Planning (1 Year ++)

Strategic

Production/ Distribution Planning Resource Allocation Medium Term Planning (Qtrly,Monthly)

Tactical

Shipment Scheduling Resource Scheduling Short Term Planning (Weekly,Daily)

Operational

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supply Chain Goals

Efficient supply chain management must result in

tangible business improvements. It is characterized bya sharp focus on

Revenue growth

Better asset utilization Cost reduction.

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Supply Chain Working Group The sponsor firm will invite key partners among

suppliers and end users to participate. Together, theywill form a supply chain work- ing group (SCWG).

The SCWG will decide what spheres need to beisolated for supply chain redesign

It will also mobilize design teams to undertake

improvement efforts in the spheres

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The SCWG will monitor the overall effort to assureconsistency with goals.

Once formed, a good next step for the SCWG is todevelop the supply chain issues to be addressed

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Step 1 The process begins with the SCWG defining issues thatneed to be addressed. There can be in excess of 100 ofthese, so it helps to divide them into catego- ries. Issues areoften presented in the form of a question.

The diagram shows that decision categories neednt belimited to supply chain or pure logistics issues. At this

point in the effort, its important to have an overallbusiness context for structuring the supply chain effort.

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This includes an understanding of customerrequirements and how they link to product and supplychain design.

The SCWG should develop and maintain the issuequestions.

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Step 2 Define Requirements In step 2, each listed issue is considered by the SCWG.

Where possible, deci- sions regarding issues are madeby consensus of SCWG members.

In many cases, an issue resolution isnt known.

If its priority is high, it then becomes a requirement toaddress quickly in an improvement effort.

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Step 3 Structure the Effort 1. Master plan for program. The plan would govern

the overall effort.It would include schedules, priorities,financial flows, and a visionfor successful completion.

2. Plan for spheres. This would include definition ofthe spheres and design team assignments based onthe challenges of making changes in each one.

3. Design Team charters. The charters shouldinclude the goals and objectives, resources,schedules, and issues that should be addressed

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Improve supply chain performance Sourcing efforts to rationalize procurement across the organization.

This type of project often produces immediate savings in the bill foroutside goods and services. It requires mobilizing internal teams as

well as partnering with outside suppliers.

Demand-driven supply chains. Most aggressive partnership pro- gramsfocus on cycle time reduction, building a just-in-time capa- bility allalong the supply chain. Partnerships will work to remove wasteful cycletime at all stages.

Third-party logistics providers. Using logistics specialists to fulfill basicsupply chain functions will enable companies to focus on corecompetencies.

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