Presentation - 1

SUPPY CHAIN MANAGEMENT(SCM)
SUPPLY CHAIN MANAGEMENT
INDUSTRIAL ENGINEERING
CESAR VALLEJO UNIVERSITY

CÉSAR VALLEJO UNIVERSITY
EAP ING. INDUSTRIAL
QUESTIONS
1-WHO ARE YOU?
2-WHAT DO YOU EXPECT FROM THE

COURSE?
3-WHAT DO YOU DISLIKE THE MOST?

TOPIC: INTRODUCTION TOCM
COURSES
CAPACITY: EXPLAINS WHAT SUPPLY CHAIN
MANAGEMENT IS, ITS OBJECTIVES, GOALS, AND THE
IMPACT OF DECISIONS ON THE SUCCESS OF A
COMPANY.
EAP ING. INDUSTRIAL
LOGISTICS and DFI
Supply and Distribution Chain
Value chain
From the Supplier's Supplier to our Clients' Client (End Consumer)
“From Earth to Earth”
04/09/202
VIDEO
• https://youtu.be/K3YY8rHehNg
QUESTIONS I CÉSAR VALLEJO UNIVERSITY
EA R. ING. INDUSTRIAL
1- WHAT IS LOGISTICS?
2- WHAT IS SUPPLY CHAIN?

I CÉSAR VALLEJO UNIVERSITY
EA R. ING. INDUSTRIAL
LOGISTICS
EAP ING. INDUSTRIAL
It is part of the supply chain processes that plans,

implements and controls the efficient and effective
flow and storage of goods and services and related
information, from the point of origin to the point of
consumption, with the purpose of satisfying the
requirements of the client SOURCE ; John J. Coyle, C. John Langley
Jr., Robert A. Novack, Brian J. Gibson Supply Chain Management. A logistics
perspective
0V CÉSAR VALLEJO UNIVERSITY
SUPPLY CHAIN
" The supply chain encompasses the business
processes, people, organization, technology and physical
infrastructure that allows the transformation of raw
materials into intermediate and finished products and
services that are offered and distributed to the consumer
to satisfy their demand."
FOUNTAIN ; John J. Coyle, C. John Langley Jr., Robert A. Novack, Brian J. Gibson Supply Chain Management.
A logistics perspective
EAP ING. INDUSTRIAL
LOGISTICS SYSTEM DIAGRAM
SUPPLIES SECONDARY
PRIMARY TRANSPORTA CUSTOM
TRANSPORTA TION ERS
TION
•PROCESS OF
ORDERS.
•0
•MANAGEMEN
PLANT OF T
PRODUCTION INFORMATION
l
00
□—•••••=
------
000EHE •
•WAREHOUSE/T
MANAGEMENT
OF MCIA.
• REPACKING
04 ENTRY LOGISTICS OUTPUT

Supply Chain LOGISTICS
Management - SCM
SUPPLY CHAIN
Supply and Distribution Chain Management
Do,'t
7 principles of SCM - Premises
“From the prop to the player, through

the fan, all efforts are vital for the
operation of a great team”
UNIVERSITY ALLEJO
E AR. ING. Yo
Focus on the final consumer
© Understand your values and requirements

© It doesn't matter where you are in the chain
© Learn about the journey of your products to the CF
04/09/202
0
UNIVERSITY ALLEJO
E AR. ING. Yo
not the
tasks
Focus on Processes
© Processes add value to the client, © Cultural change towards

Processes
© Improve internal processes first
© Then improve external processes (Customers and suppliers)
© Integrate, Integrate, Integrate
04/09/202
0
UNIVERSITY ALLEJO
E AR. ING. Yo
© Only CHAINS will survive that manage to print greater speed in
the flow of Products, Information and
Money
© Human Resource Speed
• Permanent Education and Training (Cultural Obsolescence)
• Decisions in Minutes…Seconds
04/09/202
0
UNIVERSITY ' ALLEJO
EAP ING. II
Use of standard metrics

© You can't improve what you don't measure
© Using common metrics
© Share measurements with Clients and Suppliers
© Cost, Service, Speed, Assets
04/09/202
0
UNIVERSITY
E AR. ING. Yo
"Collaboration".
© Beyond EDI ■ 75 "'Yo

© Share Resources, Education, Experience, Information,
Goals, Plans, Metrics, Profits
© Develop the culture of “Collaboration”
© Inter-company teamwork
© Use proven models (ECR, SCOR, etc.)
© Confidence...
04/09/202
0
UNIVERSITY
E AR. ING. Yo
“New Process: Chain Planning.”

© It is Sales and Operations Planning
at the Supply Chain level (Inter-company)
© At the Product level
© Promotions (DM)
© Not all products
© Not all Clients
© Not all Providers
© Develop the culture of Planning
04/09/202
0
UNIVERSITY ALLEJO
E AR. ING. Yo
EFFECTIVE use of technology”
© Evaluate the added value to your Processes and

Clients
© Implement based on Proven best practices © Misuse
04/09/202
0
UNIVERSITY ALLEJO
E AR. ING. Yo
adds Costs to the Chain

© Don't use it for FASHION
04/09/202
0
Logistics Information and Communications System
Reverse logistics
GH UNIVERSITY ALLEJO
Specific Objectives of the SCM
Minimize
Cost Service
operatio level
Differentiate
nal d?
Maximize
$
Shopping
Transportation Storage
Inventory management • Flexibility
Information and Speed: < time
communications
systems Reverse
logistics Lost sales Strike a balance!
h) CÉSAR VALLEJO UNIVERSITY
EAP ING. INDUSTRIAL
Logistics and its Evolution: Traditional View
The optimization of isolated functions

DOES NOT globally optimize the
logistics process
Level of
Total
Service
EAP ING. INDUSTRIAL
Logistics and its Evolution: Current Vision

EAP ING. INDUSTRIAL
Custom
Suppliers
ers
EAP ING. INDUSTRIAL
Logistics and its Evolution: Current Vision
Supply Chain Integration and Coordination
Appro Production Distribution Sales

ved
Pull System
Suppliers Custom
ers
Cost Level of
Total Service
4 Supply chain
Store
EAR. ING. INDUSTRIAL
of bread
flour company
AGRICULTURE Store Transform Store
wheat tion of flour
Industrial bakery
Retailers Transform Store

tion Of flour
CUSTOM
ERS
Evolution of logistics towards the
supply chain
Fragmentation of activity in 1960 Integration of activities from 1960 to the year 2000 2000*
Logistics
Strategic planning
Information services
Marketing/sales
Finance
ORIGIN
EAP ING. INDUSTRIAL
The term “ Supply Chain ,” also known as

“Supply Chain,” entered the public domain
when Keith Oliver , a consultant at Booz
Allen Hamilton, used it in an interview with
the Financial Times in 1982.
■ Í1|
,
" • EAP ING. INDUSTRIAL
SUPPLY CHAIN MANAGEMENT?
SUPPLY CHAIN MANAGEMENT?

WHAT IS SUPPLY CHAIN MANAGEMENT? EAP ING. INDUSTRIAL
Supply Chain Management is the art and science of

integrating product, information and financial flows
across the entire supply pipeline, from the
supplier's supplier to the customer's customer.
FOUNTAIN ; John J. Coyle, C. John Langley Jr., Robert A. Novack, Brian J. Gibson
Supply chain management. A logistics perspective
Figure
■ Í1| CÉSAR VALLEJO UNIVERSITY
Integrated supply chain
, " • EAP ING. INDUSTRIAL
1.4
Supply chain management is the art and science of integrating product, information and financial flows across the
entire pipeline, from the supplier's supplier to the customer's customer.
Retailers/
Suppliers Dealers Manufacturers
Wholesalers customers
Products/services
Information
Finance
Source: Center for Supply Chain Research, Penn State University.

Logistics vs Supply Chain Management is the
same thing?
SUPPLY CHAIN MANAGEMENT LOGISTICS
The movement and integration The flow and storage of goods

FOCU of supply chain activities. inside and outside the company.
S
Involves different organizations.
Involves the organization itself.
SCOPE
Control the end-to-end supply
chain. It is just a Supply Chain
Management activity.
CONTROL
Obtain a substantial competitive
advantage. Full customer satisfaction
AIM
EAP ING. INDUSTRIAL
Logistics Activities
KEY ACTIVITIES SUPPORT ACTIVITIES
1. Customer Service Standards ■ Order taking process

■ Requirements of the client ■ Stock storage and retrieval
■ Customer response
■ Set service levels 3. Shopping
■ Supplier selection
2. Transport ■ Timing and quantities
■ Mode and service selection
■ Routes and freight 4. Packaging
■ Vehicle programming
■ Complaint processing 5. Relationship with production and operations
■ Rate audit ■ Specify additional quantities
■ Sequences and production times
3. Inventory management ■ Supply programming
■ CP sales estimate
■ Inventory policies 6. Information Maintenance
■ Products mixture ■ Collection, storage and manipulation of information
■ Number and size of storage points ■ Analysis of data
■ Information control
4. Information Flows
■ Inventory-sales interface procedures
■ Information transmission
■ Order rules
1. Storage
■ Space design and stock distribution
■ Warehouse configuration
2. Material handling
■ Equipment selection and replacement
EAP ING. INDUSTRIAL
THE TRIANGLE OF LOGISTICS

STRATEGY
Inventory Transportation
Strategies Strategy
.Forecast
.Storage Basics .De*
* Fundamentals of
Inventory Purchasing Goals of Transport
and Supply customer * Decisions of the
Scheduling of service
Decisions of * The product Transport
storage * Logistics Service
* Information systems.
Location Strategy
* Location
Decisions
EAP INDUSTRIAL ING
(C(O)ND(O)NENESS ©1
L/A (C/AD)EN/A ©E
SUNNSSR(O)
There are 3 fundamental parts in the logistics chain:
Supply Manufacturing Distribution

SUPPLY CHAIN MANAGEMENT
• Network planning
EAP ING. INDUSTRIAL
Supply chain
TRACEBT
LTTY
SUPPLI
ER
Traceability is a tool to know all the elements involved in the production of a product
(raw materials, additives, DLE Packaging, etc.) and all the phases that said product goes through
(purchase 1-15 on O"uhmtm" ""Faction, production, processing, storage, distribution, etc.)
SUPPLY CHAIN MACRO PROCESSES
□ 1 -Supplier Relationship Management

(ARP)
□ 2 -Internal Supply Chain Management
(ACSI)
□ 3 -Customer Relationship Management
(ARC)
EAP ING. INDUSTRIAL
OljetÍv88 of the Gestli of Gadena

idlü SuÜigtrgg
Reduce the total cost of the supply chain through effective marketing, production
and distribution strategies Ensure response to customer demand
Minimize the time between the production of a product and its sale to the end
customer
Maximize cash by reducing inventory and improving payment times
Improve customer service
Ensure competitive advantages during the introduction of new products and services
EAP ING. INDUSTRIAL
Supply Chain Management Goal
Achieve effective integration and coordination from the

suppliers to the final customer , which allows producing
and
to distribute:
□
□ The right product The
reducing
right quantity The total Getting
n better
In the right place at the cost
□ the level
right time of
EAP ING. INDUSTRIAL
Responsible supply chain

V A Supply Chain is responsible (sustainable} when :
V Manages environmental, social and economic impacts , and encourages

good practices , throughout the complete life cycle of the organization's
products.
V Creates value for all participating stakeholders
For many companies, a large part of the social and environmental impact is
performed in the production process
Design Production
Recyclable
Matera raw sustained Point of sale Interaction with teeth
More sustainable processes SUPPLIERS MANAGEMENT
Subject Transportati
Cousin
Production
onPacka
and JI
t
Supplier management
4/
CAESAR UNIVERSITY
GOES
Some benefits of a successful SCM EAP ING. INDUSTRIAL
Reducing inventory levels

□ Reduction of sales and waste
□ Greater efficiency in the use of resources
□ Greater reliability
□ Reduction of transportation costs
□ Better long-term relationships with customers and
suppliers!
□…
EAP ING. INDUSTRIAL
Manufacturing Excellence
04/09/2020
EAP ING. INDUSTRIAL
WHAT IS REVERSE LOGISTICS?

REVERSE LOGISTICS
Process of planning, executing and controlling

the flow of finished products, services and
related information from the point of EAP ING. INDUSTRIAL
consumption to the origin.
Purpose of reverse logistics is:
Maximize the value of the recovered flow

DIRECT FLOW REVERSE FLOW
DISADVANTAGES OF REVERSE LOGISTICS
1-Reuse of some materials.

2-Greater confidence in the customer when making
the purchase decision.
3-Considerable improvement of the company's image
among consumers.
4-Obtaining feedback information about the product.
1-Preliminary studies are required to establish
DISADVANTAGES OF REVERSE LOGISTICS
decision policies on the subject.
2-It is not just a simple manipulation of the product.
3-All departments of the company are related to the
activities that are intended to be implemented in
Reverse Logistics.
4-Inspections must be carried out on each product
individually and thoroughly.
• WHAT IS GREEN LOGISTICS?
EAP ING. INDUSTRIAL
GREEN
LOGISTICS
Green logistics deals more broadly with
environmental problems, it is more associated with
the definition of environmental quality, which in
recent years has come to mean: “Safe drinking
water, healthy ecosystems, safe food, communities
free of toxic substances, safe waste management
and restoration of contaminated sites”
GREEN LOGISTICS
The environmental problems derived from a
They demand immediate and efficient solutions to avoid the
collapse of the current system:
PARADIGM SHIFT
UNCONTROLLED WASTE
CONSUMERISM ECO-CONSUMPTION
IRRATIONAL CONSUMPTION
RESPONSIBLE CONSUMPTION
PRODUCTION
PRODUCTION
CONSUMPTION
CONSUMPTION
SPILL
EA.P ING. INDUSTRIAL
PICKUP +
+ WASTE VALORIZATION
TREATMENT
Consume and Throw Use, collect and recycle

away
Elements of Green Logistics
Green
transport
recycling Green Storage

Waste
CUSTOMER
Distribution
Green
Load and
Wish rga
Green
Q• CÉSAR VALLEJO UNIVERSITY
WHO HAVE ACHIEVED HIGH LEVELS OF

INTEGRATION IN THEIR SUPPLY CHAIN?
Case # 1 Wallmart – ITS 3 CORE BELIEFS:
1-Respect for the individual,
2-Customer service and
3-Pursuit of excellence.
- Strategic alliances with suppliers and sharing information
.
LOGISTICS AND SUPPLY CHAIN EAP ING. INDUSTRIAL

h)
Remember
EAP ING. INDUSTRIAL
“ Today, companies do not compete… the

supply chains to which those companies
belong compete ”
Michael E. porter
Ph.D., Harvard University
EAP ING. INDUSTRIAL
TEAM WORK
1-Prepare a visual organizer as a work

team with the title Supply chain of a
product that will be presented in class.
2-Solve a practical case

Thank you!

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SUPPY CHAIN MANAGEMENT(SCM)

SUPPLY CHAIN MANAGEMENT

CESAR VALLEJO UNIVERSITY

1-WHO ARE YOU?

2-WHAT DO YOU EXPECT FROM THE

3-WHAT DO YOU DISLIKE THE MOST?

2- WHAT IS SUPPLY CHAIN?

It is part of the supply chain processes that plans,

LOGISTICS SYSTEM DIAGRAM

04 ENTRY LOGISTICS OUTPUT

“From the prop to the player, through

Focus on the final consumer

© Understand your values and requirements

© Processes add value to the client, © Cultural change towards

© Only CHAINS will survive that manage to print greater speed in

the flow of Products, Information and

• Permanent Education and Training (Cultural Obsolescence)

Use of standard metrics

© Beyond EDI ■ 75 "'Yo

“New Process: Chain Planning.”

EFFECTIVE use of technology”

© Evaluate the added value to your Processes and

adds Costs to the Chain

Specific Objectives of the SCM

Logistics and its Evolution: Traditional View

The optimization of isolated functions

Logistics and its Evolution: Current Vision

Logistics and its Evolution: Current Vision

Supply Chain Integration and Coordination

Appro Production Distribution Sales

Retailers Transform Store

The term “ Supply Chain ,” also known as

SUPPLY CHAIN MANAGEMENT?

SUPPLY CHAIN MANAGEMENT?

Supply Chain Management is the art and science of

Source: Center for Supply Chain Research, Penn State University.

SUPPLY CHAIN MANAGEMENT LOGISTICS

The movement and integration The flow and storage of goods

1. Customer Service Standards ■ Order taking process

THE TRIANGLE OF LOGISTICS

Supply Manufacturing Distribution

SUPPLY CHAIN MACRO PROCESSES

□ 1 -Supplier Relationship Management

OljetÍv88 of the Gestli of Gadena

Supply Chain Management Goal

Achieve effective integration and coordination from the

Responsible supply chain

V Manages environmental, social and economic impacts , and encourages

Some benefits of a successful SCM EAP ING. INDUSTRIAL

Reducing inventory levels

WHAT IS REVERSE LOGISTICS?

Process of planning, executing and controlling

related information from the point of EAP ING. INDUSTRIAL

consumption to the origin.

Purpose of reverse logistics is:

Maximize the value of the recovered flow

1-Reuse of some materials.

Consume and Throw Use, collect and recycle