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Lect 1 - Introduction To SCM

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Supply Chain Management

(MS-409)
Lecture – 1

Introduction to Supply Chain


Management

Course Instructor: Dr. Ammar ul Hassan


Email Id: amar.hassan@uettaxila.edu.pk

Department of Mechanical Engineering,


University of Engineering & Technology,
Program Learning Outcome
This course is designed in conjunction with the following PLOs.

• PLO-6: Engineer and Society: An ability to apply reasoning informed by


contextual knowledge to assess societal, health, safety, legal and cultural
issues and the consequent responsibilities relevant to professional
engineering practice and solution to complex engineering problems.

• PLO-8: Ethics: Apply ethical principles and commit to professional ethics


and responsibilities and norms of engineering practice.

• PLO-9: Individual and Team Work: An ability to work effectively, as an


individual or in a team, on multifaceted and /or multidisciplinary settings.
Program Learning Outcome
This course is designed in conjunction with the following PLOs.

• PLO-10: Communication: An ability to communicate effectively, orally


as well as in writing, on complex engineering activities with the
engineering community and with society at large, such as being able to
comprehend and write effective reports and design documentation, make
effective presentations, and give and receive clear instructions.

• PLO-11: Project Management: An ability to demonstrate management


skills and apply engineering principles to one’s own work, as a member
and/or leader in a team, to manage projects in a multidisciplinary
environment.
Course Learning Outcome (CLO)

Upon successful completion of this course, students will be able to:

• CLO-1. Understand the Supply Chain Management, Principles, Strategies,


Sustainability and Supply Chain, Supply Chain Drivers and Metrics;
Production, Inventory, Location, Transportation, Information

• CLO-2. Apply ethical engineering principles in Supply Chain Management.

• CLO-3. Analyze the Supply Chain Network, Planning and Coordination of


Demand and Supply in a Supply Chain.
Course Learning Outcome (CLO)

Upon successful completion of this course, students will be able to:

• CLO-4. Analyze the Transportation Networks, Warehousing Management,


Information Technology in Supply Chain

• CLO-5. Apply the engineering principles on Material Handling, Planning


and Managing Inventories in Supply Chain
Mapping of CLOs to PLOs and Learning Domains

Course Program Learning


Learning Learning Domain
Outcome Outcome
CLO - 1 PLO – 6 C2
CLO – 2 PLO – 8 C3
CLO - 3 PLO - 9 C4
CLO - 4 PLO – 10 C4
CLO - 5 PLO - 11 C3
Mapping of CLOs to PLOs and Learning Domains
Course Contents
• Understanding of Supply Chain Management

• Supply Chain Drivers and Metrics; Production, Inventory, Location,


Transportation, Information

• Managing Supply Chain Risks

• Designing the Supply Chain Network

• Planning and Coordination of Demand and Supply in a Supply Chain


Course Contents
• Material Handling in Supply Chain

• Planning and Managing Inventories in Supply Chain

• Designing and Planning Transportation Networks

• Warehousing Management

• Information Technology in Supply Chain

• Sustainability and the Supply Chain


Textbooks

• Supply Chain Management: Strategy, Planning, and


Operations (Chopra, Sunil, and Peter Meindl,
Objective
• Aims
• To provide and insight on Supply Chain Management
• To provide details on why we need SCM and its characteristics

• Expected Outcomes
• Learner will be able to know about SCM
• Learner will be able to identify role of SCM in today's sceneries

• Other related Information


• Student must have some fundamental ideas on materials,
manufacturing processes, inventory models, and transportation
Some Basic Definitions

• Supply chain management (SCM) is the management of flow of


goods, information, and finances related to a product or service,
from the procurement of raw materials to the delivery of the product
at its destination.
Some Basic Definitions
Some Basic Definitions
Some Basic Definitions

• Supply chain management (SCM) deals with the procurement


(purchasing raw materials/ components), operations management
(ensuring the production of high-quality products at high speed with
good flexibility and low production cost), logistics and marketing, so
that the raw materials can be converted into a finished products and
delivered to the end customer.
Some Basic Definitions

• A supply chain is a collection of suppliers required to create one specific product


for a company.

• The chain is made up of nodes or “links,” which can include multiple


manufacturers for parts, then the completed product, then the warehouse where
it is stored, then its distribution centers, and finally, the store where a consumer
can purchase it.
• The concept of the chain is important, because each link is connected in a
specific direction and order, and the next link cannot be reached without going
through the previous one.
• Each link adds time and costs, and can involve labor, parts, and transportation.
• Every product a company carries may have its own supply chain, though they
may use certain suppliers for multiple products.
Some Basic Definitions
Some Basic Definitions

• As the name implies, supply chain management (SCM) is handling and


optimizing all the many complicated aspects of a supply chain, involving goods
and services.

• Supply chain management refers to the coordination and oversight of various


activities involved in the production, distribution, and delivery of goods or
services from their source to the end consumer.

• Supply chain managers have two key responsibilities:


1.Ensure that customers can obtain products.
2.Ensure that the manufacturer can obtain the materials they need to create the
product.
Some Basic Definitions

• Supply chain management


(SCM) is the art of
coordination the flow of goods
and services from raw
materials to final customers.
Some Basic Definitions

• Supply Chain Management can be defined as the management of flow of


products and services, which begins from the origin of products and ends
at the product’s consumption.

• It also comprises movement and storage of raw materials that are involved
in work in progress, inventory and fully furnished goods.

• The main objective of supply chain management is to monitor and relate


production, distribution, and shipment of products and services.
Some Basic Definitions
Some Basic Definitions
Some Basic Definitions
Some Basic Definitions
Some Basic Definitions

• A supply chain is the alignment of firms that bring products or services to


market.

• A supply chain consists of all stages involved, directly or indirectly, in


fulfilling a customer request. The supply chain not only includes the
manufacturer and suppliers, but also transporters, warehouses, retailers,
and customers themselves.
Some Basic Definitions

• A supply chain is a network of facilities and distribution options that


performs the functions of procurement of materials, transformation of
these materials into intermediate and finished products, and the
distribution of these finished products to customers.

• Supply chain management is the coordination of production, inventory,


location, and transportation among the participants in a supply chain to
achieve the best mix of responsiveness (quickly) and efficiency for the
market being served.
SCM Advantages
• In this era of globalization where companies compete to provide the best quality products
to the customers and satisfy all their demands, SCM plays a very important role.
SCM Advantages
• The key benefits of supply chain management are as follows −

• Develops better customer relationship and service.


• Creates better delivery mechanisms for products and services in demand with
minimum delay.
• Minimizes warehouse and transportation costs.
• Minimizes direct and indirect costs.
• Assists in achieving shipping of right products to the right place at the right time.
• Enhances inventory management, supporting the successful execution of just-in-time
stock models.
• Assists companies in minimizing waste, driving out costs, and achieving efficiencies
throughout the supply chain process.
SCM Goals

• Every firm struggles to match supply with demand in a timely fashion with the most
efficient use of resources.
• Here are some of the important goals of supply chain management −

• Supply chain partners work collaboratively at different levels to maximize resource


productivity, construct standardized processes, remove duplicate efforts and minimize
inventory levels.
• Minimization of supply chain expenses is very essential.
• Cost efficient and cheap products are necessary, but supply chain managers need to
concentrate on value creation for their customers.
• Exceeding the customers’ expectations on a regular basis is the best way to satisfy
them.
• Increased expectations of clients for higher product variety, off-season availability of
inventory and rapid fulfillment at a cost comparable to in-store offerings should be
The End

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