Unit 1 Supply Chain management
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Supply chain management involves the flow of goods and information from raw materials to the customer. It includes procurement, production, and distribution. Key drivers are production, inventory, location, transportation, and information. The components are plan, develop, make, deliver, and return. Products, information, and funds flow between customers and suppliers. Supply chain management aims to coordinate activities among organizations to trade off costs, service, time, risk, and other metrics across the chain.
Unit 1 Supply Chain management
- 2. Definition Facilities, activities, associated with flow and transformation of goods and services from raw material to customer as well as information flows. It is the management of the flow of goods It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to consumption.
- 6. Flows in a supply chain Customer Information Product Funds
- 7. Key Observations Integrated activity: * Among functions such as logistics, manufacturing, distribution, design/engineering, marketing, finance,etc. * Multiple organizations,i.e., suppliers, customers& 3 PL providers * Coordination of conflicting goals, metrics, etc. Responsible for multiple flows: * Information (orders, status, contracts) * Physical (finished goods, raw material, w.i.p.) * Financial (payment, credits, etc.)
- 8. Key Observations (continued) Most analysis involves trade-offs * Across different entities * Across metrics: Cost, Service, Time, Risk, etc. Each interface in the supply chain represents * Movement of goods * Information flows * Transfer of title * Purchase and sale
- 9. Features Inventory Management Technology End to End operations Maximize cost productivity Increase productivity Order management Logistics Forecasting and planning
- 10. Strategic Issues Effects of Globalization Issues of Infrastructure Mergers, Acquisition and Alliances Safety and Security Leveraging Human Capital Responding to customers Exploiting technology.
- 11. SCM Current Scenario Pre and Post modelling Pre and Post practising
- 12. Outline Supply-Chain Management of “Yesterday” How Modeled How Practiced Supply-Chain Management of “Today” How Practiced How Modeled
- 13. SCM Practice of “Yesterday” Single-Owner Chains Took a Centralized Perspective Single Objective Function: F(x1, x2, x3, ...) De-Centralized Decision-Making Information: Not Available or, at best, “Asymmetric” Implementation: De-Centralized; NOT Contractible Examples USAF Logistics Command Consumable Inventory System IBM Service-Parts Inventory System
- 14. “Yesterday’s” Relationship: “Mismatched” Models Too Specialized Required More Information than Practice Had Practice Inexperienced with Models & Computers Confused by Models
- 15. SCM Practice “Today” The Beginnings of “Real” SCM for Single-Owner Chains Ex: Wal-Mart’s, Tesco and ASDA Retail Link Target’s Partners OnLine Capabilities Broadcast SKU-level Data Across the Chain Observe Status ==> Implemetation “Contractible”
- 16. Results Huge Reductions in Buffers ==> Lower Operating Costs Improved Competitiveness Lower Prices More Customization Higher Availability Development of Technologies to Support Multiple-Owner SCM Internet is Providing Experience E-Markets Providing Buyer-Supplier Linkages Data Standardization. Using simple models based on “pull down” menus in ERP systems
- 17. Value Chain Management VCM is also concerned the flow of goods to consumers but takes a different approach Consumer to source Value chain managers are typically responsible to analysing issues and providing in order to maximize value created for a business.
- 19. CRM-Definition “The approach of identifying, Establishing, Maintaining and enhancing lasting relationships with customers” “Formation of bonds between a company and its customers” “An Integrated approach to identifying, acquiring and maintaining customers”
- 20. History 1980’s-Database Marketing Emerges 1980’s-Database helped larger organization rather than small who only go survey type info 1990’s-CRM appears as a two way communication device 1990’s-CRM leads to programs such frequent flyer miles and bonus points on credit cards 2000’s to till now-Internet has helped expand from stagnant and database and allows offsite information storage
- 21. CRM what it does? Builds a Database that describes the customer and the relationship they hold with the company.
- 22. Benefits of CRM Decrease cost of customer Increase sales Increase efficiencies Better and more accurate data Data security
- 23. TOP CRM Manufactures and its Products 1.Microst-Microsoft Dynamics CRM 3.0 2.SAP America-SAP Business One. 3.Sage Software-Saleslogix CRM 4.Parature Inc-Parature 5.Entellium CRM-Entellium