SUPPLY CHAIN V/S
LOGISTICS
SIGNIFICANCE OF SUPPLY CHAIN:
AS A COURSE AND CAREER
Companies have identified supply chain as a domain for cost
optimization/cost reduction to be competitive.
1.
2.
R e ducing c o s t o f m aterial / s upply c o s t
Reducing Inventor y cost with integrated supply chain and
i n tegrated f o r ecasting t e chniques
3. Reduction in Logistical costs with inter model and sharing
e c onomy c o ncept
 Rapid Management auditing of each transaction is gaining huge
importance and accordingly rede sign of supply chain with
consultant’s support has become a routine practice of corporates
 This e v er e v o lving n a ture of supply chain signifies its
importance to study and gives vast opportunities into consulting
domain as a career path
SUPPLY CHAIN V/S LOGISTICS
 The supply chain encompasses a bigger picture. Supply
chain management encompasses the planning and
coordination of all activities involved in sourcing,
conversion, and all logistics management activities.
Impor tantly,
it
also
includes
coordination
and
collaboration with channel partners, which can be
suppliers, intermediaries, customers and ensure smooth
flow of information.
 Logistics focuses on the actual transpor tation and
storage of goods . It deals with things such as inbound
and outbound freight, shipping, communications during
transit, storage and warehousing.
PROCESS VIEWS OF
SUPPLY CHAIN
SO U R CE : T E XT B O O K SU P P LY CH A I N MA N A GEMEN T B Y SU N I L CH O P R A
CH A P T E R -1 P E A R SO N I N D I A
Chapter -1
S O U R CE : T E XT B O O K S U P P LY C H A I N M A N A G EM E N T B Y S U N I L C H O P R A C H A P T E R - 1
P E A R SO N I N D I A
SO U R CE : T E XT B O O K SU P P LY CH A I N MA N A GEMEN T B Y SU N I L CH O P R A
CH A P T E R -1 P E A R SO N I N D I A
S O U R CE : T E XT B O O K S U P P LY C H A I N M A N A G EM E N T B Y S U N I L C H O P R A C H A P T E R - 1
P E A R SO N I N D I A
SO U R CE : T E XT B O O K SU P P LY CH A I N MA N A GEMEN T B Y SU N I L CH O P R A
CH A P T E R -1 P E A R SO N I N D I A
S O U R CE : T E XT B O O K S U P P LY C H A I N M A N A G EM E N T B Y S U N I L C H O P R A C H A P T E R - 1
P E A R SO N I N D I A
SO U R CE : T E XT B O O K SU P P LY CH A I N MA N A GEMEN T B Y SU N I L CH O P R A
CH A P T E R -1 P E A R SO N I N D I A
CYCLE VIEW
 The processes in a supply chain are divided into a series
of cycles, each performed at the interface between two
successive stages of a supply chain
SO U R CE : T E XT B O O K SU P P LY CH A I N MA N A GEMEN T B Y SU N I L CH O P R A
CH A P T E R -1 P E A R SO N I N D I A
CYCLE VIEW CONT’D
 Each cycle has the same basic processes , yet
there are differences among the cycles
 In the customer order cycle, demand is external
to supply chain and thus uncertain
 Thus the sharing of information and operating
policies across supply chain stages becomes
more important
PUSH/PULL VIEW
PUSH view
PULL view
PUSH/PULL view
PULL BASED SUPPLY CHAIN
 In a pull based supply chain production and distribution are
demand driven , they are co -ordinated with true customer
demand rather than forecast of demand
 Firms responds to specific orders
 Decrease in inventor y
 If not ef ficient may take time to respond to orders
PUSH-PULL SUPPLY CHAIN
 In a push -pull strategy, some stages of the supply chain,
typically initial stages are operated in a push -based manner
,while the remaining stages employ pull based strategy
 Inter face between the push -based stages and the pull -based
stages is the push – pull boundar y
SO U R CE : T E XT B O O K SU P P LY CH A I N MA N A GEMEN T B Y SU N I L CH O P R A
CH A P T E R -1 P E A R SO N I N D I A
Functional v/s innovative product supply chain
Open discussion