SCM
L1 & L2
A.
Define supply chain, draw the main diagram and mention flow
B.
Why supply chain is very complex in reality
C.
Explain the objective of supply chain with example
D.
Explain the importance of supply chain significance
E.
Write merits and demerits of make vs buy strategy
F.
Write merits and demerits of one supplier vs many suppliers

Supply chain history
Introduction
Supply chain scope
Objectives
Supply chain strategy
Integration and issues
SCOPE
Basic Supply Chain : a network used to deliver
product and services from raw materials to end
customers through an engineered flow of Information,
physical distribution and cash.
Supply chain = supply + chain+ mgt
DEFINITION OF SUPPLY CHAIN MGT :
s
w
SUPPLY CHAIN MANAGEMENT
Supplier
Manufact
ure
Distributor
Product
Funds
Information
Retailer
Customer
Supply chain is the game of
management of 3 flows as shown in
diagram. You are to explain how these 3
flows affects or support supply chain
performance. Kindly give reply point
wise.
3 FLOWS
 Generally
key pillars of supply chain are
 Customer
 Manufacturer
 Retailers
 Wholesaler/distributor
 Warehouse
and transportation
 Component /raw material suppliers
 Each stage in supply chain is connected through flow of
products , information and fund
During operation, supply chain closely interacts
with other functions like finance, sales ,
marketing etc
Supply chain process is not as simple
as explained. Complexity includes
due to involvement of various real
scenarios like many suppliers, many
distributors, many manufacturing
options .
SUPPLY CHAIN IN REALITY
Different Real Scenarios in Supply Chain
Services also have supply chains
Supply Chain-Historical Perspective
Sourcing ,
Procurement
and supply
management
(purchasing ,
supplier
relationship)
Material
Management
(Forecasting
Inventory, store
, stoke
keeping)
Logistics &
Distribution
To satisfy customers need by
 Matching variable demand with variable supply
 In shortest possible time
 With minimum total cost
OBJECTIVE OF SUPPLY CHAIN
Supply chain designing and its operation
plays a significant role in the success of firm.
o
Supply chain is the channel which ensure
product availability to end user, so it
determines company success.
Successful supply chain operation requires
well inter-connectivity within functions and
efficient role of all functions.
SIGNIFICANCE OF SUPPLY CHAIN :
Few suppliers/ many suppliers
Make or buy decision
Inventory Management
Capacity Planning
SOME STRATEGIES IN SUPPLY CHAIN
Supply chain strategy
next several years
Supply chain planning
 Quarter to a yearly
Supply chain operation
 (weekly/monthly)
Strategy
decision
Planning
decision
Operation
decision
Top mgt
Middle mgt
Lower mgt
No of
decision
Too few
average
Too many
Level of
risk
high
avg
low
frequency
Yearly or
more
Monthly
Daily
/weekly
Scope of
All
avg
Very very
DECISION PHASE IN SUPPLY CHAIN
Decision
taker
 Supply chain is a consequence of processes and
flows that take place within and between
different stages and combine to fill a customer
need for a product.
 Two views of supply chain are
 Cycle view :
 Push/pull view
PROCESS VIEW OF SUPPLY CHAIN
 Processes in supply chain are divided into a
series of cycles , each performed at the
interface between 2 consecutive stages of
supply chain.
 Customer order cycle
 Replenishment cycle
 Manufacturing cycle
 Procurement cycle
CYCLE VIEW
S
m
d
r
c
The process in supply chain are divided into 2
categories depending on whether they are executed
in response to a customer order on in anticipation of
customer order. Pull processes are initiated by a
customer order. Push process are initiated and
performed in anticipation of customer need.
PUSH/PULL VIEW
 Make to stock order
 Pull process : customer order cycle
 Push process : procurement
+replenishment
+ manufacturing
 Build to order
 Pull process : customer order cycle
+manufacturing
 Push process : procurement
Customer order
Replenishment c
Manufacturing c
Procurement cyc
Supply Chain Macro Process in a Firm
Supplier
Firm
SRM
ISCM
Source
Negotiate
Buy
Design collaboration
Supply collaboration
Customer
CRM
Demand planning
Supply planning Market
Price
production
Sell
Warehouse
Order
management
Call centre