Supply Chain Management

Christ University, Bangalore-29 Rishikesh. K. B.

What Is the Supply Chain?

Also referred to as the logistics network Suppliers, manufacturers, warehouses, distribution centers and retail outlets facilities
Suppliers Manufacturers Warehouses & Distribution Centers Customers

and the
Raw materials Work-in-process (WIP) inventory Finished products that flow between the facilities Is altogether referred to as Supply Chain
Material Costs Transportation Costs Transportation Costs Manufacturing Costs Inventory Costs Transportation Costs

Christ University, Bangalore-29

Rishikesh. K. B.

The Supply Chain

Suppliers Manufacturers Warehouses & Distribution Centers Customers

Transportation Costs Material Costs Manufacturing Costs

Transportation Costs Inventory Costs

Transportation Costs

Christ University, Bangalore-29

Rishikesh. K. B.

What Is Supply Chain Management (SCM)?

Plan Source Make Deliver Buy A set of approaches used to efficiently integrate Suppliers Manufacturers Warehouses Distribution centers So that the product is produced and distributed In the right quantities To the right locations And at the right time Advantages: System-wide COSTS are minimized and, SERVICE LEVEL requirements are satisfied
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Christ University, Bangalore-29

Rishikesh. K. B.

SUPPLY CHAIN MANAGEMENT (SCM):

Supply chain management helps a company to get the right products to the right place, at the right time, in proper quantity at an acceptable cost. The goal of SCM is to: Forecast demand Control inventory Enhance relationships with customers, suppliers, distributors, and others Receive feedback on the status of every link in the supply chain
Christ University, Bangalore-29 Rishikesh. K. B.

What Is the Supply Chain?

Christ University, Bangalore-29

Rishikesh. K. B.

Supply Chain Management

Christ University, Bangalore-29

Rishikesh. K. B.

Benefits of Supply Chain Collaboration

Customers Material Suppliers Service Suppliers

Christ University, Bangalore-29

Rishikesh. K. B.

Benefits of Supply Chain Collaboration

CUSTOMERS
Reduced inventory Increased revenue Lower order management costs Higher Gross Margin Better forecast accuracy Better allocation of promotional budgets

MATERIAL SUPPLIERS
Reduced inventory Lower warehousing costs Lower material acquisition costs Fewer stock out conditions

SERVICE SUPPLIERS
Lower freight costs Faster and more reliable delivery Lower capital costs

Improved customer service More efficient use of human and material resources
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Christ University, Bangalore-29

Rishikesh. K. B.

Roles and Activities of SCM in Business

Christ University, Bangalore-29

Rishikesh. K. B.

Supply Chain Management

Key Benefits: Include,
Faster, more accurate order processing Reductions in inventory levels Quicker times to market Lower transaction and materials costs Strategic relationships with supplier
Christ University, Bangalore-29 Rishikesh. K. B.

 Challenges: Include,

Supply Chain Management

Lack of demand planning knowledge, tools, and guidelines Inaccurate data provided by other information systems Lack of collaboration among marketing, production, and inventory management SCM tools are immature, incomplete, and hard to implement

Christ University, Bangalore-29

Rishikesh. K. B.

EDI: Electronic Data Interchange

What is EDI? Exchange of electronic data between companies using precisely defined transactions Set of hardware, software, and standards that accommodate the EDI process
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Christ University, Bangalore-29

Rishikesh. K. B.

EDI Benefits:

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Christ University, Bangalore-29

Rishikesh. K. B.

EDI software is used to convert a companys own document formats into standardised EDI formats as specified by various industry and international protocols. Formatted transaction data are transmitted over network links directly between computers without paper documents or human intervention.

Thus EDI streamlines processes, saves time and increases accuracy. It is an example of complete automation of an e-commerce supply chain process.
Christ University, Bangalore-29 Rishikesh. K. B.

Electronic Data Interchange

Suppliers, manufacturers, and retailers cooperate in some of the most successful applications of EDI.
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Christ University, Bangalore-29

Rishikesh. K. B.

 How does EDI work?

Electronic Data Exchange

Suppliers proposal sent electronically to purchasing organization. Electronic contract approved over network. Supplier manufactures and packages goods, attaching shipping data recorded on a bar code. Quantities shipped and prices entered in system and flowed to invoicing program; invoices transmitted to purchasing organization
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Christ University, Bangalore-29

Rishikesh. K. B.

Electronic Data Exchange

Manufacturer ships order. Shipment notice EDI transaction sent Purchasing organization receives packages, scans bar code, and compares data to invoices actual items received. Payment approval transferred electronically. Bank transfers funds from purchaser to suppliers account using electronic fund transfer (EFT).
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Christ University, Bangalore-29

Rishikesh. K. B.

Electronic Data Interchange

Figure 11.4
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Christ University, Bangalore-29

Rishikesh. K. B.

Enterprise Collaboration System: How to work together?

Consensus [We Decide than Me Decide]

Christ University, Bangalore-29 Rishikesh. K. B.

Enterprise Collaboration System

The goal of Enterprise Collaboration System is to enable and work together more easily and effectively by helping in: a. Communicate: Sharing information with each other b. Coordinate: Coordinating our individual work efforts and use of resources with each other c. Collaborate: Working together cooperatively on joint projects and assignments
Christ University, Bangalore-29 Rishikesh. K. B.

Groupware for Enterprise Collaboration System:

Experts define Groupware as collaboration software, that is, software that helps teams and workgroups work together in a variety of ways, to accomplish joint projects and group assignments. For example: Lotus Notes, Novell GroupWise, Microsoft Exchange, Netscape Communicator, and Microsoft soft Project.
Christ University, Bangalore-29 Rishikesh. K. B.

Christ University, Bangalore-29

Rishikesh. K. B.

Communication Technology

Christ University, Bangalore-29

Video Conferencing

Rishikesh. K. B.

Communication Technology

Websites
Christ University, Bangalore-29 Rishikesh. K. B.

Communication Technology

Cellular (mobile) Phone

Christ University, Bangalore-29 Rishikesh. K. B.

Communication Technology

SMS (Short Message Service)

Christ University, Bangalore-29 Rishikesh. K. B.

Communication Technology

Voice Mail
Christ University, Bangalore-29 Rishikesh. K. B.

Communication Technology

Fax
Christ University, Bangalore-29 Rishikesh. K. B.

Communication Technology

Blue Tooth, E-mail (Electronic Mail)

Christ University, Bangalore-29 Rishikesh. K. B.

Christ University, Bangalore-29

Rishikesh. K. B.

Questions

?s .... if any.

Christ University, Bangalore-29

Rishikesh. K. B.

Christ University, Bangalore-29

Rishikesh. K. B.