Content

To understand basic Supply Chain Principles & Concepts

To appreciate the Significance of the Supply Chains

To discuss how the Supply chains are becoming the New

Frontiers of creating competitiveness

Drivers of Supply Chain

Way Forward

A Supply chain is

The Supply Chain management Concept

A supply chain is a group of partners who
collectively convert a basic commodity
(upstream) into a finished product
(downstream) that is valued by end-customers,
and who manage returns at each stage.

Definition

Planning and controlling all of the processes

that link partners in a supply chain together in
order to serve needs of the end-customer.

SCM - The concept

Tier 3 to initial suppliers

Tier 3 to end customers

Tier 1 suppliers

Tier 1 customers

2
1

Initial Suppliers

n
1

2
n

Tier 2 suppliers

Tier 2 customers
Institute of Logistics

Centre of Excellence - Supply Chain Management

Institute of Logistics

Consumers / End-Consumers

Supply Chain Vs. Logistics

Supply Chain is the network of facilities
(Warehouses, factories, terminals, ports. Stores),
Vehicles (Trucks, Trains, Planes, Ships) and Logistic
information system(LIS) connected to enterprises
suppliers suppliers and customers customers.
Logistics is what happens in the supply
chain.Logistics activities(Customer order
processing, Transportation,etc;) connect and
activate objects in the supply chain. Logistics is
the game played in the supply chain arena.

Evolution of Supply chain Concept

Demand Forecasting

1980s

Purchasing
Requirements Planning

Materials
Management

Production Planning

1990s

Manufacturing Inventory

2000s

Warehousing
Logistics

Materials Handling
Packaging
Inventory
Distribution Planning
Order Processing

Physical
Distribution

Information Technology

Transportation

Marketing

Customer Service

Strategic Planning

Supply Chain
Management

Material and information flow

Material flow

Information flow

Physical Flow

SC Services

Supply Chain Scope lies in

Demand Planning
& Management
Materials
Management

Order
Management

Sourcing &
Supplier
Management
Suppliers

Transportation
Management

Warehousing
& Value
Added Services
Inventory
Management

Warehouse
SME

Supply Chain
IT Solution

Supplier
Relationship
Management

Purchasing
& Collection

Workforce
Management
System

Returns
Management
Distribution
Channels

BUYER

Up stream

Demand &
F/C plans

VMI

Customer
Support

Retail
Outlet

Down stream

Logistics Services/
Warehousing

Warehouse
Management
System

Outbound
Logistics

Transport
Management
System

Data Exchange (EDI) ERP - Bar Code, WMS RFID,

Marketing
& Sales

Pricing & Billing

Reverse
Logistics

Customer
Service

Customer
Relationship
Management

Returns &
Warranty
Management

Integrated web based solutions (S-a-a-S)

Drivers of Supply Chain

Customer Analysis
Demand Planning

IT & Technology

Storage &
Transportation

Integrated Supply
Chain Management

Purchasing/Supplier
Partnering

Demand & Lead Time

Management

Inventory
Management and
Control

for further details:

Please visit www.ciilogistics.com

contact : mgurunathan@cii.in