ALLIANCE ASCENT COLLEGE

Presented By: Course: BBA(Hons)

Arushi Christopher Semester:-4th
Rohan Gupta Group 3
Ali Meezan
Sabarish Naidu

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the management of the flow of goods and
services from the point of origin to the point of consumption. It involves the
coordination and integration of all the activities involved in the supply chain to
optimize efficiency, reduce costs, and improve customer satisfaction.
Effective supply chain management requires careful planning, execution, and
control of all activities involved in the supply chain. This includes sourcing raw
materials, managing inventory, manufacturing products, storing and
transporting finished goods, and delivering them to customers. Supply chain
management also involves managing relationships with suppliers and other
partners in the supply chain to ensure that products and services are delivered
on time and at the right quality.
Effective supply chain management can help businesses achieve several
benefits, including reduced costs, increased efficiency, improved customer
service, and increased revenue. It is a critical component of any successful
business operation, and requires careful planning and execution to achieve
optimal results.
 OBJECTIVES OF SUPPLY CHAIN MANAGEMENT

The objectives of supply chain management (SCM) are to optimize

the flow of goods and services from the point of origin to the point of
consumption, minimize costs, and improve customer satisfaction.
Effective supply chain management can help businesses achieve the
following objectives:
 Improve efficiency: SCM can help businesses optimize their
operations by reducing waste, eliminating redundancies, and
streamlining processes.
 Reduce costs: SCM can help businesses reduce costs by
improving inventory management, minimizing transportation
and storage costs, and reducing production costs.
 Enhance customer satisfaction: SCM can help businesses
improve customer satisfaction by ensuring that products are
delivered on time, at the right quality, and at the right price.
 Increase revenue: SCM can help businesses increase revenue by
improving production efficiency, reducing lead times, and
enhancing customer satisfaction, leading to increased sales and
repeat business.
 Foster collaboration: SCM involves close collaboration with
suppliers, partners, and customers, which can help businesses
build stronger relationships and improve overall performance.
 Manage risk: SCM can help businesses mitigate risk by
identifying potential disruptions in the supply chain, developing
contingency plans, and implementing risk management
strategies.
 IMPORTANCE OF SUPPLY CHAIN MANAGEMENT

Effective supply chain management (SCM) is important for several

reasons:
 Cost reduction: SCM can help businesses reduce costs by
improving efficiency, reducing waste, and minimizing
transportation and inventory costs.
 Improved customer satisfaction: SCM can help businesses
improve customer satisfaction by ensuring that products are
delivered on time and at the right quality, leading to increased
loyalty and repeat business.
 Increased revenue: SCM can help businesses increase revenue
by improving production efficiency, reducing lead times, and
enhancing customer satisfaction, leading to increased sales and
repeat business.
 Risk management: SCM can help businesses mitigate risks by
identifying potential disruptions in the supply chain, developing
contingency plans, and implementing risk management
strategies.
 Competitive advantage: SCM can provide businesses with a
competitive advantage by improving the speed and efficiency of
their supply chain, allowing them to respond quickly to market
demands and changes in customer preferences.
 Improved collaboration: SCM involves close collaboration with
suppliers, partners, and customers, which can help businesses
build stronger relationships and improve overall performance.
 Sustainability: SCM can help businesses reduce their
environmental impact by optimizing transportation and
reducing waste, leading to more sustainable operations.
 CURRENT TRENDS OF SUPPLY CHAIN MANAGEMENT

There are several current trends in supply chain management that

are shaping the way businesses manage their supply chains. Here are
some of the most significant trends:
 Digital transformation: The adoption of digital technologies
such as artificial intelligence, the Internet of Things (IoT), and
blockchain is transforming the way businesses manage their
supply chains. These technologies can help businesses improve
efficiency, reduce costs, and enhance transparency and
traceability in the supply chain.
 Sustainability: There is a growing emphasis on sustainability in
supply chain management, with businesses increasingly
focused on reducing their environmental impact and promoting
social responsibility. This includes reducing waste, optimizing
transportation, and using sustainable materials.
 Resilience: The COVID-19 pandemic has highlighted the
importance of building resilient supply chains that can
withstand disruptions and unexpected events. Businesses are
investing in risk management strategies and contingency plans
to ensure that their supply chains can continue to operate in
the face of disruption.
 Collaboration: Collaboration between supply chain partners is
becoming increasingly important, with businesses working
more closely with suppliers, logistics providers, and customers
to optimize the supply chain and improve performance.
 E-commerce: The growth of e-commerce is driving changes in
supply chain management, with businesses focused on
optimizing fulfillment operations, managing inventory, and
improving last-mile delivery to meet the demands of online
customers.
 CHALLENGES OF SUPPLY CHAIN MANAGEMENT

Here are some of the most common challenges:

 Globalization: As supply chains become more global, businesses
face challenges in managing complex logistics and navigating
different legal and regulatory environments.
 Supply chain disruptions: Natural disasters, political instability,
and other disruptions can have a significant impact on the
supply chain, causing delays, shortages, and increased costs.
 Inventory management: Managing inventory levels can be
challenging, as businesses need to balance the cost of holding
inventory with the need to ensure adequate supply to meet
customer demand.
 Supplier management: Managing supplier relationships and
ensuring that suppliers meet quality and ethical standards can
be challenging, particularly in complex supply chains with
multiple tiers of suppliers.
 Data management: The increasing use of digital technologies
and data analytics in supply chain management creates
challenges in managing and securing data, ensuring data
accuracy, and using data effectively to make decisions.
 Talent management: Finding and retaining skilled supply chain
professionals can be challenging, particularly in a rapidly
changing technological and business environment.
 Cost pressures: Businesses face pressure to reduce costs in the
supply chain, which can create challenges in managing logistics,
inventory, and supplier relationships while maintaining quality
and service levels.
 ELEMENTS OF SUPPLY CHAIN MANAGEMENT

Here are the key elements of SCM:

 Planning and forecasting: This involves forecasting demand and
planning production and inventory levels to meet customer
demand while minimizing costs.
 Sourcing and procurement: This involves selecting and
managing suppliers, negotiating contracts, and ensuring that
materials and products meet quality and ethical standards.
 Production: This involves managing production processes to
ensure timely and efficient production of goods and services, as
well as managing inventory levels.
 Logistics and transportation: This involves managing the
movement of goods and services throughout the supply chain,
including transportation, warehousing, and distribution.
 Information management: This involves collecting and analysing
data to inform decision-making and optimize supply chain
performance, as well as using digital technologies to improve
transparency and traceability.
 Collaboration and communication: This involves building strong
relationships with suppliers, logistics providers, and customers
to improve coordination and optimize supply chain
performance.