SUPPLY CHAIN MANAGEMENT

PAPER CODE M B A 031

U. P. TECHNICAL UNIVERSITY
 If you study to remember, you
will forget, but, If you study to
understand, you will remember.
Overview- Till 1950
Inventory control Sales

Manufacturing

Procurement
Distribution

Maximization of profit by Aggressive preaching skills

sales
1960-1970

Manufacturing
management

Physical
Material distribution and
management Sales
management

Cost control Price based competition

1980

Manufacturing
management

Marketing
Material management and
management distribution
management

Maximization of profitable
sales volume and cost Increased productivity,
reduction profitability and market share
1990

Vendors

Logistics Customers

Core competency Customer value and

harmonious relationship
 MARKETING CHANNELS
FINISHED GOODS

INTERMEDIARIES

FINAL BUYERS

THE SUPPLY CHAIN

RAW MATERIALS

COMPONENTS
FINISHED GOODS
INTERMEDIARY
FINAL BUYERS
 THE SUPPLY CHAIN

 The integration of key business process

from the end user through original
suppliers that provides products, services
and information that add value for
customers.
 Organization that successively transform
raw material into intermediate goods, then
to final goods and deliver them to
customer.
 SEAMLESS S C M
CAPITAL EQUIP. COMPONENTS RAW MATERIAL

SUPPLIERS FINISHED GOODS

DISTRIBUTORS

COMPONENTS WHOLESALERS

RETAILERS
RAW MATERIAL
CONSUMER
CONCEPTS
FEATURES

 Single Entity
 Consolidated planning of every function of
management.

 Reduces delays

 Increases empathy
 Inventory Perspective
 Reduces inventory level to minimal a quantum
leap in perspective.

 Reduces lead time

 Reducing uncertainty

 Improves quality
 Strategic decision making

 Collaborative approach- making partners along

the way.
 System approach
 Linking every function into interlinked
interdependent sub systems
 Doing the best one can

 Supply chain relationships

 Flexible approach
CONTRIBUTION

 Minimizing uncertainty

 Reducing lead time

 Minimizing the number of stages

 Improving flexibility
 Improving process quality

 Minimizing variety

 Managing demand

 Delaying differentiation
FLOWS IN SCM

 Value flow
 Quality
 Cost quick response
 Availability
 Consistency
 Goods flow
 Raw material
 Work in progress
 Information flow
 Backward flow

 Forward flow
 Cash flow
 Life blood of the company
 The knowledge of the world is
only to be acquired in the world,
and not in a closet.