Group 1

Sushil Pangeni
Sweekar Hamal
Sweta Mahaseth
Swostika Acharya
Umesh Luitel
 Supply Chain

◦ A supply chain is the connected network of individuals, organizations,

resources, activities, and technologies involved in the manufacture and sale of
a product or service. 

◦ A supply chain starts with the delivery of raw materials from a supplier to a
manufacturer and ends with the delivery of the finished product or service to
the end consume
 Basic Supply Chain

Seller Producer Customer

 Raw Material
 Components from Seller
 Energy  Receives the finished
 Furnished Goods
 Services good
 Service
 Components
 Flows in supply chain
Information Flow Primary Cash flow

 Invoices
 Sales Literature  Payments of Products
 Specifications  Supplies
 Receipts
 Order
 Rule and Regulation

Primary Product Flow Reverse Product Flow

 Material  Return for Repair

 Components  Replacement
 Supplies  Recycling
 Services  Disposals
 Finished Product
 Supply Chain Management (SCM)
◦In the late 1920s, the introduction of mass production along
assembly lines laid the foundations for supply chain management.

◦First successfully implemented by Ford, the idea of producing

consistent products on a large scale with increased efficiency
changed trade and supply chains irreversibly.

◦Supply chain management (SCM) is the centralized management

of the flow of goods and services and includes all processes that
transform raw materials into final products.
Supply Chain in Manufacturing Definition
Supply Chain Example
Supply Chain in Manufacturing
Supply Chain in Manufacturing
Supply Chain in Services
Supply Chain in Services
Components of Supply Chain Management
Planning

Transportation Information

Location Source

Production Inventory
Function of Supply Chain Management

Purchasing

Operations

Logistics

Resource Management

Information Workflow
Benefits of Supply Chain Management
Higher efficiency rate

Decrease cost effects

Increases output

Increases your business profit level

Boost cooperation level

No more delays in processes

Enhanced supply chain network

 Difficulties in Supply Chain
Management

Finding Rapidly
Customer Unexpected
Cost Control qualified Changing
Service Delays
Personnel Market
 Add to difficulty in managing

• Lack of coordination
Complexity in the supply chain • Lack of integration
Leads to • Lack of information sharing
• Lack of synchronization of data

Add to

Leads to

• Increased no. of companies Leads to

• Changing customer needs and expectations • Lower profit
• National and international laws and • Higher cost
regulations • Lower performance
• Industry specific regulations and standards • Higher risk
Best Supply Chains from Companies
Around the World
UNILEVER
• British-dutch consumer goods
company
• Third-largest of its kind, and offers
food, beverages, personal care
products, and cleaning agents
• Restructuring of their supply chain
management
• Focused on organization, global
procurement processes, supply chain
executives, supplier involvement, and
technology.
• Result: achieved $14.24 billion in
savings in 2003 from its initiatives, and
unilever became A leader in the
consumer packaged industry for
technology adoption
H&M
• Worldwide fashion retailer H&M has
been globally
• Reliance on efficiency and integrated
systems for some of the major
components of their supply chain,
such as inventory management, has
played a significant role in their
success with stock control.
• H&m’s strategy with their supply
chain is focused on cost-efficiency
with production and reducing lead
times for inventory—both factors that
have led to their notability for offering
chic, trendy styles with rapid
turnarounds
 Ingredient

Community Packaging

Recycling Manufacturing

Customers and consumers

Distribution

Refrigeration
 Conclusion

◦ Supply chain management is moving

the right items to the right customers
at the right time by the most efficient
means.

◦ It is important manage supply chain in

operation management for the speed of
service, system efficiency and cost
efficiency.
Any Queries?😃