Sanjivani College of Engineering, Kopargaon

Department of MBA

203- Operation Management

Supply Chain Management

Presented By

Dr. Niraj Chaudahri

Assistant Professor,
Sanjivani College of Engineering ,
Dept.of MBA,
Kopargaon

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 Unit V: Supply Chain Management

• Supply chain concept, key issues in SCM-

Collaboration , Extensions ,Responsiveness,
cash to cash Conversion.
• Customer service :service linkage , availability,
reliability , customer satisfactions
• Enablers of SCM :Facilities, inventory,
transportations, information sourcing ,pricing
• Green Manufacturing : Need, Importance,
Advantage & Disadvantage
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 Supply chain Management

• supply chain management is the

management of the flow of goods and
services, between businesses and locations,
and includes the movement and storage of
raw materials, of work-in-process inventory,
and of finished goods as well as end to end
order fulfillment from point of origin to point
of consumption

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Supply chain Management

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Supply chain Management Model

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 Key Issues in Supply Chain Management

• Collaborations
• Enterprise extensions
• Responsiveness
• Cash conversations cycle (CCC)

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 Collaboration

• In supply chain management, supply chain

collaboration is defined as two or more 
autonomous firms working jointly to plan
and execute supply chain operations. It can
deliver substantial benefits and advantages
to collaborators. It is known as a cooperative
strategy when one or more companies or
business units work together to create
mutual benefits.

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 Types of supply chain collaboration
• Vertical collaboration is the collaboration when two or
more organizations from different levels or stages in
supply chain share their responsibilities, resources, and
performance information to serve relatively similar end
customers.
• Horizontal collaboration is an inter-organizational
system relationship between two or more companies at
the same level or stage in the supply chain in order to
allow greater ease of work and cooperation towards
achieving a common objective.

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 Enterprise Extensions

• The concepts of extended enterprise arise partly

from the attempts of manufacturers, situated at
geographically dispersed locations, to build formal
partnerships to gain competitive advantage. Another
feature of the extended enterprise is the movement
of information and materials among the collaborating
enterprises in a synchronized and co-ordinated way.
Extensive use of IT within the respective enterprises
and electronic communications among the
enterprises is an additional feature of the extended
enterprises.

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 Responsiveness
•  Responsive Supply Chains Require Process
Integration Evolving and increasing consumer
expectations are companies to align and integrate
processes to remain competitive and relevant.
Consumers have gained greater access to product,
pricing, and availability details. Cloud computing,
social media, mobile technology, and big data are
combining to offer innovative market leaders the
tools with which to differentiate their brands from
the competition.
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 Cash conversations cycle (CCC)

• The cash conversion cycle (CCC) – also known as the

cash cycle – is a working capital metric which
expresses how many days it takes a company to
convert cash into inventory, and then back into cash
via the sales process. The shorter a company’s CCC,
the less time a company has cash tied up in its
accounts receivable and inventory.
• The CCC is an important metric for companies that
buy and manage inventory as it is an indication of
operational efficiency as well as financial health.

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Cash conversations cycle (CCC)

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