Chalk and Talk Presentation Supply Chain Management: Presented by

CHALK AND TALK PRESENTATION
SUPPLY CHAIN MANAGEMENT
Presented by:
Darshan Harsora,
20ME157,
First year in Mechanical Engineering
VVP Engineering Collage.
WHAT IS SCM?
 Supply chain management (SCM) is the optimization of a

product's creation and flow from raw material sourcing to
production, logistics and delivery to the final customer.
 SCM encompasses the integrated planning and execution of
processes required to manage the movement of materials,
information and financial capital in activities that broadly
include demand planning, sourcing, production, inventory
management and storage, transportation or logistics and
returning excess or defective products.
VVP ENGINNERING COLLAGE

CONTINUE…
 Supply chain management relies on both business strategy,

specialized software and collaboration to work.
 Because it's such an expansive, complex undertaking, each
partner from suppliers to manufacturers and beyond must
communicate and work together to create
efficiencies, manage risk and adapt quickly to change.

CONTINUE…
 In addition, supply chain sustainability -- which covers

environmental, social and legal issues, in addition
to sustainable procurement and the closely related concept of
corporate social responsibility which evaluates a company's
effect on the environment and social well-being are areas of
major concern for today's companies.

BENEFITS OF SUPPLY CHAIN MANAGEMENT
Supply chain management creates a number of

benefits that translate to higher profits, better brand
image and greater competitive advantage. These
include the following:
 better ability to predict and meet customer demand.

 better supply chain visibility, risk management and
predictive capabilities.
 fewer inefficiencies process and less product waste.

CONTINUE…
 improvements in quality
 increased sustainability, both from social and an
environmental standpoint
 lower overhead
 improvements in cash flow and
 more efficient logistics.

ADVANTAGES OF SUPPLY CHAIN MANAGEMENT
Cost Efficiency:
 The first and foremost advantage of supply chain
management is that it helps the company in achieving
cost efficiency because it can lower various costs like
transportation costs, warehousing, packaging costs,
reduces wastage by timely delivery of goods and so on
which ultimately helps the company in achieving cost
efficiency which in turn increases the profitability of the
company.

CONTINUE…
Helpful in Identifying Problem Areas:

 In the absence of proper supply management company
will find it hard to find problem areas as every
department will blame other departments for failure but
due to this management company can identify the
problem areas in the company due to which company’s
profitability and reputation are taking a hit.

CONTINUE…
 Hence, for example, suppose the production department

is producing goods in time but due to the lackluster
attitude of dispatch departments goods are not reaching
on time to ultimate customers than supply chain
…
management can easily identify the problem area which
is the dispatch department and hence can take action
against the concerned people.

CONTINUE…
Customer Delight:
 Since the primary task of this management is to make sure
that goods reach customer on time it results in customer
delight because nowadays people do not care about paying
more money provided they get quality service from the
company and supply chain management does exactly that
resulting in costumer of the company getting satisfied and
we all know that a satisfied customer will bring not only his
or her business but acts as a marketing spokesperson of the
company by bringing other customers to the company.

DISADVANTAGES OF SUPPLY CHAIN MANAGEMENT
Lack of Coordination between Various Departments:

 The biggest disadvantage of supply chain management is that
it can work only if there is proper coordination between all
the departments of the company and if departments are at
loggerheads than this system will be a failure.
 Hence for example, if the marketing department does not
inform the production department about the possible order
than the production department will not be able to produce
the desired order on time.

CONTINUE…
Complicated:
 Since it involves multiple departments sometimes it can
be complicated and may hamper the normal working of
the company besides workers as well as employees may
feel insecure and demotivated because human beings by
nature resist new things and to them the concept of
supply chain management may appear very complicated
resulting in them accepting this management half-
heartedly.

CONTINUE…
Trained and Professional Staff:

 It requires professional and trained staff in order to
properly execute supply chain management and in order
to hire professional staff company will need to pay
money which is an expensive proposition which is the
reason why small companies seldom go for supply chain
management as expenses of implementing this system
outweighs its benefits.

STAGES OF SUPPLY CHAIN MANAGEMENT
 Plan: Using supply chain analytics and materials

management features in ERP systems, organizations create
strategic plans to meet customer demand for product and
avoid a bullwhip effect.
 Source: Organizations identify and select vendors that can

supply materials in a streamlined and efficient way according
to agreements. Supply chain collaboration starts at this stage
and is important throughout the supply chain management
process.

CONTINUE…
 Make: In this stage, products are manufactured. It

includes scheduling the production, testing, ensuring
compliance requirements are followed, packing, storage
and release. Multiple machines are likely to be involved,
especially for larger companies, and these increasingly
use technologies such as IoT and AI to work more
efficiently.

CONTINUE…
 Deliver: The delivery stage pertains to logistics and

focuses on getting finished goods to consumers, in
whatever manner of transportation is needed.
As the Amazon effect has grown, especially as a result

COVID-19, more focus is on doorstep delivery. Greater
emphasis is now also on supply chain leaders working
more closely with customer service. Inventory
management and warehouse management systems are
especially crucial at this stage.

CONTINUE…
 Return: The return stage includes all product

returns, including defective products and
products that will no longer be supported. This
stage also includes elements from other stages,
including inventory and transportation
management.

THE ROLE OF SUPPLY CHAIN MANAGEMENT SOFTWARE
 Technology is critical in managing today's supply chains,

and ERP vendors offer modules that focus on key
functions within SCM. There are also business software
vendors that focus specifically on SCM. A few important
areas to note include the following:

CONTINUE…
 supply chain planning software for activities such as

demand management.
 supply chain execution software for activities such as
day-to-day manufacturing operations.
 supply chain planning software for activities such as
demand management.

CONTINUE…
 supply chain execution software for activities such as

day-to-day manufacturing operations
 supply chain visibility software for tasks such as spotting
and anticipating risks and proactively managing them.
 inventory management software for tasks such as
tracking and optimizing inventory levels.

CONTINUE…
 logistics management software and transportation

management systems for activities such as managing the
transport of goods, especially across global supply
chains.
 warehouse management systems for activities related to
warehouse operations.

CONTINUE…
 Infor, Blue Yonder (formerly JDA Software), Manhattan

Associates, Oracle and SAP are well-known vendors of
supply chain software.
 The increasingly global nature of today's supply chains and
the rise of e-commerce, with its focus on nearly instant small
deliveries straight to consumers, are posing challenges,
particularly in the area of logistics and demand planning.
 A number of strategies such as lean manufacturing and
newer approaches such as demand-driven material
requirements planning may prove helpful.

CONTINUE…
 Technology especially big data, predictive analytics, IoT

technology, supply chain analytics, robotics and autonomous
vehicles is also being used to help solve modern challenges,
including in the areas of supply chain risk and disruption and
supply chain sustainability.
 As just two examples, IoT can help with transparency
and traceability to help boost food quality and safety by using
sensors to monitor the temperature of perishable food while
it's in transit. And analytics can help determine where to put
smart lockers in densely populated areas to cut the number of
single-item deliveries and lower greenhouse gas emissions.

EXAMPLES OF SCM
 The most basic version of a supply chain includes

a company, its suppliers and the customers of that
company.
 An example would be: raw material producer,
manufacturer, distributor, retailer and retail
customer.

CONTINUE…

CONTINUE…
 Most supply chains are far more complex and layered.

This is why examples of unsuccessful supply chain
management, where risk is not managed or disruption
occurs, can be so helpful.
 Food shortages due to COVID-19 are a good example of
supply chain management gone awry. The food supply
chain was disrupted in a number of ways.

CONTINUE…
 For example, many restaurants and schools closed to

accommodate stay-at-home orders, causing products
meant to go to institutional settings in bulk to no longer
be needed. Instead, an exponential number of consumers
were eating at home, which had different packaging
requirements, among other issues.
 The meat industry also ran into supply chain
management disruptions due to issues such as COVID-
19 outbreaks in slaughter houses.

CONTINUE…

REVERSE SUPPLY CHAIN
 Reverse supply chain refers to the movement of goods

from customer to vendor. This is the reverse of the
traditional supply chain movement of goods from vendor
to customer.
 Reverse logistics is the process of planning,
implementing and controlling the efficient and effective
inbound flow and storage of secondary goods and related
information for the purpose of recovering value or
proper disposal.

CONTINUE…
 Typical examples of reverse supply chain include:

• Product returns and management of their deposition.
• Remanufacturing and refurbishing activities.
• Management and sale of surplus, as well as returned
equipment and machines from the hardware leasing
business.
CONTINUE…
 In these case, the resource goes at least one step back in

the supply chain.
 For instance, products move from customer to distributor
or manufacturer.
 Other instances of products reversing direction in the
supply chain are manufacturing returns, commercial
returns (B2B and B2C), product recalls, warranty
returns, service returns, end-of-use returns and end-of-
life returns.
CONTINUE…
 There are various types of reverse supply chains, and

they arise at different stages of the product cycle;
however, most return supply chains are organized to
carry out five key processes:
• Product acquisition: Obtaining the used product from

the user by the reseller or manufacturer.
• Reverse logistics: Transporting products to a facility for
inspecting, sorting and disposition.
CONTINUE…
• Inspection and disposition: Assessing the

condition of the return and making the most profitable
decision for reuse.
• Remanufacturing or refurbishing: Returning the
product to its original specifications.
• Marketing: Creating secondary markets for the
recovered products.
CONTINUE…

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CHALK AND TALK PRESENTATION

SUPPLY CHAIN MANAGEMENT

 Supply chain management (SCM) is the optimization of a

VVP ENGINNERING COLLAGE

 Supply chain management relies on both business strategy,

VVP ENGINNERING COLLAGE

 In addition, supply chain sustainability -- which covers

VVP ENGINNERING COLLAGE

Supply chain management creates a number of

 better ability to predict and meet customer demand.

VVP ENGINNERING COLLAGE

VVP ENGINNERING COLLAGE

VVP ENGINNERING COLLAGE

Helpful in Identifying Problem Areas:

VVP ENGINNERING COLLAGE

 Hence, for example, suppose the production department

VVP ENGINNERING COLLAGE

VVP ENGINNERING COLLAGE

Lack of Coordination between Various Departments:

VVP ENGINNERING COLLAGE

VVP ENGINNERING COLLAGE

Trained and Professional Staff:

VVP ENGINNERING COLLAGE

 Plan: Using supply chain analytics and materials

 Source: Organizations identify and select vendors that can

VVP ENGINNERING COLLAGE

 Make: In this stage, products are manufactured. It

VVP ENGINNERING COLLAGE

 Deliver: The delivery stage pertains to logistics and

As the Amazon effect has grown, especially as a result

VVP ENGINNERING COLLAGE

 Return: The return stage includes all product

VVP ENGINNERING COLLAGE

 Technology is critical in managing today's supply chains,

VVP ENGINNERING COLLAGE

 supply chain planning software for activities such as

VVP ENGINNERING COLLAGE

 supply chain execution software for activities such as

VVP ENGINNERING COLLAGE

 logistics management software and transportation

VVP ENGINNERING COLLAGE

 Infor, Blue Yonder (formerly JDA Software), Manhattan

VVP ENGINNERING COLLAGE

 Technology especially big data, predictive analytics, IoT

VVP ENGINNERING COLLAGE

 The most basic version of a supply chain includes

VVP ENGINNERING COLLAGE

VVP ENGINNERING COLLAGE

 Most supply chains are far more complex and layered.

VVP ENGINNERING COLLAGE

 For example, many restaurants and schools closed to

VVP ENGINNERING COLLAGE

VVP ENGINNERING COLLAGE

 Reverse supply chain refers to the movement of goods

VVP ENGINNERING COLLAGE

 Typical examples of reverse supply chain include:

 In these case, the resource goes at least one step back in