Supply Chain Management Changing business environment and Present need.pptx

Supply chain management (SCM) is the coordination of all activities involved in the planning, sourcing, production, and delivery of products or services to customers. The business environment is constantly changing, and these changes have a significant impact on SCM. Here are some of the ways in which the changing business environment is affecting SCM:

Globalization: The globalization of markets has created new opportunities for businesses to source and sell products across the world. However, it has also made SCM more complex as companies have to deal with multiple suppliers, varying regulations, and cultural differences.

Technology: The use of technology has revolutionized SCM, making it easier to manage processes, track products, and communicate with suppliers and customers. However, it has also created new challenges, such as cybersecurity risks and the need for skilled personnel.

Sustainability: The growing concern for the environment has made sustainability an important consideration in SCM. Companies need to find ways to reduce their carbon footprint, use renewable resources, and minimize waste.

Customer expectations: Customers are becoming more demanding, expecting products to be delivered faster, at lower costs, and with greater customization. This is putting pressure on SCM to be more efficient and flexible.

The present need for SCM is critical, as it enables businesses to compete in today's complex and dynamic environment. SCM helps companies to:

Optimize their operations: SCM helps businesses to streamline their processes, reduce costs, and improve efficiency.

Manage risk: SCM helps companies to identify and manage risks in their supply chain, such as supplier bankruptcy or natural disasters.

Enhance collaboration: SCM facilitates collaboration between different functions within a business and between suppliers and customers, leading to better communication and alignment.

Improve customer service: SCM helps businesses to meet customer demands by delivering products faster, with higher quality, and at lower costs.

Overall, SCM is essential for businesses to remain competitive and adapt to the changing business environment. It enables companies to respond to challenges and opportunities, while improving their efficiency and effectiveness.

1. Supply Chain Management : Changing business environment and Present need Snehal Athawale PhD Scholar (School of Social Sciences) CPGS-AS, Umiam , Meghalaya Course no. ABM-508

2. What is Supply Chain? A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. It is a network of individuals and companies who are involved in creating a product and delivering it to the consumer.

3. The Objective of Supply Chain Supply Chain Surplus = Customer Value – Supply Chain Cost Supply chain surplus Difference between the value of the product and its price remains with the customer Consumer surplus. Difference between the revenue generated from the customer and the overall cost across the supply chain Supply chain profitability (Chopra and Meindl , 2007)

4. Supply Chain Management SCM is the process of managing the movement of goods and services to end users in a very efficient and effective way. Appropriate management of flows (i.e. flows of information, product, or funds generate costs within the supply chain) is a key to supply chain success. Maximize total supply chain surplus. These all chained activities are glued by information technology and wheeled by money.

5. Supply chain : Changing business environment Business environment indicates the aggregate total of all people, organisations and other forces that are outside the power of industry but that may affect its production. Current global and competitive business environment constantly asks for innovation, continuously thriving for advancement in process improvement. Business environments are complex in nature as well as dynamic because they are dependent upon factors like political, economic, legal, technological, social, etc. for sustenance   Globalization has encouraged free movement of capital, goods and service across countries.

6. Supply chain : Changing business environment Opening up of markets has not only increased competition but also has allowed companies to operate in markets previously considered forbidden. Importance of Business Environment- Helps in Identifying Opportunities and Threat First Mover Advantage Tapping Useful Resources Coping With Rapid Changes Assisting in Planning and Policy Formulation Improving Performance 2 1 3 5 4

7. Factors influencing SCM Consumer Demand Globalization Competition 1 2 3 Information and Communication Government Regulation Environment 4 5 6 2 3

8. Present need of SCM in business Supply chain drivers Warehouse facilities Inventory Transportation Logistic Cross Fuctional Pricing Sourcing Information External factors - Regulatory systems, international agreements, tax systems, and infrastructure may impact the performance of SC indirectly

9. 04 03 01 02 To assure a continuous supply and avoid a service company’s delivery disruptions. Contractual obligations Strengthening supplier relations Managing risk Procurement For systematic synergy with suppliers and different lines of business. Mitigation of everyday risks, with the goal of reduced costs, minimizing inconvenience, and boosting company profits. Getting required goods by Establishing comprehensive supplier view through right supplier Present need of SCM in business

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