Supply Chain Management Presentation.pptx

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1. Supply chain management

2. Supply chain management

3. Outline of supply chain management Introduction Definition Need of supply chain management Benefits of effective supply chain management Elements of supply chain management Key issues in supply chain management

4. Introduction. To supply chain management Core functions of operation management FORECASTING PRODUCT DESIGN LOCATION PLANNING LAYOUT PLANS INVENTORY MANAGEMENT SUPPLY CHAIN MANAGEMENT (Main topic to be discuss)

5. Supply chain management Supply chain management consist of two main concepts Supply chain Management supply chain A supply chain consist of a series of a activities involving many organization through which the material moves from initial supplliers to final customer

6. Supply chain management Management Management define as the all activities and tasks undertaken for achieving goals by continuous activities like Planning Organizing Leading

7. Leading Supply chain management (SCM) SCM is also called the art of management for providing the Right product at Right time on Right place at the Right cost to the customer

8. Introduction ( con’t ) Supply chain management is the handling of the entire production flow of a good or service — starting from the raw components all the way to delivering the final product to the consumer. A company creates a network of suppliers (“links” in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users.

9. Definition of supply chain management In  commerce ,  supply chain management  ( SCM ) is the management of the flow of  goods  and  services [2]  including all processes that transform raw materials into final products [3]  between businesses and locations.

10. Example of supply chain management China Pakistan Economic Corridor (CPEC) refers to the network of structures that aim at establishing connectivity between different regions of the economic corridors of the two countries. The major objective of the CPEC is thus to redefine and strengthen the Sino-Pakistan relationship and help Pakistan in gaining economic stability

11. Function of supply chain management The five functions of supply chain management include the following: Purchasing. The first function of supply chain management is purchasing. ... Operations. ... Logistics. ... Resource Management. ... Information Workflow.

12. Function of SCM CON’T 1. Purchasing The first function of supply chain management is purchasing. In the manufacturing process, raw materials are required to produce goods and products. It is important that these materials are procured and delivered on time so that production can begin. For this to occur, coordination with suppliers and delivery companies will be required to avoid any potential delays. 

13. Function of SCM CON’T Operations Demand planning and forecasting  are usually required before materials can be procured, as the demand market will dictate how many units to be produced and how much material is required for production. This function is important in supply chain management as organizations must accurately forecast demand to avoid having too much or too little inventory that will lead to losses in revenue. Therefore, demand planning and forecasting must be tied in with inventory management, production, and shipping to avoid such mistakes. 

14. Function of SCM CON’T Logistics Logistics is the part of supply chain management that coordinates all aspects of planning, purchasing, production, warehousing, and transportation so that the products will reach the end-consumer without any hindrances. It is helpful to have adequate communication between multiple departments so that products can be shipped to customers quickly and at the lowest cost. 

15. Function of SCM CON’T Resource Management Production consumes raw materials, technology, time, and labor. Resource management ensures that the right resources are allocated to the right activities in an optimized manner. This will ensure that an optimized production schedule is created to maximize the efficiency of the operations. 

16. Function of SCM CON’T Information Workflow Information sharing and distribution is what keeps all of the other functions of supply chain management on track. If the information workflow and communication are poor, it could break apart the entire chain. Many disruptions that arise in supply chains can be prevented by increased visibility and communication

17. Need of supply chain management Supply chain management is important because  it can help achieve several business objectives . For instance, controlling manufacturing processes can improve product quality, reducing the risk of recalls and lawsuits while helping to build a strong consumer brand. Managing contractual obligations to ensure a continuous supply and avoid a service company’s delivery disruptions Company need supply chain management to establish stream-lined supply chain management Process on order to realize the very best value from value from their spending through suppliers analysis of cost risk and performance

18. Need of SCM (CON’T ) CORPORATION of the world relay on supply chain management when fulfilling their business and IT goals each year SCM  Helps Sustains Human Life  – Humans depend on supply chains to deliver basic necessities such as food and water. Any breakdown of these delivery pipelines quickly threatens human life. Corporation of the world relay on supply chain to fulfilling their business and IT goals each year

19. Benefits of effective supply chain management Important benefits of supply chain management Better collaboration with suppliers. Better quality control. Shipping optimisation. Reduced inventory and overhead costs. Improved risk mitigation. Stronger cash flow. A more agile business. Better visibility and data analytics.

20. Benefits of SCM Better collaboration with suppliers  Suppliers that understand the business’s cost constraints and objectives can be particularly important for businesses with tight margins. Wing It Cosmetics’ Gahir says that manufacturers selling to retail outlets that expect a 40-50% markup on the factory gate price can face a profits squeeze if raw material prices are too high. She recommends when negotiating with suppliers, retail-facing businesses should aim for a "golden ratio" of no more than 25% for raw material prices as a percentage of retail sales.  

21. Benefits of SCM (CON’T Better quality control Supply chain quality management is  the processes through which companies assess, monitor, and proactively manage the quality of products and processes in the supply chain . It is used to create a more consistent supply chain, reduce cycle and lead times, and improve on-time delivery.

22. Benefits of SCM (CON’T Shipping optimisation  Logistics costs are set to rise significantly, potentially impacting small businesses across the UK. Reducing the number of separate distribution channels and making use of logistics specialists could reduce your distribution costs relative to your competitors, helping you to maintain stronger cash flow and profits. “Having too many suppliers with independent shipping and delivery streams has been the biggest source of inefficiency,” says Gahir. “We’ve responded to this by looking at storage and shipping aggregators.” 

23. Benefits of SCM (CON’T Reduced inventory and overhead costs    An  efficient supply chain  can reduce the need to maintain inventory, therefore cutting overhead costs associated with storage and security. However, a very lean inventory increases pressure on distribution networks and reduces resilience to supply chain shocks. So it’s important to identify your optimal inventory level.  

24. Benefits of SCM (CON’T Improved risk mitigation  In general, the further along a  supply chain issue  is detected, the more expensive it is to fix. That’s why supply chain management, which offers visibility of the supply chain from end-to-end, is so important.   For this reason, around 50% of supply chain leaders own all of the six "links" frequently associated with supply chain management: product development; demand planning; supply planning; sourcing and procurement; manufacturing; and logistics and distribution

25. Benefits of SCM (CON’T Stronger cash flow  Running an efficient supply chain that is based on good supplier relationships, maintains strict quality and stock control, and keeps a watchful eye on costs and prices can greatly benefit a business’s liquidity by  improving cash flow .  

26. Benefits of SCM (CON’T more agile business  “A good supply chain enables us to adapt to opportunities,” says Eccles. For example, Employment4Students identified a process inefficiency in a client’s business. Eccles explains: “We realised we had a couple of suppliers whose software could help and managed to get a process in place really quickly, which they adopted and found really helpful. So, if you’ve got good suppliers, they can help you unlock new opportunities.” 

27. Better visibility and data analytics  Business managers can keep in constant touch with suppliers using mobile phone apps, conferencing platforms and shared dashboards. Software tools can also help to manage stock levels efficiently, track distribution channels and monitor business performance. Having real-time data metrics at your fingertips will enable you to put in place contingency plans to enable your business to ride out storms and take advantage of opportunities as they arise. 

28. Element of supply chain management Integration, operations, purchasing and distribution  are the four elements of the supply chain .

29. Elements of supply chain management

30. Elements of supply chain management Integration Communicating and collaborating with all parties is a business strategy that eliminates errors and saves money. Integrating each division with one another combines expertise and builds teams. Manager duties become more efficient and successful when teams are integrated into the sequence of processes, as it is easier to monitor overall operations and identify areas for future improvement.

31. Elements of supply chain management Operations Supply chain operations are the backbone of the supply chain process, ensuring your employees have consistent work. Managers monitor day-to-day operations to ensure that various supply chain phases stay on track. Many companies today have adopted lean manufacturing strategies, in which all processes are consistently evaluated to determine which parts of your operations may become more efficient. By monitoring equipment to ensure efficiency or knowing when to decrease manpower, the operations team can make major improvements to the supply chain system.

32. Elements of supply chain management Purchasing Knowing ahead of time what your supply chain process will look like within your company is a crucial aspect. It is important to know exactly what goods to purchase within your company, whether it is materials, supplies, tools, or equipment. Hiring qualified purchasing personnel and ensuring that your employees understand inventory management are critical components of a strong supply chain. This ensures that your company does not run short on materials, causing production to be significantly delayed.

33. Elements of supply chain management Distribution The final step in the supply chain is when your product is received by customers, either from store shelf or through direct shipping. For products to reach their final destination, supply chain distribution must be well planned. Implementing logistics software into your company for employees to learn or outsourcing a  third-party logistics  (3PL) company will ensure products are handled properly so that they may reach customers quickly which is the goal of a distributor.

34. Key issues in supply chain management Supply chain managers face issues on a daily basis, and almost all require direct attention and a quick response. These problems can vary in severity and complexity The main issues are Managing customer expectations Managing suppliers Maintaining quality and sustainability

35. 4.Access to data 5. Risk mitigation

36. 1. Managing customer expectations One of the challenges of effective supply chain management is managing customer expectations. Supply Chain Managers are service providers. They provide  services for indirect procurement requests , project and manufacturing requests, and outside customer requests. Consequently, Supply Chain Managers need to deploy efficient workflows to make sure requests are fulfilled on time, every time.

37. Along with managing customer expectations comes  managing suppliers . Good relationships with your suppliers are key to managing your supply chain effectively. In an ideal world, you’ll proactively engage with suppliers through  Supplier Relationship Management .  It’s up to you to know how many suppliers are needed, how to handle delays, and how to receive orders. And each step requires clear thinking and a unique process that slots in with your business’s overall spend culture. On top of these duties, you’re also responsible for finding suppliers with consistent and reliable service, and at a price that doesn’t hurt your bottom line.

38. 3. Maintaining quality and sustainability One of the challenges of global supply chains is the concern about the  quality and sustainability of products  that are made in other countries. This is particularly true when components of a product need to meet regulatory standards.  Quality is a critical factor in maintaining your company’s reputation. It ensures the materials you receive meet the specifications requested and that they’re fit for purpose. In addition, you need to  ensure ethical sourcing  and do your part to reduce your impact on the environment. 

39. 4. Access to data In a modern-day supply chain, access to your supply chain data is one of the most important requirements. Access to data can help you manage your supply chain more effectively. Without this, you can’t begin to make educated improvements to your supply chain or reduce risk. 

40. 5. Risk mitigation Mitigating risk  can be challenging for any supply chain manager. While risk is a broad topic, there are some common supply chain risks that supply chain managers should keep top of mind