Post on 16-Jan-2015
description
ARSALAN GULZARIMDAD
FARHANRAHEEL
GROUP MEMBERS
Supply Chain Management
“The process of planning, organizing, and controlling the flow of materials, services, and information
from supplier to end user/customer.”
This integrated approach incorporate suppliers, supply management, integrated logistics, and
operations . FARHAN
Procurement and Sourcing Strategies
The Foundations of Supply Chain ManagementSupply Management
Trends
Supplier management, supplier evaluation, supplier certification, strategic partnerships
Operations
Trends
Demand management, MRP, ERP, inventory visibility, JIT (AKA lean production & Toyota Production System), TQM (AKA Six Sigma)
Logistics
Trends
Transportation management, customer relationship management, distribution network, perfect order fulfillment, global supply chains, service response logistics
Integration
TrendsKey process integration, performance measurementSCM required three basic matrix
Quality. Cost.
Service.Integration & operation provide support 3 matrix.
Advantages of Special Department
• Easier to standardize
• Allows room for application of electronic supply systems.
• Development of specialization and expertise.
• Essential for strategic Supply Chain Management
Purchasing
The process of buying; learning the need, locating ad selecting a supplier, negotiating price and other
pertinent terms, and following up to ensure delivery.
• Procurement
• Not limited, but also includes the storage, traffic, receiving, incoming inspection, and salvage.
Material Management
the integration of related materials functions to provide cost –effective delivery of materials and services to the
organization, includes a number of separate groups, such as material planning and control, material and purchasing research, purchasing, inbound traffic, incoming quality
control, inventory control, production scheduling, receiving, stores, in-plant materials movement, and scrap and surplus
disposal.
Others names used for materials management, Integrated Logistic and Supply Chain Management.
IMDAD
Logistic ManagementThe part of SCM that plans, implements, and controls
the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers requirement.
Include the inbound, outbound and external movements.
“The logistic cost can not be controlled if they cannot be traced’’
Inbound --------- Conversion / Operational----------Outbound
Vendors / Suppliers to Plant
Cost incurred for the movement of materials within
plant / production
Movement cost Production facility
to Customers
Customer Service Parts and service support
Demand forecasting/Planning Plant and warehouse site selection
Inventory Management Purchasing
Logistic Communication Return goods handling
Material Handling
Order Processing Traffic and Logistic
Packaging Warehouse storage
Major Logistic Activities
Importance of Decision Making in the Purchasing / Supply Management
The following decision will have a major impact on the organizational goal, final customer, profitability, return on assets,
etc
•Make or Buy
•Price
•Where shall be order place
•Maximum or Minimum Order Size
•Best alternative in case of any emergency
•Transportation mode and Cost considering quality and timely delivery
•Dispose of surplus material
•Reactive and Proactive – Wait or Act now?
Objectives of Purchasing & Supply Management
1. Right Materials2. Right Quantity3. Right Time 4. Right Place5. Right Source6. Right Service7. Right Price
ARSALAN
The essential steps in the Purchasing Process
SupplyMgmt
ProductionCustomer
ServiceShipping
IdentifyRequirements
EstablishSpecifications
AssessSuppliers
SelectSupplier(s)
IssuePurchase
Order
Follow-Up& Expedite
Receive &Verify
ProcessPayment
MaintainRecords
Purchasing Process
CustomerDemand
ProductionSchedule
The essential steps in the Purchasing Process
SupplyMgmt
ProductionCustomer
ServiceShipping
IdentifyRequirements
EstablishSpecifications
AssessSuppliers
Purchasing Process
CustomerDemand
ProductionSchedule
– Direct and Indirect
– Industry specific
– MRO ( Maintenance repair operation)
.
– Material Requisitions
.
– MRP Output
– Material requirements planning
– Impact of Lead Time
– Engineering Drawings and Specifications, Samples
– Requisition Details (electronic or paper)
Date originated, Document Number, Dept, Account Number, Signature(s)
Complete description of material or service required
Quantity, Shipping / delivery instructions
– Authorization to Buy– Impact of Lead Time
– History and Geography
– Request for Quotation
– Request for Proposal
– Request for Bid
– Other items to consider Input from Technical
Staff
– Supply Capability Quality
Qualitative Quantitative
Capacity Flexibility Change / Adoptability
Reliability
The essential steps in the Purchasing Process
SupplyMgmt
ProductionCustomer
ServiceShipping
SelectSupplier(s)
IssuePurchase
Order
Follow-Up& Expedite
Purchasing Process
CustomerDemand
ProductionSchedule
Several Pricing method
Sealed Bid or quotation
Open Profit Margin
Fixed Profit Margin
– Relationship to Material Requisition The Requisition provides the
information that populates several Purchase Order data fields (see Requisition Details)
– Ensure Risk Management– Acknowledgement– Internal Controls
BudgetsApprovals
– Recurring Purchase Order ReleasesPre-negotiated contracts
– Discrete Orders.
– Pre-negotiated Blanket.
– Pre-negotiated Vendor-Managed
.
– Maintenance, Repair, and Operating Supplies (MRO)
.
– Bid and Auction.
– Corporate Purchase Card (pCard)
The essential steps in the Purchasing Process
SupplyMgmt
ProductionCustomer
ServiceShipping
Receive &Verify
ProcessPayment
Purchasing Process
CustomerDemand
ProductionSchedule
– Relationship to Material Requisition and Purchase Order
Key data elements travel throughout
– Key objectivesConfirm receipt of goodsEnsure proper physical condition, quantity, documentation
Quality parameters met
– Cross functional activity among Purchasing, Receiving, Materials, and Finance
Key Document Flow
Requisition PurchaseOrder
Packing Slip(Receiving)
Invoice Payment
– Match the data in the Purchase Order, Packing Slip, and InvoiceDiscrepancies must be reconciled before payment is issued Some level of discrepancies can be ignored (e.g. if +/- 5% or
+/- $25)Audits of all
– Purchase Orders should be archived for up to 7 years
– Key Records to be Maintained Purchase Order Log of all PO’sCopies of Purchase OrdersCommodity file Supplier history fileOutstanding Contracts against which PO’s are placed
– Other items to considerCan be electronic or paperPaper can be managed by a third party
The essential steps in the Purchasing Process
SupplyMgmt
ProductionCustomer
ServiceShipping
MaintainRecords
Purchasing Process
CustomerDemand
ProductionSchedule
RAHEEL
Information System & Purchasing
• Planning • Sales Forecasting• Budgeting & Financial Control• Accounting • Legal• Engineering• Production & Production Control• Inventory Control• Quality Control and Receiving
Internal Information Flows to Purchasing
External Information Flows to Purchasing
• General Market Conditions• Sources of Supply• Suppliers’ Capacity• Suppliers’ Production Rate• Suppliers’ Labor Conditions• Price, Discount, Customs, Sales
and Taxes• Transportation Availability and
Rates• New Product and Product
Information
Information flows from Purchasing to Organization
• General Management• Engineering • Product Development• Marketing• Production• Legal• Finance and Accounting• Stores
IMPORTANCE OF SCM
• In any type of business it play very crucial role.
• In SCM process heavy investment is invested.
• 75% revenue Company generate by this process.
• By properly managing SCM ensure the better & smooth running of a Company.
ARSALAN
THANK
YOU
Waste it
GOOD THOUGHTS.
“LIFE” is like an ICE-CREAMIts up to you
You taste it OR