Supply Chain Management Ppt Final_edited

7/28/2019 Supply Chain Management Ppt Final_edited

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FLOW OF PRESENTATION

INTRODUCTION OF SCM SCM MYTH THE EVOLVING STRUCTURE OF SUPPLY CHAIN SUPPLY CHAIN PROCESS PARTICIPANTS IN SUPPLY CHAIN SCM STRUCTURE COMPONENTS OF SCM ADVANTAGES OF SCM PHARMACEUTICAL SCM - SANDOZ

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WHAT IS SCM ?

Supply chain management is the coordination ofproduction, inventory, location, andtransportation among the participants in a supplychain to achieve the best mix of responsivenessand efficiency for the market being served.

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THE DEFINITION

The systemic, strategic coordination of the traditional business functions and thetactics across these business functions within a particular company and acrossbusinesses within the supply chain, for the purposes of improving the long-termperformance of the individual companies and the supply chain as a whole.from Mentzer, DeWitt, Deebler, Min, Nix, Smith, and Zacharia in their

article Defining Supply Chain Management in the Journal of Business Logistics (Mentzer, John T.,William

DeWitt, James S. Keebler, Soonhong Min, Nancy W. Nix, Carlo D. Smith, and Zach G. Zacharia, 2001,

Defining Supply Chain Management,Journal of Business Logistics,Vol. 22, No. 2, p. 18)


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THE SCM MYTH

SCM same as LogisticsTWO major differences between Logistics & SCM:

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LOGISTICS SUPPLY CHAIN MANAGEMENT Activities that occur within the

boundaries of a single organization

Networks of companies that work

together and coordinate their actions to

deliver a product to market

Focuses on activities such as

procurement, distribution, maintenance,

and inventory management

Acknowledges all of traditional

logistics + includes activities such as

marketing, new product development,

finance, and customer service


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THEEVOLVINGSTRUCTUREOFSUPPLYCHAINS

Old Supply Chains versus New :FORD motors (For eg.) in 1900followed the Old Supply chainapproach called the Verticallyintegrated supply chains.But as the markets grew andcustomers became more articularabout the kind of products theywanted, this model began to breakdownInstead of vertical integration,companies now practice VirtualIntegration. Companies findother companies who they canwork with to perform the activitiescalled for in their supply chains.

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DECISION MAKING IN SCM

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PRODUCTION INVENTORY LOCATIONTRANSPORTATION INFORMATION

RESPONSIVENESSV\SEFFICIENCY


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COMPONENTS OF SCM

Plandevelopment, monitoring

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SourcesuppliersMake produce, test, package, qualitylevel, output Delivery product to customers,network with service providers Returncustomers return

Plan

Source

MakeDelivery

Return


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PARTICIPANTSINTHESUPPLYCHAIN

A simple supply chain is composed of A company The Suppliers The Customers

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Extended SCM contains 3 more participantsSuppliers supplierCustomers customer Service Providers

Ultimate Supplier ProducersSuppliers DistributorsA CompanyCustomer RetailerUltimate Customer Consumer


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SCM STRUCTURE

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Reduced Cost

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Increases Efficiency Increases Output Responsiveness to Demand Optimized Stock Levels Accurate Costing & Scheduling Quality Advantage

CHALLENGES

Distribution Strategy-Operating Control- Mode of transport Inventory Management Cash Flow Information


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DEPARTMENTS INVOLVED

PLANNING PURCHASE CUSTOMER SERVICE WAREHOUSING PACKAGING AND

DEVELOPMENT LOGISTICS

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PHARMACEUTICAL - SCM


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CUSTOMER SERVICE

Forecasting/demand planning New product launches

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PLANNING

Forecast planning Material procurement planning Production planning Dispatch planning

PURCHASE

Purchase of raw materials andpackaging material and expeicients Import clearance


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PACKAGING AND DEVELOPMENT

Blister pack Bottle pack( Plastic/Glass) Alualu pack Bulk pack

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WAREHOUSING

Receipts Issues Dispatches: Data logger, tyveck cover, Pallets Inventory management

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LOGISTICS

Customs clearance Excise clearance Octroi clearance Negotiations with airlines, transporters,freight forwarders,

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VENDORMANAGEMENT INVENTORY

A means of optimizing Supply Chain performance in which the manufacturer is responsiblefor maintaining the distributors inventory levels. The manufacturer has access to thedistributors inventory data and is responsible for generating purchase orders Under the typical business model: When a distributor needs product, they place an orderagainst a manufacturer. The distributor is in total control of the timing and size of theorder being placed. The distributor maintains the inventory plan. Vendor Managed Inventory model: The manufacturer receives electronic data that tells himthe distributors sales and stock levels. The manufacturer can view every item that the

distributor carriers as well as true point of sale data. The manufacturer is responsible forcreating and maintaining the inventory plan


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Supply Chain Management Ppt Final_edited

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