Supply Chain Management Webinar Overview

SAKSHAM: IL6 Webinar for Logistics - Supply Chain Management

• The webinar covered supply chain management, a network between a company and its suppliers to produce and distribute products to final buyers.
• It involves various activities, people, entities, information, and resources.
• Supply chain management encompasses the effective flow of information, materials, and funds from the supplier's supplier to the final consumer.
• Different types of logistics, ranging from 1PL to 5PL, were covered. Each level involves different degrees of involvement in the supply chain.
• The webinar presented a flowchart of the work-flow of supply chain at Tata Steel. The flowchart outlined steps in procurement, transportation, processing at the plant, loading, documentation, and quality check.
• The presentation showcased the push/pull view of supply chains. This categorized processes as reactive (pull) or speculative (push) based on their execution timing relative to customer demand.
• Supply chain scope encompasses a wide range impacting purchasing, production, and distribution activities within a firm and the external supply chain that involves suppliers, manufacturers, distributors, and retailers.
• The macro processes under supply chain management, such as CRM, ISCM, and SRM, were identified.
• The order fulfillment process consists of five essential steps: receiving inventory, storage, order processing, shipping, and returns processing

Important Concepts in Supply Chain

• Just-in-Time (JIT) manufacturing, also known as the Toyota Production System (TPS), aligns raw material orders with production schedules.
• Vendor Managed Inventory (VMI) improves efficiency, reduces inventory costs, and minimizes forecasting needs.
• Kanban is an inventory control system for JIT manufacturing.
• FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) are cost lot tracking methods.
• Landed Cost is the total ownership cost of an item, encompassing cost price, shipping, customs, duties, and other charges.
• Backordering involves placing orders for products temporarily out-of-stock.
• Bill of Lading documents goods transportation details, acting as a legal receipt.
• Cross-docking minimizes storage time through direct transfer of products from inbound to outbound transportation streams.

Incoterms

• Incoterms are internationally recognized rules for defining the responsibilities of sellers and buyers in export transactions. Specific terms like EXW, FCA, FAS, FOB, CFR, DAT, DAP, and DDP were highlighted. These terms detail the responsibilities of the seller and buyer at various stages of the supply chain.
  • Some terms indicate costs, insurance, and responsibility for transportation. For example, CIP indicates that the seller assumes responsibility for both transportation and insurance of the goods up to an agreed-upon destination.

Order Generation & Fulfillment

• Five steps involved in order fulfillment: receiving inventory, inventory storage, order processing, shipping and returns processing.