global sc.pptx

Global Supply Chain Management What is Supply Chain Management (SCM)?  According to the Council of SCM Professionals definition: SCM encompasses the planning & management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it a...

Global Supply Chain Management What is Supply Chain Management (SCM)?  According to the Council of SCM Professionals definition: SCM encompasses the planning & management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners including suppliers, intermediaries, thirdparty service provides, and customers. In essence, SCM integrates supply and Global Supply Chain Suppliers Corporation Order placeme nt Order processi ng transport ati on stora ge Customers Materials Physica managem ent l distributi on Inventory managem ent Stora ge Forward and reverse flows of information, products and funds transportatio n Physica l distributi on Inventory management Global Supply Chain Management Activities The activities involved in Supply chain are i. Purchasing ii. Manufacturing iii. Logistics iv. Distribution v. Transportation and vi. Marketing Supply Chain Players Simple Supply Chain  Supplier  Company/Factory  Customer Extended Supply Chain  Supplier’s supplier  Supplier  Company/factory  Customer  Customer’s Drivers of Supply Chain Fit Efficiency Responsiveness Supply Chain Structure Inventory Transportation Drivers Facilities Information Bullwhip Effect The Bullwhip Effect (or Whiplash Effect) is an observed phenomenon in forecastdriven distribution channels. It refers to a trend of larger and larger swings in inventory in response to changes in demand, as one looks at firms further back in the supply chain for a product. International Logistics Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. Three Concepts of Business Logistics Systems Concept Total Cost Concept Trade-off Concept 9 • Demand forecasting • Purchasing • Requirement planning • Production planning • Manufacturing inventory • Warehousing • Material handling • Industrial packaging • Finished goods inventory • Distribution planning • Order processing • Transportation • Customer service • Strategic planning • Information technology • Marketing Materials managem ent Logistics managem ent Physica l distributi on Components of Global Logistics Supp ly chai n mgm t