Supply Chain Management PDF

SAKSHAM: IL6 WEBINAR for Logistics “Supply Chain Management ” 1 A Network between company and its supplier to produce and distribute a specific product to the final buyer. It includes different activities, people entities, informat...

SAKSHAM: IL6 WEBINAR for Logistics “Supply Chain Management ” 1 A Network between company and its supplier to produce and distribute a specific product to the final buyer. It includes different activities, people entities, information and resources. 2 3 4 WORK-FLOW OF SUPPLY CHAIN AT TSM 5 SUPPLY CHAIN PROCESSES 6 SCOPE OF SUPPLY CHAIN IN A FIRM 7 KEY ACTIVITY IN MACRO PROCESS UNDER SUPPLY CHAIN MANAGEMENT 8 ORDER GENERATION & FULFILLMENT Five steps in the order fulfillment process 1.Receiving inventory shipments 2.Inventory storage 3.Order processing 4.Shipping 5.Returns processing 9 IMPORTANT CONCEPT IN SUPPLY CHAIN Just-in-time manufacturing is also known as the Toyota Production System (TPS) because the car manufacturer Toyota adopted the system in the 1970s. Increase efficiency and decrease waste by receiving Reduces inventory costs Requires producers to forecast demand accurately. 10  IMPORTANT CONCEPT IN SUPPLY CHAIN FIFO & LIFO: First in, first out is a method of cost lot tracking where items are valued and sold in the order they were purchased. While LIFO (Last in, first out) is a method of cost lot tracking where your most recent purchases are sold first. It works exactly opposite to FIFO. Landed Cost: The total cost of ownership of an item. This includes the cost price, shipping charges, custom duties, taxes and any other charges that were borne by the buyer. Back Ordering: A practice of placing a purchase order to a supplier for a product that’s temporarily out of stock in your warehouse and has already been ordered by your customers. Back ordering is usually adopted during times of high demand and for slow-moving products that suddenly see a spike in demand. Bill of Lading: A shipping document showing the type of goods, their quantity, and the destination address. It is required whenever goods are transported from one point to another, whether you ship them by land, sea or air. This document also acts as a legal receipt of payment and has to be signed by all parties who are involved in the shipment: the seller/shipper, the carrier, and the buyer/receiver (when the goods reach them). Cross docking: A method by which a business owner can ship goods that they have received from vendors to their customers with little to no storage time. 11 DIFFERENT INCOTERMS IN SUPPLY CHAIN Incoterms are a set of internationally recognized rules which define the responsibilities of sellers and buyers in the export transaction 12  EXW – Ex Works. This means the seller fulfills its obligation when it places goods on the seller’s premises, ready to be picked up by the buyer. FCA – Free Carrier. This term means the seller delivers goods to the carrier or person identified by the buyer on the seller’s premises. CPT – Carriage Paid To is a term that describes the scenario when the seller delivers goods to the carrier or person identified at another agreed upon location. More importantly, this term indicates the seller must pay for the costs to transport goods to such agreed upon place. CIP – Carriage and Insurance Paid To. This basically is an expansion of CPT, as the seller agrees to pay for insurance to protect from buyer’s risk of loss or damage to goods during transit to the agreed upon place. However, the seller must only obtain minimum coverage, so buyers may want to purchase additional protection. DAT – Delivered At Terminal. This term obligates the seller to deliver goods to the buyer at an identified terminal, which may include a quay, warehousing, shipping yard or a rail or air cargo terminal, and unload such goods for the buyer. 13 DAP – Delivered at Place is an expansion of DAT by requiring the seller to deliver and unload goods to the disposal of the buyer at a named destination. DDP – Delivered Duty Paid. This simply means that the seller must transport goods to a destination and have them cleared for import, including the payment of duties or tariffs for importing or exporting products across borders. FAS – Free Alongside Ship. This term means the seller delivers when goods are placed alongside a vessel at a defined port, transferring risk and responsibility to the buyer upon placement alongside the vessel. FOB – Free On Board. This term requires the seller to deliver products to a vessel, ensure they are boarded and procures goods so delivered. CFR – Cost and Freight is like FOB, but the seller fulfills his obligation when goods are delivered and boarded upon a vessel, and the seller must pay for costs and freight to be delivered at the port of destination depending on the remainder of terms within the contract. CIF Cost – Insurance and Freight expands CFR to require the seller to obtain insurance to cover the goods, but insurance is only a minimum cover. If the buyer wants to purchase additional coverage, he or she must pay for it 14 INCOTERMS & RISK TRANSFER 15 DIFFERENT TYPES OF LOGISTICS 16  Thank You Presenter’s Name :Priyendu N Giri Contact : 7077762551