Supply Chain Management

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11/20/2012

The Kaizen Forum

Supply Chain Management
Plus its

Enabling & Supporting Technologies

IBA 6th May 2012

The Kaizen Forum

Today’s Scenario
• With today's emphasis on cutting costs and streamlining expenses, many companies are looking to improve their bottom lines with more effective supply chains. • Lack of understanding about what a supply chain is or how it fits into the companies overall strategy.

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11/20/2012

The Kaizen Forum

Supply – Chain - Management
• Supply: to furnish or provide (a person or organization etc.) with what is lacking or requisite. • Chain: a series of objects connected one after the other, usually in the form of a series. • Management: the act or manner of managing; handling, direction, or control.

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Operations Management vs SCM
• Definitely confusing. No right answer. Huge grey area. Overlapping. Still….

• ___ is a part of ___.
• ___ pertains to activities outside the factory, ___ refers to inside factory activities.

• ___ is industry independent.

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11/20/2012

The Kaizen Forum

Operations Management vs SCM
• Definitely confusing. No right answer. Huge grey area. Overlapping. Still…. • OM is a part of SCM. (SCM is an OM enabler)

• SCM pertains to activities outside the factory, OM refers to inside factory activities. • SCM is industry independent.

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Supply Chain
Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer.

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11/20/2012

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Supply Chain Supply chain is a set of organizations directly linked by one or more of the upstream and downstream flows of products, services, finances, and information from a source to a customer.

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Supply Chain
A system of organizations, people, technology, activities, policies, information, material and resources involved in moving a product or service from supplier to customer.

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11/20/2012

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Supply Chain Management

The management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Harland, 1996

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Supply Chain Management
The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance. Davis 2006

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11/20/2012

The Kaizen Forum

Supply Chain Management

Managing upstream and downstream value added flow of materials, final goods and related information among suppliers; company; resellers; final consumers is supply chain management

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Supply Chain Management
Supply chain management is the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. Mentzer et al., 2001

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11/20/2012

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Supply Chain Management
Supply chain management is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders.

(Lambert, 2008).

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SCM as per CSCMP
• Encompasses planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. • Includes collaboration with channel partners. • Integrates supply and demand management within and across companies. Extended Enterprise. Loosely coupled, self-organizing network of businesses.

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11/20/2012

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Systems view of SCM
Supply chain strategies require a total systems view of the linkages in the chain, As a result:...
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