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Supply Chain Structure

The document discusses supply chain structure and management. It defines supply chain as involving acquisition of materials, conversion to finished products, and delivery to customers. It then describes key elements like supplier management, material and information flow, conversion, stock deployment, delivery, and customer management. Finally, it discusses developing a supply chain working group to address issues and requirements to improve supply chain performance.

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Damu_Prashanth_5848
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153 views

Supply Chain Structure

The document discusses supply chain structure and management. It defines supply chain as involving acquisition of materials, conversion to finished products, and delivery to customers. It then describes key elements like supplier management, material and information flow, conversion, stock deployment, delivery, and customer management. Finally, it discusses developing a supply chain working group to address issues and requirements to improve supply chain performance.

Uploaded by

Damu_Prashanth_5848
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PRESENTED BY KESAVAN 09MBA025 BHARATH 09MBA011 PADMANABHAN 09MBA125 SIVA SHANMUGAM 09MBA109 GROUP 9

WHAT IS SUPPLY CHAIN STRUCTURE


" Is the strategic management of activities involved in the acquisition and conversion of materials to finished products delivered to the customer"

Supplier Management

Material Flow
Information Flow
Stock Deployment

Customer Management

Schedule / Resources

Conversion

Delivery

Leads to Business Process Integration

SUPPLIER MANAGEMENT:
CHOOSING THE SUPPLIERS

FACILITIES AVAILED BY THE SUPPLIERS


OTHER NEGOTIATIONS

RESOURCES: RAW MATERIALS MACHINES OTHER RESOURCES

CONVERSION: THE RAW MATERIALS COLLECTED FROM THE SUPPLIERS ARE CONVERTED IN TO FINISHED GOODS

STOCK DEPLOYMENT:
SUPPLYING THE PRODUCTS TO DISTRIBUTORS.

DELIVERY: DELIVERY OF THE PRODUCTS AND SERVICES TO END CUSTOMERS

CUSTOMER MANAGEMENT: GETTING FEED BACK UNDERSTANDING THEIR NEW WANTS

Supply Chain Structure


SUPPLIER FACTORY DC RDC RETAILER

Raw Materials

Finished Goods Information Flow

SUPPLY CHAIN ELEMENTS


Strategic Supply Chain Design Resource Acquisition Long Term Planning (1 Year ++) Production/ Distribution Planning Resource Allocation Medium Term Planning (Qtrly,Monthly)

Tactical

Operational

Shipment Scheduling Resource Scheduling Short Term Planning (Weekly,Daily)

supply Chain Goals

Efficient supply chain management must result in tangible business improvements. It is characterized by a sharp focus on
Revenue growth Better asset utilization

Cost reduction.

Supply Chain Working Group


The sponsor firm will invite key partners among

suppliers and end users to participate. Together, they will form a supply chain work- ing group (SCWG). The SCWG will decide what spheres need to be isolated for supply chain redesign It will also mobilize design teams to undertake improvement efforts in the spheres

The SCWG will monitor the overall effort to assure

consistency with goals.


Once formed, a good next step for the SCWG is to

develop the supply chain issues to be addressed

Step 1
The process begins with the SCWG defining issues that

need to be addressed. There can be in excess of 100 of these, so it helps to divide them into catego- ries. Issues are often presented in the form of a question.

The diagram shows that decision categories neednt be

limited to supply chain or pure logistics issues. At this point in the effort, its important to have an overall business context for structuring the supply chain effort.

This includes an understanding of customer

requirements and how they link to product and supply chain design.
The SCWG should develop and maintain the issue

questions.

Step 2 Define Requirements


In step 2, each listed issue is considered by the SCWG.

Where possible, deci- sions regarding issues are made by consensus of SCWG members.
In many cases, an issue resolution isnt known.

If its priority is high, it then becomes a requirement to

address quickly in an improvement effort.

Step 3 Structure the Effort


1. Master plan for program. The plan would govern

the overall effort.It would include schedules, priorities, financial flows, and a visionfor successful completion. 2. Plan for spheres. This would include definition of the spheres and design team assignments based on the challenges of making changes in each one. 3. Design Team charters. The charters should include the goals and objectives, resources, schedules, and issues that should be addressed

Improve supply chain performance


Sourcing efforts to rationalize procurement across the organization. This type of project often produces immediate savings in the bill for

outside goods and services. It requires mobilizing internal teams as well as partnering with outside suppliers. focus on cycle time reduction, building a just-in-time capa- bility all along the supply chain. Partnerships will work to remove wasteful cycle time at all stages. supply chain functions will enable companies to focus on core competencies.

Demand-driven supply chains. Most aggressive partnership pro- grams

Third-party logistics providers. Using logistics specialists to fulfill basic

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