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5-Supply Chain Network 2003-1

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    SUPPLY CHAIN NETWORK

    for

    1

    Naveen Kumar

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    Agenda

    2

    Introduction

    Supply Chain Network

    Major Components

    Integration and Collaboration

    Push Process

    Mass Customization

    Key Metrics

    SCOR in Supply Chain

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    It is the system of organizations, people, technology, activities, information and

    resources involved in moving a product or service from supplier to customer.

    It is the collection of physical locations, transportation vehicles and supporting

    systems through which the products and services your firm markets are managedand ultimately delivered.

    3

    Introduction

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    SUPPLY CHAIN NETWORK

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    Major Components

    ManufacturerFinished Product/

    Distributors

    Ware House

    TransportationRetailer

    Consumers

    Supplier

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    6

    Integration and Collaboration

    Increase consumer satisfaction by offering high-quality, safe, and

    high value added products.

    Invest strategically in advanced technologies and facilities.

    Make maximum and most effective use of the existing facilities.

    Optimize inventories and reduce the costs of procurement,

    production, and distribution.

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    Push/Pull Supply Chain

    Push Systems: A push supply chain makes production and distribution decisions

    based on forecasts (Build-to-stock).

    Pull Systems: A pull supply chain drives production and distribution by customer

    orders (Build/Assembly-to-Order).

    Process In Coca Cola

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    Mass Customization

    Transparent Customization:

    Producer provides customized product without consumer being necessarily being

    aware that it has been customized.

    Can be used when consumers needs are predictable or can be easily deduced, and

    when customers do not want their requirements repeated.

    8

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    Key Metrics

    Market Share

    Number of Products/Distribution Channel

    % On Time Delivery

    Profit

    Quality

    Spending on Social Programs

    % Cost Reduction

    Number of new products

    % Defect

    Stock Of Raw Material

    Stock Turnover

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    SCOR in Supply Chain

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    The supply chain operations reference model (SCOR) is a management tool usedto address, improve, and communicate supply chain management decisions

    within a company and with suppliers and customers of a company .

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    SCOR in Supply Chain

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    IT Infrastructure used in our Supply Chain

    Transactional IT solutions ERP (Enterprise Resource Planning)

    EDI (Electronic Data Interchange)

    Web

    12

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    ERP Package Used

    SAP (System, Applications, and Products in data processing) SAP R/2 Mainframe version

    SAP R/3 Client/Server version

    mySAP ERP 2005 (SAPs new product)

    SAP is the world's leading provider of e-business software solutions.

    Other Popular ERP Packages

    Dynamics AX - Microsoft

    PeopleSoft- Oracle

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    Order Fulfillment Process Before and After

    the ERP Implementation

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    Time

    Before ERP

    After ERP

    ERP

    PC

    PC SC Applications

    CreditCheckingOrder EntryOrderConfirmedInventory

    Local/Distributed Information Systems

    Order Entry

    Credit Checking

    Inventory

    OrderConfirmed

    DeliveryArrangement

    Produce

    Produce

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    Parameters for selecting ERP Package

    Type of Industry

    Number of Employees

    Total Budget

    Localization

    Language Support

    Functionality

    Manufacturing Process

    Time Frame

    15

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    SAP Vs Microsoft

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    SAP Vs Oracle

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    References

    Lecture Slides ( Logistics System Engineering)

    http://www.thecoca-colacompany.com/presscenter/imagebrands.html

    http://www.exforsys.com/tutorials/supply-chain/scor-model-process.html

    http://www.technologyevaluation.com/ppc/request/ERP_Reports.asp?se=google&g

    clid=CPTTsKbMoZcCFcsa3godkktpJA

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    THANK YOU

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