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• 1 Definitions

• 2 Problems addressed by supply chain management

• 3 Activities/functions

• A. Strategic level

• B. Tactical level

• 4 Importance of supply chain management

• 5 Historical developments in supply chain management

• 6 Supply chain business process integration

• 7 Supply chain systems and value

• 8 Global supply chain management

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

The process of planning, implementing, and controlling the efficient, cost-effective flow and storage of goods, services, and related information, from point of origin to point of consumption, for the purpose of conforming to customer requirements.

Supply network variability

Manufacturing process variability

Customer network variability Carrying safety inventories are the most common approach to dealing with variability

Links the success of independent suppliers, manufacturers, and customers

Risks and rewards are shared among supply chain partners

Many technologies are accepted among supply chain managers

PRESENT

FUTURE

Distribution Network Configuration

Distribution Strategy

Trade-Offs in Logistical Activities

Information

Inventory Management

Cash-Flow

Supply chain management is a cross-function approach including managing the movement of raw materials into an organization

Functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively.

The global logistics industry was valued at US$3.5 trillion in 2005,

US logistics industry size was around US$900 billion, 25% of the global logistics industry.

Logistics costs in India is estimated to be around 13% of the GDP

High cost in developing countries

The worldwide supply chain management (SCM) software market returned to double-digit growth in 2010 as SCM software revenue totaled $6.8 billion in 2010,

• Strategic network optimization, including the

number, location, and size of warehousing,

• Distribution centres, and facilities.

• Product life cycle management, so that new and existing

products can be optimally integrated into the supply

chain and capacity management activities.

• Information technology chain operations.

• Where-to-make and make-buy decisions.

• Aligning overall organizational strategy with

supply strategy.

• It is for long term and needs resource

commitment

Sourcing contracts and other purchasing decisions.

Production decisions, including contracting, scheduling, and planning process definition.

Inventory decisions, including quantity, location, and quality of inventory.

Transportation strategy, including frequency, routes, and contracting.

Benchmarking.

Milestone payments.

Focus on customer demand and Habits.

No Scarcity

More Efficiency

On time Delivery

Just in time

Customer relationship management

• Customer service

• Demand management style

Order fulfillment

• Manufacturing flow

• Supplier relationship

• Product development and commercialization

• Returns management

Globalization

Increased cross border sourcing

Collaboration for parts of value chain with low-cost providers

Shared service centres for logistical and administrative functions

Increasingly global operations, which require increasingly global coordination and planning to achieve global optimums

Complex problems involve also midsized companies to an increasing degree,

Ashok Leyland –Mr Raghunandan Saran

Aggarwal Packers and Movers-Mr Ramesh Aggarwal

DTDC –Mr Subahasish Chakraborty

First Flight –Mr Op saboo

O M Logistics LTD-Mr Anil Singhal

Blue Dart-Mr Anil Khanna

Royal Logistics-Mr Hilare Kadjo

DHL –Mr Frank Appel

Founder Mr. Raghunandan Saran

Year of Establishment1955

Industry Manufacture of Commercial Vehicles

Business Group Hinduja Group

Mr. Subhasish Chakarabory is the founder Chairman & Managing Director of DTDC Courier & Cargo Ltd, A Gold Medalist in Chemistry. Mr. Chakraborty is the pioneer of franchisee business model in the courier industry.

Technological evolution

Knowledge obsolescence

Intensity of competition

politically and economically