Chapter 1 Introduction

SUPPLY CHAIN
MANAGEMENT
INTRODUCTION
Prof. K. R. Shah
Mechanical Engineering Department
INTRODUCTION
• Introduction of logistics
• Inbound-outbound logistics
• Supply chain objectives
• Importance of supply chain management
• Process view- push/pull
• Supply chain drivers and barriers
Introduction of logistics
• Process
• Efficient flow of goods, services and information
• Interconnected Activities
Procurement, transportation, storage and distribution
• Effective logistics management
• Key component of logistics- inbound and outbound
• Focuses on Efficient distribution of finished products to customers
• Logistics enhances overall operational efficiency and customer satisfaction
• Essential for business aiming to streamline
• Processes, minimize lead time and create a robust foundation for successful SCM.
Inbound Logistics
• Definition
• Procurement
• Transportation
• Storage and Ware housing
• Supplier Relationship Management
Outbound logistics
• Definition
• Order Fulfillment
• Distribution
• Transportation
• Customer Satisfaction
Supply chain objectives
• Cost Reduction:
• Efficient Processes:
• Timely Delivery:
• Customer Demand:
• Flexibility and Adaptability:
• Collaboration and Communication:
• Risk Management:
• Sustainability:
• Strategic Alignment:
Importance of supply chain
management
• Enhanced Efficiency:.
• Cost Reduction:
• Customer Satisfaction:
• Competitive Advantage:
• Risk Mitigation:
• Strategic Decision-Making:
• Global Reach:
• Innovation and Technology Adoption:
• Collaboration and Relationships:
• Adaptability to Change:
• Sustainability and Corporate Social Responsibility (CSR):
Supply chain drivers
• Technology Adoption:
• Incorporating advanced technologies such as IoT, AI, and data analytics to enhance visibility,
optimize processes, and improve decision-making.
• Collaboration and Partnership:
• Building strong relationships and collaboration with suppliers, manufacturers, and
distributors to create a cohesive and responsive supply chain network.
• Strategic Sourcing:
• Implementing strategic sourcing practices to identify reliable suppliers, negotiate favorable
terms, and ensure a stable supply of quality materials.
• Inventory Management:
• Efficiently managing inventory levels to minimize carrying costs while ensuring product
availability to meet customer demand.
Supply chain drivers (Continue)
• Transportation Management:
• Optimizing transportation networks to reduce lead times, lower costs, and enhance overall
supply chain efficiency.
• Information Sharing:
• Implementing effective information-sharing systems to provide real-time data and insights
across the supply chain, improving coordination and responsiveness.
• Demand Forecasting:
• Utilizing accurate demand forecasting methods to align production and inventory levels with
expected customer demand, minimizing stockouts or excess inventory.
• Lean Principles:
• Embracing lean principles to eliminate waste, reduce production lead times, and enhance
overall process efficiency.
Supply chain barriers
• Lack of Visibility:
• Insufficient visibility into the entire supply chain, leading to challenges in monitoring and
responding to changes in demand, disruptions, or inventory levels.
• Information Silos:
• Ineffective communication and information silos between different stakeholders, hindering
collaboration and decision-making.
• Disruptions and Risks:
• Unforeseen disruptions such as natural disasters, geopolitical events, or supplier issues that
can disrupt the flow of goods and impact production.
• Complexity and Overhead:
• Overly complex supply chain structures and processes that can result in increased overhead
costs and reduced agility.
Supply chain barriers (Continue)
• Inefficient Processes:
• Inefficiencies in supply chain processes, leading to delays, errors, and increased costs.
• Legacy Systems:
• Reliance on outdated or incompatible technology systems that impede the adoption of more
advanced and efficient technologies.
• Regulatory Compliance:
• Challenges in navigating complex and evolving regulatory environments, particularly in international
supply chains.
• Capacity Constraints:
• Issues related to limited production capacity, transportation constraints, or bottlenecks that can
impact the smooth flow of goods.
• By addressing these drivers and barriers, companies can enhance the positive factors that contribute to a
resilient and efficient supply chain while actively mitigating challenges that could hinder its performance

Chapter 1 Introduction

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Chapter 1 Introduction

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SUPPLY CHAIN

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