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Supply Chain Process ISCOM/ 374.

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Presentation on theme: "Supply Chain Process ISCOM/ 374."— Presentation transcript:

1 Supply Chain Process ISCOM/ 374

2 Supply Chain Process What is a Supply Chain?
All activities related with the flow and transformation of goods From raw materials to end users. The term supply chain refers to the entire network of companies that work together to design, produce, deliver, and service products. Supply chain management (SCM) is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.

3 Supply Chain Process What is a Supply Chain Management?
Supply Chain Management (SCM) is a set of processes and sub- processes which attempt to implement and optimize the functions, connected entities, and interacting elements of the supply chain. The supply chain impacts the quality, delivery and costs of a business’s products.  To meet rising customer expectations, supply chain organizations must monitor an ever-increasing array of potential disruptions. The concept of Supply Chain Management (SCM) is based on two core ideas:  The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains.

4 Supply Chain Process Supply Chain Management process frameworks
Supply Chain Management process frameworks are put into place to help an organization implement and evaluate how their process is working. The Scor model “ provides a unique framework that links business processes, metrics, best practices and technology features into a unified structure to support communication among supply chain partners and to improve the effectiveness of supply chain management and related supply chain improvement activities ” (supply chain council, 2009). process in Scor-: plan - plan to meet demand source - procure goods/services to meet demand make - transform product to finished state deliver - provide finished goods/services return - returning goods/services enable - manage relationships and info of supply chain, interact with all other processes in supply chain.

5 Supply Chain Process Supply Chain Management process frameworks
Supply Chain Operations Reference (SCOR) “The Supply Chain Operations Reference model (SCOR) is the world’s leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure” ( Scor Framework , 2015) The supply chain operations reference model (SCOR) is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company (1). The model describes the business processes required to satisfy a customer’s demands. It also helps to explain the processes along the entire supply chain and provides a basis for how to improve those processes.

6 Supply Chain Process Supply Chain Management process frameworks
Global Supply Chain Forum (GSCF) “The GSCF model consist of eight processes, customer relationship management, supplier relationship management, customer service management, demand management, order fulfilment, manufacturing flow management, product development and commercialization, and returns management. Unlike the SCOR model, the GSCF model includes the involvement of all business functions.” (Cassivi, 2006). Logistics gives the supply chain management process-: (a) effciency (b) Accuracy (c) Proper communication (d)Cut down the cost

7 Supply Chain Process How logistics function contributes to the supply chain
Logistics can contribute to the supply chain by getting the right goods to the right places and by when the customers expect them. Customers are more demanding so logistics need to be an integral part of the supply chain. Logistics has four areas: Procurement Logistics Production Logistics Distribution Logistics Disposal Logistics

8 Supply Chain Process Enterprise resource planning system (ERP)
ERP integrates information across functions and provides tools for monitoring and planning the functions and processes of an organization When it comes to Supply Chain Management (SCM), businesses need to interact with numerous suppliers and partners in order to obtain the raw materials and resources needed to bring finished goods to market. ERP plays a vital role in combating inefficiency; reducing waste and ensuring that workers are better able direct their efforts. The integration of both systems may pose some unique challenges. It is in your company’s best interest to ensure that you and your staff fully understand the role of ERP within the SCM process.

9 Supply Chain Process Enterprise resource planning system (ERP)
Some ways that ERP can help improve Plan, Source, Make, Deliver and Return is to put the organizations departments into one computer system so it can accommodate each departments specific needs. Benefits of Combining Supply Chain Management and ERP Systems The feature-rich working environment of ERP combined with the more streamlined and efficient workflow of an effective SCM can provide a range of important advantages, including: Improved efficiency across multiple departments and organizations working within the supply chain Improved customer service for increased customer retention and greater chance of repeat business opportunities Automation of workflow for reduced overhead and operational costs IT issues and problems that are less likely to create bottlenecks to impede efficiency More flexible supply chain solutions that may be readily adapted to meet the needs of changing circumstances or future business growth and expansion

10 Supply Chain Process END

11 Reference Cassivi, L. (2006). Collaboration planning in a supply chain. Supply Chain Management: an International Journal , 11, (3), management-scm 8c15-81bd00e7b31d%2Ff e-489a-925e- 510cf0708bc7.png&imgrefurl=https%3A%2F%2Fwww.process.st%2Fchecklist%2Fsupply-chain-management-procedures- 3%2F&docid=mrBX8WMLgYouwM&tbnid=v0fhHJ2PWhKYxM%3A&vet=10ahUKEwjZzeiOn97bAhUOy1MKHQpAC4AQMwheKBkw GQ..i&w=554&h=554&bih=578&biw=1024&q=what%20is%20supply%20chain%20process&ved=0ahUKEwjZzeiOn97bAhUOy1MKH QpAC4AQMwheKBkwGQ&iact=mrc&uact=8 748b14bdf83457.jpg&imgrefurl=https%3A%2F%2Fwww.pinterest.com%2Fpin%2F %2F&docid=6AaubpA57ro 56M&tbnid=QnoJh6s4uVVYkM%3A&vet=10ahUKEwjZzeiOn97bAhUOy1MKHQpAC4AQMwiEASg_MD8..i&w=560&h=420&bih=57 8&biw=1024&q=what%20is%20supply%20chain%20process&ved=0ahUKEwjZzeiOn97bAhUOy1MKHQpAC4AQMwiEASg_MD8&i act=mrc&uact=8


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