1. What is Supply Chain Management (SCM)

2. SCM Combination of Art and Science Purpose: to improve the method a company finds raw components it needs to deliver a product or service to customers

3. Why is it Important? In the past manufacturers called the shots (push or mass manufacturing) Today customers call the shots & manufactures scramble to meet demands for options / styles / features, quick order fulfillment, and fast delivery

4. Still Why? Manufacturing quality — a long-time competitive differentiator — is approaching parity across the board Customers' specific demands for product delivery has emerged as the next critical opportunity for competitive advantage

5. Raw Materials Manufacture Distribution Customer

6. Necessary to Compete Companies that learn how to improve management of their supply-chain will become the new success stories in the global marketplace

7. Basic Components Plan Source Make Deliver Return

8. Plan Strategic portion of SCM Strategy for managing all resources needed to meet customer demand Set of metrics to monitor supply chain for elimination of waste and added value

9. Source Choose suppliers Develop pricing, delivery and payment processes Metrics to monitor and improve relationship

10. Make Manufacturing step Schedule activities necessary for production, testing, packaging, and delivery Most metric-intensive level  Measure quality levels  Production output  Worker productivity

11. Deliver Logistics Coordinate receipt of orders  Develop network of warehouses  Pick carriers  Set up invoice system to receive payment

12. Return Problem working of Supply Chain Create network for receiving defective and excess product back Support for customers who have problems with delivered products

13. Five basic elements Plan Source Make Deliver Return

14. Challenges Improving a process as complex as the supply-chain can be daunting Companies are challenged with finding ways to meet ever-rising customer expectations at a manageable cost

15. Challenges Businesses must identify which parts of their supply-chain process are not competitive Understand which customer needs are not being met

16. Challenges Establish improvement goals Rapidly implement necessary improvements

17. Promise Companies that learn how to improve management of their supply-chain will become the new success stories in the global marketplace

18. Future Benchmarking studies show significant cost differences between organizations that exhibit best-in-class performance and those with average performance