What Is SCM? Supply Chain Management is a set of approaches utilized to efficiently integrate suppliers,manufacturers,warehouses and stores,so that merchandise is produced and distributed: In the right quantities To the right locations At the right time In order to Minimize total system cost Satisfy customer service requirements
What Is SCM? Supply Chain Management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses and stores, so that merchandise is produced and distributed: In the right quantities To the right locations At the right time In order to Minimize total system cost Satisfy customer service requirements
Notice Who is involved? Every facility is involved. What level of activities are involved? Strategic,tactical,operational levels .Strategic:partner selection,warehouse location .Tactical:transportation modes selection .Operational:vehicle routing ■What is the goal? Efficiency across the entire system
Notice Who is involved? What level of activities are involved? What is the goal? Every facility is involved. Efficiency across the entire system. Strategic, tactical, operational levels •Strategic: partner selection, warehouse location •Tactical: transportation modes selection •Operational: vehicle routing
Important Issues What is the goal of SCM Minimize total system cost Satisfy customer service requirements What is SCM concerned about Supply chain management is concerned with the efficient integration of suppliers,factories, warehouses and stores
Important Issues What is the goal of SCM Minimize total system cost Satisfy customer service requirements What is SCM concerned about Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores
Supply Chain Integration What is meant by integration? Different facilities work together Cooperative demand forecasting and distribution In order to gain global optimization
Supply Chain Integration What is meant by integration? Different facilities work together Cooperative demand forecasting and distribution In order to gain global optimization
Supply Chain Integration Why Difficult? Different facilities have different conflicting objectives -Suppliers vs manufacturers Low inventory vs transportation costs The supply chain is a dynamic system Customer demand,supplier capabilities change over time Supply chain relationships vary over time
Supply Chain Integration Why Difficult? Different facilities have different conflicting objectives Suppliers vs manufacturers Low inventory vs transportation costs The supply chain is a dynamic system Customer demand, supplier capabilities change over time Supply chain relationships vary over time