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Transcript of SCM
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(SCM)
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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
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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
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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
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Raw Materials
Manufacture
Distribution
Customer
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Companies that learn how to improve management of their supply-chain will become the new success stories in the global marketplace
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Plan Source Make Deliver Return
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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
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Choose suppliers Develop pricing, delivery and payment
processes Metrics to monitor and improve
relationship
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Manufacturing step Schedule activities necessary for
production, testing, packaging, and delivery
Most metric-intensive level Measure quality levels Production output Worker productivity
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Logistics Coordinate receipt of orders
Develop network of warehouses Pick carriers Set up invoice system to receive payment
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Problem working of Supply Chain
Create network for receiving defective and excess product back
Support for customers who have problems with delivered products
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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
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Businesses must identify which parts of their supply-chain process are not competitive
Understand which customer needs are not being met
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Establish improvement goals
Rapidly implement necessary improvements
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Companies that learn how to improve management of their supply-chain will become the new success stories in the global marketplace
![Page 17: SCM](https://reader035.fdocuments.net/reader035/viewer/2022070412/55cf917d550346f57b8de064/html5/thumbnails/17.jpg)