Supply Chain Management & logistics
The efficient integration of suppliers (factories(warehouses and stores as that merchandise is produced and distributed in the rightaquantities to the right locationsñ at the right time
Supply Chain is a set of activities (e.g. purchasing,manufacturing, logistics, distribution, marketing) that perform the function of delivering value to end customer
Objectives
Reduced costs
Shorter lead time
Best of quality
Flexibility
Enhanced service
Better product availability
Better product reliability
The supply chain planning is an effort to achieve the primary goal of “producing and distributing the merchandise at the right quantity, to the right locations, and at the right time with minimum system wide cost” in the presence of conflicting goals of various business units
Push View of SCM
A push-based SCM takes longer to react to the changing market place
In a push-based supply chain, production decisions are usually based on long-term forecasts
In push-based strategies, SCM experience increased transportation costs, high inventory levels and high manufacturing costs
Pull View of SCMIn a pull-based supply chain, manufacturing is demand driven so that it is coordinated with actual external customer demand rather than a forecast
Lead-time reduction occurs as the variabilities are better monitored in pull-based SCM
Pull-based systems are often difficult to implement when lead times are so long that it is impractical to react to demand information
Process of purchasing
Receiving requisition/indents
Assessment of demand/description of requirement
Selection of source of supply.
Receiving of quotations.
Placing order
Making delivery in time by follow-up
Verification of invoice according to purchase order.
Inspection
Maintaining purchase records and files
Reporting to top management
Meeting transportation requirements
Coordinating among other departments.
Creating goodwill.
Delivery of goods to the stores
Supply Chain is a set of activities (e.g. purchasing,manufacturing, logistics, distribution, marketing) that perform the function of delivering value to end customer
Objectives
Reduced costs
Shorter lead time
Best of quality
Flexibility
Enhanced service
Better product availability
Better product reliability
The supply chain planning is an effort to achieve the primary goal of “producing and distributing the merchandise at the right quantity, to the right locations, and at the right time with minimum system wide cost” in the presence of conflicting goals of various business units
Push View of SCM
A push-based SCM takes longer to react to the changing market place
In a push-based supply chain, production decisions are usually based on long-term forecasts
In push-based strategies, SCM experience increased transportation costs, high inventory levels and high manufacturing costs
Pull View of SCMIn a pull-based supply chain, manufacturing is demand driven so that it is coordinated with actual external customer demand rather than a forecast
Lead-time reduction occurs as the variabilities are better monitored in pull-based SCM
Pull-based systems are often difficult to implement when lead times are so long that it is impractical to react to demand information
Process of purchasing
Receiving requisition/indents
Assessment of demand/description of requirement
Selection of source of supply.
Receiving of quotations.
Placing order
Making delivery in time by follow-up
Verification of invoice according to purchase order.
Inspection
Maintaining purchase records and files
Reporting to top management
Meeting transportation requirements
Coordinating among other departments.
Creating goodwill.
Delivery of goods to the stores
