SCM 1

• SIMPLIFIED FLOW - Raw materials, Supplier, Manufacturer, Distributor, Retailer, Consumer
• COMPLEX FLOW - Vendors/farms, transportation, warehousing, transportation, factory, transportation, warehousing, transportation, distribution (customers)
• Layers of Logistics - 1PL, 2PL, 3PL, 4PL, 5PL
• 1PL - Manufacturer/Retailer - Manufactures goods and conducts some or all logistics operations in house
• 2PL - Distributor/Carriers - Obtains produced goods and conducts or all logistics operations in house
• 3PL - Logistics Service Provider - Conducts logistics operations on behalf of manufactures and distributors
• 4PL - Lead Logistics Provider - Manages logistics operations on behalf of manufactures, distributors, and logistics service providers
• 1PL - A farmer who delivers eggs to a grocery stores.
• 2PL - A courier delivers eggs from a farm to grocery store
• 3pl - a fulfillment company with a fleet of trucks cartons eggs and transports them form farm to grocery stores
• 4PL - A logistics company strategically manages a 3PL on behalf of the farmer to packages and deliver eggs to grocery stores
• 5PL - A logistics company manages a farmer's complete supply chain network from production to delivery.
• A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer requirement.
• Supply Chain - All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows.
• Supply Chain - An integrated group of processes to “source”, “make,” and “deliver” products.
• The term Supply Chain Management was first termed by Keith Oliver to the public in an interview for the “Financial Times” 1982.
• In 1983 Wirtschafts Woche in Germany published for the first time the results of an implemented and so called "Supply Chain Management project", led by Wolfgang Partsch.
• In the mid-1990s, more than a decade later, the term "supply chain management" gained currency when a flurry of articles and books came out on the subject.
• Malcom McLean • The owner of the first commercially successful container ship Ideal X, a T2 tanker which carried 58 metal containers between Newark, New Jersey and Houston, Texas, on its first voyage in 1951
• 2000 -Optimized “Value Network” with Real Time Decision Support; Synchronized & Collaborative Extended Network for SCM.
• Supply chain management (SCM) is the management of the flow of goods.
• The goal or mission of supply chain management can be defined using Mr. Goldratt’s words as “Increase through ouput while simultaneously reducing both inventory and operating expense”
• Supply Chain Stages - Customers, Retailers, Wholesalers/Distributors, Manufacturers, Component/Raw Material
• Supply Chain Management - A set of approaches used to efficiently integrate suppliers, manufacturers, warehouses and distribution centers so that the product is produced and distributed In the right quantities to the right locations and at the right time. System-wide costs are minimized and Service level requirements are satisfied.
• Customers - Determining what customer wants
• Forecasting - Predicting quantity and timing of demand
• Design - Incorporating customer wants, mfg, and time
• Processing - Controling quality, scheduling work
• Inventory - Meeting demand while managing inventory costs
• Purchasing - Evaluating suppliers and supporting operations
• Suppliers - Monitoring supplier quality, delivery and relations
• Locations - Determining location facility
• Logistics - Decisding how to best move and store materials
• A cycle view of supply chain clearly define the process involved and the owners of each process.
• This cycle view is very useful when considering operational decisions because it specifies the roles and responsibilities of each member of supply chain and the desired outcome of each process.
• Customer Order Cycle - It includes all of the elapsed time from the placement of the order until the product is received and placed into the customer's inventory.
• Customer Order Cycle - In logistics: Nothing happens until somebody orders something.
• Replenishment Cycle - Recurring process flow from the time one order is placed to the time the next order must be placed to replenish depleted inventory. The replenishment cycle may be triggered at any point of the production, distribution, or sales cycle depending on what works best for a specific industry
• MANUFACTURING CYCLE The Manufacturing Process from Order to Production to Receipt
• PROCUREMENT CYCLE The series of steps that are taken to purchase any product a business might require. For an uninitiated business person, the process might appear to be a very simple procedure . But this whole process(Procurement cycle) has many stages involved in it from Identifying a product to the Payment settlement. Everyone has different opinions on each step of this process, But following steps of a standard procurement cycle can support you through the procurement journey