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Mastering Supply Chain Management: Strategies for Global Success

Supply Chain Management (SCM) is a blend of art and science that optimizes how companies source raw materials, manufacture, distribute, and deliver products to meet customer demands. Learn the basics, challenges, and the promise of improving SCM for competitive advantage in the global marketplace.

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Mastering Supply Chain Management: Strategies for Global Success

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Presentation Transcript

  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

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