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Supply Chain Management

A network of activities
involved in delivering a
finished product/service to
the customer
Also referred to as the
logistics network


IMPLEMENTATION PROCEDURE
Strategic Analysis
It's the study of the current and future needs of
business and development of such solutions to
meet these requirements.

Specification
In this stage, any recommendations have to include
operational detail, enabling systems, equipment or
buildings to be procured to meet the exact
requirements of the solution.
IMPLEMENTATION PROCEDURE
Implementation
Refers to the responsibility of tendering the equipment
and supplier selection, contract negotiation and
placement. The five key dimensions of supply chain
management through the implementation procedure that
are required to achieve superior performance .
1. Strategy
2. Infrastructure
3. Process
4. Organization
5. Technology

Dell SCM Oracle:
Before Oracle, Dells batch processes were
taking long time to complete
There was a need for fast and secure data
replication
Oracle SCM system

Comprises a set of OS processes and memory-
structures that interact with the storage, acts
as shared memory realm

The Oracle DBMS can store and
execute stored
procedures and functions within itself

Oracle softwares Dell use
Oracle Recovery manager:
Stores data for back-up on weekly as well as hourly basis
OracleDatabase10gServices:
Balances data load. E.g. Dell IT can have three nodes handling
online users and three nodes handle batch processing
Oracle Grid Control:
This software provides monitoring and management
capabilities
Prevents failover as is online 24 hour and transparent, so
can catch any fail instantly, unlike previous system where
they had to connect to see whether all things are working
fine



Benefits
Predictability
Adapting and
Innovating
Alignment
Cost saving and
Efficiency
Increasing volume
discounts.

Critical Success Factors
Relationship with customer and supplier
Information and communication technology
(ICT)
Material flow management
Corporate culture
Performance measurement
E-Commerce


New Trends In SCM
Trend 1: Demand Planning
Shifting focus from production-centered to
demand centered model
Use available data and forecasting strategies
to make a demand plan
Include all departments in demand planning
Trend 2: Globalization and IT
Globalization is impacting even the businesses
operating locally
Suppliers think in global market terms
Every thing is digitally done. E-commerce, E-
banking, etc.
Trend 3: Increased competition and
price pressures
Product innovation and brand equity no
longer the tools to command good price in the
market and stay competitive
Efficient value-chain & value added services by
supply chain in demand:
Through improved strategic sourcing,
procurement, operations, transportation.
Drop shipping, vendor manage inventory for
added value.

Trend 4: Outsourcing
lets company focus better on core
competencies.

In an outsourced supply chain environment
the need for information, controls and
excellence from the information worker
becomes a high priority.


Trend 5: product life cycle
management
emphasis on managing new product
introduction.
product discontinuation, design for
manufacturability and leveraging across their
entire product and infrastructure
characteristics.
PLM processes and technology is helping
companies design products that can share
common operations, components or
materials.


Trend 6: Partnership with supplier
New trends resulted in Closer integration and
collaboration with suppliers
Sharing information will increase visibility
through-out the value chain and in turn,
decrease value chain costs
SCM in Services&Manufacturing
Inputs - Both the service and the
manufacturing industries require an input of
labor.

the cost of manufacturing labor is involved in
procuring, transporting and manipulating
physical material, while almost all service
industry labor is expended on manipulating
information and developing relationships.
SCM in Services&Manufacturing
Logistics - focuses on logistics in terms of
moving physical material from one location to
another.

In service organizations, particularly in the
financial sectors, these factors are irrelevant
because no physical product is moving except
perhaps a few sheets of paper.
SCM in Services&Manufacturing
Finished goods in manufacturing
assembling, tested and packaged, and is now
sitting on a shelf at a warehouse or a store,
ready to be sold.

In the service industry, a finished good equals
a closed file.
Manufacturing - optimization of the supply
chain is accomplished primarily by improving
speed of delivery and reducing cost.

A research paper published by Eastern Illinois
University points out that the main drivers of
optimization in a service model are
relationships and information flow.
SCM application in Pakistan
EBM has adopted for Management resource
planning i.e. MRP system.
Controls and develop production plans.
Forecasting orders, automated planning of
material.
Engaging suppliers to MRP system.
Analytical, construction & process lab are for
Quality assurance of raw materials.
ERP systems are installed in MIS department.
Responsible for linking departments data and
info for production, supply chain and logistics.
Competitive edge of EBM; Tier 1 to Tier 2.
For material pricing deal with tier 2 ,
controlling tier 1 prices and helping them buy
less expensive material.
Through appointing converters dealing with
international dealers.