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PRAVENDRA KUMAR. What is SCM?. A supply chain is the collection of steps that a company takes to transform raw components into the final product. Supply chain management is comprised of five stages: Plan Develop Make D eliver Return.
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What is SCM? • A supply chain is the collection of steps that a company takes to transform raw components into the final product. • Supply chain management is comprised of five stages: • Plan • Develop • Make • Deliver • Return
A plan or strategy must be developed to address how a given good or service will meet the needs of the customers. A significant portion of the strategy should focus on planning a profitable supply chain.
Develop • It involves building a strong relationship with suppliers of the raw materials needed in making the product the company delivers.
Make and Deliver • The product is manufactured, tested, packaged, and scheduled for delivery. Then, at the logistics phase, customer orders are received and delivery of the goods is planned.
Returns • Return of defective goods • The company will also address customer questions in this stage.
Facilities. • Facilities are the actual physical locations in the supply chainnetwork where product is stored, assembled, or fabricated. • Inventory. • Inventory encompasses all raw materials, work in process, and finished goods within supply chain. • Transportation • Transportation entails moving inventory from point to point in the supply chain. Drivers of the supply chain performance
Drivers of the supply chain performance • Information • Information consists of data and analysis concerning facilities, inventory, transportation, costs, prices, customers throughout the supply chain. • Pricing • Pricing determines how much a firm will charge for goods and services that it makes available in supply chain.
Process view of supply chain process • Customer order cycle • Replenishment cycle • Manufacturing cycle • Procurement cycle • Push/pull view of supply chain process
Role of IT in SCM • Information must be accurate. • Information must be Accessible in a timely manner. • Information Of the right kind. • Examples – Bar codes etc