2. What is supply chain?
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primary product
flow
primary product
flow
information flow
reverse product flow
Cash flow
ProducerSupplier Customer
3 entities
4 relationships
3. What is supply chain?
• A supply chain is the global network used to
deliver products and services from raw materials
to end users through engineered flow of
information, physical distribution and cash.
• An integrated group of processes to “source”,
“make” and “deliver” products.
• Supply chain activities transform raw materials
and components into a finished product that is
delivered to the end customer.
3
5. Supply chain management
• It is the process of planning, implementing
and controlling the operations of the supply
chain with the purpose to satisfy the
customer’s requirement as efficiently as
possible.
• SCM manages all movement and storage of
raw as well as finished goods from point-of-
origin to point-of-consumption.
5
7. Supply Chain Goals
SCM must be focused on
• Driving customer value
• Better asset utilization
• Revenue growth
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8. Benefits by SCM
• Reduce uncertainty along the chain
• Proper inventory levels in the chain
• Minimize delays
• Eliminate unplanned activities
• Provide good customer service
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9. Problems along the supply chain
• Delays in production, distribution
• Lack of partner’s coordination
• Uncertainities in delivery
• Poor demand forecast
• Interference in production
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10. Solutions
• Scan of the business environment
• Enhance strategic objectives
• Improve organizational skills
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