SUPPLY CHAIN MANAGEMENT:
SCM is the management of an
network, channel and
node businesses involved in
of product and service packa
ges required by the end
customers in a supply chain
PUSH VS PULL IN SUPPLYCHAINS
Push or building to stock: Producing stock on the
basis of anticipated demand. Demand forecasting
can be done via a variety of sophisticated
Pull or building to order: producing stock in
response to actual demand
BENEFITS OF SCM:
Reduce uncertainty along the chain
Proper inventory levels in the chain
Eliminate rush (unplanned) activities
Provide good customer service
PROBLEMS ALONG THE SCM
Delays in production, distribution Etc.
Lack of partners co-ordination
Poor demand forecast
Interference with the production
MATERIAL: products , parts.
INFORMATION: capacity , delivery schedules
FINANCE: invoices , pricing ,credit terms.
MATERIAL : returns , repairs , after sales services.
INFORMATION: orders , point of sale data.
FINANCE : payments.
funds flow from the
consumers to the
In up stream
, payment terms
Material flow starting from the raw materials to the end product to the
In process of products
Information flow is the sharing of information's
from the customer as well as supplier . It is both
In upstream direction capacity, promotion plans
and delivery schedule included.
In downstream direction sales , orders , inventory
, quality & promotion.