1. Your company name
SUPPLY CHAIN
MANAGEMENT

2. 2
Deck Outline
Introduction
Supply Chain Management Process
SCM Decision Phases
Strategic Sourcing Process
Logistics & IT
Planning & Forecasting
Inventory Management
Inventory Management Models
Performance Measures
Common Problems with SCM

3. 3
Introduction
SCM Introduction
Supply Chain Components
SCM Process Flow
SCM Implementation Steps
Advantages
Goals

4. Introduction (1 Of 2)
4
This can be done by companies
with a very good and tight hold
over internal inventories,
production, distribution, internal
productions and sales
It uses different strategies and
approaches to view the entire
chain and work efficiently at
each and every step involved
in the chain
To monitor and relate
production, distribution,
and shipment of products
and services
Objectives
It is the management of flow of
products and services, which begins
from the origin of products and ends
at the product’s consumption
It also comprises movement and
storage of raw materials that are
involved in work in progress, inventory
and fully furnished goods
Supplier Manufacturer Distributor ShopperRetailer
Finances
Information
Product
Finances
Information
Product

5. Introduction (2 Of 2)
5
Purchasing And
Supply Management
Physical Distribution
Management
Materials
Management
Logistics
DEMAND SIDESUPPLY SIDE
Information Flow
Physical Flow
Supply Chain Management
Second Tier
Customer
First Tier
Customer
Second Tier
Supplier
First Tier
Supplier
END CUSTOMER

6. Components Of The Supply Chain
6
SUPPLY CHAIN MANAGEMENT
Supply Manufacturing Distribution
& Warehousing
Retail Consumer

7. Components Of The Supply Chain
7
Outbound
Logistics
Inbound
Logistics
Internal
Logistics
Bottle
Manufacturing
Plant
Oil
Drilling
Juice
Butting
Plan
JuicingFarm
National
Distribution
Center
Focal
Firm
Plastic
Manufacturer
Label
Printer
Maker
Paper
Manufacturer
Tree
Plantation
Regional
Distribution
Center
Shops
Supermarkets
Vending

8. Company Timeline
8
Vendor
Sourcing
Inbound Storage/
Transport Data
Operation
Outbound Storage/
Transport Data
Consumer Distribution
Consumer
MATERIAL FLOW
INFORMATION FLOW
MONEY FLOW
› Material flow through various warehouses
among distributors, dealers and retailers.
› Main challenge is in ensuring that the material
flows as inventory quickly without any stoppage
through different points in the chain
MATERIAL FLOW
› It comprises the request for quotation,
purchase order, monthly schedules,
engineering change requests, quality
complaints and reports on supplier performance
from customer side to the supplier
INFORMATION FLOW
› On the basis of the invoice raised by
the producer, the clients examine the
order for correctness. If the claims are
correct, money flows from the clients
to the respective producer
MONEY FLOW
This slide demonstrates the
flow of Material, Information
& Money across the value
chain and showcases all
the important steps in the
SCM process

9. SCM Advantages
9
Enhances inventory management, supporting the successful execution of
just-in-time stock models
Creates better delivery mechanisms for products and services in
demand with minimum delay
Improvises productivity and business functions
Minimizes warehouse and transportation costs
Develops better customer relationship and service
Minimizes direct and indirect costs
Assists in achieving shipping of right products to the right place at
the right time

10. SCM Implementation Steps
10
Developing an
SCM Vision
Assessing Supply
Chain Opportunities
Developing An
SCM Strategy
Creating The Optimum
SCM Organizational
Structure
Establishing The SCM
Information And
Communication
Network
Translating The
SCM Strategy
Into Actions
Concept Phase Conversion Phase Execution Phase
Project Management And Communication

11. SCM Goals
11
Minimization of supply chain
expenses is very essential
Increased expectations of clients for higher product
variety, customized goods, off-season availability of
inventory and rapid fulfillment should be matched
To maximize resource productivity, construct
standardized processes, remove duplicate efforts
and minimize inventory levels
Cost efficient and cheap products are necessary, but
supply chain managers need to concentrate on value
creation for their customers
To leverage inventory as a shared resource and
utilize the distributed order management
technology to complete orders from the optimal
node in the supply chain

12. Supply Chain Management Process
12
Plan
Source
Execute
Deliver
Return
There are six important
steps involved in Supply
chain management
process. Each of these
steps have been discussed
separately in the later
slides.

13. SCM Process - Plan
13
Plant
Location
Plant
Size
Warehouse
Designing Plan
Delivery
Models
IT
Solutions
Transportation Cost
Modeling
Planning is the strategic
part of supply chain
management process, to
find out a best possible
blueprint of how to fulfill the
end requirement. SCM
managers should identify a
list of key parameters as
mentioned in this slide

14. S.No. Supplier Name RM Procured Annual Amount Key Benefits Derived
1 Name 1 Iron
2 Name 2 Steel
3 Name 3 Aluminum
4 Name 4 Plastic
5 Name 5 Desktop
6 Name 6 Mouse Pad
7 Name 7 Rod
SCM Process - Plan
14
At this stage of supply chain
management, the emphasis is on
to ascertain the most reliable of
suppliers for raw materials so that
production process would never
jeopardize. a capable supplier is
one thing, but there should be a
tangible system in place for the
continuous development of
suppliers which would boost their
efficiency as well.

15. SCM Process - Execute
15
This is the stage where well
designed processes are
implemented so that a
perceivable shape is given
to existing plans in the form
of manufactured products
which are ready for testing,
packaging, and delivery.
S.No. Manager Name Area of Responsibility
Key Strategies under
each Supervisor
1 Name 1 Testing
2 Name 2 Packaging
3 Name 3 Delivery
4 Name 4 Procurement
5 Name 5 Logistics
6 Name 6 Finance
7 Name 7 Marketing

16. S.No. Manager Name Area of Responsibility
Key Strategies under
each Supervisor
1 Name 1 Warehousing Networks
2 Name 2 Inventory Models
3 Name 3 Invoice Receipts
4 Name 4 Payment Receipts
5 Name 5 Road Shipment
6 Name 6 Sea Shipment
7 Name 7 Air Freight
SCM Process - Deliver
16
The managers have a task at
hand to deliver the
product/service in the right
quantity, at the right place and
right time by employing
suitable carriers. Supply chain
managers should be fully
equipped with modern IT tools
to keep a track on the
following parameters

17. SCM Decision Phases
17
The decision to be made here is a long term prediction and involves
price of goods that are very expensive if it goes wrong. It is very
important to study the market conditions at this stage
Supply Chain Strategy
Supply chain planning should be done according to the demand and
supply view. In order to understand customers’ demands, a market
research should be done. The second thing to consider is awareness and
updated information about the competitors and strategies used by them to
satisfy their customer demands and requirements
Supply Chain Planning
The objective behind this decisional phase is minimizing uncertainty
and performance optimization. Starting from handling the customer
order to supplying the customer with that product, everything is
included in this phase.
Organizational Strength
Strategy, Planning &
Operations are the three
important steps of SCM
decision process. This is a
summary slide and guidelines
have been mentioned in the
boxes which will further help in
writing the key points under
each step

18. Strategic Sourcing Process
18
Understanding the
Spent Category
Supplier Market
Assessment
Supplier Survey
Building the
Strategy
RFx Request
Communication with
new suppliers
These are the important
steps in the strategic
sourcing process from your
vendor. Each of this steps
have been discussed in
separate slides

19. Understanding The Spent Category
19
In this first stage, the team needs to do a complete survey on the total expenditure
Complete previous expenditure records and volumes
Expenditures divided by items and sub items
Expenditures by division, department or user
Expenditures by the supplier
Future demand projections or budgets
The five major segments that are analyzed in the first stage are as follows

20. Supplier Market Assessment
20
The should-cost analysis supplies a valuable tool that drives
minimizing of cost and regular progress efforts of the supplier
The second step includes frequent assessment of the supplier
market for pursuing substitute suppliers to present incumbents
The major element of the key products design is
should-cost.
Along with it, an analysis on the major suppliers’ sub-tier
marketplace and examination for any risks or new
opportunities are also important
A thorough study of the supplier marketplace dynamics
and current trends is done

21. The third step is developing a supplier analysis for both incumbent and potential
substitute suppliers
This analysis assists in examining the skills and abilities of a supplier
Data collected from incumbent suppliers is used for verifying spend information
that suppliers have from their sales systems
Supplier Survey
21
Key factors to be looked for in a Supplier
Feasibility Capability Maturity Capacity

22. Building The Strategy
22
How willing is the marketplace to oppose
the supplier?
Put your text here
How supportive are the clients of a firm for
testing incumbent supplier relationships?
Put your text here
What are the substitutes to the
competitive assessment?
Put your text here

23. Strategic Sourcing – Next Steps
23
RFx Request
In this approach, a request for
proposal or bid needs to be
prepared (e.g., RFP, RFQ,
eRFQ, ITT) for most spend
classifications or groups.
Selection
In this approach, a request for
proposal or bid needs to be
prepared (e.g., RFP, RFQ,
eRFQ, ITT) for most spend
classifications or groups.
Communication
After informing the winning
supplier(s), communication plan
will be set up, including any
modification in specifications
and improvements in delivery,
service or pricing models

24. Order Fulfillment Process
24
Order Goods Submit Order
Prepare
Payment
On Hand?
Check
Inventory
Pick And Side
Goods
Check Credit
Send Invoice
Credit
Ok?
Customer Sales Department Credit & Billing Shipping

25. Steps Of Order Fulfillment
25
Order
Management
Customer Merchant
USPS DDU/RDU

26. Logistics & IT
26
Transportation
Medium
Transportation
Challenges
IT in
SCM

27. Transportation Medium
27
Plane
Truck
Rail
Ship
Electronic
Choose the right
transportation medium as
per your project
requirements and highlight
the reason for choosing it
because it has a direct
impact on your freight cost

28. Transportation Challenges
28
CHALLENGE
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Labor Laws
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Economic Uncertainty
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Changing Transportation Industry
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Improvised Technologies
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Globalization
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Customer’s Expectation
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Varying Fuel Prices

29. Strategic
Planning
Operational
Information Technology In A Supply Chain: Analytical Applications
29
Supplier
Apps
Supplier Manufacturer Distributor Retailer Customer
SCM
Transport execution & WMS
Transport & Inventory
Planning
MES
APS Dem Plan
CRM/ SFA
These circles demonstrates
the most commonly used
IT/ERP tools in each stage
of the supply chain
management. You can edit
it as per the tools used in
your company

30. 30
Planning & Forecasting
Budget Forecasting Demand Forecasting Sales Forecasting Production Planning

31. Supply Chain Management Budget Forecasting
31
Budget Forecasting
Your Text Here +0.00 $
Your Text Here 55$
Your Text Here 65$
Your Text Here $25
Your Text Here 35$
45%
30%
15%
10%
Sales
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Enter your
projected quarterly
sales and the
budget forecasted
for the key
categories

32. Demand Forecasting
32
0
200
400
600
800
1000
1200
1400
1600
1800
0 2 4 6 8 10 12 14
DemandQuality
Months
Stable Demand
Trend
Dynamic Demand

33. Sales Forecasting (Option 1 Of 2)
33
2014 Sales 2015 Forecast
January 420
February 440
March 410
April 424
May 467
June 755
July 720
August 800
September 780
October 960
November 1200
December 1100
January 1150 1150
February 1240
March 1280
April 1310
May 1360
June 1370
1
1.2
1
1.8
2
3
2.9
3.8
5.4
4.9
5
5.22
5.38 5.39
6
6.2

34. 2
5
12
3
9
10
12
4
5
3
7
4
-10
-5
0
5
10
15
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Sales Forecasting (Option 2 Of 2)
34

35. Master Production Planning (Option 1 Of 2)
35
Products
2017
Units
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Product $391
Product 1 $234
Product 2 $354
Product 3 $543
Product 4 $300
Product 5 $694
Product 6 $358

36. Week 1 Week 2 Week 3 Week 4 Week 5
Demand Forecast(in Units) 120 240 300 480 600
Customer Order(committed) 400 200 150 300 435
Initial Inventory in Period week=0 750
Net inventory before mps 250 100 500 960 320
Master Production Schedule(MPS) 1200 800
Projected on hand Inventory 250 800 650 350 330
Master Production Planning (Option 2 Of 2)
36

37. Inventory Management
37
Introduction
EOQ Model
EOQ Model Cost Curves
EOQ Cost
EOQ Important Characteristics
EOQ Basic Assumptions

38. Inventory Management
38
Write your key strategies here
Manufactures
Write your key strategies here.
Warehouse
Write your key strategies here.
Distributors
Write your key strategies here
Wholesalers
Write your key strategies here
Customers

39. Economic Order Quantity (EOQ) Model
39
Demand
Rate
0 TimeLead
Time
Lead
Time
Order
Placed
Order
Placed
Order
Received
Order
Received
InventoryLevel
Reorder Point, R
Order Quantity, Q
Re-plot this graph
after calculating all
the factors which
are described in the
later slides

40. The EOQ Model Cost Curves
40
Slope = 0
Total Cost
Ordering Cost = SD/Q
Order Quantity, Q
Annual
Cost ($)
Minimum
Total Cost
Optimal Order Q*
Holding Cost = HQ/2
This slide
calculates all the
cost related to the
EOQ model. After
calculation, replot
the graph as per the
data point.

41. EOQ Cost Model
41
D Annual Demand
Order QuantityQ
S Cost Of Placing Order
H Annual Per-unit Holding Cost
Ordering cost = SD/Q
Holding cost = HQ/2
Total Cost = SD/Q + HQ/2
2DS
HQ*=√

42. Important Characteristics Of The EOQ Cost Function
42
› At EOQ, the annual holding cost is the same as annual ordering cost
› The total cost curve is flat near EOQ. So, the total cost does not change much with a slight change in the order quantity
2DSH
Q
DS
2
HQ
costannualTotal
2
DSH
H
2DS
DS
Q
DS
costorderingAnnual
2
DSH
H
2DS
2
H
2
HQ
costholdingAnnual
*
*
*
*
=+=
===
===

43. EOQ Assumptions
43
Demand occurs at a constant rate of D items per year
Ordering Cost is $S per order
Holding Cost is $H = $CiI per item in inventory per year (note holding cost is
based on the cost of the item, Ci)
Purchase Cost is $C1 per item if the quantity ordered is between 0 and x1,
$C2 if the order quantity is between x1 and x2, etc
Delivery time (lead time) is constant
Optimal order quantity: The procedure for determining Q*
will be demonstrated
Number of orders per year: D/Q*
Time between orders (cycle time): Q*/D years
Total annual cost: [(1/2)Q*H] + [DS/Q*] + DC
(holding + ordering + purchase)

44. 44
Inventory
Management Models
Bi-level Optimization Stochastic Modeling Uncertainty Modeling

45. Stochastic Modeling
45
It is a mathematical approach of representing data or predicting
outcomes in situations where there is randomness or
unpredictability to some extent
Parameters like input materials, reliability of machine and
competence within the employees have an impact on the
outcome of the manufacturing process but it is impossible to
measure them with absolute values
This modeling strategy helps in predicting the result of this
process with some defined error rate by considering the
unpredictability of these factors
Replace the image with
your original one which is
derived after using the
analytical tools. Details &
Benefits of stochastic
modeling has been
mentioned in the below
comments

46. Uncertainty Modeling
46
While using a realistic modeling approach,
the system has to take uncertainties into
account. The uncertainty is evaluated to a
level where the uncertain characteristics of
the system are modeled with probabilistic
nature
We use uncertainty
modeling for characterizing
the uncertain parameters
with probability distributions
It takes dependencies into account
easily as input just like Markov
chain or may use the queuing
theory for modeling the systems
where waiting has an essential role
0
1000
2000
3000
4000
5000
6000
Loss
Return Period
High Medium Low
Replace the image with
your original one which is
derived after using the
analytical tools. Details &
Benefits of uncertainty
modeling has been
mentioned in the below
comments

47. Bi-Level Optimization
47
A bi-level issue arises in real life situations
whenever a decentralized or hierarchical
decision needs to be made
In these types of situations, multiple parties
make decisions one after the other, which
influences their respective profit
Replace the image with
your original one which is
derived after using the
analytical tools. Details &
Benefits of Bi-level
optimization has been
mentioned in the below
comments

48. Performance Measures
48
Non-Financial Measures
Financial Measures

49. Non-Financial Measures
49
Cycle Time
Supply chain lead time
It can be simply defined as the end-
to-end delay in a business process
Order-to-delivery lead time
Time of delay in the middle of the
placement of order by a customer and
the delivery of products to the customer
It is the reverse of order fill rate and marks the portion of orders lost
because of a stock out
Stock out Rate
Gauge of total number of orders waiting to be filled
Backorder Level
It is the portion of customer orders that are completed on-time, i.e., within
the agreed-upon due date.
Probability of On-time delivery
Customer
Service Level
Replace the text
from the comments
box and add the
relevant details
there

50. Non-Financial Measures
50
Spare Parts
Mention the amount of
spare parts consumed &
leftover in the company
Raw Material
Enter the amount of raw material
consumed & left-out
Finished Goods
Enter the amount of Finished goods;
both in weight & value terms
Work-in-progress
Enter the amount of WIP that is in stock
Inventory Level
Replace the text
from the comments
box and add the
relevant details
there

51. Non-Financial Measures
51
Resource
Utilization
Manufacturing Resources
Include the machines, material handlers, tools, etc.
Storage Resources
Comprise warehouses, automated storage and retrieval systems
Logistic Resources
Engage trucks, rail transport, air-cargo carriers, etc.
Human Resources
Consist of labor, scientific and technical personnel
Financial Resources
Include working capital, stocks, etc..
The main motto is to utilize
all the assets or resources
efficiently in order to
maximize customer service
levels, reduce lead times
and optimize inventory
levels. So, Enter the
required parameters

52. Financial Measures
52
Cost of
Raw Material
Revenue from
Goods Sold
Inventory
Holding Cost
Transportation
Cost
Cost of Expired
Perishable Goods
Cost of Goods Return
By Customer
Cost of Goods Return
To Supplier
The measures taken for
gauging different fixed and
operational costs related to a
supply chain are considered
the financial measures.
Finally, the key objective to
be achieved is to maximize
the revenue by maintaining
low supply chain costs.

53. Common Problems With SCM
53
Lack of relevant SCM metrics: How to measure responsiveness?
Major problem for
furniture retailers
Theft Transaction errors
Retailers with inaccurate
inventory records for 65%
of SKUs
Information delays
dated information,
incompatible info.
systems
Misplaced inventory
16% of items cannot be
found at a major retailer
Product quality
and yield
Spoilage
active ingredients in
the products are losing
their properties
Lack of visibility in SCs
› Do you know the inventory your
distribution centers hold?
› Do you know the inventory your
fellow retailer holds?
Poor inventory status information

54. Common Problems With SCM
54
Poor delivery status information
› Not knowing the order status
Poor IT design
› Unreliable, duplicate data
› Security problems: too much or too little
Internal customer discrimination
› Giving lower priority to internal customers than external customers
Poor integration
Elusive inventory costs
› Accounting systems do not capture opportunity costs

55. Supply Chain Optimization
55
Raw Material And
Component
Suppliers
Customer
Transportation
Sourcing
Procurement
Central
Manufacturing
Distribution,
Assembly &
Repair
Sales Marketing
& Customer
Service
Demand Signal
Product Flow

56. Supply Chain Optimization
56
Supplier
Factory
Distributor
Retailer
Customer
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57. 57
Chart and
Graphs

58. Clustered Column
58
0%
10%
20%
30%
40%
50%
60%
2014 2015 2016 2017
• Product 01
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0%
10%
20%
30%
40%
50%
60%
2014 2015 2016 2017
• Product 02
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59. Line Chart
59
0
10
20
30
40
50
60
70
80
FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08
Inpercentage
In years
• Product 01
• Product 02
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60. Pie Chart
60
40%
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Data”.
70%
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80%
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Data”.

61. Bar Chart
0
10
20
30
40
50
60
70
80
90
100
FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07
InPercentage
In Years
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61

62. 62
Additional
Slides

63. 63
Vision
Your Text Here
Mission
Your Text Here
Goals
Your Text Here
Our
Vision
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64. 64
Name Here
Designation
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Designation
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OurTeam

65. 65
01
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About Us

66. 66
Leadership
Quotes If your actions inspire
others to dream more,
Learn more, do more
and become more,
You Are A Leader

67. Dashboard
67
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50 60
70
80
90
100
110
High Speed
on
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80%

68. Location
USA
Montana
Texas
60%
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69. Our Goal
69
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70. 70
58%
Female
83%
Male
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Comparison

71. Silhouettes
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Silhouette
01

72. Hierarchy
72
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73. Timeline
73
2012 2013 2014 2015 2016 2017
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audience's attention.
This slide is 100%
editable. Adapt it to
your needs and
capture your
audience's attention.
This slide is 100%
editable. Adapt it to
your needs and
capture your
audience's attention.

74. 74
Idea 1
Idea 2
Idea 3
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This slide is 100% editable. Adapt it to your
needs and capture your audience's attention.
This slide is 100% editable. Adapt it to your
needs and capture your audience's attention.
Mind Map

75. Puzzle
75
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This slide is 100% editable. Adapt it to
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This slide is 100% editable. Adapt it to
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This slide is 100% editable. Adapt it to
your needs and capture your
audience's attention. 01
02
03
04

76. 76
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IDEA Creation

77. Thank
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