2. Supply Chain Management System
1. A supply chain is a network of organizations for
procuring raw materials and transforming them into
2. It links Suppliers,Manafacturers,Retail Outlets and
Customers through consumption
3. Supply Chain Management systems helps managing
relations with suppliers by a constant exchane of
Aim: To get Right amount of products in Least amount
of time at lowest cost
Use of internet and constant communication between
To balance and synchronize the distribution of
8. What is Wal-Mart??????
Wal-Mart Stores, branded as Walmart, is an American
multinational retail corporation that runs chains of large
discount department stores and warehouse stores.
The company is the world’s third largest public
corporation, according to the Fortune Global 500 list in
2012, the biggest private employer in the world with over
two million employees, and is the largest retailer in the
9. walmarts supply chain strategy
Walmart’s supply chain begins with strategic sourcing to find products at
the best price from suppliers who are in a position to ensure they can
Walmart establishes strategic partnerships with most of their vendors,
offering them the potential for long-term and high volume purchases
in exchange for the lowest possible prices.
Suppliers then ship product to Walmart’s distribution centers where the
product is cross docked and then delivered to Walmart stores.
10. Cross docking, distribution management, and transportation
management keep inventory and transportation costs down,
reducing transportation time and eliminating inefficiencies.
Technology plays a key role in Walmart’s supply chain, serving as
the foundation of their supply chain.
Walmart has the largest information technology infrastructure of
any private company in the world.
Its state-of-the-art technology and network design allow Walmart
to accurately forecast demand, track and predict inventory levels,
create highly efficient transportation routes, and manage
customer relationships and service response logistics.
11. benefits of the strategy
Wal-Mart’s supply chain management strategy has
provided the company with several sustainable competitive
advantages, including lower product costs, reduced
inventory carrying costs, improved in-store variety and
selection, and highly competitive pricing for the consumer.
This strategy has helped Walmart become a dominant force
in a competitive global market. As technology evolves,
Walmart continues to focus on innovative processes and
systems to improve its supply chain and achieve greater
12. Supply Chain Management
Supply side- raw materials, inbound logistics and
Demand side- outbound logistics, marketing and
13. WHAT IS SUPPLY CHAIN MANAGEMENT?
" Is the strategic management of activities involved in
the acquisition and conversion of materials to finished
products delivered to the customer"
Supplier Material Flow Customer
Schedule / Conversion Delivery
Leads to Business Process Integration
14. Information flows in Supply Chain Management
• Information is overriding element
• Need for databases
• Master files: Information about customers, products, materials,
suppliers, transportation, production and distribution data- do
not require frequent processing
• Status files- heart of transaction processing- track orders and
infrastructure status- updated daily.
• Essentially using the same information to make all plans right
from structuring the network to processing every day supply
15. Global Supply Chains and the Internet
• Before Internet, supply chain coordination hampered by difficulties of using
disparate internal supply chain systems
• Enterprise systems supply some integration of internal supply chain
processes but not designed to deal with external supply chain processes
• Intranets and Extranets
• Intranets: To improve coordination among internal supply
• Extranets: To coordinate supply chain processes shared with
their business partners
16. • Supply chain management systems
• Push-based model (build-to-stock)
• Schedules based on best guesses of demand
• Pull-based model (demand-driven)
• Customer orders trigger events in supply chain
• Sequential supply chains
• Information and materials flow sequentially from company to
• Concurrent supply chains
• Information flows in many directions simultaneously among
members of a supply chain network
18. Supply chain objectives may differ from situation to
For functional products, cost efficiency is the critical
Forinnovative products, responsiveness is the
20. Supply Chain and Demand Chain
Demand chain is defined as the system by which
organizations manage sales and distribution of products
and services to end users.
Conceptually incorrect to look at demand chain separately