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Claras College Of Commerce

Academic year : 2015-16

Name: Girish G. Poojary
Roll No: 35
Name Of The Program: B.M.S
Class: T.Y.B.M.S
Semester: Semester V
Name Of The Course: Elements and logistics of supply
chain management
Name Of The Faculty: Prof. Faisal Tanwar

This is to certify that the project report titled Supply chain
management is prepared by Mr. Girish G. Poojary, Student of
the Bachelor of Management Studies (BMS) Degree,
University of Mumbai conducted by our college
Important sources used in this have been duly
acknowledged in this report. The project report is submitted in
partial fulfillment of the Bachelor of Management Studies
(BMS) Degree, curriculum as per the rules of the University of

(Dr Mamta Rajani)

BMS co-ordinator

(Dr Zahida Shaikh)





Introduction to supply chain management

Basic pattern how supply chain


Distinguish between supply chain

management and logistics

Global supply chain management


Supply Chain Management

Introduction to supply chain management

Supply chain management (SCM) is the oversight of materials, information,
and finances as they move in a process from supplier to manufacturer to
wholesaler to retailer to consumer. Supply chain management involves
coordinating and integrating these flows both within and among companies. It
is said that the ultimate goal of any effective supply chain management
system is to reduce inventory (with the assumption that products are available
when needed). As a solution for successful supply chain management,
sophisticated software systems with Web interfaces are competing with Webbased application service providers (ASP) who promise to provide part or all
of the SCM service for companies who rent their service

The basic pattern how supply chain works

1. Production
What products does the market want? How much of
which products should be produced and by when? This

activity includes the creation of master production schedules

that take into account plant capacities, workload balancing,
quality control, and equipment maintenance.
2. Inventory
What inventory should be stocked at each stage in a
supply chain? How much inventory should be held as raw
materials, semifinished, or finished goods? The primary
purpose of inventory is to act as a buffer against uncertainty
in the supply chain. However, holding inventory can be
expensive, so what are the optimal inventory levels and
reorder points?

3. Location
Where should facilities for production and inventory
storage be located? Where are the most cost efficient
locations for production and for storage of inventory? Should
existing facilities be used or new ones built? Once these
decisions are made they determine the possible paths
available for product to flow through for delivery to the final
4. Transportation
How should inventory be moved from one supply chain
location to another? Air freight and truck delivery are
generally fast and reliable but they are expensive. Shipping
by sea or rail is much less expensive but usually involves
longer transit times and more uncertainty. This uncertainty
must be compensated for by stocking higher levels of
inventory. When is it better to use which mode of
5. Information

How much data should be collected and how much

information should be shared? Timely and accurate
information holds the promise of better coordination and
better decision making.With good information, people can
make effective decisions about what to produce and how
much, about where to locate inventory and how best to
transport it.

Distinguish between Logistics & Supply

Chain Management
It is concerned with getting goods and services where they
are required.
Logistics is concerned with the inbound and outbound
It originated from military logistics.
The objective of logistics is to minimize cost
Supply Chain Management

SCM has all the activities associated with the movement of

goods from raw material stage to end user.
SCM co-ordinates among value chain members.
It originated from business.
The objective of SCM is to maximize profitability.

In supply chain management there are three flows

which are as follows
Product flow : it involves movement of goods from
supplier to customer
Information flow : it involves transmitting orders and
and updating the status of delivery
Financial flow : it consists of credit terms, payment
schedule discount information, etc.

Considering the globalization of the world economy, the

diversity and environmental factors that influence a firms global
strategies and approach,drivers influencing firms to become
increasingly global, and the different approaches to globalization
that might be adopted by firms, Nix (2000a) concluded:

Different approaches to globalization require different

degrees ofsupply chain integration, and different supply
chain strategies and structure.

Whatever approach to globalization and global supply chain

management is adopted, firms face the challenges of
understanding and managing the greater complexity and
risks inherent in the global environment.

Global supply chain processes should provide operating

flexibility to respond to changes in the macroeconomic
environment or government policies that adversely affect
supply chain performance.

Design and management of supply chain activities must

consider the influence of differences in culture,industry
structure,legal requirements,and infrastructure in different
countries on customers, suppliers, competitors, and supply
chain partners.

Compatibility of information technologies and

standardization of systems and data are critical to a firms
ability to integrate supply chain operations on a global basis.

Decision support tools that incorporate global variables and

allow what if scenario analysis are important to enable
managers to more effectively manage the complexities and
uncertainties of the global environment.

The management of financial systems in a global supply

chain must address differences in financial accounting
systems, comparability of data, management of terms of
sale and ownership transfer to minimize risk and optimize
profits,optimization of transfer pricing to minimize taxes,the
minimization of foreign exchange risks, and the use of


Understand the relationship between organisations and their suppliers.

Understand the purchasing process and the role of strategic sourcing.

Describe various aspects of production planning,construct a materials

requirements plan,determine a master production schedule,and
forecast future demand given historical data.

Understand distribution issues in supply chain management , including

logistics and customer relationship management.

Understand the importance of inventory management and managing

production across the supply chain.


1) http://searchmanufacturingerp.techtarget.com/definition/sup


3) http://www.usanfranonline.com/resources/supply-chainmangement