SCM
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Supply chain management (SCM) involves integrating all functions across an organization to efficiently meet customer needs. While SCM is a newer term, the concepts have existed for decades. Toyota practiced integration across quality, production, and maintenance from 1945-1975. In the 1980s, manufacturers shifted from a "push" to a "pull" model in response to customers demanding higher quality and lower costs. SCM emerged as a concept after enterprise resource planning systems allowed greater data sharing across departments. So SCM principles were practiced before, but are now more formally recognized under the SCM label to drive overall business excellence.
SCM
- 1. Supply Chain Management Supply Chain Management - De-mystified - By : Atul Kumar SRIVASTAVA BE, DBM, PGDITM, APP & CPM Senior Purchasing Advisor – Oil & Gas Middle East, UAE Source : ISM, IIMM-MMR,
- 2. Supply Chain Management SCM has gathered enormous importance and become a buzzword in the industry & IT. Question is – Is it really something new, which was non-existence earlier in industry or is it just another buzzword which will fade way giving way to something new in Industry ?
- 3. Supply Chain Management 2. Is it just something made popular by so called visionary experts, consultants or a few people to run their business or is it really significant for the industry ? 3. If it was existent earlier also, why so much emphasis now. Are role of functional experts roles are finished ?
- 4. Supply Chain Management SCM Philosophy : 1. SCM is network of networks. Seamless flow of activities for inbound & outbound logistics for materials, finances, information and services to meet highest order of customer satisfaction, keeping the pipeline lean & responsive.
- 5. Supply Chain Management 2. All the processes in entire spectrum from demand generation to demand satisfaction is SCM. 3. SCM extends from Supplier procuring his raw materials to the point of sale where the product is consumed.
- 6. Supply Chain Management Is it New ? Was SCM not there earlier ? As explained , SCM is network of networks. Seamless assimilation to a lean process of various functional processes. Marketing, Manufacturing, Logistics , Purchasing , Finance departments are already existing in each industry. There are functional experts and will remain there.
- 7. Supply Chain Management Each function / department had a different set of people working with a particular objective in their minds. This objective was not necessarily common across people and led to very little interaction across function. People were encouraged to be functional expert. SCM is integration of all functions with a view to achieve overall excellence. * So SCM was in existence , but not known as SCM.
- 8. Supply Chain Management How SCM was in existence ? Toyota Production System (TPS) : Toyota practiced the integration of processes for quality management and efficiency in process, since very beginning 1945-1975. Elements were : 1. Form cells 2. Reduce setup 3. Integrate quality control 4. Integrate preventive maintenance 5. Level and balance 6. Link cells – KANBAN 7. Reduce WIP 8. Build vendor programs 9. Automate 10. Computerize
- 9. Supply Chain Management Since beginning of Industrialization to 1980s Industries were working on Push philosophy. What ever an Industry made, there was a demand and products, whatsoever inefficient, bulky, shabby and costly were pushed to customers. Customers were not having a choice. It was Manufacturers’ / sellers’ market. Then customer become aware for quality, cost and had choices to choose for the best in quality and lowest in price. This forced to Manufacturers to “Pull philosophy”. What Customer need / order to be produced.
- 10. Supply Chain Management 8. Since when the customers started rejecting their products, got choices and they showed their inclination to quality and cost, Manufacturers realized to follow Pull Philosophy, they started looking for all the ways, tools for the optimization of their functional processes and seamlessly integrate them to meet the customers expectation of low cost with high quality.
- 11. Supply Chain Management 9. Emergence & Fine tuning of SCM has come only after ERP (Enterprises Resource Planning). When ERP has become “must have” requirement.
- 12. Supply Chain Management Each function / department had a different set of people working with a particular objective in their minds. This objective was not necessarily common across people and led to very little interaction across function. People were encouraged to be functional expert. SCM is integration of all functions with a view to achieve overall excellence. * So SCM was in existence , but known as SCM.
- 13. Supply Chain Management Each function / department had a different set of people working with a particular objective in their minds. This objective was not necessarily common across people and led to very little interaction across function. People were encouraged to be functional expert. SCM is integration of all functions with a view to achieve overall excellence. * So SCM was in existence , but known as SCM.
- 14. Supply Chain Management Each function / department had a different set of people working with a particular objective in their minds. This objective was not necessarily common across people and led to very little interaction across function. People were encouraged to be functional expert. SCM is integration of all functions with a view to achieve overall excellence. * So SCM was in existence , but known as SCM.
- 15. Supply Chain Management Each function / department had a different set of people working with a particular objective in their minds. This objective was not necessarily common across people and led to very little interaction across function. People were encouraged to be functional expert. SCM is integration of all functions with a view to achieve overall excellence. * So SCM was in existence , but known as SCM.
- 16. Supply Chain Management Each function / department had a different set of people working with a particular objective in their minds. This objective was not necessarily common across people and led to very little interaction across function. People were encouraged to be functional expert. SCM is integration of all functions with a view to achieve overall excellence. * So SCM was in existence , but known as SCM.
- 17. Supply Chain Management Each function / department had a different set of people working with a particular objective in their minds. This objective was not necessarily common across people and led to very little interaction across function. People were encouraged to be functional expert. SCM is integration of all functions with a view to achieve overall excellence. * So SCM was in existence , but known as SCM.