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Module 1
Introduction and Strategic View
INTRO TO SCM
GROUP 1
~ AGUS WIYONO
~ EVI JUNIATI
~ ZULKIFLI
~ AKHMAD MUWAFIQUR RAKHMAN
~ BUDI MARIONO
~ IBNU KHOIRUL




     DISUSUN OLEH EVI JUNIATI
Chapter 1

Role of Supply Chain Management
Content…..

• What is supply chain management?
• Key concepts in SCM
• The importance of the supply chain
• Enablers of supply chain performance
• Supply chain performance in India
What is supply chain management?
 Suppliers                             Manufacturers                   Warehouses &                   Customers
                                                                    Distribution Centers




                   Transportation                      Transportation
                       Costs                               Costs
Material Costs                                                                            Transportation
                                    Manufacturing Costs                 Inventory Costs       Costs
• The supply chain encompasses all activities
  involved in the transformation of goods from
  the raw material stage to the final stage, when
  the goods and services reach the end
  customer
• SCM involves planning, design and control of
  flow of material, information and finance
  along the supply chain to deliver superior
  value to end customer in an effective and
  efficient manner
Module 1 chap._1intro
Evolution of SCM
• The first revolution(1910-1920)
                         Supply chain

• The second revolution (1960-1970)

                       Supply chain

• The third revolution (1995-2000)
                      Supply chain
• First Revolution: (Ford Motor Co. 1910–1920)
   Single product, that is, no product variety
   Vertical integration
• Second Revolution: (Toyota Motor Co. 1960–1970)
   Wide Variety
   Long-term relationship with suppliers (Keiretsu)
• Third Revolution: (Dell Computers 1995–Current)
   Customized products
   Medium-term relationship with suppliers
   Suppliers have to maintain technology and cost
     leadership
Decisions in a supply Chain

• Design decision
• Operation decision
Key Concepts
• Concept of focal firm
  – The firm that provides identity to the products in
    terms of brand has higher stakes in the chain, and
    such a firm is identified as the main entity. This
    main entity is known as focal firm or central node.
• Reverse Supply Chain
  – New product return
  – End-life product return
Importance of supply chain

•   Proliferation in product lines
•   Shorter product life cycles
•   Higher level of outsourcing
•   Shift in power structure in the chain
•   Globalization of manufacturing
Enablers of supply chain performance

• Improvement in communication and IT
• Entry of third party logistics provider
  (3PL)
• Enhanced inter-firm coordination
  capabilities
Challenges in maintaining a supply chain in
                    India
• Taxation structure    • Poor state of logistics
  drives location         infrastructure
  decisions
The Supply Chain – Another View

plan
 plan                sumber
                      sumber                       Make                  Deliver            Buy
                                                   Make                  Deliver            Buy



  Suppliers                     Manufacturers            Warehouses &           Customers
                                                      Distribution Centers




                   Transportation            Transportation
  Material Costs       Costs                     Costs                Transportation
                               Manufacturing Costs        Inventory Costs Costs
Supply Chain Management – Key Issues
   •   Overcoming functional silos with conflicting goals

                                              Customer Service/
  Purchasing   Manufacturing   Distribution
                                                   Sales

                                                  High
                                  Low
   Low            Few                             inventories
                  change-         invent-
   pur-                           ories           High service
   chase          overs                           levels
   price                                          Regional
                  Stable          Low             stocks
                  schedules       trans-
   Multipl
   e                              portatio
                  Long run
   vendors        lengths         n

  SOURCE           MAKE          DELIVER           SELL

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Module 1 chap._1intro

  • 1. Module 1 Introduction and Strategic View
  • 2. INTRO TO SCM GROUP 1 ~ AGUS WIYONO ~ EVI JUNIATI ~ ZULKIFLI ~ AKHMAD MUWAFIQUR RAKHMAN ~ BUDI MARIONO ~ IBNU KHOIRUL DISUSUN OLEH EVI JUNIATI
  • 3. Chapter 1 Role of Supply Chain Management
  • 4. Content….. • What is supply chain management? • Key concepts in SCM • The importance of the supply chain • Enablers of supply chain performance • Supply chain performance in India
  • 5. What is supply chain management? Suppliers Manufacturers Warehouses & Customers Distribution Centers Transportation Transportation Costs Costs Material Costs Transportation Manufacturing Costs Inventory Costs Costs
  • 6. • The supply chain encompasses all activities involved in the transformation of goods from the raw material stage to the final stage, when the goods and services reach the end customer • SCM involves planning, design and control of flow of material, information and finance along the supply chain to deliver superior value to end customer in an effective and efficient manner
  • 8. Evolution of SCM • The first revolution(1910-1920) Supply chain • The second revolution (1960-1970) Supply chain • The third revolution (1995-2000) Supply chain
  • 9. • First Revolution: (Ford Motor Co. 1910–1920) Single product, that is, no product variety Vertical integration • Second Revolution: (Toyota Motor Co. 1960–1970) Wide Variety Long-term relationship with suppliers (Keiretsu) • Third Revolution: (Dell Computers 1995–Current) Customized products Medium-term relationship with suppliers Suppliers have to maintain technology and cost leadership
  • 10. Decisions in a supply Chain • Design decision • Operation decision
  • 11. Key Concepts • Concept of focal firm – The firm that provides identity to the products in terms of brand has higher stakes in the chain, and such a firm is identified as the main entity. This main entity is known as focal firm or central node. • Reverse Supply Chain – New product return – End-life product return
  • 12. Importance of supply chain • Proliferation in product lines • Shorter product life cycles • Higher level of outsourcing • Shift in power structure in the chain • Globalization of manufacturing
  • 13. Enablers of supply chain performance • Improvement in communication and IT • Entry of third party logistics provider (3PL) • Enhanced inter-firm coordination capabilities
  • 14. Challenges in maintaining a supply chain in India • Taxation structure • Poor state of logistics drives location infrastructure decisions
  • 15. The Supply Chain – Another View plan plan sumber sumber Make Deliver Buy Make Deliver Buy Suppliers Manufacturers Warehouses & Customers Distribution Centers Transportation Transportation Material Costs Costs Costs Transportation Manufacturing Costs Inventory Costs Costs
  • 16. Supply Chain Management – Key Issues • Overcoming functional silos with conflicting goals Customer Service/ Purchasing Manufacturing Distribution Sales High Low Low Few inventories change- invent- pur- ories High service chase overs levels price Regional Stable Low stocks schedules trans- Multipl e portatio Long run vendors lengths n SOURCE MAKE DELIVER SELL