GROUP 4

SUPPLY CHAIN
MANAGEMENT
GROUP 4

TADURAN, KIEN ROSALES, JERICHO A.

ANDRE S.

OCSAN, CHLOIE ANNE BALBOA, MERIEL A.

M.
INTRODUCTION

The creation of supply chain management is

a response to rising competitiveness in the
global market. It links suppliers,
manufacturers, distributors, and customers
to minimise costs across the whole supply
chain and respond rapidly to customer
requests. Supply chain management is
essentially multidisciplinary and
necessitates the efforts of both engineers
and business managers.
 SUPPLY CHAIN
MANAGEMENT CONCEPT

A supply chain is a network of facilities that

sources raw materials, converts them into
intermediate items, and then delivers them to
customers by a distribution system. It includes
all informational, financial, and physical flows
from supplier to customer. Consider the
automotive industry: the development, design,
production, marketing, and delivery of new
vehicles begins with design and concludes with
fit and finish in the dealer's showroom.
PRINCIPLES OF SUPPLY CHAIN
MANAGEMENT

Supply chains can easily fail if

they encounter unforeseen
operational difficulties, both
customers and manufacturers
may be impacted.
 Customer Collaboration
Focus Innovation

Technology
Risk
Management

Flexibility
Global
Perspective
Visibility
SUPPLY CHAIN MANAGEMENT
PROCESS

Creating net value, creating a competitive

infrastructure, utilizing global logistics,
synchronizing supply and demand, and
measuring performance globally are the goals of
supply chain management, which is defined as
the design, planning, execution, control, and
monitoring of supply chain activities.
 SUPPLY
PLANNING

DEMAND
PROCUREMENT
PLANNING

STRATEGIC
PLANNING
SUPPLY CHAIN MANUFACTURIN
G
MANAGEMENT
STRATEGIC PLANNING DEMAND PLANNING SUPPLY PLANNING
PROCESS PROCESS PROCESS
An ongoing process
A process in supply
wherein an organization is a method for
chain management
determines its future
course by gathering all of that predicts or managing a firm that
its stakeholders to assess forecasts product affects inventory,
the present situation and demand to guarantee demand, and supply
define its long-term delivery and customer
goals.
levels.
satisfaction
 PROCUREMENT MANUFACTURING
PROCESS PROCESS

The process of gathering Capturing actual

requirements, setting the production data from the
timelines for their shop floor to support
acquisition, and ensuring production control and
that they are available costing processes.
when needed.
 LOGISTICS

SUPPLY CHAIN
MANAGEMENT
 LOGISTICS

01WORD "LOGISTICS" FIRST APPEARED IN THE

THE
SUMMARY OF THE ART OF WAR" BOOK BY MR.
ANTOINE-HENRI JOMINI, A MILITARY OFFICER
AND A WRITER.

IN THE MILITARY, LOGISTICS WAS DEFINED AS "THE

02
DISCIPLINE OF PLANNING AND CARRYING OUT THE
MOVEMENT, SUPPLY, AND MAINTENANCE OF
MILITARY FORCES", WHICH WAS CRUCIAL DURING
WORLD WAR II.

Logistics
03 could be defined as a combination of 7 rights,
where 7 rights include right product, right price, right
quantity, right quality, right place, right customer and right
time.
 LOGISTICS
ORDER
INVENTORY PICKING,PACKIN
MANAGEMEN G
FULFILLMEN
RECEIVIN T
T & SHIPPING
G

DEMAND TRANSPORTATIO
PLANIN N
WAREHOUSIN MANAGEMENT
G
G
BUSINESS

DELIVERY TIME

CUSTOMER
EXPERIENCE

SALES
 LOGISTICS

LOGISTICS IS MORE THE PRIMARY GOAL OF

IT IS THE FOCUSED ON SHORT-TERM, LOGISTICS IS TO ENSURE
MOVEMENT OF DAY-TO-DAY OPERATIONS. IT THE EFFICIENT AND COST-
MATERIAL IN DEALS WITH IMMEDIATE EFFECTIVE MOVEMENT OF
WHOLE TASKS, SUCH AS MANAGING GOODS, LEADING TO TIMELY
SUPPLY CHAIN TRANSPORTATION ROUTES, DELIVERIES AND REDUCED
SCHEDULING DELIVERIES, OPERATIONAL COSTS.
AND MONITORING
INVENTORY LEVELS.
SUPPLY CHAIN MANAGEMENT

01
SUPPLY C HA IN MA NA GEMENT, OFTEN A TTR IB UTED TO
BOOZ ALLEN C ONSULTA NT KEITH OLIV ER IN 1982, IS A
CONCEPT THA T INV OLV ES PLA NNING, EX EC UTING, A ND
OVERSEEING SUPPLY C HA IN OPER A TIONS WITH THE
PRIMARY GOA L OF EFFIC IENTLY MEETING C USTOMER
DEMAND S.

A SUPPLY CHAIN IS THE NETWORK OF ALL THE

02
INDIVIDUALS, ORGANIZATIONS, RESOURCES,
ACTIVITIES AND TECHNOLOGY INVOLVED IN THE
CREATION AND SALE OF A PRODUCT
 SUPPLY CHAIN MANAGEMENT
(SCM)
PLANNING
FINISHED PRODUCTIO SUPPOR
AND
GOODS N T
EXECUTIO
N

RAW PROCUREMEN FULLFILLMENT

MATERIAL T
S MATERIALS
 SUPPLIER
DELAY

WRONG MATERIALS

PRODUCTION
ISSUE

SYSTEM
ISSUE

SHIPPING
DELAY
SUPPLY CHAIN MANAGEMENT

SCM TAKES A LONGER-TERM SCM'S GOAL IS TO OPTIMIZE

PERSPECTIVE AND INVOLVES THE ENTIRE SUPPLY CHAIN
IT IS THE STRATEGIC PLANNING, NETWORK TO MAXIMIZE
TRANSFORMATION FORECASTING, AND DECISION- OVERALL PERFORMANCE,
OF RAW MATERIAL MAKING THAT CAN SPAN CUSTOMER SATISFACTION,
INTO PRODUCT WEEKS, MONTHS, OR EVEN AND COMPETITIVENESS. IT
AND GETTING IT YEARS. IT CONSIDERS INVOLVES COORDINATING
TO CUSTOMER FACTORS LIKE DEMAND VARIOUS STAKEHOLDERS TO
FORECASTING, SUPPLIER ACHIEVE STRATEGIC GOALS
RELATIONSHIPS, AND LIKE COST REDUCTION,
OVERALL SUPPLY CHAIN QUALITY IMPROVEMENT,
DESIGN. AND SUSTAINABILITY.
 LOGISTICS

SUPPLY CHAIN
MANAGEMENT
Material management is an important part
of supply chain management. It involves
setting up and running supply chains to
meet a company’s or organization’s material
needs. This includes controlling and
regulating the flow of material while
considering factors such as demand, price,
availability, quality and delivery schedules.
Materials management is the process of
planning and controlling material flows. It
includes planning and procuring
materials, supplier evaluation and
selection, purchasing, expenditure,
shipping, receipt processes for
materials (including quality control),
warehousing and inventory, and
materials distribution.
 Optimization of Material
Reduction of Material Waste Increased Inventory
Transport
Accuracy

By focusing on
By managing the The knowledge of better
timing of accurate direct management
material delivery material inventory techniques and
and overseeing levels can help creating
inventory, reduce inventory specialized
loss and increase materials
material
production management
managers can
efficiency. departments,
reduce receiving production
Preventing the
errors and waste.
na loss of materials is companies can
an important step fully utilize the
in reducing the transportation of
materials and the
cost of raw
supply chain.
materials.
 Procurement involves every activity in
obtaining the goods and services a
company needs to support its daily
operations, including sourcing,
negotiating terms, purchasing items,
receiving and inspecting goods as
necessary and keeping records of all the
steps in the process.
The procurement process includes the
preparation and processing of a
demand and the end receipt and
approval of payment.
Comprehensively, this can involve
purchase planning, standards,
specifications determination, supplier
research, selection, financing, price
negotiation, and inventory control.
1. Identify which goods and services the company
needs
2. Submit purchase request.
3. Assess and select vendors.
4. Negotiate price and terms
5. Create a purchase order.
6. Receive and inspect the delivered goods
7. Conduct three-way matching.
8. Approve the invoice and arrange payment
9. Recordkeeping
 DIRECT INDIRECT GOODS SERVICES
PROCUREMENT PROCUREMENT PROCUREMENT PROCUREMENT
Physical items All people-
Any good All non- typically held as based services
service required production- inventory, produced,
to produce an related goods whether for whether for
end product or services direct or indirect direct or indirect
procurement procurement
purposes purposes
SOURCING PURCHASING PAYMENT
STAGE STAGE STAGE
INVENTORY
CONTROL
 INVENTORY CONTROL

01
INVENTORY CONTRO L, ALSO KNOWN AS INVENTORY
MANAGE MENT, IS THE PROCESS OF OVERSEEING AND
REGULATIN G THE ORDERING, STORAGE, AND USE OF
MATERIALS OR PRODUCTS WITHIN A BUSINESS OR
ORGANIZ ATIO N.

THE PROCESS OF ORDERING, STORING, USING, AND

02
SELLING A COMPANY'S RAW MATERIALS,
COMPONENTS, AND FINISHED PRODUCTS.

03
INV ENTOR Y MA NA GEMENT IS A KEY C OMPONENT OF
SUPPLY C HA IN MA NA GEMENT A ND IS NEC ESSA RY FOR A NY
B USINESS INV OLV ED IN B UY ING OR SELLING PR OD UC TS.
 PRODUCTION
STOCK OR
UTILIZATION

INVENTORY RESALE
IN A MANUFACTURING
INDUSTRY

NOT ONLY T HE FINAL

GOODS

RAW MATERIALS

SEMIFINISHED
GOODS
 IN A SERVICE INDUSTRY

THE I NVENTORY I S MOSTLY

I NTANGI BLE I N NATURE

T HE SERVI CE I NDUSTRY I NVENTORY MOSTLY I NCLUDES

T HE STEPS I NVOLVED BEFORE COMPLETI NG A SALE.

EXAMPLE:
HOTEL
VACANT
ROOM
 LOT NUMBERS

SERIAL NUMBERS

COST OF GOODS

QUANTITY OF GOODS

THE DATES WHEN THEY REACH

EACH STEP I YHE PROCESS
 CONCLUSION

Supply chain management is an important part

of the business because engineers work to
successfully implement the manufacturing and
operating processes while the management
process is handled by the managing department.
The entire organisation is based on the supply
chain concept. Every department has a role to
play, and every unit must function properly for
the business as a whole. They all work together
as a cohesive unit to support one another and
support the company's growth at the fastest rate
possible.
 GROUP 4
ありがと
う

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