Scm Seminar - Ejazur Rahman - March 2013

Supply Chain Management

For Competitive Advantage

Presented By:

Ejazur Rahman CSCM MBA AIMM PgDMC

Regional Chief Executive Officer

ISCEA Asia

Supply Chain Management

For Competitive Advantage

What is Supply Chain Management

Supply Chain Management includes planning and management of all stages that are involved directly or indirectly

in fulfilling customer request. Importantly, it also includes coordination and collaboration with channel partners,

which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain

management integrates supply and demand management within and across companies.

(Source: http://cscmp.org/aboutcscmp/definitions.asp)

Flows in a Supply Chain

THE CLASSICAL FLOW MODEL:

Physical Supply and Demand Information Flows

What is a Supply Chain

The Objective of a Supply Chain

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The objective of every Supply Chain is to maximize the overall value generated

Value : The difference between what the final product is worth to the customer and the costs the supply

chain incurs in fulfilling the customer’s request.

Value is strongly correlated with supply chain profitability (also known as supply chain surplus)

Sources of Revenue / Cost in the supply chain

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The customer is only one source of revenue for any supply chain.

Customer is the only one providing positive cash flow for the supply chain.

Other cash flows are simply fund exchanges that occur within the supply chain.

All flows of information, product, or funds generate costs within the supply chain.

Effective supply chain management involves the management of supply chain assets and products,

information, and fund flows to maximize the total supply chain profitability.

Supply Chain Management

The Changing Paradigm

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Functional vs Process

Products vs Customers

Revenues vs Performance

Inventory vs Information

Transactions vs Relationships

Process Views and...