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INTRODUCTION OF SCM SCM MYTH THE EVOLVING STRUCTURE OF SUPPLY CHAIN SUPPLY CHAIN PROCESS PARTICIPANTS IN SUPPLY CHAIN SCM STRUCTURE COMPONENTS OF SCM ADVANTAGES OF SCM PHARMACEUTICAL SCM - SANDOZ
WHAT IS SCM ?
Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served.
THE DEFINITION
The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. from Mentzer, DeWitt, Deebler, Min, Nix, Smith, and Zacharia in their article Defining Supply Chain Management in the Journal of Business Logistics (Mentzer, John T.,William DeWitt, James S. Keebler, Soonhong Min, Nancy W. Nix, Carlo D. Smith, and Zach G. Zacharia, 2001, Defining Supply Chain Management, Journal of Business Logistics,Vol. 22, No. 2, p. 18)
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COMPONENTS OF SCM
Plan development, monitoring
Plan
Delivery
Make
SCM STRUCTURE
CHALLENGES
Reduced Cost Increases Efficiency
Increases Output
Responsiveness to Demand
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PHARMACEUTICAL - SCM
DEPARTMENTS INVOLVED
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CUSTOMER SERVICE
Forecasting/demand planning New product launches
PLANNING
Forecast planning Material procurement planning Production planning Dispatch planning
PURCHASE
Purchase of raw materials and packaging material and expeicients Import clearance
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WAREHOUSING
Receipts Issues Dispatches: Data logger, tyveck cover, Pallets Inventory management
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LOGISTICS
Customs clearance Excise clearance Octroi clearance Negotiations with airlines, transporters, freight forwarders,
VENDORMANAGEMENT INVENTORY
A means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributors inventory levels. The manufacturer has access to the distributors inventory data and is responsible for generating purchase orders Under the typical business model: When a distributor needs product, they place an order against a manufacturer. The distributor is in total control of the timing and size of the order being placed. The distributor maintains the inventory plan. Vendor Managed Inventory model: The manufacturer receives electronic data that tells him the distributors sales and stock levels. The manufacturer can view every item that the distributor carriers as well as true point of sale data. The manufacturer is responsible for 16 creating and maintaining the inventory plan
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