Supply Chain

Management
Lets Get Started

Supply Chain Management in HDA

Class Time: 10:05 11:30, 11:40 1:10, Wednesday [Room #
301]
Marks DistributionMid-term:

20%

Presentation and Report: 10%

Attendance:

10%

Final Exam:

60%

Total Class: 11 Weeks (Sept, Oct, Nov)

Final Exam Date: December 2015

Introduction to SCM
Objectives
Understanding the emergence of Supply Chain Management
Defining Supply Chain Management
Objectives of Supply Chain Management
Importance and benefits of Supply Chain Management
Describe different components of supply chains
Understanding the Decisions in Supply Chain
Trends of SCM and its Future
Expected Results and Benefits from SCM

Supply Chain

Ford car-Supply Chain

Ford Parts Supply & Logistics (PS&L)

Business Overview
PS&L operates a network consisting of:

198K unique part numbers, over 1M SKUs (part/location)

Wide mix of velocity, size, and value

Vehicle base - 50 million vehicles on the road, 35 model years

Logistics network - 2,000 suppliers and 5,900 authorized dealerships

18 HVCs, 3 HCCs, 1 LV/LC, 1 PRC, and 1 NPD

Service Parts - US, Canada, Mexico and direct global export

Complex logistics hubs, many containers, railcars, suppliers, packagers,

sources/destinations, and paths
High degree of magnitude and complexity
SUPPLIERS

PACKAGERS

REDISTRIB. REGIONAL
CENTER
DISTRIBUTION

DEALERS

Emergence of Supply Chain

Management
First appeared in the early 1980s
Article written by Oliver and Webber in 1982 describing the
range of activities performed by the organisation in procuring
and managing supplies
Focused on activities related to purchasing and cost reduction
Supply chain integration and supplier-buyer relationship came in
1990s

Evolutionary Timeline of SCM

Defining SCM
The design and management of seamless, value-added process across
organisational boundaries to meet the real needs of the end customer
- Institute for Supply Management
Managing supply and demand, sourcing raw materials and parts,
manufacturing and assembly, warehousing and inventory tracking, order
entry and order management, distribution across all channels, and
delivery to the customer.
-The Supply Chain Council

SCM Model

Competition is no longer
between Companies:
It is between supply chains

LM vs SCM

Flows in SCM
Material Flow
Information Flow
Finance Flow
Commercial flow

Decisions in SCM
1) Location

Geographic placement of production facilities, stocking points, and sourcing points

2) Production

What products to produce,

In which plants to produce

Allocation of suppliers to plants

3) Inventory
4) transportation (distribution)

Transportation choice

Transportation is more than 30 percent of the logistics costs

Operating efficiently makes good economic sense