Foundations of Global Supply Chain Management

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Foundations of Global Supply Chain Management
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Building Blocks of Supply Chain Management

Y. NARAHARI Computer Science and
Automation INDIAN INSTITUTE OF SCIENCE Bangalore
560 012 hari_at_csa.iisc.ernet.in Foundations of
Global Supply Chain Management September 27, 2003
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Enterprise

• Network of independent companies possibly
• in different geographical locations forming a
• strategic alliance toward the common goal of
• designing, manufacturing and delivering right
• quality products/services to customers
• Functional perspective
• Process perspective

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Functional and Process Perspective
SUPPLY CHAIN PROCESS
ORDER - TO - DELIVERY PROCESS
Procurement
Distribution
Manufacturing
Logistics
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Business Process

• A structured, measured set of activities ordered
  in time and space, designed to produce a customer
  desired output.
• A business process could be decomposed into
  several other business processes.

Business Process
Macro
Micro

• Answering a query from a customer
• Checking the credit history of customer

• SCP
• ODP
• NPDP
• CRM Process
• Order Mgmt

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Supply Chain Process

• Integrated , coordinated network of value
• delivering business processes that procure raw
• materials, transform them into final products,
• services and delivers the product to the
  customers
• Procurement
• Manufacturing/assembly
• Inbound logistics
• Warehousing
• Distribution
• Outbound logistics

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Why study Supply Chains ?

• Supply chains are ubiquitous you could consider
  every product or service to have its own supply
  chain.
• Companies world-wide are spending trillions of
  rupees on SCM
• Backbone of E-business
• Wholesome mix of industrial engineering,
  mathematics, computer science, and management

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Examples of Supply Chains in India

• Automotive - Telco, ALL, Mahindra, Maruti
• Aerospace - ADA, HAL
• Chemicals - Asian Paints, Apollo tyres, Reliance
• Apparel - Madura Coats, Reliance
• Food - Cadbury, Parle, Amul Products, HLL
• Consumer durables - HLL, P G
• Forest Products - Papermills
• Construction - L T
• Pharmaceutical - Ranbaxy, Glaxo
• Electromechanical Kirloskar, L T
• Tooling - HMT, Widia, Mico
• PC/ Computer - IBM, WIPRO, HCL, Intel

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Supply Chain Building Blocks
Logical

• Structural

IT / ITEC Informational
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Structural Building Blocks

• Suppliers
• Manufacturing / Assembly Plants
• Warehouses
• Distribution Centers
• Retailers / Customers
• Logistics Network
• Inbound
• Outbound
• Customers Orders

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Example of a Typical Supply Chain IBM Europe PC
Supply Chain
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Logical Building Blocks
STRATEGIC
TACTICAL
OPERATIONAL
Procurement
Distribution
Manufacturing
Logistics
Logistics
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Order/ Product Flow through Supply Chain Functions
Products
Orders
Order Management
Channel A
Orders
Channel B
Customer
Orders
Orders
Channel C
Product Distribution
Manufacturing
Products
Products
Products
Production Plans
Parts
Demand Forecast
Demand Planning
Supply Planning
Part Supply
Component Requirement
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Examples of Decisions

• Supplier Selection (Tactical)
• Plant Location (Strategic)
• Product Line Selection (Strat)
• Inventory Control (Tactical)
• Production Scheduling (Ops)
• Dynamic routing (Ops)
• MTO vs MTS vs BTO (Str)

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Mathematical Models

• Optimization Models (LP, ILP, MILP, CO, DP)
• Stochastic Models (Markov chains, Queuing
  networks, etc.)
• Statistical Models
• Game Theory
• Simulation
• Machine learning
• Auctions and Mechanism Design

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Information Building Blocks

• IT MRP, ERP, EDI
• Internet Technologies
• Sensor Networks
• E-Commerce, E-Markets
• E-CRM
• Decision Support Software
• Standards

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Key Problem in SCM

• Design a supply chain network
• that delivers high quality
• products to the right customers
• at the right time at minimum cost

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Foundations of Global SCM
This one day workshop will introduce to you the
important concepts and issues involved in
successful design and operation of supply chain
networks
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What is Coming.

• Srinivas Raghavan - Dynamics
• Dinesh Garg - Planning
• Mathirajan - Logistics
• Shyam Bhaskar Best Practices
• Kameshwaran E-Markets
• Chandrashekar - Procurement
• Visvanathan - SCM Automation
• Narahari Y What Next?

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What Next? Books on SCM

• Sunil Chopra and Peter Meindl. Supply Chain
  Management Strategy, Planning, and Operation.
  Pearson Education Asia, 2001.
• David Simchi Levi, P. Kaminsky, and Edith Simchi
  Levi, Designing and Managing the Supply Chain,
  Irwin-McGrawHill, 2000
• W.J. Hopp and M.L. Spearman. Factory Physics
  Foundations of Manufacturing Management,
  Irwin-McGrawHill, 1996
• N. Viswanadham . Analysis and Design of
  Manufacturing Enterprises, Kluwer, 2000
• N. Viswanadham and Y. Narahari. Performance
  Modeling of Automated Manuafacturing Systems,
  Prentice Hall, 1992

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What Next? Papers on SCM

• Journals such as Interfaces, Operations Research,
  Management Science, European Journal of
  Operational Research
• Websites such as www.amrresearch.com
• Our own website http//lcm.csa.iisc.ernet.in/scm/
  scm.html
• http//lcm.csa.iisc.ernet.in/workshop/index.html

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What Next? Contact any of us

• Narahari hari_at_csa.iisc.ernet.in
• Raghavan raghavan_at_mgmt
• Mathirajan msdmathi_at_mgmt
• Shyam Bhaskar shyam_bhaskar_at_dell.com
• Kameshwaran kameshn_at_csa
• Chandrashekar chandra_at_csa
• Dinesh Garg garg_at_csa
• Visvanathan vkvisva_at_hotmail.com

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What Next?

• Start working in SCM ..
• Wish you all the very best .
• See you again very soon .
• December 15th and 16th, 2003
• International Workshop on IT Enabled
  Manufacturing, Logistics, and SCM