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[1]

Introduction to SCM

S e t i j a d i

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Logistics System

F L O W O F G O O D S

F L O W O F I N F O R M A T I O N S

CUSTOMER SUPPLIER PROCUREMENT MANUFACTURING PHYSICAL

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D e f i n i t i o n

Logistics management is that part of

the supply chain process that plans, implements, and controls the efficient, effective

flow and storage

of

goods, services, and related information

from the point-of-origin to the point-of-consumption in order to meet customers' requirements.

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Flow of Logistics

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Fungsi-fungsi Utama Sistem Logistik

TRANSPORTASI

PERGUDANGAN PERSEDIAAN

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Supply Chain

OUTBOUND / PHYSICAL DISTRIBUTION INBOUND

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Illustration of Supply Chain

INBOUND “MINYAK GORENG”

INBOUND “CPO”

PABRIK CPO

OUTBOUND / DISTRIBUSI FISIK “MINYAK GORENG”

OUTBOUND / DISTRIBUSI FISIK

“CPO”

PABRIK MINYAK GORENG

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Supply Chain Management

Supply Chain Management is the

integration

of

key business processes

from end user through original suppliers that provides products,

services, and information that add value for customers and other stakeholders

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SUPPLY CHAIN MANAGEMENT:

INTEGRATING AND MANAGING BUSINESS PROCESSES ACROSS THE SUPPLY CHAIN

Logistics

Marketing & Sales Finance

PRODUCTION FLOW INFORMATION FLOW

CUSTOMER RELATIONSHIP MANAGEMENT

CUSTOMER SERVICE MANAGEMENT

DEMAND MANAGEMENT

ORDER FULFILLMENT

MANUFACTURING FLOW MANAGEMENT

SUPPLIER RELATIONSHIP MANAGEMENT

PRODUCT DEVELOPMENT AND COMERCIALIZATION

RETURNS MANAGEMENT

S

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Customer Relationship Management

• The customer relationship management process provides the structure for how the relationship with the customer is developed and maintenanced.

• Performance evaluations are undertaken to analyze the

levels of service provided to customers as well as customer profitability.

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Customer Service Management

• The usto e se i e a age e t is the fi ’s fa e to the

customer. It becomes the key point of contact for administering the product/service agreement.

• Customer service provides the single source of customer information, such as product availability, shipping dates and order status.

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Demand Management

• The demand management process needs to balance the

usto e s’ e ui e e ts ith the fi ’s supply apa ilities.

• Part of managing demand involves attempting to determine what and when customers will purchase.

• A good demand management system uses point-of-sale and

key usto e data to edu e u e tai ty a d p o ide

efficient flows throughout the supply chain.

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Order Fulfillment

• The key to effective SCM is meeting customer need dates.

• Effe ti e o de fulfill e t e ui es i teg atio of the fi ’s

manufacturing, logistics and marketing plan.

• The design and operation of the network has a significant influence on the cost and performance of the system.

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Manufacturing Flow Management

[1]

In traditional make-to-stock firms:

– The manufacturing process produced and supplied products to the distribution channel based on historical forecasts.

– Products were pushed through the plant to meet a schedule.

– Often the wrong mix of products was produced.

With SCM:

– Product is pulled through the plant based on customer needs.

– Manufacturing processes must be flexible to respond to market changes.

– Changes in the manufacturing flow process lead to shorter cycle times meaning improved responsiveness to customers.

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Manufacturing Flow Management

[2]

• The manufacturing flow process deals with making the products and establishing the manufacturing flexibility needed to serve the target markets.

• Manufacturing flow at the operational level looks like operations management internal to the firm.

However, certain characteristics of the process are designed to integrate internal operations management with activities in the supply chain.

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Supplier Relationship Management

• Supplier relationship management is the process that defines how a company interacts with its suppliers.

• Long-term partnerships are developed with a small core group of suppliers.

• The purchasing function develops rapid

communication mechanisms such as EDI and internet linkages to quickly transfer requirements.

• It is important for the supplier relationships to be win-win. If both parties do not gain from the relationship, the incentive to be in the relationship is diminished and it will likely dissolve.

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Product Development and Comercialization

• Supply chain management includes integrating customers and suppliers into the product development process in order to reduce time to market.

• It is critical to have the right people from the internal functional silos along with key customers and suppliers

involved in the product development and commercialization process.

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Returns Management

• While many firms neglect the returns process because

management does not believe it is important, this process can assist the firm in achieving a sustainable competitive advantage.

• As part of this sub process, the team develops procedures for analyzing return rates and tracing the returns back to the root causes.

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Implementing Integrated SCM

• The implementation of SCM involves:

– identifying the supply chain members with whom it is critical to link,

– the processes to be linked with each of these key members,

– and the type/level of integration that applies to each process link.

• If the proper coordination mechanisms are not in place

across the various functions, the supply chain processes will be neither effective nor efficient.

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Supply Chain Management Framework:

Elements and Key Decisions

SUPPLY CHAIN BUSINESS PROCESSSES

SUPPLY CHAIN MANAGEMENT COMPONENTS

SUPPLY CHAIN NETWORK STRUCTURE

Who are the key supply chain members with whom

to link processes? What processes

should be linked with each of these key

supply chain members?

What level of integration and management should be applied for each process link?

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INFORMATION ARCHITECTURE, DATA BASE STRATEGY, INFORMATION VISIBILITY

MARKETING R & D LOGISTICS PRODUCTION PURCHASING FINANCE

CUSTOMER RELATIONSHIP MANAGEMENT

MANUFACTURING FLOW

MANAGEMENT SUPPLIER RELATIONSHIP MANAGEMENT PRODUCT

DEVELOPMENT AND COMERCIALIZATION

Requirements Forecasting

Capability Planning

Sourcing Tradeoff Analysis Life Cycle

Product FUNCTIONAL SILOS

BUSINESS

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22 EDUCATION | TRAINING | CONSULTING | RESEARCH | DEVELOPMENT

Sekretariat:

Jl. Negla 25 Setiabudi Bandung 40154

Phone : 022 7000 1090 Mobile : 0821 1515 9595

E-mail : [email protected]

Website : www.SupplyChainIndonesia.com

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