Unit 46 Supply Chain business btec level 3

8/16/2019 Unit 46 Supply Chain business btec level 3

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Saud Usman Shaikh

Supply Chain Organization

Unit 46: P1, P2, P3, M1


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P1

Supply Chain Defnition:

• Defnition:

Supply Chain Management is primarily concerned with the efcien

integration o suppliers, actories, warehouses and stores so that

merchandise is produced and distributed in the right quantities, to the

right locations and at the right time, and so as to minimize total system

cost subject to satisying customer serice requirements!

Global Scope o Supply Chain:

"he term #supply chain management$ arose in the late %&'(s and cam

into widespread use in the %&&(s!)rior to that time, businesses used ter

such as #logistics$ and #operations management$ instead!


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Some de*nitions o a supply chain are o+ered below - #. supply chain

the alignment o *rms that bring products or serices to market!$/rom

0ambert, Stock, and 1llram in their book 2undamentals o 0ogistics

Management 30ambert, 4ouglas M!, 5ames 6! Stock, and 0isa M! 1llram,

%&&', 2undamentals o 0ogistics Management, 7oston, M. 8rwin9Mc:ra -

Achieving customer satisfaction through interdependence of organizations

a business network.

To achieve cuto!er ati"action one nee# to $no% the cuto!er nee# an#

i!ple!ent it accor#ingly

• Un#ertan#ing the Cuto!er

– &ot ize

– 'epone ti!e

– Service level

– Pro#uct variety

– Price

(" the a)ove i un#ertoo# clearly highet level o" cuto!er ati"action can

achieve#*

Role of individual business in supply chain networks.

The )elo% #iagra! ho% the role o" #i""erent )uine involve# in the Supply Ch

+et%or$


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Supply Chain Intermediaries

• Major "ypes o 8ntermediaries

• Middleman

• Merchant

• Middleman

• .gent• Manuacturer?s .gent

• 4istributor

• @holesaler

• 5obber 2acilitating

• .gent

• 6etailer

2 fle is landscape so in another document


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3

cri)e #i""erent -o) role "oun# in the logitic %or$place

Supply chain management o+ers a wide ariety o job options or entry;leel managers

and beyond!

Gross Salaries (!D per month" 5o

Sno #ole

$%3 years&e'perience

3% years&e'perience

)%* years&e'perience

+, years&e'perienc

e % Supply Chain

4irectorA(,((( ; A&,((( AB,((( ;

B=,(((B,((( ;D',(((

D',((( ;&D,(((

Supply Chain

Manager

%,((( ; A,B(( B,((( ;

AE,(((

A&,((( ;

=E,(((

=',((( ;

BD,B((

A

4emand9Supply)lanner

',((( ; %D,((( %B,((( ;%,(((

%',((( ;A,(((

F

=

4emand9Supply)lanning Manager

%&,((( ; =,((( B,((( ;A%,(((

',((( ;A,(((

A(,((( ;AB,(((

BMaterials1ngineer

D,((( ; &,((( %(,((( ;%D,(((

%,((( ;%',(((

%E,(((;%&,(((

DMaterialsManager

%=,((( ; (,((( %',((( ;D,(((

B,((( ;AB,(((

F

E)rocurement4irector

A(,((( ; =,((( ==,((( ;BE,(((

BB,((( ;EB,(((

EB,((( ;&B,(((

' )rocurementManager ,((( ; AB,((( A,((( ;=B,((( =(,((( ;B,((( =',((( ;DB,(((

&CategoryManager

%&,((( ; =,((( ,((( ;A(,(((

E,((( ;AB,(((

F

%(7uyer D,((( ; %,((( %B,((( ;

%,((((,((( ;D,(((

F

%%:eneral Manager A(,((( ; =,((( AE,B(( ;

=E,B((=B,((( ;BD,B((

B',((( ;'(,(((

%GperationsManager

%',((( ; ',((( B,((( ;AB,(((

A',((( ;=B,(((

=(,((( ;BE,B((

%A0ogistics Manager %D,((( ; ,((( ,((( ;

E,(((B,((( ;AB,(((

A,((( ;=,(((

%=@arehouseSuperisor

D,((( ; %(,((( %,((( ;%B,(((

%=,((( ;%E,(((

F

%B@arehouseManager

%=,((( ; %',((( %&,((( ;=,(((

B,((( ;A,(((

E,((( ;=(,(((

%D

Senior Contracts1ngineer

%=,((( ; %&,((( (,((( ;A%,B((

A,((( ;A',(((

F

%EContractsManager

,((( ; ',((( D,((( ;AB,(((

AD,((( ;=',(((

=B,((( ;BB,(((


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%'7id Manager %D,((( ; %,((( ,((( ;

A,B((B,((( ;AB,(((

A',((( ;B,B((

%&

"rade ComplianceManager

%B,((( ; A,((( %,B(( ;A,(((

=,((( ;A=,B((

AB,((( ;B(,(((

ddin. /alue in Supply Chain


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"he purpose o supply chains is to add alue to production and distribution! 4ependupon the markets and the alue chains they are sericing, supply chains can bedi+erentiated according to criteria such as costs, time reliability and risk!

1fcient logistics contributes to added;alue in our major interrelated ways

• Production costs!

"his will add alue i the company improes efciency o manuacturing with

appropriate shipment size, packaging and inentory leels! 8n this way logisticcontributes to the reduction o production costs by streamlining the supplychain!

• 0ocation!

0ogistics adds alue by taking better adantage o arious locations, implyinaccess to eHpanded markets 3more customers> and lower distribution costs!

• ime!

"his adds alue rom haing goods and serices aailable when required alonthe supply chain 3e!g! lower lead times> with better inentory and transportatmanagement!

Control!


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"his adds alue rom controlling most o the stages along the supply chain,rom production to distribution! 7y better synchronizing cycles and lead timeslogistics enables better marketing and demand response

. ariety o actors are jointly shaping the con*guration o supply chains

• 0o.istics costs!

Considers the ull costs to make products aailable to the *nal consumer nam

• transport,

• warehousing and transshipment!

Costs are therefore a standard criteria where the cheapest routing option is

sought, as long as the cost structure remains stable as supply chains are

unlikely to be modified if a cost advantage is only temporary.

• ransit time!

. actor that is increasingly being considered since it strongly inIuenceinentory carrying costs and inentory cycle time in supply chain managemeSo, or cargo that has a higher alue 3electronics> or is perishable 3ood> therouting option that is the astest and9or shortest will be preerred!

• #eliability!

6elates to a actor that is mitigated by contemporary supply chain managempractices! 2or seeral supply chains, time can be a secondary actor as long ashipments arrie at the distribution center within an eHpected time rame! 8shipments are regular and that this reliability remains consistent, it is possiblorganize supply chains accordingly by haing more inentory in transit!

• Supply chain ris !

"his actor inoles the leel o con*dence that the shipment will reach its *ndestination within eHpected costs, time and reliability considerations! 8n somecases, risk can also inole potential cargo damage or thet! 0ow risks routes obiously preerred oer higher risk routes!

ddin. /alue to a Product


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Jalue;added resellers are businesses that sell productsmanuactured by other companies in addition to selling their owsupplemental products and serices, thereby increasing the aluo the resold product purchased by the consumer! .mong the

most common alue;added resellers are

Computer retailers

Computer retailers and

computer technology service

companies typically offer a wide

range of value-added products

and services, including

extended warranties and service

contracts, supplemental

hardware, installation, setup,

training services, professional

consulting services,

customization and software

programs. One of the major

aims of companies in providing

value-added services is to

develop relationships with

customers that will lead to

repeat business.

http://www.investopedia.com/terms/v/value-added-reseller.asphttp://www.investopedia.com/terms/v/value-added-reseller.asp


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utomobile dealership:

Automobile dealerships most

commonly offer value-added

products and services in the forms

of extended warranties and service

contracts, or custom-made

accessory parts or engine

enhancements.

urniture stores4

To increase sales revenues and

create relationships with

customers to encourage repeat

business, furniture stores offer

additional services such as

interior decorating, Free

Delivery etc.


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M1

.ollo%ing the a)ove report alo analyze the e""ect o" a##ing value on -o) role o" e*g* Supervi

Operator, Technician or a#!initrator*

Jalue .dded @ork 4e*nition

.ctiities that urther the purpose o an organization bygenerating output that is considered more aluable by its internal

and9or eHternal customers than the inputs consumed in producing it

@hat does alue added work really meanK

8t sounds simple enough alue added work is about getting the most oo your e+ort!! 8t depends on the compleHity o work in organizations! .

work gets more compleH, it needs to be done at higher leels within the

organization! 2or instance, the work o a director is more compleH work

than the work o a ront line worker

http://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/output.htmlhttp://www.businessdictionary.com/definition/external-customer.htmlhttp://www.businessdictionary.com/definition/producer.htmlhttp://www.effectivemanagers.com/dwight-mihalicz/5-minute-crash-course-the-complexities-of-accountability/http://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/output.htmlhttp://www.businessdictionary.com/definition/external-customer.htmlhttp://www.businessdictionary.com/definition/producer.htmlhttp://www.effectivemanagers.com/dwight-mihalicz/5-minute-crash-course-the-complexities-of-accountability/


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8t is imperatie that organizations hae a workorce engaged in their a

added work or one simple reason !5ecti6eness! 8t?s through alue

added work that organizations can ensure the right use o time and the

most e+ectie use o capital!

2or eHample, i your director is busy doing the kind o work that could b

done by a ront line workerL you?re paying more or work that could eas

be completed by someone with a lower salary! 2rom an organizational

standpoint, that?s inefcient! "he same is true in reerse in that i you t

to assign the work o a director to a ront line worker, that person is not

likely to hae the capability to do that work and thereore, will not be

successul doing it! "hat?s ine+ectie!

@ork is adding alue when work o appropriate compleHity is delegatedthe appropriate leel in the organization, and when the objecties or thwork are contributing to the attainment o the organization?s strategic

http://www.effectivemanagers.com/dwight-mihalicz/what-does-the-research-tell-us-about-manager-effectiveness-nothing/http://www.effectivemanagers.com/dwight-mihalicz/what-does-the-research-tell-us-about-manager-effectiveness-nothing/http://www.effectivemanagers.com/dwight-mihalicz/what-does-the-research-tell-us-about-manager-effectiveness-nothing/


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plan! 0earning to recognize where the work needs to be done andensuring it is done there that?s the true alue!

8n today?s modern organization, there?s no question managers are

oerburdened, oerworked and eery bit worn;out! "hat?s not to saypeople in decision making positions shouldn?t eHpect to be stretched in

eery direction, but in many businesses, alue added work takes a back

seat!

8t?s not uncommon or managers to be promoted aboe their leel o

competence and as a result, not hae the capability to do alue added

work at that leel!

2or eHample, a promotion rom the manuacturing line to a ront line

manager requires higher order problem;soling skills! @ithout these

capabilities, a promoted manager will ocus on the Ioor and getting wo

done at that leel! "his is work they know how to do, and they eHcel at i

Since they don?t hae the capability to do the alue;added managerial

work, they won?t be successul at it, so they don?t do it! .s a consequen

oer time, the oerall quality o the whole unit su+ers!


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P

Defnition

Supply Chain Management 3SCM> is a total systems approach tomanaging the entire Iow o inormation, materials and serices/

rom raw;material suppliers through actories and warehouses tothe end customer! . supply chain is a network o nodes orlocations*


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P6 & M

(n the report "ro! a)ove coni#er a logitic co!pany o" your choice an# e/a!ine:

• 0t leat "our technologie practice# %ithin the choice o" your organization*


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• o% upply chain relate thee technologie to ena)le the activitie %ithin the choice o" y

organization*

#S 0o.istics:

6S. takes pride in being a one;stop shop that deliers integrated solutioto its clients! "he company currently owns and operates a multitude oassets that cater to a ariety o industries! 6anging rom temperaturecontrolled acilities, chemicals, automotie and project logistics amongothers!

2our "echnologies )racticed by 6S. 0ogistics are

@M =((( by 8nor @arehouse Management System

8nor @MS is a world class warehouse management system that enablesdistribution management to control merchandise throughout thewarehouse! 7y instating 8nor 6S., as a Ard )arty 0ogistics Company,gained an edge that separates them rom competition! "his user riendlsystem eatures graphical user interace 3:U8>, powerul querycapabilities, multiple data iews, built;in security, ully integrated 62 "aManagement, graphical label design, internet accessibility and more! "hproduct eHcels at high;perormance receiing, putaway, replenishment,

allocation, picking, shipping and labor management! "he system alsoallows or connectiity to the most popular 16), transportation solutionsand call centres

Gnline @MS )ortal

"he online @MS portal by 6S. is a powerul tool which gies transparen

to clients by making their inentory accessible to them on the web! 8to+ers personalized capabilities proiding a pathway or sharinginormation whilst making the whole process coherent rom stem to ste

"he eHtensie eatures o the portal allow clients to check the status otheir stocks and shipments, create new SNUs and requests as well as theHtensie search and sorting eatures! Clients can also access


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personalized reports that are aailable in arious ormats as well theoption to schedule reports!

16)

. sotware initially deeloped or U.1 market to meet its unique regionneeds now supports 6S. globally! "his sotware proides completeeature;rich end;to;end logistical support or powerul reight orwardingsystem!

"he said sotware can be accessed through the web! 8t proides IeHibiliand isibility o procedures and documentation whilst retaining total aninstant *nancial control at all stages o reight moement! 8t is simple auser riendly and has a comprehensie interace!

Some o the Ney 2eatures are as listed below

• .uto;trigger o emails and SMS on arrial9departure9proo o delie

• e7ooking, eShipping 8nstruction, and e70

• 6eal;time track O trace, milestones, and client speci*c web reports

• Jarious analysis reports aailable in all common ormats

• )orts and customs related 148 including .C8, .MS, 8P""6., 8S2, @@ "raHon, Cargo;8M), and e2reight

• )roration o cost between consolidated and indiidual shipments,

trans;shipments, and sea;air shipments

• )urchase order management using e)G

• )rocess and user role;based eHception reports and monitoring

system

• Capable o handling multiple locations and currencies with the abi

to customize zones and regions

• 7arcode and )4. eatures on @MS and C2S handling


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• .ll modules ully integrated, hence making it an end;to;end solutio

• .1S @eblink certi*ed application

•

148 with eManiest 3Canada 7order Serices .gency> or automaticdata transer

• Customizable workIow con*gurations

• 7usiness 8ntelligence tool or customizable reports and detailed

analysis

8" 8nrastructure

"he 8" inrastructure at 6S. is the best in its sector with state;o;the;arthardware and sotware that in todayQs challenging, compleH and rapidlychanging enironment proides the most timely and efcient responsewhile supporting our business strategy! 6S. stries to continually enhanand eole our multi;platorm O multi;technology enironment! "hey ao+er innoatie and specialized solutions to help achiee highperormance and delier business alue to our client!

he Supply chain Process or #S

Supply Chain 4istribution O "ransportation

:lobal supply chain management is a critical success actor or

manuacturers and retailers in many industries! Customers can take

adantage o the integrated suite o serices o+ered by 6S. to manage

their supply chain! 2rom raw materials to retail distribution, their analys

and operations personnel work closely with customers to manage theentire supply chain, proiding tailored serices and meeting agreed

perormance benchmarks!

"hey hae their own Ieet o A ton ehicles and also work with reputed

"ransport Jendors who own ery large Ieets o


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and related equipment such as Cranes O 2ork 0it "rucks and hae the

capacity to place as many trailers at a time should that be required!

6aw Materials

• :lobal reight management

• Consolidation

• @arehousing and storage

• 8nentory9materials management

• "racking system

)roduction O 2inished :oods

• "esting

• Sample preparation

• 7atching 9 Sequencing

• Ruality control

• @arehousing and storage

• 8nentory management

Jalue;added Serices

• )romotional packaging

• 0abelling

• 8nk;jet printing

• Component assembly


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Grder )rocessing

• 6eceipt and consolidation o purchase orders

•

8nspection

4istribution

• "ransport management

• Multi;modal transportation

• 8nternational reight orwarding

• 8mport and eHport control

• "racking system

Documents

Unit 46 Supply Chain business btec level 3