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26/03/2021 Client: saad24vbs Deadline: 24 Hours

CONTENTS

ABSTRACT 4

SUPPLY CHAIN MANAGEMENT 5

THE RISE OF SUPPLY CHAIN MANAGEMENT 5 INTRODUCTION TO SUPPLY CHAIN MANAGEMENT 5 SUPPLY CHAIN DESIGNING AND PLANNING 6

MATERIAL MANAGEMENT 10

INTRODUCTION TO MATERIAL MANAGEMENT 10 MATERIAL MANAGEMENT TECHNIQUES 10

RESEARCH METHODOLOGY 12

DISCUSSION 12

REFERENCES 13

Page 3 of 13

TABLE OF FIGURES

FIGURE 1.0. HISTORICAL EVENTS TIMELINE 5

FIGURE 2.0. MATERIAL FLOW 6

FIGURE 3.0. THE KEY COMPONENTS OF SC DESIGNING AND PLANNING 7

FIGURE 3.1. LOCATION DECISIONS STEPS 8

FIGURE 3.2. THE BULLWHIP EFFECT IN A SUPPLY CHAIN. 9

Page 4 of 13

Abstract

Supply Chain Management (SCM) and Material Management are major pillars in organizations that operate in any industry. Properly implemented and applied SCM strategies would yield a more effective and cost efficient oriented facility. In recent business trends, Supply Chain Management and Material Management are considered significant branches of KPI’s or Key Performance Indicators; which depicts the efficiency and effectiveness of the SCM. In addition, Supply chain Management endorses adding value to customers and consumers; this further conveys two key elements:

1. Primary Activities • Inbound Logistics • Operation • Outbound Logistics • Marketing and Sales • Service Activities (i.e. Customer Support & Maintenance)

2. Secondary Activities

• Firm Infrastructure • Procurement • HR Management • Technological Development

All these activities could serve to further improve SCM, focusing on each element and trying to improve it would generate a better outcome; thus, a better Supply Chain Management strategy and technique.

Page 5 of 13

Supply Chain Management

The Rise of Supply Chain Management

It all emerged during World War I and World War II. Back in the 1950’s, logistics was thought to be a military matter. It casually had to do with procurement, maintenance, and transportation of military equipments and personnel. Now, logistics is part of what we call Supply Chain Management (SCM). As markets became more competitive and dynamic, organizations became obliged to carry out the best cost reductions methodologies.

Supply chain management was first introduced in the early 1980’s. At first, SCM was introduced into the manufacturing industry following its introduction in the service industry. SCM in both manufacturing and service industries has grown drastically. In 2009, the concept of ITESCM was introduced. ITESCM is short for Integrated Tertiary Educational Supply Chain Management. Briefly, ITESCM is a model designed to serve educational purposes revolving the SCM topic. Figure 1.0 provides the historical events timeline of SCM.

Introduction to Supply Chain Management

Supply Chain Management (SCM) is a management technique applied to materials or services being provided to a targeted consumer. Supply Chain Management seeks to maximize consumers’ value by distributing products or services at the right quantities, to the right locations, and at the right times. SCM deals with issues related to providing products or services starting at a chosen supplier that move through production to reach a targeted consumer. Supply

Figure 1.0. Historical Events Timeline

Page 6 of 13

Supplier Manufacturer Distributor Wholesaler Retailer Consumer

Chain, a group of participating firms that aim to add value to the movement of products and services from suppliers to their consumers, is linked to many other aspects of an industry. For example, optimizing supply chain may also include optimizing the processes revolving around it.

Following a successful supply chain, risks and uncertainties arise. Some risks and uncertainties may include the following:

1. Change in demand of consumer 2. Change in transportation and lead times 3. Natural/Man-Made disasters that come unforeseen 4. Matching supply and demand

All risks and uncertainties are to be dealt in a consecutive manner due to their integration with on one another.

Supply Chain Management techniques are designed based on the following building blocks:

1. Material Flow. In all manufacturing supply chains, flow of material from being a raw material to becoming a final product is monitored, preferably in a Just in Time (JIT) manner. Typically, industries that SCM deal with consist of a supplier, manufacturer, distributor, wholesaler, retailer, and consumer.

2. Information Flow. In any SCM technique, flow of information is run both directions

between the supplier and the consumer. Some information flow dealt with frequently include demand information flows, forecasting information flows, production and scheduling information flows, and design information flows.

3. Financial Flow. Serves the basis of SCM that pertain to the money flow. Like any other optimizing technique, SCM require extensive funds and investments. In return for investments, revenue flow from the consumer, back through the chain of companies is considered to be the only “real” money in a supply chain.

Supply Chain Designing and Planning

Designing and planning of a supply chain is the practice of formulating certain strategies that ought to be put in effect. The key components include configuration, extent of vertical

Figure 2.0. Material flow

Page 7 of 13

CONFIGURATION

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