INTRODUCTION TO SUPPLY CHAIN
MANAGEMENT
IZIKKI KENZA
GCL
Key terminology
Key terminology
Réseau Network
Transport Transport
Achat Purchasing
Fournisseurs Suppliers
Producteur Manufacturer
Key terminology
Approvisionnement Procurement
Gestion des stocks Inventory management
Entreposage Warehousing
Distribution Distribution
Exécution des commandes Order fulfilment
Key terminology
Planification et prévisions
Planning and forecasting
Planification de la demande
Demand planning
Planification de la production Production planning
Planification des ventes et Planning Sales and
opérations (S&OP) operations planning
Prévisions Forecasting
Key terminology
Juste-à-temps (JIT)
Just-in-time
Lean Manufacturing
Fabrication sur commande (MTO)
Make-to-Order (MTO)
Logistique inversée Reverse logistics
Chaîne d'approvisionnement Circular supply chain
circulaire
Why SCM Matters ?
Why SCM Matters ?
Supply chain management (SCM) is emerging as an
essential means of optimizing and improving the
efficiency of business activities.
Why SCM Matters?
In today's globalized and competitive
environment, SCM goes beyond
logistics and operational management.
It is a strategic asset that promotes
customer satisfaction, operational
efficiency, resilience, and innovation.
Why SCM Matters?
In recent years, the world has witnessed a profound change in
business strategies. Today, customers are increasingly
demanding, and companies must strive to best meet their
needs in terms of responsiveness, order processing speed, and
delivery.
Why SCM Matters?
Competitive Advantage and Market
Leadership
Customer Satisfaction and Retention
Cost Reduction and Profitability
Risk Management and Resilience
Globalization and Expansion Opportunities
Why SCM Matters?
Companies that harness the power of GCL to manage their end-to-
end product flows can adapt more quickly, minimize risk, and create
sustainable value, positioning themselves for long-term success in
an ever-changing market.
Why SCM Matters?
As competition becomes increasingly
globalized, innovation is increasingly
taking place between supply chains and
less and less between companies.
SCM Overview
A supply chain is the set of steps and actors involved in the creation, transport,
and delivery of a product, from raw materials to the end customer. It includes
activities such as procurement, production, storage, and distribution to effectively
meet demand.
A supply chain is basically a group of independent organizations linked together by
the products and services to which they add value, either separately and/or jointly,
in order to deliver them to the end consumer.
SCM Overview
Supply chain management is essential for any company that wants not only to
survive in the market, but also to grow and achieve better results. It covers a wide
range of activities such as production planning, inventory management,
transportation, warehousing, order processing, and customer relations.
All these activities must be coordinated so that the final product can be delivered
to the customer quickly, efficiently, and at the lowest possible cost.
SCM Overview
A supply chain can be defined as an integrated process in which a number of entities
• Suppliers
• Manufacturers / Producer
• Distributors Retailers, Customer
Work together with the aim of:
• Acquire raw materials
• Transform these raw materials into specified finished products, and
• Deliver these finished products to final clients.
SCM Overview
SCM Overview
Value chain concept
Companies have focused primarily on
the following three areas: Cost
Quality
Performing well in these three areas is
necessary but not sufficient.
Time
Value chain concept
Given the growing importance of service, improving
customer/company relations from the customer's perspective is
another key factor.
Service therefore emerges as a fourth area of performance.
Value chain concept
Time Costs Quality Service
Ever shorter response Increasingly
times at all levels Increasingl Perfect quality personalized
(design, y lower has become a customer service
industrialization, (adaptation to
procurement, costs prerequisite for needs,
manufacturing, bringing a implementation
distribution, product, product to assistance,
process, etc.) market. maintenance)
).
Value chain concept
Value is the result of optimizing several dimensions in logistics
and supply chain management activities. It can be viewed as a
balance between Quality, Service, Cost, and Time, each of which
has a direct impact on customer satisfaction and competitive
advantage.
Value chain concept
• Maintain high quality through rigorous controls.
• Provide excellent customer service with fast deliveries and flexible
return policies.
• Control costs by optimizing warehouses and transportation.
• Reduce delays through advanced inventory management and
predictive analytics.
This approach clarifies how each component contributes to the
overall value of the supply chain and engages the audience by
contextualizing it in a concrete business environment.
Supply chain definition
The logistics function of a company is to coordinate supply and
demand at the lowest possible cost. More specifically, logistics is
"the process by which a company manages all information
exchanges and the resulting physical elements with its upstream
and downstream partners."
Supply chain definition
The supply chain is a sequence (decision-making and execution) of processes
(products, information, and money) and flows aimed at meeting the end
requirements of customers, which take place within and between the different
stages of this continuum, from production to final consumption.
The SC is a global network of organizations that cooperate to reduce costs and
increase the speed of material and information flows between suppliers and
customers.
Supply chain definition
Supply chain management (SCM) is the integration and coordination of material,
information, and financial flows between departments and companies in order to
transform and use supply chain resources as efficiently as possible throughout the value
chain, from raw material suppliers to customers. SCM is one of the key elements of any
organization and is responsible for balancing supply and demand throughout the value
chain.
Members/actors of the SC
Supplier Producer Wholesaler Retailer Clients
Composition of a Supply Chain
Chaînes Etendues
.
La chaine logistique
The simplest view of a supply chain has a single product moving through a series of organisations,
each of which somehow adds value to the product. Taking one organisation’s point of
view, activities in front of it – moving materials inwards – are called upstream; those after the
organisation – moving materials outwards – are called downstream.
The upstream activities are divided into tiers of suppliers. A supplier that sends materials
directly to the operations is a first tier supplier; one that send materials to a first tier supplier is
a second tier supplier; one that sends materials to a second tier supplier is a third tier supplier,
and so on back to the original sources. Customers are also divided into tiers. One that gets a
product directly from the operations is a first tier customer; one that gets a product from a first
tier customer is a second tier customer; one that get a product from a second tier customer is a
third tier customer, and so on to final customers (see Figure 1.6).
In practice, most organisations get materials from many different suppliers, and sell products
to many different customers. Then the supply chain converges as raw materials move in
Supply chain categories
Upstream Internal Downstream
Logistics Logistics logistics
Supply chain categories
Upstream logistics encompasses all activities
related to the procurement of raw materials,
components, or semi-finished products necessary
Upstream for production.
Logistics Upstream logistics includes managing supplier
relationships, supply planning, transportation to
the factory, and storage of raw [Link]
objective is to ensure the availability of the
resources needed for production, while
minimizing costs and delays.
Supply chain categories
Also known as production logistics, this concerns
all internal flows within the company, from the
arrival of raw materials to their transformation into
finished products. This includes the management
Internal of intermediate stocks, the movement of materials
Logistics and components between different workshops or
departments, and the coordination of production
operations.
Internal logistics aims to optimize the use of
resources and synchronize production stages to
maximize efficiency.
Supply chain categories
Downstream logistics covers all activities that
follow production, including storage of finished
products, distribution, and delivery to end
customers.
Downstream
Logistics This includes warehouse management, order
preparation, transportation to distribution centers
or directly to customers, and returns management
if necessary.
Downstream logistics is essential to ensuring that
products reach customers on time and in optimal
condition.
Les flux de la chaine logistique
Supply chain flows
Physical flows
• Upstream flow implies that raw materials enter a production system.
• The reverse flow involves returns, complaints, and recycling in the opposite
direction—from customers to suppliers or recycling facilities
Supply chain flows
Les flux d’information
• Customer orders: Details on quantities, deadlines, and product specifications.
• Demand forecasts : Data to anticipate market trends
• Inventory data : Information on available inventory levels
• Delivery details : Confirmation of shipping and receipt dates
• Production data : Manufacturing orders, Product bill of material
• Invoices and payments : Financial information related to transactions.
• Return and recycling data : Reverse flow management.
Decisions in a Supply Chain