Supply Chain Management in E-Commerce

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SUPPLY CHAIN MANAGEMENT IN E- COMMERCE

Fundamentals Pull Vs Push SC Models Elements of SCM Functions of SCM

FUNDAMENTALS
Supply Chain : It is collection of interdependent steps that, when followed, accomplish a certain objective Hypothesis is that, firms that manage their supply chains will be more successful in the global marketplace Supply Chain Management : Generic term that includes the coordination of order generation, order taking, order fulfillment Complex nature of SCM is considered as both, Arts & Science

IS SCM A NEW CONCEPT ???


It evolved over the past 25 yrs In 1970s : Focus to improve manufacturing or sales & marketing or distribution

In 1980s : Realized that integrating all facets of their enterprise could increase productivity & margins

In 1990s : Realized that product excellence alone fails to guarantee success

PULL VS. PUSH SC MODELS


PULL MODEL
Push based Model is also called as Build-toStock Model Merchandise is pushed into consumers hands

PUSH MODEL
Pull based Model is also called as Build-to-Order Model Customer actually initiates the Supply Chain Also called as DemandDriven Model

Manufacturer

Master scheduling Replenishment Inventory checks Automatic Replenishment

Retail Distribution Center

Warehouse Inventory Deals, Promotions & Forward Buying

Retail Store

Retail Store

Shelf Inventory Promotions

Retail Distribution Center

Shipping Container Marking Cross- Dock Receiving

Manufacturer

Short Cycle Manufacturing Advance Shipping Notice

Effective SCM requires Firms to : Gather customer demands quickly & accurately Make best choices to meet those demands at lowest possible cost Make decisions along the entire Supply Chain

Distribute finished goods to the consumer & collect payment


SC Managers have to accomplish 3 things : Provide unified action plan Enable communication Coordinate in the right direction

ELEMENTS OF SCM
Crystallizes into 3 key processes : Planning Systems Execution Systems Performance Measurement Systems

FUNCTIONS OF SCM
Managing information about demand to enable a better understanding of the markets & customer needs Managing the flow of physical goods from suppliers Managing the manufacturing process to ensure low production costs Managing the financial flows with suppliers & customers through financial intermediaries

THANK YOU
-- Presented By Abhishek

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