About the speaker: -
Mr. Hemant Kale is Certified International Corporate Trainer, A Supply Chain Management Expert, A Senior Corporate Professional with domain expertise in Supply Chain and Operations Management and has proficiency in Human Resource Management.
He has over 33 years of working experience at reputed Multinational Organizations in India, Nigeria & Dubai in FMCG, Food, Pharmaceutical & Chemical Sectors.
He is the Founding Managing Partner of Yashodhan Consulting & last seven years working in the areas of: Academics/ Coaching & Consulting/ Training
What is Supply Chain Management?
An upstream and downstream flow of information and downstream value-added flow of material to fulfil the needs of Customers. Supply Chain Management (SCM) is the management of the flow of goods and services including all processes that transform raw materials into final products between businesses and locations. This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated, or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.
- If demand planning is accurate more than 65% then it is considered as a good demand planning
- Best supply chain management happens in the kitchen and the house maker is considered as best supply chain manager
What is Value Addition?
Added value derived from having goods and services available when required along the supply chain with better inventory and transportation management. Control. Added value derived from controlling most, if not all, the stages along the supply chain, from production to distribution.
Value gets added at every step of the process. Giving discounts at the store is the form of direct value addition to the product.
Upstream and Downstream Flow of Information:
The “Upstream” in a supply chain includes all activities related to the organization's suppliers: those parties that source raw material inputs to send to the manufacturer.
The “Downstream” in a supply chain refers to activities post-manufacturing associated with distributing the product to the final customer.
A good customer will always benefit the organization.
Matching Supply and Demand:
Supply and demand have an important relationship because together they determine the prices and quantities of most goods and services available in each market. According to the principles of a market economy, the relationship between supply and demand balances out at a point in the future. Supply Chain Management is designing and managing process across organizational boundries with the goal of “ matching supply and demand ” in the most cost effective way at every stage of the supply chain process.
7 Ps of Planning Function:
- Cultural Planning
- Demand Planning
- Supply Planning (MRP 1)
- Factory Planning (MRP 2)
- Distribution Planning
- Financial Planning
- Manpower Planning (employed and contracted)
Bold Objectives of SCM:
- Raw Material and Packing Material Quantity
- Raw Material and Packing Materials Services
- Cost Variance
- Production Rate
- Production Loss
- Manning Over Head (OH)
- Planning Deviation
- FG Quality
- FG Movement
- Fill Rate
- Environment, Health, and Safety
- Customer Service
3 Main Key in SCM:
- Agility: Speed with safety and focus, direction with quick decision
- Adaptability: the ability to adjust a supply chain's design to meet structural shifts, disruptions and changing customer behaviour and modify each supply network to reflect those changes
- Resilience: How quickly the organization recovers from shock