Foundations of Global

Supply Chain
Management
Building Blocks of Supply
Chain Management
Y. NARAHARI
Computer Science and Automation
INDIAN INSTITUTE OF SCIENCE
Bangalore – 560 012
hari@csa.iisc.ernet.in

Foundations of Global Supply Chain Management

September 27, 2003
Enterprise
Network of independent companies possibly
in different geographical locations forming a
strategic alliance toward the common goal of
designing, manufacturing and delivering right
quality products/services to customers
 Functional perspective

 Process perspective
Functional and Process Perspective

SUPPLY CHAIN PROCESS

ORDER - TO - DELIVERY PROCESS

Procurement Manufacturing Distribution Logistics

Business Process
A structured, measured set of activities ordered in time
and space, designed to produce a customer desired
output.
 A business process could be decomposed into

several other business processes.

Business Process

Macro Micro
• SCP • Answering a query
• ODP from a customer
• NPDP • Checking the credit
• CRM Process history of customer
• Order Mgmt
Supply Chain Process
Integrated , coordinated network of value
delivering business processes that procure raw
materials, transform them into final products,
services and delivers the product to the customers

 Procurement
 Manufacturing/assembly
 Inbound logistics
 Warehousing
 Distribution
 Outbound logistics
Why study Supply Chains ?
 Supply chains are ubiquitous: you
could consider every product or service
to have its own supply chain.
 Companies world-wide are spending
trillions of rupees on SCM
 Backbone of E-business
 Wholesome mix of industrial
engineering, mathematics, computer
science, and management
Examples of Supply
Chains in India
Automotive - Telco, ALL, Mahindra, Maruti
Aerospace - ADA, HAL
Chemicals - Asian Paints, Apollo tyres, Reliance
Apparel - Madura Coats, Reliance
Food - Cadbury, Parle, Amul Products, HLL
Consumer durables - HLL, P & G
Forest Products - Papermills
Construction - L & T
Pharmaceutical - Ranbaxy, Glaxo
Electromechanical – Kirloskar, L & T
Tooling - HMT, Widia, Mico
PC/ Computer - IBM, WIPRO, HCL, Intel
Supply Chain Building
Blocks

Structural Logical IT / ITEC

Informational
Structural Building Blocks
 Suppliers
 Manufacturing / Assembly Plants
 Warehouses
 Distribution Centers
 Retailers / Customers
 Logistics Network
 Inbound

 Outbound

 Customers Orders
 Example of a Typical Supply Chain: IBM Europe PC Supply Chain

Warehouse

Port
PC Assembly
Plant Retailers

Suppliers 1.2 Million PC/Yr. 13 Transshipment Country-wide

(International) Glasgow U.K. Points (TPs) in Europe Distribution
Centers (DCs)
 Logical Building Blocks

STRATEGIC

TACTICAL

OPERATIONAL

Procurement Logistics Manufacturing Distribution Logistics

 Order/ Product Flow through Supply Chain Functions

Products
Orders
Order Management Channel A
Orders

Channel B Customer
Orders

Orders
Products Product Products
Manufacturing Channel C
Distribution Products
Production
Parts
Plans
Demand
Forecast
Part Supply Supply Planning Demand Planning
Component
Requirement
Examples of Decisions
 Supplier Selection (Tactical)
 Plant Location (Strategic)

 Product Line Selection (Strat)

 Inventory Control (Tactical)

 Production Scheduling (Ops)

 Dynamic routing (Ops)

 MTO vs MTS vs BTO (Str)

Mathematical Models
 Optimization Models (LP, ILP, MILP, CO,
DP)
 Stochastic Models (Markov chains,

Queuing networks, etc.)

 Statistical Models

 Game Theory

 Simulation

 Machine learning

 Auctions and Mechanism Design

Information Building Blocks
 IT : MRP, ERP, EDI
 Internet Technologies

 Sensor Networks

 E-Commerce, E-Markets

 E-CRM

 Decision Support Software

 Standards
Key Problem in SCM
Design a supply chain network
that delivers high quality
products to the right customers
at the right time at minimum cost
Foundations of Global SCM
This one day workshop will introduce
to you the important concepts and issues
involved in successful design and operation
of supply chain networks
What is Coming….
 Srinivas Raghavan - Dynamics
 Dinesh Garg - Planning
 Mathirajan - Logistics
 Shyam Bhaskar – Best Practices
 Kameshwaran – E-Markets
 Chandrashekar - Procurement
 Visvanathan - SCM Automation
 Narahari Y– What Next?
What Next? Books on SCM:
 Sunil Chopra and Peter Meindl. Supply Chain Management:
Strategy, Planning, and Operation. Pearson Education Asia,
2001.
 David Simchi Levi, P. Kaminsky, and Edith Simchi Levi,
Designing and Managing the Supply Chain, Irwin-McGrawHill,
2000
 W.J. Hopp and M.L. Spearman. Factory Physics: Foundations of
Manufacturing Management, Irwin-McGrawHill, 1996
 N. Viswanadham . Analysis and Design of Manufacturing
Enterprises, Kluwer, 2000
 N. Viswanadham and Y. Narahari. Performance Modeling of
Automated Manuafacturing Systems, Prentice Hall, 1992
What Next? Papers on SCM
 Journals such as Interfaces, Operations Research,
Management Science, European Journal of
Operational Research
 Websites such as www.amrresearch.com
 Our own website:
http://lcm.csa.iisc.ernet.in/scm/scm.html
 http://lcm.csa.iisc.ernet.in/workshop/index.html
What Next? Contact any of us:
 Narahari hari@csa.iisc.ernet.in
 Raghavan raghavan@mgmt
 Mathirajan msdmathi@mgmt
 Shyam Bhaskar shyam_bhaskar@dell.com
 Kameshwaran kameshn@csa
 Chandrashekar chandra@csa
 Dinesh Garg garg@csa
 Visvanathan vkvisva@hotmail.com
What Next?
 Start working in SCM …..
 Wish you all the very best ….
 See you again very soon ….

December 15th and 16th, 2003

International Workshop on IT Enabled
Manufacturing, Logistics, and SCM