Supply Chain Management

Supply Chain Management

1. Strategic Supply Management (SMM = Strategic Materials Management)

Supply Chain Management

Logistic Management

IMM ( Integrated Materials Management )

Purchase Stores Inventory
Management Management Management

2. RTP - Model : Materials as a resource base.
3. Purchase/Procurement/Sourcing Management :
(Selection of Right Source),
Developing it and building
On the relationship from 1 to 3
Relationship Management

Trust 2 3 Alliance

Transactional Contractual Type of
Relationship Relationship Relationship

B C ADD = Ancillary
Development Department
New A D
Source Dept.

Old Old New Products
The Attributes of sourcing for Domain A is quite different from those
For B, C and D
Separate deptt., ADD, should handle B,C,D and develop the sources as mature and then pass on to the Purchase Deptt. To Domain A.

4. ADD should report to SMM
MF = Material Flow
IF = Information Flow
CF = Cash Flow

5. Price Management/Cost Strategy :

Cost C4(effective cost
Built-on the end-products)

Cost C3 (cost at the point of consumption)

Cost C2 (landed cost at your door)
Cost C1
(Price paid to the supplier_

The Purchase Manager's pricing decision should based on C1, C2, C3, C4? Take an example of Sandvik Asia. Tool bit, its C3 or C1 may be high, but your tooling cost per end-product will go down. Therefore, pricing decision should be based on C4 i.e. TCO, Tool Cost of Ownership.
6. Purchasing Cycle
7. Buying Methods : 13 Types : Negotiation
Power Time Information.
8. Purchasing under uncertainty/Different situations....

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