Supply Chain & Operations Management

Supply Chain = end-to-end flow of goods, information, and money

Key components: suppliers → manufacturing → warehousing → logistics → customers

Three flows: product, information, financial

Upstream = supply side; downstream = customer side

Good SCM = reduced cost + improved delivery + customer satisfaction

AI is transforming supply chain performance

In one line:

👉 Supply chain management ensures that the right product reaches the right customer at the right time and cost.

A supply chain is a network connecting suppliers → manufacturing → warehousing → logistics → distribution → customers.

Each component plays a crucial role in cost, speed, and service.

Upstream focuses on suppliers; downstream focuses on customers.

Push systems rely on forecasts; pull systems rely on actual demand.

Understanding components helps build better supply chains.

In one line:

👉 A strong supply chain connects all components seamlessly to deliver value efficiently and consistently.

Inventory = goods stored to meet future demand

Key inventory types: RM, WIP, Finished Goods, MRO, Transit

Inventory costs → carrying, ordering, stockout

ABC analysis helps prioritize control

Safety stock protects from uncertainty

EOQ balances ordering and holding

AI transforms forecasting and stock optimisation

In one line:

👉 Inventory management ensures the right amount of stock is available at the lowest possible cost.

Forecasting predicts future demand; planning uses the forecast to take action.

Two forecasting types: qualitative & quantitative.

Moving averages, trends, and seasonality help build simple forecasts.

Forecast errors exist — they must be measured.

AI dramatically improves accuracy and speed.

In one line:

👉 Forecasting ensures the right products are available at the right time with minimal waste.

Warehousing ensures smooth storage, picking, and delivery

Warehouses differ by purpose: raw material, finished goods, DC, FC, cold storage

Key processes: receiving → put-away → storage → picking → packing → dispatch

Technology (WMS, barcode, RFID) improves accuracy and speed

KPIs measure warehouse performance

AI optimizes layout, slotting, and picking

In one sentence:

👉 Warehousing is the backbone of supply chain fulfillment, ensuring products move efficiently from storage to customer.

Transportation = moving goods; logistics = managing the overall flow.

Transport modes: road, rail, air, sea, pipeline.

Last-mile delivery is the most expensive & sensitive part of logistics.

Logistics planning focuses on cost, speed, and reliability.

AI transforms routing, forecasting delays, and reducing transportation costs.

In one sentence:

👉 Transportation is the backbone of logistics, ensuring goods move efficiently from warehouses to customers.

Operations Management focuses on efficient processes & consistent outputs

Lean eliminates waste and improves value

Key tools: 5S, Kaizen, VSM

Bottlenecks slow entire operations

Capacity planning ensures balance

AI supports operational efficiency

In one sentence:

👉 Lean + strong operations management enables fast, low-cost, mistake-free supply chain performance.

PPC manages the entire flow of production from planning to control

Key PPC stages: Planning → Routing → Scheduling → Dispatch & Control

MRP ensures raw materials arrive on time

JIT reduces inventory & waste

TOC focuses on fixing bottlenecks

AI improves production speed, accuracy, and predictability

In one sentence:

👉 Production Planning & Control ensures smooth, efficient, and cost-effective manufacturing operations

Supply chain strategy aligns operations with business goals

Lean = efficiency; Agile = responsiveness; Hybrid = best of both

Network design decides locations of warehouses, factories, and transport routes

Key decisions involve cost, speed, capacity, and risk

AI enhances network optimization and strategic planning

In one sentence:

👉 Strong supply chain strategy and network design ensure products reach customers quickly, efficiently, and cost-effectively.

AI is transforming supply chain planning, warehousing, inventory & transportation

Forecasting becomes faster & more accurate

Warehouses use robotics, slotting optimization & vision systems

Routing algorithms improve delivery speed & cost

AI tools increase transparency and reduce risk

In one sentence:

👉 AI makes modern supply chains smarter, faster, cheaper, and more reliable.