Supply Chain Management (SCM) Supply Chain Management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain).
Activities/functions Supply chain management is a cross-function approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer. As organizations strive to focus on core competencies and becoming more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing management control of daily logistics operations.
Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement. Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. SCOR is a supply chain management model promoted by the Supply Chain Council. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and operational levels . The CSCMP has adopted The American Productivity & Quality Center (APQC) Process Classification Framework a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint.
Case Study Pantaloons - Information Technology in the Supply Chain The caselet outlines the efforts of Pantaloon Retail (India) Limited (PRIL) to increase the operational efficiency by using information technology in its supply chain. The caselet also examines the relative merits and demerits of implementing IT in the supply chain. Further, the caselet presents the expansion strategies of PRIL that helped the retail chain to gradually grow and establish itself in the retail industry in India.
Issues: » Implementation of IT in order to streamline supply chain » Benefits of implementing IT in SCM » Problems associated with IT implementation in SCM » Using RFID to deliver higher operational efficiency and customer satisfaction
Introduction Pantaloon Retail (India) Limited (PRIL) was set up as Manz Wear Private Limited on October 12, 1987. On September 25, 1992 Manz Wear Private Limited became Pantaloon Fashions (India) Ltd and in July 1999, the name was changed to PRIL. In the initial years, till the mid 1990s, PRIL focused on developing its own clothing brands like ‘The Pantaloon trouser', the ‘Bare Jeans'and the ‘John Miller'range of shirts. The distribution of these branded garments took place through multi-branded retail outlets. This changed in 1994 when PRIL introduced The Pantaloon Shoppe - franchise shops for menswear...
Questions for Discussion: 1. Describe Pantaloon's initiatives towards the implementation of IT in order to streamline its supply chain? 2. “To support this growth and maintain our competitive edge, a robust and futuristic IT infrastructure has been planned for the next three years with investments of over Rs 100 crore (1billion).” What benefits would the retailer stand to gain in the future with such huge investments, especially with the probable entry of foreign retailers? What are the likely problems that may crop up in an ambitious IT implementation plan?