The document discusses value chains and supply chain management. It defines a value chain as the set of activities an organization performs to deliver a valuable product to the market. Value chains determine costs and profits. It provides examples like Starbucks and Trader Joe's grocery stores. It also discusses Porter's model of primary and secondary activities in a value chain. Different types of value chains are described, as well as examples of green initiatives in supply chain management. Bullwhip effect and ripple effect are explained as disruptions that can impact supply chain performance. The document concludes with principles, examples, barriers, and challenges of green supply chain management.

1. Value chain in supply chain
management
ASSITANT PROFESSOR SHAGUNTHALA DEVI.V
PRATHIBA COLLEGE OF COMMERCE AND COMPUTER STUDIES

2. Value chain
 Value chain is a set of activities organization perform in a specific industry
in order to deliver a valuable product for the market
 Input transformation process and outputs
 Value chain determines costs and affects profits
 Subsystems with inputs transformation process and outputs

3. Examples of value chains
 Examples of Value Chains
 Starbucks Corporation
 Starbucks (SBUX) offers one of the most popular examples
of a company that understands and successfully implements
the value-chain concept. There are numerous articles about
how Starbucks incorporates the value chain into its business
model.
 Traders joe –Grocery store

4. Value chain analysis-porters model

5. Primary activities
 Inbound logistics
 Operations
 Outbound logistics
 Marketing and sales
 Service

6. Secondary activities
 Procurement
 Technology development
 Human resource management
 Firm infrastructure

7. Types of value chain and value chain
delivery systems
 Physical
 Virtual
 Combined value chains
 Industry level
 Global value chains
 Cross border /cross region value chains

8. Examples of green initiatives
Current Green Initiatives
• Use alternative fuel/energy sources.
• Reuse/recycling program.
• Use wastewater.
• Reduce energy usage.
• Sustainable packaging.
• Sustainably source materials.
• Energy-efficient lighting.

10. Bull whip effect
 Increase in unpredictability of order
 A supply chain is disrupted due to bull whip effect
 Uncertainty caused flowing up and down the chain
 Order that a manufacturer receives larger than what the
actual customer demand is at the point of sale

11. Factors and effects of bull whip effect
FACTORS
Demand variability
Panic ordering
Strategic ordering
Batch quantities
Quantity discounts
Trade promotions
Lead time

12. Effects of bull whip effect
 Excessive inventory
 Quality will be affected
 Shipping cost increases
 Increase in lead time
 Poor product forecast
 Insufficient capacities
 Uncertain product planning

13. To prevent bull whip effect
 Improved forecasting
 Vendor management inventory
 Supply and customer communication
 Batch size production
 Just in time inventory
 Lead time reduction
 Pricing not too low nor too high

14. Ripple effect
 Rather than localized it is not contained with one part
 It impacts the performance of supply chain
 Supply chain structure disrupts
 Affects operation execution and sales service level and also
costs

15. Causes of ripple effect
 Single sourcing
 Limited to single supplier
 Low stocks and increased demands
 Lack of contingency plans
 No plan in case of emergencies

16. Green SCM
 Environmental concepts in to supply chain
 Minimising harmful effect on environment
 Recycling
 Green supply chain management is defined as integrating environmental
thinking into supply chain management, including product design, material
sourcing and selection, manufacturing processes and the delivery of the final
product to the consumers as well as an end-of-life management of the product
after its useful life ...

17. Examples
• Wal-Mart, “Sustainability 360” “Sustainable 360” is a comprehensive highlight on
manageability expanded past Wal-Mart's immediate natural impression to attract
partners, suppliers, communities and clients. ...
• Ford Motor Company, Strengthening Value Chain. ...
• FedEx Initiatives. ...
• Kodak Single Use Camera: Reverse Supply Chain.
• DHL is a pioneer of green logistics.

18. Green supply chain principles
 Green practices for material
 Efficient transportation system
 Good storage warehouses
 Reduction of transit distances
 Reuse and recycling

19. Barriers to green supply chain
 Lack of knowledge among the stakeholders while implementing green supply
chain
 Lack of governmental regulations
 High initial costs involved in implementation like green design ,green labelling
 Lack of training
 Lack of communication among supply chain stakeholders

20. Greener supply chain
 12 Steps To A 'Greener' Supply Chain
1. Redesign the product. ...
2. Reconfigure manufacturing. ...
3. Shift to green suppliers. ...
4. Shorten distances. ...
5. Alter service-level agreements. ...
6. Shrink packaging. ...
7. Plan for reverse supply chain activity. ...
8. Consolidate shipments.

21. Challenges of green scm
 Other challenges faced by the industry in implementing
GSCM include
 lack of resources (technical expertise, technology,
material and process)
 lack of knowledge and experience
 lack in managing standard environmental control policies
within the organization

22. THANK YOU