The document discusses key drivers of supply chain management, focusing on transportation, information, sourcing, and pricing. It highlights the critical roles these elements play in operational efficiency and responsiveness within the supply chain, along with their impacts on competitive strategy. Additionally, it provides examples of how companies utilize these components to enhance their supply chain performance.

1. Operations & Supply Chain Management
Transportation,Information,Sourcing,Pricing
 Presented by~
 Roll No. Name of Student
54 Sonar Shreya
62 Walve Swati

2. Drivers of SCM

3. Transportation
Introduction to Transportation
 Transportation refers to the movement of product from one location
to another as it makes its way from the beginning of supply chain to
the customer.
 Transportation is an important supply chain driver because product
are rarely produced and consumed in the same location.

5. Key Drivers
 Shipper:
The party who wants to transport the product from one
place to another place.
 Carrier:
Carrier is company that moves the goods from one place
to another place.
For example: DHL,Fed Ex.Etc

6. Mode of Transportation

7. Information
Introduction to information:
 The data and analysis of inventories ,facilities , transportation and
customers , throughout the supply chain , all together comprise the
information.
 Supply chain performance is strongly influenced by information.
 Consequently, supply can made more responsive and efficient
through information.
 For example : a firm can produce the desired quantity of products in
order meet the demand of its customers on time due to the accurate
forecast of customer demand with the help of information regarding
the customers demand .
 As a result, supply chain becomes responsive as well as efficient at
the same time.

8. Role in the supply chain
 Connector between the various stages in the supply chain
Integration to create synergies is a central theme in supply chain
management.
 Crucial to daily operation of each stage in a supply chain
E.g., production scheduling, inventory levels
Role in the competitive strategy
 Allows supply chain to become more efficient and more responsive
at the same time (reduces the need for a trade-off)
 Information technology :
» Andersen Windows is a wood window manufacturer whose
customers can choose from a library of 50,000 designs or create their
own. Customer orders automatically sent to the factory.

9. Sourcing
Introduction to sourcing :
 It is a process of acquiring raw materials and other components,
products or services of a company from its suppliers to execute its
operations.
 Sourcing is the entire set of business processes required to purchase
goods and services.

10. Role in the supply chain
 Set of processes required to purchase goods and services in a supply chain
 Supplier selection, single vs. multiple suppliers, contract negotiation
Role in the competitive strategy
Sourcing is crucial.
 It affects efficiency and responsiveness in a supply chain
 In-house vs. outsource decisions- improving efficiency and responsiveness
» TI: More than half of the revenue spent for sourcing.
» Cisco sources: Low-end products (e.g. home routers) from China.
 Components of sourcing decisions
 In-house versus outsource decisions
 Supplier evaluation and selection
 Procurement process:
» Every department of a firm buy from suppliers independently, or all together.

11. Pricing
 Pricing refers to finding the prices at which goods and services will
be available in a supply chain.
 The purchasing behavior is greatly affected by pricing, henceforth
the supply chain performance.

12. Role in the supply chain
 Pricing determines the amount to charge customers in a supply chain
 Pricing strategies can be used to match demand and supply
» Price elasticity: Do you know yours?
Role in the competitive strategy
 Use pricing strategies to improve efficiency and responsiveness
 Low price and low product availability; vary prices by response times
» Amazon: Faster delivery is more expensive
Components of pricing decisions
 Pricing and economies of scale
 Everyday low pricing versus high-low pricing
 Fixed price versus menu pricing, depending on the product and services
» Packaging, delivery location, time, customer pick up
» Bundling products; products and services

13. Thank You !