Seminar Report on Supply Chain Management

Seminar Report (730001) entitled
“Supply Chain Management”
Submitted by
Mehta Ankur Dilipbhai
(Enrollment No. 120110746007)
Academic Year 2013-14 (Third Semester)
In partial fulfillment of the requirements for
Master of Engineering
(Industrial Engineering)
Seminar Co-ordinator
Dr. Hemant R Thakkar
Department of Mechanical Engineering
G H Patel College of Engineering & Technology
Gujarat Technological University
Ahmedabad, Gujarat
M.E SEM III Seminar on “Supply Chain Management” Page 1

G H Patel College of Engineering & Technology
Charutar Vidya Mandal Institution
Vallabh Vidyanagar – 388 120
CERTIFICATECERTIFICATE
Date: 26/10/2013
This is to certify that the Seminar Report entitled,
“Supply Chain Management”, is original study and
review of literature carried out by myself. The
literature reviewed from other sources has been
acknowledged in the report. The seminar is part of
curriculum of the degree of ‘Master of Engineering’ in
‘Industrial Engineering’ at Gujarat Technological
University (GTU), Ahmadabad pursued during the first
semester of academic year 2013-14.
Place: V. V. Nagar Name: Mr. Mehta Ankur D.
Date: 26/10/2013 Enrollment No.: 120110746007
--------------------------------------------------------------------------------------
This is to certify that the above mentioned “seminar” is studied and
presented in the department by above mentioned student.
Dr. Hemant R Thakkar Dr. Darshak Desai
Seminar Coordinator Head of the Dept.

ACKNOWLEDGMENT
I would like to take this opportunity to best of my Acknowledge on all people who have
directly or indirectly helped me in making seminar report and to turn it up into a successful
piece of work. It was an educational phase while studying at the Master in engineering
(industrial Engineering) working with highly devoted engineering faculties and probably
remains the most memorable experience of my life. Hence they indirectly involved in my
seminar report work. The encouragement and help received from my family members,
friends and colleagues.
It is a great owner for me to making seminar report for G H PAREL COLLEGE OF
ENGINEERING AND TECHNOLOGY, V.V. NAGAR with immense pleasure; I am
present this SEMINAR REPORT ON SUPPLY CHAIN MANAGEMENT.
I would like to convey my sincere regards for Dr Darshak .A. Desai (H.O.D.) for giving me
the opportunity of exposing to the practical development of the aspects that I study in my
curriculum. I would like to thank my seminar guide Dr Hemnat.R. Thakkar who has
enabled to complete this documentation according to prescribed standards of G H PATEL
COLLEGE OF ENGINEERING AND TECHNOLOGY and GUJARAT
TECHNOLOGICAL UNIVERSITY.
(Ankur D Mehta)
(Enrollment No: 120110746007)

TABLE OF CONTENTS
• TITLE
• CERTIFICATE
• ACKNOWLEDGEMENT
• INDEX
• LIST OF FIGURE
• LIST OF TABLE
• ABBREVIATIONS
• ABSTRACT
1: Introduction to Supply Chain Management 1
2: Logistics and SCM 16
3: Dynamics of Supply Chain 20
4: New Emerging World Class Practices in SCM 29
5: Outsourcing and Procurement 41
6: Information Technology in SCM 45
7: Issues, Challenges and Opportunities in Implementation of
SCM 51
8: Conclusion 58
• REFERENCES 59

INDEX
CHAPTER NO TITLE PAGE NO
1 Introduction to Supply Chain Management 1
1.1 Necessity of SCM for Industry 2
1.2 The Evolution of SCM 3
1.3 Various Definition of SCM 5
1.4 Participant in the SCM 6
1.5 Objective of Supply Chain 8
1.6 Benefits of SCM 9
1.7 The Reason of SCM is Important 9
1.8 Supply Chain Drivers 10
1.9 Efficiency vs Responsiveness 12
1.10 SCM Decision Making 13
1.11 The Factor Consider in SCM 14
1.12 Gartner 2013 top 10 Supply Chain Company in the World 15
2 Logistics & SCM 16
2.1 Logistics View Point 16
2.2 Logistics Field 16
2.3 Relation between Logistics & SCM 18
3 Dynamics of SCM 20
3.1 The Push-Pull Supply Chain 20
3.2 Bullwhip Effect(Whiplash Effect/ Whipsaw Effect/ Forrester
Effect)
23
3.3 The Magnitude of Supply Chain 27
3.4 The Potential of Supply Chain 28
4 New Emerging World Class Practices in SCM 29
4.1 List of World Class Practices Technique in SCM 29
4.2 Vendor Manage Inventory(VMI) 30
4.3 Reverse Logistics 32
4.4 Third Party Logistics (3PL) 34
4.5 Forth Party Logistics (4PL) 35
4.6 Milk Run System 36
4.7 Transshipment 38
4.8 Bar Coding 38
4.9 RFID 39
5 Outsourcing & Procurement 41
5.1 Outsourcing 41
5.2 Procurement 43
6 Information Technology in SCM 45
6.1 Role of IT for SCM 45
6.2 Importance of IT in SCM 45
6.3 Function of IT in SCM 46
6.4 IT software for SCM 47

6.5 Electronic Data Interchange (EDI) 47
6.6 Enterprise Resource Planning (ERP) 48
7 Issues, Challenges and Opportunities in Implementation of
SCM
51
7.1 Key Implementation Issues 51
7.2 The Challenges 53
7.3 The Opportunities 55
8 Conclusion 58
References 59
LIST OF FIGURE
SR NO FIGURE TITLE PAGE NO
1.1 The evolution of SCM 3
1.2 Simple Diagram of SCM 5
1.3 SCM Diagram 6
1.4 The main SCM Drivers 10
1.5 Trade off Between Cost & Responsiveness 13
2.1 Inbound vs. Outbound 16
2.2 Simplified SCM 18
2.3 Relating Marketing Channel between Logistics Management & SCM 19
3.1 Typical Configuration Scheme of a Push System 21
3.2 Typical Configuration Scheme of a Pull System 22
3.3 Information Distortion: The Bullwhip Effect 23
3.4 The Impact of Bullwhip Effect 24
4.1 Register Trademark of Accenture 35
4.2 4PL provider 36
4.3 Milk Run System 37
4.4 Interface of Bar Coding 38
4.5 RFID Component 39
5.1 Top Reason for Company Outsourcing 42
5.2 Supply Planning Procurement Process Step 44
6.1 Functional Role of IT in SCM 46
6.2 Various ERP Link in Organization 49

LIST OF TABLE
SR NO TABLE TITLE PAGE NO
1.1 Gartner top 10 Supply Chain Company List in the World in 2013 15
4.1 Forward vs. Reverse Logistics 33
4.2 A & A’s Top 10 Global 3PL(May 2012) 35
6.1 Leading INDIA Companies & The ERP Software Used 50

ABBREVIATIONS
SCM- Supply Chain Management
Pos- Point of Sale
EDI- Electronic Data Interchange
ICT- Information & communication Technology
OEM- Overall Equipment Manufacturing
3PL- Third Party Logistics
4PL- Forth Party Logistics
RFID- Radio Frequency Identification
DC- Distribution Centre
IT Information Technology
MRP-1- Material Requirements Planning
MRP-2- Manufacturing Resource Planning
ERP- Enterprise Resource Planning
PLC- Product Life Cycle
FMCG- Fast moving Consumer Good
SME- Small and Medium Enterprises
CRP- Capacity Requirement Planning
CRM- Customer Relationship Management

ABSTRACT
Supply chain has evolved dramatically over the last four decades. Managing the entire supply
chain is a very challenging task. One of the most significant paradigm shifts of modern
business management is that individual businesses no longer compete as solely autonomous
entities, but rather within supply chains. The ultimate goal of the supply chain management
is to deliver the best customer services through coordinanated of material, finances and
information which flow across a network and the entire customer including internal and the
external customers. The key feature of the supply chain system is the increasing the use of
information technology enablement which extend to customer and suppliers at all the level.
In this emerging competitive environment, the ultimate success of the business will depend
on management’s ability to integrate the company’s intricate network of business
relationships. Most of the supply chain management is being facilitated by the use of
enterprise level resources planning and integration system along with the latest technology in
transportation, distribution and replenishment.

CHATER 1
INTRODUCTION TO SUPPLY CHAIN
A supply chain consists of the flow of products and services from raw materials
manufacturers intermediate products manufacturers end product manufacturers wholesalers
and distributors and retailer connected by transportation and storage activities and integrated
through information, planning and integration activities.
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer
request. The supply chain not only includes the manufacturer and suppliers, but also
transporters, warehouses, retailers, and customers themselves. Within each organization, such
as manufacturer, the supply chain includes all functions involved in receiving and filling a
customer request. These functions include, but are not limited to, new product development,
marketing, operations, distribution, finance, and customer service.
Consider a customer walking into a Wal-Mart store to purchase detergent. The supply chain
begins with the customer and their need for detergent. The next stage of this supply chain is
the Wal-Mart retail store that the customer visits. Wal-Mart stocks its shelves using
inventory that may have been supplied from a finished-goods warehouse that Wal-Mart
manages or from a distributor using trucks supplied by a third party. The distributor in turn
is stocked by the manufacturer (say Procter & Gamble [P&G] in this case). The P&G
manufacturing plant receives raw material from a variety of suppliers who may themselves
have been supplied by lower tier suppliers. For example, packaging material may come from
Tenneco packaging while Tenneco receives raw materials to manufacture the packaging from
other suppliers.
A supply chain is dynamic and involves the constant flow of information, product, and funds
between different stages. In our example, Wal-Mart provides the product, as well as pricing
and availability information, to the customer. The customer transfers funds to Wal-Mart.
Wal-Mart conveys point-of-sales data as well as replenishment order via trucks back to the
store. Wal-Mart transfers funds to the distributor after the replenishment. The distributor

also provides pricing information and sends delivery schedules to Wal-Mart. Similar
information, material, and fund flows take place across the entire supply chain.
This example illustrate that the customer is an integral part of the supply chain. The primary
purpose from the existence of any supply chain is to satisfy customer needs, in the process
generating profits for itself. Supply chain activities begin with a customer order and end
when a satisfied customer has paid for his or her purchase. The term supply chain conjures
up images of
product or supply moving from suppliers to manufacturers to distributors to retailers to
customers along a chain. It is important to visualize information, funds, and product flows
along both directions of this chain. The term supply chain may also imply that only one
player is involved at each stage. In reality, a manufacturer may receive material from several
suppliers and then supply several distributors. Thus, most supply chains are actually
networks. It may be more accurate to use the term supply network or supply web to describe
the structure of most supply chains.
A typical supply chain may involve a variety of stages.
 Component/Raw material suppliers.
 Manufacturers/Produces.
 Wholesalers/Distributors.
 Retailers.
 Customers.
 The appropriate design of the supply chain will depend on both the customer’s needs and
the roles of the stages involved.
1.1NECESSITY OF SCM FOR INDUSTRY:
Supply chain management takes into consideration every facility that has an impact on cost
and plays a role in making the product conform to customer requirements: from supplier and
manufacturing facilities through warehouses and distribution centers to retailers and stores.
Indeed, in some supply chain analysis, it is necessary to account for the suppliers’ suppliers
and the customers’ customers because they have an impact on supply chain performance.
Supply chain management is to be efficient and cost-effective across the entire system; total
system wide costs, from transportation and distribution to inventories of raw materials, work

in process, and finished goods, are to be minimized. Thus, the emphasis is not on simply
minimizing transportation cost or reducing inventories but, rather, on taking a systems
approach to supply chain management. Because supply chain management revolves around
efficient integration of suppliers, manufacturers, warehouses, and stores, it encompasses the
firm’s activities at many levels, from the strategic level through the tactical to the operational
level.
1.2 THE EVOLUTION OF SUPPLY CHAIN MANAGEMENT
In the 1980s, companies discovered new manufacturing technologies and strategies that
allowed them to reduce costs and better compete in different markets. Strategies such as just
in-time manufacturing, kanban, lean manufacturing, total quality management, and others
became very popular, and vast amounts of resources were invested in implementing these
strategies. In the last few years, however, it has become clear that many companies have
reduced manufacturing costs as much as is practically possible. Many of these companies are
discovering that effective supply chain management is the next step they need to take in
order to increase profit and market share.
Figure1.1 The evolution of SCM
Materials Management:
Ensuring various aspect related to material flow within organization includes transportation,

services, inventory management, acquisition, storage and handling of materials.
Physical Distribution Management:
Addressing the various issue of inventory (raw matls. And finished goods at the point of
sale), all outbound transportation, warehousing, storage and communication from the focal
firm. More emphasis on outbound transportation as well as storage, packaging and
warehousing ensuring safe and timely delivery of finished goods to customer.
Logistics Management:
Post World War II – movement of huge supplies, rising interest’s rates, oil crisis, severe
Competition made it tough to get reqd. matls. Easily and sell the products at required profit.
This development emerged Logistics Mgmt.wider importance to managing flows of matls.
Components, manufactured parts, and packaged products through and out of the firm.
Integrated Logistics Management:
Integration of logistics function as a single unified system to optimize and control the entire
process of materials, products, and information moving into, through, and out of the firm.
Inbound materials from different suppliers, their transportation, handling WIP, as well as
outgoing traffic and transportation requirement together with the flow of information at
different levels. Reverse flow of matls. Product returns, recalls, information, credit, cash etc.
Supply Chain Management:
It was stared in the mid 1980s. It is the expanded version of logistics processes. Logistics is
concerned with an individual firm while SCM is concerned with all the activities in a
logistical channel environment. It is the cumulative efforts and coordination of entire channel
partners.
Some of the key elements are as follows.
 Long term partnership with vendors with focus on vendor development.
 Free flow of information amongst chain members.
 Long term relations with customer as well as supply chain partners suppliers,
subcontractors, 3PL, distribution centers, retailers etc.
Integrated Supply Chain Management:
It was stared in the mid 1990s. At each level the use of materials facilities, people, finance
and system must be coordinated and harmonized as the part of a single integrated system.
Channel alignment creating a right balance between material order quantity, capacity

requirements, and prices, ownership of materials, transportation, and information processing
across all the channel partners. Management of materials and information flows at strategic,
tactical and operational levels
1.3 VARIOUS DEFINITION OF SUPPLY CHAIN MANAGEMENT
I. “It is the strategic management of activity involve in the purchasing and conversation
of material to finished product delivered to customer”
Figure1.2 Simple diagram of SCM
II. “Supply Chain Management is primarily concerned with the efficient integration of
suppliers, with the efficient integration of suppliers, factories, warehouses and stores
so that merchandise is produced and distributed in the right quantities, to the right
locations and at the right time, and so as to minimize total system cost subject to
satisfying service level requirements.”
III. “SCM is a set of approaches utilized to efficiently integrate suppliers, manufacturers,
warehouses and stores so that merchandise is produced and distributed at the right
quantities, to the right locations, and at the right time, in order to minimize system
wide costs while satisfying service level requirements.”
IV. “SCM is the integration of key business processes from the end user through original
suppliers that provides products, services and information and that add value for
customers and other stakeholders.” (As per Global Supply Forum)
V. “SCM is simply and ultimately the business management, whatever it may be in its
specific context, which is perceived and enacted from the relevant supply chain
perspective.” (Fundamental of supply chain management.

Figure1.3 SCM diagram
1.4 PARTICIPANTS IN THE SUPPLY CHAIN
In any given supply chain there is some combination of companies who perform different
functions. There are companies that are suppliers manufacturers/ producers,distributors or
wholesalers, retailers, and companies or individuals who are the customers, the final
consumers of a product. Supporting these companies there will be other companies that are
service providers that provide a range of needed services.
 Suppliers
The one of the most important part of successful supply chain management are suppliers who
provide the raw material to the manufacturers. The suppliers timely delivered the required
raw material so that industry can fulfill the customers demand in a specific time. Therefore
the selection of the suppliers is a most important part of the supply chain.
 Manufactures/Producers
Manufacturers or produces are organizations that make a product. This includes companies
that are producers of raw materials and companies that are producers of finished goods.
Producers of raw materials are organizations that mine for minerals, drill for oil and gas, and
cut timber. It also includes organizations that farm the land, raise animals, or catch seafood.
Producers of finished goods use the raw materials and subassemblies made by other
producers to create their products. Manufacturers can create products that are intangible
items such as music, entertainment, software or designs. A product can also be a service such
as mowing a lawn, cleaning an office, performing surgery or teaching a skill. In many

instances the producers of tangible, industrial products are moving to areas of the world
where labor is less costly. Producers in the developed world of North America, Europe, and
parts of Asia are increasingly producers of intangible items and services.
 Distributors
Distributors are companies that take inventory in bulk from producers and deliver a bundle of
related product lines to customers. Distributors are also known as wholesalers. They typically
sell to other businesses and they sell products in larger quantities than an individual
consumer buy Distributors buffer the producers from fluctuations in product demand by
stocking inventory and doing much of the sales work to find and service customers. For the
customer, distributors fulfill the “Time and Place” function. They deliver products when and
where the customer wants them a distributor is typically an organization that takes ownership
of significant inventories of products that they buy from producers and sell to consumers. In
addition to product promotion and sales, other functions the distributor performs are
inventory management, warehouse operations, and product transportation as well as customer
support and Post sales service. A distributor can also be an organization that only brokers a
product between the producer and the customer and never takes ownership of that product.
 Retailers
Retailers stock inventory and sell in smaller quantities to the general public. This
organization also closely tracks the preferences and demands of the customers that it sells to.
It advertises to its customers and often uses some combination of price, product selection,
service, and convenience as the primary draw to attract customers for the products it sells.
Discount department stores attract customers using price and wide product selection. Upscale
specialty stores offer a unique line of products and high levels of service. Fast food
restaurants use convenience and low prices as their draw
 Customers
Customers or consumers are any organization that purchases and uses a product. A customer
organization may purchase a product in order to incorporate it into another product that they
in turn sell to other customers or a customer may be the final end user of a product who buys
the product in order to consume it.
1.5 OBJECTIVES OF SUPPLY CHAIN

The objectives of a supply chain are manifold but most of them are derived from the primary
objectives.
Primary Objectives:-
Primary objectives comprises creating a superior mutual value for the customer in terms of
product and service delivered at a time and place respond to customer needs and demand. By
value its meant that the worth of the product and serviced delivered to the customer must far
exceed the efforts and expenses put in by the company in fulfilling the customer’s order
which gets paid in the form of price by the customers.
Secondary Objectives:-
I. Profitability
There must be supply chain profitability not only at individual stages or to individual
partners. The revenue must exceed the expenses or the cost of the supply chain profitability.
II. Reliability
A supply chain aims to provide time and space specific delivery with a superior service level
in fulfilling the order practically with negligible stock out rates.
III. Flexibility
A good supply chain must be flexible to absorb fluctuations in demand without any extra
cost. It refers to the upside production flexibility that can absorb extra demand. A flexibility
to absorb20 per cent extra demand is quite desirable.
IV. Responsiveness
It refers to how much time takes to meet the customer’s needs, particularly when the design
and volume needs to undergo a change.
V. Turnover Rate
It is important that high turnover rate of assets used in the supply chain whether financial,
space and reduce the risk of obsolescence, increase productivity and productivity
on the investment used in these assets.
VI. Communication and Coordination
A supply chain objective is to provide good communication, coordination, information
sharing ability and competences across all the channel partners right from suppliers to the
distributor/retailers the 3 PLs and finally customers.
1.6 BENEFITS OF SCM

Key benefits accrued by implementation of SCM are as follows
 Reduction in working capital deployment cost.
 Re-engineering, simplification and optimization of process across different components
and stages at different levels.
 Optimization of workforce across various orders at different levels and locations.
 Reduction in time to market through disintermediation and better logistics.
 Bringing about accurate inventory forecasting and planning.
 Ensuring certain in process/work in process material and finished goods flow.
 Improved satisfaction levels of internal and external customers.
1.7 THE REASON FOR SCM IS IMPORTANT
Supply chain is very important because of flow of goods from one destination to other
destination with cost effective and on timely delivery of goods to the business needs and
gives the profit to the organization.
Supply Chain consists of many trading partners, from raw materials to finished products.
Traditional flow of supply chain from suppliers to consumer is as follow
Supplier--Manufacturer--Wholesaler—Retailer-Customer
Each party consists of 5 logistics activities, namely, customers service, production planning,
purchasing, warehousing and transportation, purchasing. Logistics focuses on activities
inside a company while supply chain focuses on relationship between each company. Supply
Chain Management is important because of relationship between each party. If every party
joins hand and work together, it will create cost savings and time to market reduction and
everyone will enjoy the benefit.
 To gain efficiencies from procurement, distribution and logistics.
 To make outsourcing more efficient.
 To reduce transportation costs of inventories.
 To meet the challenge of globalization and longer supply chains.
1.8 SUPPLY CHAIN DRIVERS

 Production:-
This driver can be made very responsive by building factories that have a lot of excess
capacity and that use flexible manufacturing techniques to produce a wide range of items. To
be even more responsive, a company could do their production in many smaller plants that
are close to major groups of customers so that delivery times would be shorter. If efficiency
is desirable, then a company can build factories with very little excess capacity and have the
factories optimized for producing a limited range of items. Further efficiency could be gained
by centralizing production in large central plants to get better economies of scale.
Figure1.4 The main SCM drivers
 Inventory:-
Responsiveness here can be had by stocking high levels of inventory for a wide range of
products. Additional responsiveness can be gained by stocking products at many locations so
as to have the inventory close to customers and available to them immediately. Efficiency in
inventory management would call for reducing inventory levels of all items and especially of
items that do not sell as frequently. Also, economies of scale and cost savings could be gotten
by stocking inventory in only a few central locations.
 Location:-

A location approach that emphasizes responsiveness would be one where a company opens
up many locations to be physically close to its customer base. For example, McDonald’s has
used location to be very responsive to its customers by opening up lots of stores in its high
volume markets. Efficiency can be achieved by operating from only a few locations and
centralizing activities in common locations. An example of this is the way Dell serves large
geographical markets from only a few central locations that perform a wide range of
activities.
 Transportation:-
Responsiveness can be achieved by a transportation mode that is fast and flexible. Many
companies that sell products through catalogs or over the Internet are able to provide high
levels of responsiveness by using transportation to deliver their products, often within 24
hours. FedEx and UPS are two companies who can provide very responsive transportation
services. Efficiency can be emphasized by transporting products in larger batches and doing
it less often. The use of transportation modes such as ship, rail, and pipelines can be very
efficient. Transportation can be made more efficient if it is originated out of a central hub
facility instead of from many branch locations.
 Information:-
The power of this driver grows stronger each year as the technology for collecting and
sharing information becomes more widespread, easier to use, and less expensive.
Information, much like money, is a very useful commodity because it can be applied directly
to enhance the performance of the other four supply chain drivers. High levels of
responsiveness can be achieved when companies collect and share accurate and timely data
generated by the operations of the other four drivers. The supply chains that serve the
electronics markets are some of the most responsive in the world. Companies in these supply
chains from manufacturers, to distributors, to the big retail stores collect and share data about
customer demand, production schedules, and inventory levels.
Thus it is important to know the main resource of the supply chain drivers and use it up to the
certain extend so that the organization get the maximum out of its supply chain and satisfy
the customer requirement in time.
1.9EFFICIENCY V/S.RESPONSIVENESS IN SCM

Efficiency refers to output to input ratio. Efficiency could be simply defined as the ratio of
revenue to cost or profit generated. It is easier to measure cost as compared to profit, cost is
more often used as a measure of efficiency.
Responsiveness is a measure of the speed of reaction to a customer demand. It is measured as
a unit of time in normal parlance and some authors include in it rightfully the level of
customer service. A responsive supply chain focuses on the time and level of service to
customer demand.
Efficient Supply Chain
Efficiency approach is common in cases of necessity items, utility products, and standard
goods where the product market is mature and normally goods or services are commoditized.
Some examples food items, dairy products, popular models of functional consumer products
segments.
The other key parameter of an efficient supply chain is that product design and facilities
management are oriented towards minimizing costs. A higher utilization of facilities and
effective product design, with standard usage and functionality for the customer.
Responsive Supply Chain
Responsive approach is common in cases of high-value items, personalized items that require
customization and new products that are at early growth stages of a product lifecycle
Some examples Trendy motorcycles with high horsepower targeted at the youth segment are
highly priced, hi-tech goods, medical equipment, garments, fashion jewellery, mobiles,
electronic goods, home furniture, and selected automobile segment in passenger cars,
commercial vehicles and two wheelers, and agriculture equipment furniture, and selected
automobile segment in passenger cars, commercial vehicles and two wheelers, and
agriculture equipment including tractors.
The other key parameter of a responsive supply chain is that product design and facilities
management should be configured towards creating modularity, allowing postponement of
product completion Modularity allows product differentiation and high degree of
customization.

Figure1.5 Trade of between cost and responsiveness
The right combination of efficiency vs. responsiveness in each of these drives allows a
supply chain to “increase throughput” while simultaneously reducing inventory and operating
expense
1.10 SCM DECESION MAKING
Supply Chain Management processes and technology work to ensure the supply chain is
operating efficiently at the lowest cost with optimum customer satisfaction. To this end,
decisions are made at three distinct levels:
Strategic:
At the strategic level, organizations focus on high level decisions that impact the entire
organization. Decisions often revolve around manufacturing site size and/or location,
supplier partnerships, sales markets, or the products or services to be manufactured or
delivered.
1. Determination of the number, size, location of new plants,D.C and warehouses.
2. Acquisition of new production equipment and the design of working centers within each
plant.
Tactical:
Tactical level decision making focuses on measures to generate cost benefits like adopting
best practices or creating a purchasing strategy with selected suppliers. Effective allocation
of manufacturing and distribution resources over a period of several months.

1. Purchasing and production decisions
2. Work-force size
3. Inventory policies
Operational:
Decisions at this level are made on a daily basis and impact how products/services move
through the supply chain. Examples include production schedule changes or warehouse
product movement.
1. The assignment of customer orders to individual machines
2. Dispatching, expediting and processing orders
3. Vehicle scheduling, routing
1.11 THE FACTOR CONSIDER IN SCM
Before design a supply chain for any organization some of the factor keep in mind which will
help to design a effective supply chain across the world.
Consumer Expectations and Competition
Now a days due to increase in the competition to become the best company gives more
importance’s to their customer demand and try to fulfill their requirement. Because of that
the power has shifted to the consumer.
Globalization
A company will not compete only to the local market or their territory or their country only.
The competition is all over the world to capitalize on emerging markets.
Information Technology
The revolution in the supply chain is begun with the introduction of the It in the Supply
chain. E-commerce, Internet, EDI, scanning data a new trend of emerge is online data
sharing across all the function of the supply chain and supply chain is become more effective
due to the introduction of the various software which secure all the data of the company. So
company wisely implements new technology to enhance the business profit.
Government Regulations
The biggest barriers for SCM are government rules and regulations and it will change with
each country so the design of scm is so critical that it will follow all the rules and regulation
of each country.
Environment Issues

Now a day each country is affected by the green house effect. So the biggest challenges for
any organization before design scm are to effective utilization of each resource which is
available and reduces the waste.
1.12 GARTNER 2013 TOP 10 SUPPLY CHAIN COMPANY IN THE
WORLD
The Gartner Supply Chain Top 10 is about leadership. Every year Gartner identify the
companies that best exemplify the demand-driven ideal for today's supply chain and
document their best practices, which can help all companies move closer to their demand-
driven goa1 Apples.
TABLE 1.1 Gartner top 10 supply chain company list in the world in 2013
Sr No Organization Name
1 Apples
2 McDonald's
3 Amazon.com
4 Unilever
5 Intel
6 Proctor & Gamble
7 Cisco System
8 Samsung Electronics
9 The Coca-Cola Company
10 Colgate-Palmolive
CHAPTER 2
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics is an entire process of materials and products moving into, through and out of the
firm. (As per Institute of Supply Chain Management)
Logistics is the management of the flow of resources between the point of origin and the
point of consumption in order to meet some requirements. The logistics of physical items

usually involves the integration of information flow, material handling, production,
packaging, inventory, transportation, warehouse and security.
2.1 LOGISTICS VIEW POINT
Inbounding Logistics is one of the primary processes of logistics, concentrating on
purchasing and arranging the inbound movement of materials, parts, and/or finished
inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.
Outbound Logistics is the process related to the storage and movement of the final product
and the related information flows from the end of the production line to the end user.
Figure2.1 Inbound vs. Outbound
2.2 LOGISTICS FIELD
 Procurement Logistics
 Production Logistics
 Distribution Logistics
 Reverse Logistics and Forward Logistics
 Green Logistics
Procurement logistics
It consists of activities such as market research, requirements planning, and make-or-buy
decisions, supplier management, ordering, and order controlling. The targets in procurement
logistics might be contradictory: maximizing efficiency by concentrating on core
competences, outsourcing while maintaining the autonomy of the company, or minimizing
procurement costs while maximizing security within the supply process.
Production logistic

It connects procurement to distribution logistics. Its main function is to use available
production capacities to produce the products needed in distribution logistics. Production
logistics activities are related to organizational concepts, layout planning, production
planning, and control.
Distribution logistics
The main tasks are delivery of the finished products to the customer. It consists of order
processing, warehousing, and transportation. Distribution logistics is necessary because the
time, place, and quantity of production differ with the time, place, and quantity of
consumption.
Reverse logistics
It includes the management and the sale of surpluses, as well as products being returned to
vendors from buyers. Reverse logistics stands for all operations related to the reuse of
products and materials. It is "the process of planning, implementing, and controlling the
efficient, cost effective flow of raw materials, in-process inventory, finished goods and
related information from the point of consumption to the point of origin for the purpose of
recapturing value or proper disposal. The opposite of reverse logistics is forward logistics.
Forward logistics is “Process of planning, implementing and controlling the efficient, cost-
effective flow of raw materials, in-process inventory, finished goods and related information
from the point of origin to the point of consumption for the purpose of conforming to
customer requirements”
Green Logistics
Describes all attempts to measure and minimize the ecological impact of logistics activities
This includes all activities of the forward and reverse flows. This can be achieved through
intermodal freight transport, path optimization, vehicle saturation and city logistics.
Figure2.2 Simplified SCM

2.3RELATIONSHIP BETWEEN LOGISTICS AND SCM
Many global transport organization activities reside under the logistics management
umbrella, including warehousing, inventory management, private i.e.in-house truck fleets and
purchased transportation such as air, water, highway or rail.
Logistics
Logistics focuses on the actual transportation and storage of goods.
Logistics Management is an increasingly important part of competitive positioning from the
perspective of the global transport industry. To stay competitive, exporters must make the
right amount of product and services available in the right place at the right time It deals with
inbound and outbound freight, communications during transit, storage and warehousing,
delivery of goods and freight, coordination among third party carries, fleet management, and
other activities directly related to the actual transportation of goods from one point to
another.
Supply Chain Management
For the most part of SCM encompasses a bigger picture than Logistics Management.
If one studies the term Supply Chain Management from a historical perspective, it would
appear SCM has become the more commonly used term, particularly with new and old
industry associations alike including or changing their name to include the words “supply
chain.”
Companies increasingly rely on SCM as a key competitive weapon. Impressive results,
including dramatic reductions in cycle time and accelerated cash flows, have been noted as a
result of effective supply chain management. Supply Chain Management is the umbrella
which covers all aspects of the sourcing and procurement of goods. SCM forms and manages
the business to business links that allow for the ultimate sale of goods to consumers.
Organizations Require Both Logistics and SCM to Succeed
Logistics management is concerned with the movement of goods and services from suppler
to consumer. SCM shares this concern, but additionally is responsible for the flow of
information and funds from supplier to consumer. Perhaps this is the reason for many
industries to believe that as long as there is a matrix-type relationship between the two, it
should be up to the individual organization to decide what emphasis works best to meet its
needs. The verdict is clear. Logistics and SCM cross paths it should be expected that SCM

and logistics will both remain intrinsically intertwined and essential to organization success
Figure 2.3 Relating marketing channels between Logistics Management & SCM
CHAPTER 3
DYNAMICS OF SUPPLY CHAIN
SCM is a very dynamic process in terms of the flow involved, the performances at the level
of the time, place, delivery, cost and service and the inbound and outbound logistics and
operation synchronized purchasing, procurement involved. This become more challenging
particularly in an IT enable environment and even more so lean economy. The customer
wants the best value from the delivery of order. The supply chain need alignment at its
different stages in terms of price, transportation, inventory level, and the ownership involved
it could well be in terms of the trade off in the number of purchases order versus the
inventories level carried and quantity of discount versus the saving accrued due to reduce

inventories. Uncertainties and variations in supply chain could also comprise financial risks.
There could be a distortion in demand or phantom demand created due to tendencies such as
order batching, fluctuation in pricing, on availability of point of sale (POS) data at the
retailing end leading to inaccurate demand forecasting.
Dynamic decisions are enabled by information and communication technology (ICT) which
invariably involves electronic data interchange (EDI) across all the the channel partners,
downstream and upstream. The reveres logistics of product returns, recalls, reused, empty
containers, cash refunds, and discounts from downstream to upstream could turns supply
chain processes more dynamic.
3.1THE PUSH- PULL MECHANISM
The Push Supply Chain
Under Push model, products are manufactured or procured based on anticipated customer
orders. This model is also known as Built to Inventory or Built to Sock. The name itself
reveals its functionality. Products are manufactured in anticipation of customer needs. There
are no prizes for identifying industries that use push model, it is obvious that retail heavily
uses push model. Even though direct to store or cross docks are implemented, overall retail
supply chain is based on push model. Some of the big names in the retail industry are trying
to adopt the hybrid model which is a combination of pull and push.
Some of the key characteristics are as follow
 High inventory costs
 Challenging working capital requirements due to low inventory turns
 Huge warehousing and distribution costs
 Inability to meet dynamic market conditions and
 Seasonal demand and off the shelf product
Push programs represent a top down approach. The core assumption of push programs is that
demand can be anticipated and that it is more efficient and reliable to mobilize resources in
prespecified ways to serve this demand. However, in reality globalization posed several
challenges and one of them is hyper competition.

Figure 3.1 Typical Configuration Scheme of a Push System
Hyper-competition is a state, in which the rate of change in the competitive rules of the game
are evolving rapidly and business survival is becoming a challenge. As the customers are
becoming demanding, if the product is not available in the store, they are willing to look at
other options in the market place. This is forcing retailers carry huge inventories and opt for
low cost sourcing models which in turn increase the procurement cycle time. In case of
demand slump due to financial recession or change buying habits or seasonal weather
conditions, businesses are forced to create artificial demand by unleashing promotions in a
scale never seek in market place. To objective is to draw the customer to the store and try to
sell the product. Product proliferation and Scrambled Merchandising is further making push
model more complex and challenging for the retail industry and for push model.
The Pull Supply Chain
Under pull supply chain, products are manufactured or procured based on specific customer
requests. We also know it as “Built to Order” or “Configured to Order” model. We often see
this model operating in IT/High Tech Industries, where customization is the competitive
advantage. Briefly, we have seen this model in automotive industry and it is being used in
high end luxury market segment. The objective of this model is to minimize the Inventory
carrying and optimize supply. Pull model is as a response to growing uncertainty in demand
and short product cycle.
Some of the key characteristics of this model are as follow
 Volatile demand situation
 High rate of Customization
 Minimal Inventory Carrying
 Not a off the shelf product
 Highly dynamic and effective distribution network.

Figure 3.2 Typical Configuration Scheme of a Pull System
Even though there are many challenges in implementing a pull supply chain in a globalized
environment, converting a push supply chain into a pull supply chain is considered as next
frontier of innovation and lean thinking. Particularly if we are able to implement pull process
for procurement activity and take advantage of Point of Sale information to provide the
demand visibility to suppliers, it would be a great innovation. Again supply chain visibility is
a very challenging aspect and costly proposition as well. However, if we are able to achieve
overcoming all hurdles, the business would be saving costs i.e. warehousing, inventory
carrying; capital costs etc. and also could introduce JIT or Cross Dock Operation which are
again cost efficient models. As the pull of material is linked to POS data and store inventory
data, the buffer inventory if any in the supply chain will get corrected automatically from
time to time eliminating excess inventory. This process would eliminate waste and save costs
and also known as agile supply chain model. Internet becomes the backbone of this model.
This model could work very well in FMCG industry if the business model is well understood
and a solution is developed and implemented efficiently.
3.2 BULLWHIP EFFECT (WHIPLASH EFFECT/ WHIPSAW EFFECT/
FORRESTER EFFECT)
The bullwhip effect occurs when the demand order variability in the supply chain are
amplified as they moved up the supply chain. Distorted information from one end of a supply
chain to the other can lead to tremendous inefficiencies. Companies can effectively
counteract the bullwhip effect by thoroughly understanding its underlying causes.
A small variation on one end, which is controlled, shows up a large variation on the other end
because of a spiraling effect resembling a bullwhip.

It refers to the increase in variance in the demand as one move up in the supply chain from
retailers to distributors/ company’s warehouses. This phenomenon has been observed by
companies such as HP and P&G and it is represented by the figure as follows.
Figure 3.3 Information Distortion: The Bullwhip Effect
Example OF Bullwhip Effect Experience by Organization in Real Life
Proctor & Gamble
The bullwhip effect is seen in real life as well. It originally takes its name from executives at
Proctor & Gamble who began to see disturbing and often inexplicable variations in supply
and ordering figures on diapers, despite a relatively stable demand from consumers.The
company even saw that variability increased further when examining its own orders to its
suppliers.
Hewlett Packard
Hewlett Packard observed a similar effect to the one Proctor & Gamble found. Upon
investigating sales of a given HP printer by a retailer, the company found that orders from
the merchant exhibited far bigger movements that what was seen by changes in actual
sales of the item. Further, the same could be said of orders from HP's printer unit to
another division of the company supplying it with materials.
Beer Distribution
One example of the bullwhip effect is the beer distribution game, a hypothetical model set up
for four human players that tests the manner in which participants in a supply chain behave.
The 2002 Supply Chain World Europe Conference and Exposition found that when the
computer substituted for all the roles, it achieved a result of 228 Euro of costs. However, the
average for human players in the simulation ran 500 to 600 Euros. In one case, the costs
exceeded 1,500 Euro.

Example of the Bullwhip Effect in retailers shop
A simple example the actual demand for a product and its materials start at the customer,
however often the actual demand for a product gets distorted going down the supply chain.
Let’s say that an actual demand from a customer is 8 units, the retailer may then order 10
units from the distributor; an extra 2 units are to ensure they don’t run out of floor stock.
Figure 3.4 Impact of Bullwhip Effect
The supplier then orders 20 units from the manufacturer; allowing them to buy in bulk so
they have enough stock to guarantee timely shipment of goods to the retailer. The
manufacturer then receives the order and then orders from their supplier in bulk; ordering 40
units to ensure economy of scale in production to meet demand. Now 40 units have been
produced for a demand of only 8 units it means that the retailer will have to increase demand
by dropping prices or finding more customers marketing by advertising.
Causes of Bullwhip Effect
According to Lee, Padmanabhan and Whang (1997) there are four basic causes of bullwhip
effect, namely
1. Faulty demand forecast updating
2. Order batching
3. Price fluctuation
4. Shortage gaming
Faulty demand forecast updating
Every company in a supply chain usually does product forecasting for its production
scheduling, capacity planning, inventory control, and material requirements planning.

Forecasting is often based on the order history from the company's immediate customers.
The outcomes of the beer game are the consequence of many behavioral factors, such as the
players' perceptions and mistrust. An important factor is each player's thought process in
projecting the demand pattern based on what he or she observes. When a downstream
operation places an order, the upstream manager processes that piece of information as a
signal about future product demand. Based on this signal, the upstream manager readjusts his
or her demand forecasts and, in turn, the orders placed with the suppliers of the upstream
operation.
Order batching
In a supply chain, each company places orders with an upstream organization using some
inventory monitoring or control. Demands come in, depleting inventory, but the company
may not immediately place an order with its supplier. It often batches or accumulates
demands before issuing an order. There are two forms of order batching: periodic ordering
and push ordering.
Price fluctuation
Manufacturers and distributors periodically have special promotions like price discounts,
quantity discounts, coupons, rebates, and so on. All these promotions result in price
fluctuations. Additionally, manufacturers offer trade deals i.e. special discounts, price terms,
and payment terms to the distributors and wholesalers, which are an indirect form of price
discounts. The result is that customers buy in quantities that do not reflect their immediate
needs; they buy in bigger quantities and stock up for the future. Such promotions can be
costly to the supply chain.
Shortage gaming
The effect of "gaming" is that customers' orders give the supplier little information on the
product's real demand, a particularly vexing problem for manufacturers in products early
stages. The gaming practice is very common. It is the phantom demands by
customers/retailers in anticipation of a shortfall.
How to Counteract the Bullwhip Effect
Understanding the causes of the bullwhip effect can help managers find strategies to mitigate
it. Indeed, many companies have begun to implement innovative programs that partially
address the effect

1. Avoid multiple demand forecast updates
2. Break order batches
3. Stabilize prices
4. Eliminate gaming in shortage
Avoid multiple demand forecast updates
Ordinarily, every member of a supply chain conducts some sort of forecasting in connection
with its planning e.g., the manufacturer does the production planning, the wholesaler, and the
logistics planning, and so on. Bullwhip effects are created when supply chain members
process the demand input from their immediate downstream member in producing their own
forecasts.
Break order batches
Since order batching contributes to the bullwhip effect, companies need to devise strategies
that lead to smaller batches or more frequent resupply. In addition, the counter strategies
when an upstream company receives consumption data on a fixed, periodic schedule from its
downstream customers, it will not be surprised by an unusually large batched order when
there is a demand surge. One reason that order batches are large or order frequencies low is
the relatively high cost of placing an order and replenishing it. EDI can reduce the cost of the
paperwork in generating an order.
Stabilize prices
The simplest way to control the bullwhip effect caused by forward buying and diversions
is to reduce both the frequency and the level of wholesale price discounting.The
manufacturer can reduce the incentives for retail forward buying by establishing a uniform
wholesale pricing policy.
Eliminate gaming in shortage
Situations when a supplier faces a shortage, instead of allocating products based on orders, it
can allocate in proportion to past sales records. Customers then have no incentive to
exaggerate their order "Gaming" during shortages peaks when customers have little
information on the manufacturers' supply situation. The sharing of capacity and inventory
information helps to alleviate customers' anxiety and, consequently, lessen their need to
engage in gaming. Some manufacturers work with customers to place orders well in advance

of the sales season. Thus they can adjust production capacity or scheduling with better
knowledge of product demand.
3.3 THE MAGNITUDE OF SC
In 1998, American companies spent $898 billion in supply-related activities or 10.6% of
Gross Domestic Product
 Transportation 58%
 Inventory 38%
 Management 4%
 Third party logistics services grew in 1998 by 15% to nearly $40 billion It is estimated
that the grocery industry could save $30 billion (10% of operating cost) by using
effective logistics strategies.
 A typical box of cereal spends more than three months getting from factory to
supermarket. A typical new car spends 15 days traveling from the factory to the
dealership, although actual travel time is 5 days.
 Compaq computer estimates it lost $500 million to $1 billion in sales in 1995 because its
laptops and desktops were not available when and where customers were ready to buy
them.
 In 1993, IBM lost a major fraction of its potential sales of desktop computers because it
could not purchase enough chips that control the computer displays.
 Boeing Aircraft, one of America’s leading capital goods producers, was forced to
announce write-downs of $2.6 billion in October 1997. The main reason for this is “Raw
material shortages, internal and supplier parts shortages.”
3.4 THE POTENTIAL OF SC
 In two years, National Semiconductor reduced distribution costs by 2.5%, delivery time
by 47% and increased sales by 34% by shutting six warehouses around the globe. Air-
freighting microchips to customers from a new centralized distribution center.
 In 10 years, Wal-Mart transformed itself by changing its logistics system. It has the
highest sales per square foot, inventory turnover and operating profit of any discount
retailer.

 Procter & Gamble estimates that it saved retail customers $65 million through logistics
gains over the past 18 months. “According to P&G, the essence of its approach lies in
manufacturers and suppliers working closely together jointly creating business plans to
eliminate the source of wasteful practices across the entire supply chain”.
CHAPTER 4
NEW EMERGING WORLD CLASS PRACTICES IN
SCM
Some of the strategic steps being undertaken by global players in this direction are as follows
I. Suppler base rationalization
Consolidation/ reducing supplier base to merely a few key suppliers.
II. Vendor managed inventory
To facilitating the key suppliers to take the on many of the OEM’s day to day
transactions through initiation of various programmers such as, continuous
replenishment. It is also referred as JIT-2
III. Long turn OEM buyer-supplier relationship
The long term contractual relationship with suppliers accompanied by supplier
commitments on phased cost reduction, quality, production and delivery.
IV. Joint action with supplier

Sharing of value analysis, engineering and process engineering benefits by both partner
and creation of cross functional supplier support team.
V. Customer orientation
Provision of innovative logistics practices and provision through cross docking, drop
shipping, 3PL and 4PL providers which should ultimately reduce the lead time and have
better service level for the customer.
VI. Automation in warehousing, tracing and tracking
Establishment of automated facilities in transportation and warehousing such as load-
utilization freight consolidation use of trace and track mechanisms through the web, bar
coding, radio frequency identification (RFID).
4.1 LIST OF WORLD CLASS PRACTICES TECHNIQUE IN SCM
I. Vendor Managed Inventory (VMI)
II. Reverse Logistics
III. Third Party Logistics (3PL)
IV. Forth Party Logistics (4PL)
V. Milk Run System
VI. Transshipment
VII. Bar Coding
VIII. RFID
4.2 VENDOR MANAGED INVENTORY(VMI)
This is one of the successful business models used by Wal-Mart. Wal-Mart has
mastered VMI and is the company against which many other organizations benchmark
themselves VMI helps foster a closer understanding between the supplier and manufacturer
by using Electronic Data Interchange formats, EDI software and statistical methodologies to
forecast and maintain correct inventory in the supply chain.
It is an inventory management system whereby the supplier determines the product amount
and assortment a customer such as a retailer needs and automatically delivers the appropriate
items. Vendor’s representative stationed full time at the OEM facility, having access to
selected data and authorized to decide what, when and how much to order for a particular
range of product or services.

The steps to make VMI work in the organization
To make the implementation of successful VMI in the organization, the organization should
follow the following three steps.
1. Clarify expectations.
There needs to be thorough discussion about how the system will benefit both organizations
in the long term or one of the parties, particularly the supplier, is prone to disappointment
with some of the short-term results. The objective is clear and constant communication
between the supplier and customer. When the two parties work in conjunction they can be
assured that the planning function, for both sides, will begin to smooth over time.
2. Agree on how to share information.
If the supplier and customer can agree to share information vital to restocking in a timely
manner, then the odds of a synchronized system will dramatically improve. Proprietary
information would not have to be shared between the supplier and customer, but enough
information to maintain a steady flow of goods is necessary. The customer should be willing
to share production schedules and/or forecasts to provide some visibility for the supplier.
3. Keep communication channels open.
When the two parties set out to implement a VMI program, they need tomeet and discuss
their goals and how they need to proceed in order to realize those goals. Once a
VMI program has been activated, each side needs to understand that there are going to be
some miscues. These miscues need to be studied as opportunities for learning and then used
to avoid repetitive problems in the future.
Benefits of Vendor Managed Inventory
The Benefits of VMI are numerous for both Manufacturer & Distributor.
 Dual Benefits:
 Data entry errors are reduced due to computer to computer communications. Speed of the
processing is also improved.
 Both parties are interested in giving better service to the end customer. Having the correct
item in stock when the end customer needs it, benefits all parties involved.
 A true partnership is formed between the Manufacturer and the Distributor. They work
closer together and strengthen their ties

 Distributor Benefits:
 The goal is to have an improvement in fill rates from the manufacturer and to the end
customer. Also, a decrease in stock-outs and a decrease in inventory levels.
 Planning and ordering cost will decrease due to the responsibility being shifted to the
Manufacturer.
 The overall service level is improved by having the right product at the right time.
 The manufacturer is more focused than ever on providing great service.
 Manufacturer Benefits:
 Visibility of the Distributor’s Point of Sale data makes forecasting easier.
 Promotions can be more easily incorporated into the inventory plan.
 A reduction in Distributor ordering errors.
 Before VMI a manufacturer has no visibility of the quantity and the products that are
ordered. With VMI, the manufacturer can see the potential need for an item before the
item is ordered.
Hurdles of Vendor Managed Inventory
The major hurdles would be lack of control by the non-vendor party. This could affect
ordering, availability, etc
 Inconsistency in quality of inputs
 Poor infrastructural facilities
 Unreliable transport
 Lack of top management support and commitment from vendors
 Possibilities of misuse of confidential information gained by the vendors
4.3 REVERSE LOGISTIC
A critical area of the supply chain is reverse logistics. Returns can affect every channel
member from consumers, retailers and wholesalers to manufacturers. Returns are caused for
different reasons depending on who initiates them – end consumer, wholesaler or retailer and
manufacturer – and on the nature of the materials involved – packaging or products.

Reusable packaging is becoming more and more common, especially in Europe where
manufacturers are required to take back packaging materials.
Forward Logistics
“Process of planning, implementing and controlling the efficient, cost-effective flow of raw
materials, in-process inventory, finished goods and related information from the point of
origin to the point of consumption for the purpose of conforming to customer requirements”
Reverse Logistics
“Process of planning, implementing and controlling the efficient, cost-effective flow of raw
materials, in-process inventory, finished goods and related information from the point of
consumption to the point of origin for the purpose of recapturing value or proper disposal”
Reverse Logistics is the process of moving products from their typical final destination to
another point, for the purpose of capturing value otherwise unavailable, or for the proper
disposal of the products.
Reconditioning
When a product is cleaned and its repaired and when it returned it “like new” state.
Refurbishing
Similar to reconditioning, except with perhaps more work involved in repairing the product.
Remanufacturing
Similar to refurbishing, but requiring more Extensive work; often requires completely
disassembling the product.
Resell
When a returned product may be sold again as new.
Recycle
When a product is reduced to its basic elements which are reused also referred to as asset
recovery.
Size of Reverse Logistics
“Reverse logistics costs in the United States are estimated to be approximately 4% of total
U.S. logistics costs”
Roughly $47 billion in 2006.
“It is estimated that reverse logistics costs account for almost 1% of the total United States
gross domestic product”

Roughly $132 billion in 2006.
Table 4.2 Forward Logistics vs. Reverse Logistics
Forward Logistics Reverse Logistics
Forecasting relatively strait forward Forecasting more difficult
One too many distribution point Many too one distribution point
Product quality uniform Product quality is not uniform
Pricing relatively uniform Pricing depends on many factor
Product life cycle mangle Product life cycle issue is more complex
Importance of speed recognized Speed often not consider a priority
Marketing method well known Marketing complicated by many factor
Inventory management consistent Inventory management is not consistence
Reverse Logistics Activities
 Handling of returned merchandise
 Damage
 Seasonal inventory
 Salvage of outdated products
 Recycling and reuse
 Material reuse
 Remanufacturing
 Hazardous materials disposition
4.4THIRD PARTY LOGISTICS(3PL)
According to the Council of Supply Chain Management Professionals, 3PL refers to “a firm
that provides multiple logistics services for use by customers. Preferably, these services are
integrated, or bundled together, by the provider. Among the services 3PLs provide are
transportation, warehousing, cross-docking, inventory management, packaging, and freight
forwarding.” In a simpler way, 3PL essentially refers to the fact that a firm outsources the
logistics part of its supply chain to a third party which is known as third-party logistics
provider. Generally, these services end up integrating parts of the supply chain as they are

present in a bundled form so they also consist of some services related to
production/procurement of goods.
3PLs are external suppliers that perform all or part of a company’s logistics functions,
including: “Transportation, Warehousing, Distribution, Financial services”. Terms contract
logistics and outsourcing are sometimes used in place of 3PL.
The Various Services Provided by 3PL is as Follow
 Shipment consolidation
 Warehousing management
 Rate negotiations
 Fleet operations and management
 Product returns (Reverse logistics)
 Order processing
 Relabeling/repacking
 Inventory management
 Multimodal transportation
Table 4.2 A & A’s top 10 Global 3PL (May 2012)
Rank 3PL Provider 2011 Gross Logistics Revenue
(USD Million)
1 DHL Supply Chain & Globe Forwarding 32,160
2 Kuehne + Nagel 22,181
3 DB schenker Logistics 20,704
4 Nippon Express 20,313
5 C.H Robinson Worldwide 10,336
6 CEVA Logistics 9,602
7 UPS Supply Chain Solution 8,923
8 Hyundai Glovis 8,588
9 DSV 8,170
10 Panalpina 7,358
4.5 Froth Party Logistics (4PL)

The concept of a Fourth-Party Logistics (4PL) provider was first defined by Andersen
Consulting (Now Accenture).
Figure 4.2 Register Trademark of Accenture
4PLas supply chain integrator a “that assembles the resources, capabilities, and technology of
its own organization and other organizations to design, build, and run comprehensive supply
chain solutions.” Whereas a third party logistics (3PL) service provider targets a function, a
4PL targets management of the entire process. A Fourth-party logistics provider can also be
considered a consulting firm specialized in logistics, transportation, and supply chain
management.
4PLs manage and direct the activities of multiple 3PLs, serving as an integrator 4PL.
Figure 4.2 4PL Provider

Benefits of 4PL
 Improved availability, increased customer satisfaction, and increased sales and profit.
 Reduced inventory levels at bonds and warehouses.
 Reductions in lead-times from export country to import country.
 Improved reliability in lead-times from export country to import country.
 Increased stock turns.
 Global visibility of total end to end supply chain.
 Greater collaboration and improved relationships.
4.6 MILK RUN SYSTEM
The concept of milk run logistics originates from the dairy industry. Milk-Run logistics is
becoming one of the standard systems of an overseas version of JIT distribution.
It involves material collection, unloading, and production wiz allocation of trucks at the
Vendor’s end. It involves fixed frequency/time of movement of trucks based on exact
production requirements in small lots. The collection and supply of material is exactly in tune
with the OEM’s production requirements.
Figure 4.2 Milk Run Operation

The reasons why Milk-Run logistics has been widely employed are:
1. Reduction in transportation costs due to consolidated transportation offsetting even the use
of small lot transport.
2. Improvement of the assembly manufacturer’s production line and greater accuracy of JIT
goods delivery due to synchronization. Milk-Run logistics can provide consolidated
collection of goods necessary to improve logistics procurement systems.
3. Improvement of the vehicle loading rate, shorten the total distance traveled. It can
achieve various suppliers and manufacturers of coordination, improve agility supplies and
flexibility.
4. It reduces the risk of product quality if problems, manufacturers can quickly discover and
inform the corresponding suppliers, to minimize the impact on sales.
5. It changes logistics strategies, using third-party logistics significantly reduce in-process
inventory, increased capital flows, reduce investment risks.
4.7 TRANSSHIPMENT
It is a practice involving the shipment of the items between different facilities at the same
level in the supply chain to meet some urgent needs, for e.g., to enable the risk-pooling so
that it,allows retailers to meet customers’ demand from the inventory of the other retailers.
The concept is that when a commodity is transported to a particular destination through one
or more intermediate point when each of these point in turn supply to other point.
Thus shipment passes from destination to destination & from source to source, this is called
transshipment.
This practice is more prevalent at retailer level and for this efficient communication and
quick ways and means to ship the items are a must. It would work best when all retailers are
commonly owned.
4.8 BAR CODING
Internationally, most activities in SCM make optimum use Bar Coding whether it be material
entry or supplies tracking.
Pre-delivery slips called “part receipt tags” issued by OEM to its suppliers are bar coded for
various details. - This reduces delays at inward gate due to elimination of manual entry.

Figure 4.3 Interface of Bar-coding
Advantages of using Bar-coding
 Aids faster entry of material
 Reduces piling up of waiting vehicles
 Reduces errors made during manual entry of material
 Typical problem is the careless handling by truck drivers resulting in document being
 defected and difficulty at entry terminals
4.9 RFID
RFID is only one of numerous technologies grouped under the term Automatic Identification
such as bar code, magnetic inks, optical character recognition, voice recognition, touch
memory, smart cards, biometrics etc. Auto ID technologies are a new way of controlling
information and material flow, especially suitable for large production networks.
The RFID technology is a means of gathering data about a certain item without the need of
touching or seeing the data carrier, through the use of inductive coupling or electromagnetic
waves. The data carrier is a microchip attached to an antenna the latter enabling the chip to
transmit information to a reader. One important feature enabling RFID for tracking objects is
its capability to provide unique identification.

Figure 4.4 RFID component
Advantages of RFID
 Tag detection not requiring human intervention reduces employment costs and eliminates
human errors from data collection.
 RFID tags have a longer read range than, e. g., barcodes.
 Tags can have read/write memory capability, while barcodes do not.
 An RFID tag can store large amounts of data additionally to a unique identifier.
 Unique item identification is easier to implement with RFID than with barcodes.
 Tags are less sensitive to adverse conditions i.e. dust, chemicals, physical damage etc.
 Many tags can be read simultaneously.
 Reduces inventory control, provisioning costs and warranty claim processing costs.

CHAPTER 5
OUTSOURCING AND POCUREMENT
5.1 OUTSOURCING
“The strategic use of outside resources to perform activities traditionally handled by internal
staff and resources”. The ultimate goal of the outsourcing is to bring the tangible benefits to
the business and subsequently the customer. Outsourcing is the delegation of tasks or job
from the internal production to an external entity. Most recently it has come to mean the
elimination of native staff to staff overseas where salaries are markedly lower. This is despite
the fact that the majority of outsourcing that occurs today still occurs within the country
boundaries. Out sourcing broadly refers to the following.
1) The process where functions previously performed by an organization are supplied under
contract by a third party.
2) Buying goods or services instead of producing them in house.
3) A long-term result oriented relationship with an external services provider for activities
traditionally performed within the company. Outsourcing usually applies to a complete
business process. It implies a degree of managerial control and risk on the part of the
provider.

4) The transfer of component of an organization’s internal IT infrastructure, staff, processes
or application to an external resources such as an application services provider.
Strategic outsourcing allows ease of management reduction in cost, lesser manpower and
frees up internal resources. Outsourcing can and frequently does provide both long and short
term benefits to companies that outsource provided they have strategic objectives for
outsourcing.
Three phases of outsourcing
 Internal analysis and evaluation
 Needs assessment and vendor selection
 Implementation and management
The following services can be outsourced by company
 system integration
 data network
 mainframe data center
 voice network
 internet/intranet
 applications development
Reason for company outsourcing
Provide services that are scalable, secure and efficient, while improving overall service and
reducing cost.
Figure 5.1 Top Reason for Company Outsourcing

 Off shoring
No commonly accepted definition off-shoring exists. Services that US-based
organizations purchase from abroad are consider in off-shoring. They may also be linked
to US firms’ overseas investment for examples US firms may invest in overseas affiliates
as a replacement for or as an alternative to domestic production. India is the leading
country for U.S. offshore outsourcing.
 Near-shoring
The term used to refer to the practice of getting work done or services performed by
people in neighboring countries. Canada, Mexico to US, Sri Lanka to India rather than
in your own country.
 In sourcing
The act of bringing together a function that was performed outside the organization to being
performed inside the organization is called in sourcing. It is opposite of outsourcing that is a
service performs in house. It is a reaction to outsourcing comprising. Employees aggressively
defending their core competencies against cost cutting exercise by their
Senior manager and third party provider.
Problem with Outsourcing
 Loss of Control
Since the service provider is outside the organization the control power of organization
on them is reduce.
 Increased cash outflow
The flow of money is going outside the organization since the the who serve behalf of us
is outside the country.
 Confidentiality and security
The threat of leaking of important information of document to our competitor.
 Selection of supplier
This is the one of the major issue for outsourcing to select the right kind of supplier who
is able to fulfill the organization requirement.
 Too dependent on service provider
With the too much services is done outside the organization environment it is possible
that the organization is too dependent on the service provider.

 Loss of staff or moral problems
If the organization hires the person outside the organization the employee in the
organization may feel that the trust of the company is more than outside the person than
us.
 Provider may not understand business environment
The biggest problem to hired the third person is that the person may be the outside the
country and he is not able to understand the social issue and ethics of the company.
4.3 PROCUREMENT
Procurement is the process of acquiring goods or services from preparation of requisition
through receipt and approval of invoice for payment.
Almost all purchasing decisions include factors such as delivery and handling, marginal
benefit, and price fluctuations. Procurement generally involves making buying decisions
under conditions of scarcity. If good data is available, it is good practice to make use of
economic analysis methods such as cost-benefit analysis or cost-utility analysis.
Figure 5.2 Supply planning procurement process step
 The supply procurement planning process of the case company begins with volume
calculation corresponding to the production plan for the next period. This entails
breakdown of parts and quantities required as well as identification of potential suppliers.
 A master milk-run pickup route is created using information about supplier locations and
pickup volume at each supplier location. This step is currently done manually. Planners

begin from previous month’s mater route plan and perform incremental changes to the
plan according to changing volumes.
 The company informs its suppliers of the volumes and pickup schedule, and enters
negotiations with each supplier. If modification to the master route is needed after the
negotiation, it is done to finalize the period’s master route.
 Once the master route is completed, it is then used to schedule receiving dock activities.
This is necessary to avoid congestion and ensure high and uniform utilization of the
facility.
 The master route is then used for the entire period as a template on which daily operation
is based. The daily milk-run pickup route will deviate from master route slightly
according to shifting daily volumes. This also is currently done manually.
CHAPTER 6
INFORMATION TECHNOLOGY IN SCM
SCM require a systematized and time synchronized flow of information across all the supply
chain partners upstream and downstream. Many of these partners such as suppliers and
customers could be even outside the organization. The flow of information has to be real time
and to begin with it is related to the capture of customer order and its configuration, PoS data
at he retailers point the prevailing inventory status at he plant, company’s warehouse or
distribution centre (DC) and at the suppliers and subcontractor if any. For the effective and
efficient floe of information and materials, its required to have an integrated resources
planning system at the enterprise level.Supply chain management (SCM) is concerned with
the flow of products and information between supply chain members' organizations. Recent
development in technologies enables the organization to avail information easily in their
premises. These technologies are helpful to coordinates the activities to manage the supply
chain.
6.1 ROLE OF AN IT SYSTEM FOR SCM
Information must have the characteristics that can be useful. The characteristics are like
accurate, accessible in a timely manner and information must be of the right kind.

Information is a key supply chain driver because it serves as the glue that allows other
drivers to work together with the goal of creating an integrated, coordinated supply chain.
Information makes the supply chain visible to a manager. With the visibility, a manager can
make decisions to improve the supply chains performance.Managers must understand how
information is gathered and analyzed. This is where IT comes into play as IT consists of the
hardware, software and people throughout a SC that gather, analyze and execute upon
information.
6.2 IMPORTANCE OF INFORMATION
Information is the key to the decision making in Business. Prior to the 1980s, a significant
portion of the information used to flow between functional areas within an organization, and
between supply chain member organizations. Firms that are embarking upon supply chain
management initiatives now recognize the vital importance of information and the
technologies that make this information available. In a sense, the information systems and the
technologies utilized in the supply chain represent one of the fundamental elements that link
the organizations into a unified and coordinated system. Three factors have strongly
impacted this change in the importance of information.
1) Satisfying customers have become something of a corporate obsession. Serving the
customer in the best, most efficient and effective manner has become critical, and
information about issues such as order status, product availability, delivery schedules, and
invoices has become a necessary part of the total customer service experience
2) Information is a crucial factor in the managers’ abilities to reduce inventory and human
resources requirements to a competitive level.
3) Information flows play an essential role in the strategic planning for and deployment of
resources.
6.3 FUNCTION OF IT IN SCM

I. The most Typical role of IT in SCM is reducing the function in transaction between
supply chain partner through cost effective information flow
Figure 6.1 Functional Role of IT in SCM

II. IT is viewed to have a role in supporting the collaboration & coordination of supply
chains through information sharing.
III. It can be used for Decision Support In this instance the analytical power of computers is
used to provide assistance to managerial decisions.
6.4 IT software for SCM
 Software Systems
 Electronic Data Interchange (EDI)
 Material Requirements Planning (MRP)
 Manufacturing Resource Planning (MRP II)
 Enterprise Resource Planning (ERP)
 Supply Chain Management Systems (SCM)
 Customer Relationship Management (CRM)
 Internet-based Software
 Network Infrastructure
 Wide Area Network
 Internet (for E-commerce: B2B, B2C)
6.5 ELECTRONIC DATA INTERCHANGE (EDI)
EDI is an inter-organization computer-to-computer exchange of standard business
documents in a structured and machine-process able format without human intervention to
improve the speed and accuracy of the information flow.
COMPONENTS OF EDI are as follow
 EDI Standard
 EDI Software
 Communication Medium
BENEFITS OF EDI
The major benefits of EDI in supply chain integration are as follows
 Improves customer responsiveness
 Reduces transaction costs and times
 Increases accuracy and productivity

 Strengthens supply chain relationships
 Increases ability to compete globally
Limitation of EDI
There are two major limitations of EDI that restricts its scope of use which are as follows
1) It needs highly sophisticated and private IT infrastructure resulting into huge costs.
2) As EDI is an inter-organization, computer-to-computer exchange of standard business
documents in a structured and machine-process able format, hence, day-to-day flexible data
cannot be shared between supply chain partners. Supply chain integration needs more
flexible information sharing on continuous basis apart from standard business documents.
6.6 ENTERPRISE RESOURSE PLANNING (ERP)
ERP systems grew out of a function called materials requirements planning (MRP) which
was used to allocate resources for a manufacturing operation. MRP systems software
ultimately became very complex allowing for efficiencies of scale not previously possible.
Even more sophisticated MRP II systems began to replace MRP systems in the 1980s By the
early 1990s, other enterprise activities were being incorporated into ERP systems.ERP is a
computerized integrated set of application software modules for different business processes
such as production, distribution, financial, human resources, procurement, supply china
management, etc., used by firms providing operational, managerial and strategic information
for making decisions strategically to improve the productivity, quality and competitive
advantage. ERP is serving as a backbone for the whole business. ERP is a term used to refer
to a system that links individual applications. For example Accounting and Manufacturing
applications into a single application that integrates the data and business processes of the
entire business. It integrates key business& management processes to provide an integrated
view of the entire organization & the activities that take place within it. ERP systems have
emerged to automate business functions and offer an integrated data solution across an
organization’s infrastructure. It provides the capability to manage & integrate
the information& services of departments throughout an entire enterprise. This allows
organizations to better manage all their resources thus achieving cost reduction and
efficiency through the integration of all information among various business processes.
Today an ERP system can encompass, but is not limited to, the following functions:

 Sales and order entry.
 Raw materials, inventory, purchasing, production scheduling, and shipping.
 Accounting.
 Human resources.
 Resource and production planning.
Major ERP system
 SAP R/3
 Oracle
 PeopleSoft (have been merged by Oracle)
 Toyota uses PeopleSoft and SAP
 Microsoft Dynamics (formerly Microsoft Business Solutions - Great Plains)
Figure 6.2 Various ERP links in organization
CRITICAL ERP IMPLEMENTATION ISSUES
 Never-ending implementation.
 Importance of process mapping.
 Process redesign.

 Use of consultants.
 Excessive cost.
 Resistance to change.
 Errors during implementation.
 Rapid technological change.
Benefits of ERP
 Improving productivity and enhancing a competitive edge.
 Bringing about a tradeoff between demand and supply.
 Bringing together people who work on shared tasks.
 Ensuring a smoother flow of inventory and information at all levels.
 Reducing the replenishment cycle time.
 Overall organizational look-ahead capability and control.
Table 6.1 Leading INDIA companies and the ERP software used
Sr No Company Name ERP used
1 Tata Steel SAP
2 Hindustan Lever MFG-Pro
3 Hyundai SAP, Marshall
4 Telco SAP, Proprietary
5 Asian Paint SAP

CHAPTER 7
ISSUES, CHALLENGES AND OPPORTUNITIES IN
IMPLEMENTATION OF SCM
The corporate sector does not necessarily practice what it admires. It could due to resource
constraints or a changing management leadership, commitment, and philosophy in the
company.
7.1 KEY IMPLEMENTATION ISSUES
 SCM intention, orientation, organization and interrelationship
 75% of the companies have not developed SCM as a stand-alone function because lack of
recognition and coherent view but it certainly needs coordination with the other
functional areas of the organization and even out side as an extended enterprise.
 All the companies now realize that SCM is an important component of corporate strategy
for gaining competitive advantage.
 All the companies agree that SCM invariably involves close working with the supplies in
the form of joint action, continuity and providing for verification of the each other’s
capabilities.
 75% of the companies agree that SCM yields better customer services levels in terms of
customer satisfaction, loyalty, regain programmers.Most companies are of the view that
SCM is a no- nonsense function and is not possible without the use of the IT tools and
technique.
 SCM keeps the focal firm on its toes in terms of a continuous benchmarking against the
competitor’s product, process and costs.
 Nearly all the companies agree that working closely with suppliers at different stages is a
critical factor for the successful implementation of SCM.
 SCM and collaborative forecasting and planning
 Most companies agree that collaborative forecasting and planning in coordination with
supplies, distribution centre and dealers is a must for SCM.

 There must be on hand availability and visibility of data across the company, particularly
at the distribution centre level for capturing and analyzing demand patterns.
 An 80:20 rule can be followed where 20% of forecast should cover 80% of the demand
and 80% forecast covers 20% of the demand.
 Forecast must be prepared on a disaggregated basis for different models/,product family/,
product lines/ DC/ customer wise.
 SCM and use of IT practices and tools
 It is required to chart all information processes and pathways for real time information
sharing among all channel members. It is necessary to integrate all information flows
with work processes and one should always move from the function to the processes.
 It is necessary to have EDI with supplies and retailers. Most companies say that 75-90%
of their vendors are now accessible through e-mail and have their own website.
 Most of the companies are doing at least 40% of their procurement through the internet.
SCM and modern manufacturing practices and system including master production
scheduling and material planning
 Most companies follows the practice of making master production schedules(MPS) and
make these responsive enough to changes in demand levels to some extent normally in a
range of 10-30% based on a proprietary developed by them.
 Most companies combine the MRP lot size with the economic batch size to decide
economics order quantities and also the reorder point. Most companies have done time
fencing of their schedules and plans and demonstrate a firm period schedule commitment.
 SCM and transportation, logistics and warehousing
 All companies agree that successful implementation of SCM greatly requires integration
of inbound and outbound logistics.
 Only 30% of companies believe that 3PLs are required to facilitate and simplify logistics
to and from the focal companies.All companies believe that freight consolidation and
route rationalization pays off significantly in reducing cost of SCM.
 70% companies agree that a dynamic mode of carrier and route selection could be
effective in reducing stock levels, stocks out and streamlining inventory flows.

 All companies agree that customization of delivery should be based on customer specific
requirement.
 60% companies have decentralized some amount of forecasting at DC level which must
have on hand inventory availability and visibility of data all the time for the purpose.
 Customer relationship
 All companies studied recognize the ever increasing role of customer retention, customer
continuous, contact and initiative such as customer- loyalty and affinity programmers.
 Only 40% of companies have a documented well laid out process to measure customer
satisfaction and service levels and a mechanism to collect, track, assess and share the
feedback among different department of the company and the suppliers.
 All companies agree that the time to market and distribute a new product is a critical
factor for SCM and customer relationship and they always try to reduce it.
 All companies prefer to delay differentiation of the product till the retailers/ customers
end to provide flexibility in order configuration.
7.2 THE CHALLENGES
Most companies, which are into SCM, recognized the importance of the value chain when
they had to re-engineer their business process to deliver maximum value to the internal and
external customers, and thereby, also redesign and reconfigure the information flows. This
was followed by adoption of enterprise level resources planning systems, such as ERP on any
other proprietary/legacy system, and some even extended it to their suppliers. Also, factors,
such as the time to develop a new product/ variant and market and distribute it, are becoming
a strategic competitive advantage factor. So, SCM is a strategy adopted by the companies to
beat time competitiveness and develop customer-centricity in their operations. The key
challenges can be outlined as follows.
 The business environment for most consumer product is fast changing, product life cycles
(PLCs) are getting even smaller, and the demand patterns are unstable and sometimes
seasonal, which poses a great challenge for supply chain managers, particularly in terms of
demand planning.
 The other problem lays in data transparency and supply chain inefficiencies due to the
cultural mindset. Reliable data may be difficult to obtain, say, on a daily basis, unless it is

directly captured from PoS electronically. Sometimes, there can be erroneous judgment of
customer needs or simply, data could be held unreliable due to the mindset factors, such as
trust, win-lose perspective, and respect or ‘mind your own business’ kind of attitude by
dealers, so common in the Asian countries, and more so in India. These factors may actually
suppress data transparency and hide supply chain problems and insufficiencies with no
chance for exposure.
 The other problem pertains to logistic service providers, say, third party logistics (3PLs)
for transportation, tracking, and tracing of consignments and other services. More integration
and close coordination is required with 3PLs and/or supplier’s transporters. In fact, there is
absolute lack of integrated logistic professionals not only in the Indian industry but the
whole of Asia. In fact, there is not a single pan-Asian 3PL company that could provide
integrated sea, rail, road, and air transportation, and distribution, by virtue of which
distribution gets highly disintegrated and localized, resulting in the overall supply chain
insufficiencies, particularly in terms of time and cost. The complexity is further aggravated
by diverse geographies, economies, purchasing power, infrastructural development, lingual,
regulatory tax and tariff differences, particularly in the Indian states and more so at the pan-
Asia level.
 The cost of distribution as a per cent of sales is ever increasing. The respondent companies
cited transport infrastructural problem as a cause for this. Also, too many octroi and check
post points in the country increases the cost of transportation.
 Some companies feel that employees resist to outsourcing due fearing of losing their jobs and
controls. Vendors may also resist consolidation and rationalization of vendor base by the
company. Appropriate strategies are needed to tackle these changes, otherwise costs of the
supply chain escalate.
 Many companies feel that visibility of data across the supply chain is still a problem, e.g.,
actual stock levels at the distributor’s and retailer’s end are still difficult to be known.
Fragmented or unorganized trade in some industries also poses a problem for demand
forecasting and replenishment particularly in the fast moving consumer goods (FMCG)
industry.

Seminar Report on Supply Chain Management

Seminar Report on Supply Chain Management

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Seminar Report on Supply Chain Management

Similar to Seminar Report on Supply Chain Management (20)

Recently uploaded

Recently uploaded (20)

Seminar Report on Supply Chain Management