Meaning and concept of Supply chain, Mordern vs Traditional supply chain, Logistic, ways of Transportation and a SCM Case study is being discussed.

1. Supply Chain Management
Presented By:
 Mukesh Kumar
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2. What is Supply chain?
A philosophy that describes how organizations
should manage their supply chains to achieve
strategic advantage.
The objective is to synchronize requirements
of the final customer with the flow of materials
and information along the supply chain. The
goal is to eliminate variability and reach a
balance between high customer service and
low cost.
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3. The Supply Chain
Concept
Business process integration of
SCM
Development of the
Concept
– Total systems
cost - remains an
important element
of logistics
analysis.
– Outbound
logistics – the
warehousing and
distribution of
finished goods.
– Inbound logistics
– the receiving and
warehousing of raw
materials, and
their distribution
to manufacturing
as they are
required.
– Value chain
analysis integrated
logistics activities.
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 Customer
relationship
management
(CRM)
 Returns
management
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 Customer
service
management
 Product
development
and
commercializati
on
 Demand
management
style
 Supplier
relationship
management
 Order
fulfillment
 Manufacturing
flow
management
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4. Traditional Vs Modern SCM
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5. Logistic in SCM
• Logistics- Plans,
implements, and controls
forward and reverses
flow of goods, services
and related information
between the point of
origin to the point of
consumption.
Modes of Transportation
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6. Decide your mode
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7. Ware
House/Customer Mumbai Goa Kochin Chennai Paradip Supply Fixed cost per Month
Mumbai 0 20 25 35 40 3000 9000000
Kolkata 65 55 45 30 10 2000 6000000
Demand 1000 300 400 600 200
Business Case
The Inherited Money
Mr. Roshan is a Goa based businessman, who sales water pumps online and physically to the local market who has recently added
some more money to his account after he got piece of his forefather’s property (Grandfather)
Mr. Roshan now wants to expand his business and has a plan to take control of the supply chain to easy customer supply.
With this he will have a direct contact with his clients and can get a direct feed back from them as well.
He is thinking about direct transportation of the materials to the potential customers(dealers)
Mr. Roshan has now approached a consultant who can help him to plan and execute his business expansion plan.
Below are the objectives of the project:
•To choose the best Transportation mode out of:- Ocean, Air lift and By Road.
•To select the best location, from where he can cater his distributors and fulfill their demand.
•To map a best route for its delivery.
Now the consultant company has a task to satisfy his client needs.
Below are few details given to the consultant for reference:
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8. Methodology
Transportation Mode-
- TOPSIS on R programming is
used to rank the best mode of
transportation based on certain
criteria.
- Based on TOPSIS analysis we
have selected Ocean
Transportation to be the best
choice which satisfy our
conditions criteria.
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9. Location selection
• The consultant now has a
challenge to select the
best location for the firm,
which satisfy the demand
of its customers with cost
effective.
• Solver algorithm of excel
is used to select the best
location.
• Hence Mumbai is being
selected to open the
warehouse. Which has
minimum operation cost
of Rs-9045000.
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10. Reverse Routing
• The consultant has suggested Mr. Roshan to
use the vessel for transportation of goods of
other companies from end location(Kolkata)
to initial location (Mumbai). This will create
money for the firm.(Also the vessel will not
return empty)
• Hence the consultant has a new challenge to
route shortest reverse distance travel of the
vessel.
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11. Reverse delivery locations identified
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12. Reverse Routing
• Based on the delivery
locations , the
consultant has
identified the route
from Kolkata to Mumbai
shortest route covered.
• Traveling sales man
model is used in excel
solver keeping Kolkata
start point and Mumbai
as end point.
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13. Routing Map
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14. Recommendation/Suggestions
• Mr. Roshan’s Optimum mode of
Transportation for his pumps should be Via
Ocean.
• He should select Mumbai as a warehouse
location to cater his customers demand
effectively.
• On returning the vessel should carry other
companies consignment.
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15. Appreciate your patience…
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