2. FACTORS DRIVING CHANGE IN
ECONOMY
Globalisation
Sourcing, marketing, distribution
Technology
Information, Computers, gadgets
Empowered Consumer
Informed, 24X7 Service
Organisational consolidation
Large retailers, Commanding
Government Policy & Regulations
3. WHAT IS A SUPPLY CHAIN?
All activities associated with the flow and transformation of goods and
services from raw materials to the end user, the customer is the Supply
Chain.
Products
and
Services
Products
and
Services
Products
and
Services
CustomersCustomers
Total
satisfaction
with quality,
price,
delivery, and
service
DistributorsDistributors
Package and
delivery
Inventory
ProducersProducers
Finished
goods, end
products and
services
Inventory
SuppliersSuppliers
Inventory
Materials,
parts, sub-
assemblies,
and services
6. IMPORTANCE OF SCM
The 4 Rs
Right Product
Right Quantities
Right Place
Right Time
At Minimal Cost
7. WHAT IS HAPPENING AROUND US?
Online trade : Flipkart and Snapdeal deliver branded goods
at a lower price and in low time span.
Pizza Hut promises 30 minutes delivery.“Nahi to paisa
wapis…”
Big Bazaar or Reliance Fresh gives grocery, vegetables at
prices much lower than market prices?
How ?
8. THE ONLINE TRADE MODEL
Order by Customer
on the website
Order downloaded
in company system
Availability search
Order placed on
vendor for delivery
Inventory allocated
Pick list generated
Packing & Delivery
Handover to
customer
Marketing
I.T. System
Online payment etc
I T Systems
Logistics
Vendor selection,
Quality approval,
Pricing
Inventory
Management
Stores /
Warehouse mgmt
Logistics
Human Resources
Finance
Management
Quality
Brand - Quality
Cost
Time
Convenience
Objectives
Backend work byCustomer Process Support departments
9. PIZZA COMPANY MODEL
What does the customer want ?
- Product
- Delivery
- Time
- Cost
- Anything else?
What are other Pizza companies offering ?
Why should people buy from your Pizza company?
10. PIZZA COMPANY MODEL
The Supply Chain for a Branded, High Quality food joint is
very crucial to meet Customer expectations.
What if ?
Delivery time not met?
Product Quality is not met?
Costs go up?
Is SCM responsible for Customer Satisfaction ?