SUPPLY CHAIN MANAGEMENT (SCM) IS TO MANAGE STRATEGICALLY AND IN INTEGRATED MANNER FLOW OF MATERIALS EFFICIENTLY AND ECONOMICALLY,FROM A CHAIN OF SUPPLIERS, TO/THROUGH ANOTHER CHAIN OF INTERNAL SUPPLIERS & INTERNAL CUSTOMERS OF ‘THE ENTERPRISE’ AND FINALLY THE FINISHED PRODUCT IN RIGHT QUANTITY, OF RIGHT QUALITY, AT RIGHT PRICE AND IN RIGHT TIME TO A CHAIN OF EXTERNAL CUSTOMERS.

1. 11
SUPPLY CHAINSUPPLY CHAIN
MANAGEMENTMANAGEMENT
K.D.PRASADK.D.PRASAD
GM(Min)/(Vig)GM(Min)/(Vig)
BCCL,DHANBADBCCL,DHANBAD

2. 22
EXCELLENCEEXCELLENCE
 PAR EXCELLENCE,PAR EXCELLENCE,
SUPERIORITYSUPERIORITY
 SURPASSING OTHERS INSURPASSING OTHERS IN
MERIT, QUALITY, VIRTUE,MERIT, QUALITY, VIRTUE,
GREATNESS.GREATNESS.
 HIGH DEGREEHIGH DEGREE
PERFORMANCE.PERFORMANCE.

3. 33
 TO ACHIEVE EXCELLENCE WE MUSTTO ACHIEVE EXCELLENCE WE MUST
SET MEASURABLESET MEASURABLE
PARAMETERS/GOALS FOR ALLPARAMETERS/GOALS FOR ALL
ACTIVITIES.ACTIVITIES.
 SUPPLY CHAIN MANAGEMENT (SCM)SUPPLY CHAIN MANAGEMENT (SCM)
IS TO MANAGE STRATEGICALLY ANDIS TO MANAGE STRATEGICALLY AND
IN INTEGRATED MANNER FLOW OFIN INTEGRATED MANNER FLOW OF
MATERIALS EFFICIENTLY ANDMATERIALS EFFICIENTLY AND
ECONOMICALLY,ECONOMICALLY,
CONT….CONT….

4. 44
 FROM A CHAIN OF SUPPLIERS,FROM A CHAIN OF SUPPLIERS,
 TO/THROUGH ANOTHER CHAINTO/THROUGH ANOTHER CHAIN
OF INTERNAL SUPPLIERS &OF INTERNAL SUPPLIERS &
INTERNAL CUSTOMERS OF ‘THEINTERNAL CUSTOMERS OF ‘THE
ENTERPRISE’ ANDENTERPRISE’ AND
 FINALLY THE FINISHED PRODUCTFINALLY THE FINISHED PRODUCT
IN RIGHT QUANTITY, OF RIGHTIN RIGHT QUANTITY, OF RIGHT
QUALITY, AT RIGHT PRICE AND INQUALITY, AT RIGHT PRICE AND IN
RIGHT TIME TO A CHAIN OFRIGHT TIME TO A CHAIN OF
EXTERNAL CUSTOMERS.EXTERNAL CUSTOMERS.

5. 55
SCMSCM
SUPPLIE
R
BUYE
R
SUPPLIER
S
ENTERPRIS
E
CUSTOMER
S
ENTERPRIS
E
SUPPLIER
S
CUSTOMER
S
SUPPLIER
S’
SUPPLIER
CUSTOMER
S’
CUSTOMER

6. 66
SUPPLIER-ENTERPRISE-CUSTOMER CHAINSUPPLIER-ENTERPRISE-CUSTOMER CHAIN
INTERNAL/EXTERNAL CUSTOMERINTERNAL/EXTERNAL CUSTOMER
SATISFACTIONSATISFACTION
EXTERNAL
CUSTOMER
SUPPLIE
R
CUSTOME
R
EXTERNAL
SUPPLIER
IS – INTERNAL SUPPLIER
IC – INTERNAL
IC
IS
IS
IS
IC
IC
IC
IC
IS
IS

7. 77
SCMSCM : THE CHAIN INCLUDES: THE CHAIN INCLUDES
SUPPLIER’S SUPPLIER ANDSUPPLIER’S SUPPLIER AND
CUSTOMER’S CUTOMER OF THECUSTOMER’S CUTOMER OF THE
ENTERPRISE.ENTERPRISE.
SCMSCM : BASIC FLOWS OF THE CHAIN: BASIC FLOWS OF THE CHAIN
AREARE
(I)(I) FLOW OF INFORMATIONFLOW OF INFORMATION
(II)(II) FLOW OF MATERIALS/PRODUCTSFLOW OF MATERIALS/PRODUCTS
(III)(III) FLOW OF FINANCEFLOW OF FINANCE

8. 88
THE IMPORTANT LINKS OF THE SUPPLYTHE IMPORTANT LINKS OF THE SUPPLY
CHAIN (S.C.) OF THE ENTERPRISE :CHAIN (S.C.) OF THE ENTERPRISE :
 FORECASTINGFORECASTING
 LOGISTICS (IN-BOUND)LOGISTICS (IN-BOUND)
 PRODUCTION CENTREPRODUCTION CENTRE
 LOGISTICS (OUT-LOGISTICS (OUT-
BOUND)BOUND)
 ITIT
 PURCHASINGPURCHASING
 INVENTORYINVENTORY
 MARKETINGMARKETING
 FINANCEFINANCE
 HRMHRM
BE FUNCTIONALLY STRONG & FULLY INTEGRATED
IN THE SUPPLY CHAIN.

9. 99
EXCELLENCE IN SCMEXCELLENCE IN SCM
FOR :FOR :
 BECOMING GLOBALLYBECOMING GLOBALLY
ADMIRED AND RESPECTEDADMIRED AND RESPECTED
COMPANY.COMPANY.
 MARKET LEADERSHIP.MARKET LEADERSHIP.
 CHEAPER, BETTER & FASTERCHEAPER, BETTER & FASTER
PRODUCT THAN COMPETITOR.PRODUCT THAN COMPETITOR.
 HIGH CORPORATE IMAGE.HIGH CORPORATE IMAGE.

10. 1010
HOW TO ACHIEVE ABOVE ?HOW TO ACHIEVE ABOVE ?
1.1. RELATIONSHIP MANAGEMENT :RELATIONSHIP MANAGEMENT :
(I)(I) MAKE LOYAL CUSTOMERS – EXTERNALMAKE LOYAL CUSTOMERS – EXTERNAL
AS WELL AS INTERNAL.AS WELL AS INTERNAL.
(II)(II) EXCEED EXPECTATIONS OFEXCEED EXPECTATIONS OF
CUSTOMERS.CUSTOMERS.
(III)(III) BE CLOSE TO CUSTOMERBE CLOSE TO CUSTOMER
(IV)(IV) BEHAVE WITH YOUR SUPPLIERS AS YOUBEHAVE WITH YOUR SUPPLIERS AS YOU
EXPECT YOUR CUSTOMERS TO BEHAVEEXPECT YOUR CUSTOMERS TO BEHAVE
WITH YOU.WITH YOU.
CONT….CONT….

11. 1111
(V)(V) THE CORPORATE CULTURE,THE CORPORATE CULTURE,
MISSION, GOALS AND POLICIES OFMISSION, GOALS AND POLICIES OF
THE ENTERPRISE HAS DIRECTTHE ENTERPRISE HAS DIRECT
EFFECT ON THE QUALITY OFEFFECT ON THE QUALITY OF
INTEGRATION IN THE SUPPLYINTEGRATION IN THE SUPPLY
CHAINCHAIN
(VI)(VI) ‘‘I AM OK, YOU ARE OK’ MUST BEI AM OK, YOU ARE OK’ MUST BE
THE CULTURE IN THE ENTIRETHE CULTURE IN THE ENTIRE
CHAIN.CHAIN.
(VII)(VII) EVERY LINK OF THE ‘CHAIN’ ISEVERY LINK OF THE ‘CHAIN’ IS
IMPORTANT.IMPORTANT.

12. 1212
2.2. INTERNET IS PALYING AINTERNET IS PALYING A
HIGHLY EFFECTIVE ROLE INHIGHLY EFFECTIVE ROLE IN
MAKING SUPPLY CHAINMAKING SUPPLY CHAIN
SUCCESSFUL.SUCCESSFUL.
3.3. ELIMINATE/REDUCEELIMINATE/REDUCE
MATERIALS INVENTORY,MATERIALS INVENTORY,
WORK-IN PROCESSWORK-IN PROCESS
INVENTORY & FINISHEDINVENTORY & FINISHED
GOODS INVENTORY:GOODS INVENTORY:

13. 1313
 VENDOR MANAGED INVENTORY (VMI)/VENDOR MANAGED INVENTORY (VMI)/
SUPPLIERS’ CONSIGNMENT STORESSUPPLIERS’ CONSIGNMENT STORES
NEAR WORK-PREMISES FOR THE TOPNEAR WORK-PREMISES FOR THE TOP
‘A’ ITEMS AND SPARE PARTS WHICH‘A’ ITEMS AND SPARE PARTS WHICH
CONSTITUTE BULK OF THECONSTITUTE BULK OF THE
CONSUMPTION.CONSUMPTION.
 CROSS-DOCKING STRATEGY FORCROSS-DOCKING STRATEGY FOR
FAST MOVING ITEMS WHEREFAST MOVING ITEMS WHERE
WAREHOUSE FUNCTIONS ASWAREHOUSE FUNCTIONS AS
INVENTORY CO-ORDINATION CENTREINVENTORY CO-ORDINATION CENTRE
FOR THE VARIOUS UNITS/RETAILORS.FOR THE VARIOUS UNITS/RETAILORS.

14. 1414
 AGREEMENTS WITH SUPPLIERS FORAGREEMENTS WITH SUPPLIERS FOR
DAILY, WEEKLY, MONTHLY SUPPLIESDAILY, WEEKLY, MONTHLY SUPPLIES
ACCORDING TO CONSUMPTION.ACCORDING TO CONSUMPTION.
 WHERE NECESSARY USE OF 3PLWHERE NECESSARY USE OF 3PL
COULD BE CONSIDERED.COULD BE CONSIDERED.
 JIT DELIVERY HAS TO BE THEJIT DELIVERY HAS TO BE THE
OBJECTIVE.OBJECTIVE.
 ALTERNATIVE USE/DISPOSAL OFALTERNATIVE USE/DISPOSAL OF
‘DEAD’ STOCKS.‘DEAD’ STOCKS.

15. 1515
 FINISHED GOODS SHOULD MOVEFINISHED GOODS SHOULD MOVE
TO THE CUSTOMER WITHOUTTO THE CUSTOMER WITHOUT
ANY IDLING.ANY IDLING.
 LOWER THE INVENTORY BETTERLOWER THE INVENTORY BETTER
& ECONOMICAL THE FLOW IN S.C.& ECONOMICAL THE FLOW IN S.C.
 IN MODERN S.C., ‘INFORMATION’IN MODERN S.C., ‘INFORMATION’
REPLACES INVENTORY.REPLACES INVENTORY.

16. 1616
4.TRANSPORTATION : A NON-4.TRANSPORTATION : A NON-
VALUE ADDED ACTIVITYVALUE ADDED ACTIVITY
 FIND MOST ECONOMIC MODEL OFFIND MOST ECONOMIC MODEL OF
TRANSPORT CONSIDERING MODESTRANSPORT CONSIDERING MODES
(TRAINS, TRUCK, SHIPS), VALUE OF(TRAINS, TRUCK, SHIPS), VALUE OF
GOODS, HAZARDS EN-ROUTE & DATEGOODS, HAZARDS EN-ROUTE & DATE
OF NEED.OF NEED.
 DIRECT LOGISTICS IS PREFERRED.DIRECT LOGISTICS IS PREFERRED.
DIRECT BUSINESS MODEL ISDIRECT BUSINESS MODEL IS
SUCCESSFUL DUE TO INTERNET.SUCCESSFUL DUE TO INTERNET.

17. 1717
5. LEAN MANAGEMENT/ PHILO-5. LEAN MANAGEMENT/ PHILO-
SOPHY/ THINKINGSOPHY/ THINKING
 ‘‘LEAN THINKING – BANISHLEAN THINKING – BANISH
WASTE AND CREATE WEALTHWASTE AND CREATE WEALTH
IN YOUR CORPORATION’.IN YOUR CORPORATION’.
JAMES WOMACK & DANIELJAMES WOMACK & DANIEL
JONES.JONES.

18. 1818
APPLY ‘LEAN’ ON :APPLY ‘LEAN’ ON :
DESIGNDESIGN SYSTEMSYSTEM PROCESSPROCESS
MENMEN MACHINESMACHINES MATERIALSMATERIALS
CYCLE TIMECYCLE TIME LEAD TIMELEAD TIME INVENTORYINVENTORY
TRANSPORTTRANSPORT REHANDLINGREHANDLING LAYERS INLAYERS IN
MGMT.MGMT.
ACHIEVE HIGHEST QUALITY AT LOWEST
COST.

19. 1919
6. PURCHASING6. PURCHASING
PURCHASING – A KEY ACTIVITY OFPURCHASING – A KEY ACTIVITY OF
SCM:SCM:
 USE IT MORE & MOREUSE IT MORE & MORE
 EASY GLOBAL SOURCING WITHEASY GLOBAL SOURCING WITH
LIBERALISED TRADE REGULATIONSLIBERALISED TRADE REGULATIONS
 BUY QUALITY MATERIALS AT CHEAPBUY QUALITY MATERIALS AT CHEAP
RATES.RATES.
 PREFER F.O.B. CONTRACTS FORPREFER F.O.B. CONTRACTS FOR
IMPORTED ITEMS TO ENSUREIMPORTED ITEMS TO ENSURE
GENUINE PRODUCTS AT LOWERGENUINE PRODUCTS AT LOWER
PRICE.PRICE.

20. 2020
 BUY PROVEN EQUIPMENT, QUALITYBUY PROVEN EQUIPMENT, QUALITY
STORES AND SPARES AT MOSTSTORES AND SPARES AT MOST
ECONOMIC RATES.ECONOMIC RATES.
 ADOPT E-PROCUREMENT.ADOPT E-PROCUREMENT.
 POOR NIT TERMS, CONDITIONS &POOR NIT TERMS, CONDITIONS &
SPECIFICATIONS DELAY DECISIONSSPECIFICATIONS DELAY DECISIONS
AND RESULT IN POOR CONTRACTSAND RESULT IN POOR CONTRACTS
OR RETENDERING.OR RETENDERING.
 MOST AMENDMENTS REFLECT ONMOST AMENDMENTS REFLECT ON
QUALITY OF DECISIONS. RIGHTQUALITY OF DECISIONS. RIGHT
DRAFTING OF CONTRACT ISDRAFTING OF CONTRACT IS
REQUIRED.REQUIRED.

21. 2121
 PREPARE FLOWCHART OF VARIOUSPREPARE FLOWCHART OF VARIOUS
ACTIVITIES IN PURCHASING &ACTIVITIES IN PURCHASING &
COMPRESS THE CYCLE TIME OFCOMPRESS THE CYCLE TIME OF
EACH.EACH.
 REVIEW SYSTEMS PERIODICALLY.REVIEW SYSTEMS PERIODICALLY.
 PRICE NEGOTIATIONS SHOULD BEPRICE NEGOTIATIONS SHOULD BE
DONE IN MOST EXCEPTIONAL CASESDONE IN MOST EXCEPTIONAL CASES
WHEN THERE IS NO OTHERWHEN THERE IS NO OTHER
ALTERNATIVE. NEGOTIATIONS ATALTERNATIVE. NEGOTIATIONS AT
TIMES MAY BE NECESSARY FORTIMES MAY BE NECESSARY FOR
PROPRIETARY/SINGLE SOURCEPROPRIETARY/SINGLE SOURCE
ITEMS.ITEMS.
 STRIVE FOR ‘RIGHT FIRST TIME’ INSTRIVE FOR ‘RIGHT FIRST TIME’ IN

22. 2222
7.7. VARIOUS TECHNIQUES AS BELOWVARIOUS TECHNIQUES AS BELOW
ARE ALSO USED FOR THE SUCCESSARE ALSO USED FOR THE SUCCESS
OF SUPPLY CHAIN BY ENHANCINGOF SUPPLY CHAIN BY ENHANCING
QUALITY, REDUCING COST &QUALITY, REDUCING COST &
SPEEDING THE FLOW:SPEEDING THE FLOW:
SIX SIGMA, BENCHMARKING, TQM,SIX SIGMA, BENCHMARKING, TQM,
TPM, TCM, BPO, JIT, VALUETPM, TCM, BPO, JIT, VALUE
ANALYSIS, QUALITY CIRCLES,ANALYSIS, QUALITY CIRCLES,
SUGGESTION SCHEMES & LATESTSUGGESTION SCHEMES & LATEST
PROVEN WORLD-CLASSPROVEN WORLD-CLASS
TECHNIQUES.TECHNIQUES.

23. 2323
8.8. CONTINUOUS IMPROVEMENT &CONTINUOUS IMPROVEMENT &
INNOVATION HAVE ALWAYS TOINNOVATION HAVE ALWAYS TO
BE IN THE MIND OF ALL THEBE IN THE MIND OF ALL THE
MEMBERS OF THE CHAIN.MEMBERS OF THE CHAIN.
9.9. SUPPLY CHAIN BEGINS ANDSUPPLY CHAIN BEGINS AND
ENDS WITH THE CUSTOMER.ENDS WITH THE CUSTOMER.

24. 2424
THANKING YOU!THANKING YOU!