Master of Business Administration - MBA Semester III OM0012 Supply Chain Management Assignment - Set- 2 Univ Roll No.

. - 521010521

1.Logistics Management typically includes different types of activities. Explain each of these activities briefly with an example. ANSWER Logistics Logistics handling, management, also management management order is the governance typically logistics and of supply chain functions. outbound materials inventory party activities include network management and inbound and

transportation

management,

fleet

management,

warehousing, design, of

fulfillment,

supply/demand customer

planning,

third

logistics services providers. To varying degrees, the logistics function includes service, sourcing procurement, production planning and scheduling, packaging and assembly. Logistics management is part of all levels of planning and execution -- strategic, operational and tactical. It is an integrating function, which coordinates all logistics activities, functions as well as integrates logistics activities with other and including marketing, sales manufacturing, finance,

information technology. 3.Elaborate the concept of Supply Chain Management and its integration with the 'quality consciousness movement'. ANSWER The whole concept of 'Supply Chain Management' has undergone a recent metamorphosis. Over the years, it has become highly integrated with the 'quality consciousness movement' starting with quality control in 1960s, quality assurance in 1970s, quality systems in 1980s, and total quality Chain (JIT), management is Product during found the in 1990s. The and impact as of Supply In Time The Management such processes Just

Chain

Partnership,

benchmarking.

I n t e r n e t a n d s u b s e q u e n t growth of e-commerce over the last couple of years have revolutionised our daily life personally and business wise. The

Internet has refurbished the existing business practises and it continues to evolve the new ones. CPFR is the most comprehensive and extensive model of a Supply rather the Chain than gap Management. targeting the of It integrates areas. demand the It entire also by process ensures bridging specific customer and supply

higher

achievement between

satisfaction

processes

throughout the organisation. This reduces the cycle time and increases customer satisfaction. Steps in implementing CPFR There are nine steps in CPRF implementation. They are: 1. Develop front-end agreement: The parties involved establish t h e procedures and rules for the collaborative relationship. 2. Create joint business plan: The parties involved create a business plan that takes into account their individual corporate strategies and defined category roles, objectives, and tactics. 3. Create sales forecast: One party to create an initial sales forecast uses retailer Point of Sales data, causal information, and information on planned events. This forecast is then communicated to the other party and it is used as a baseline for the creation of an order forecast. 4. Identify exceptions for sales forecast: Products that fall outside the sales forecast constraints, set the front-end agreement are identified. 5. Resolve/Collaborate on exception items: The parties discuss a n d produce an adjusted forecast. 6. Create order forecast: Causal information and inventory strategies are combined to generate a specific order forecast that supports the shared sales forecasts and joint business plan. 7. Identify exceptions for order forecast: Products that by fall the outside the o r d e r forecast constraints, set jointly

p a r t i e s i n v o l v e d a r e identified. 8. Resolve/Collaborate on exception items: The parties negotiate again(if necessary) to produce an adjusted order forecast. 9. Order generation: One of the parties involved will get a f i r m o r d e r from the order forecast

4.Taking an example of any product, explain the 12 steps involved in procurement process. ANSWER 1. Need for Procurement Strategy: An appropriate strategy for procurement and supply management s h o u l d b e f o r m u l a t e d b e f o r e initiating the procurement process. It is considered essential for meeting t h e project, and to bring efficiency strategy influencing the procurement aims to and the objectives system. to the Key of the of factors

relate

degree

complexity and uncertainty about the requirement, together with the time needed to achieve a successful outcome. 2. Requirements of a Good Strategy: to The foremost and the requirement of It the strategy should take be into ensure adherence to the norms laid down by the Government of Development Equality the of Partners. should essentially

India the

account the broad parameters of public procurement, viz: Transparency of process to opportunity , The second of Accountability and service should Equitable providers be capacity chain treatment Dispute decide suppliers System contractors

Resolution on

requirement

building for procurement and supply chain management operations and to appropriate level purchasing and supply a c t i v i t i e s a t c e n t r a l , s t a t e a n d district levels. Supply of goods under NACP II had been out sourced to PSUs. It has now be decided to shift this responsibility to a qualified procurement agent selected through QCBS under World Bank guidelines, and till such t i m e that a qualified procurement agent has been appointed, urgent procurement will be handled by EPW under an oversight arrangement agreed by NACO with the pooling partners. Methods of procurement to be adopted as well as procurement reviews by the World Bank will be decided based on the total value of the tender rather than the value of each individual contract/ schedule/ lot/ slice. 3. Deciding on Procurement Strategy: It is important to agree on the procurement strategy before initiating the tendering process. For example, purchase of drugs having limited

shelf life shall require different procurement strategy than purchase of other durable goods. Similarly for Procurement Manual for NACP - III 8 civil works, options like work contract on lump-sum basis or based on bill of quantities key could be of explored. the that The procurement for the strategy project; be e.g. should chosen for cover: key objectives procurement enough key

procurement option; chosen procurement route (Open, Restricted/limited); milestones (check time will allowed various the procurement steps. documents and requirements about a the

specification. Key factors influencing the procurement strategy relate to degree of complexity, together with innovation the time uncertainty to achieve requirement, outcome. II. Procurement Plan and Procedures While resorting to procurement, specific budget provision s h o u l d b e available for meeting the expenditure in the financial year in which it is to be incurred. a) Procurement Plan Preparation of plan a procurement covering months for of the plan civil the is an essential requirement. goods, on a Procurement consultancy tentative works, equipment, and needed successful

services and resource support shall be prepared on a firm programmed basis subsequent years

basis for first1 8

Procurement plan shall be prepared every year for proper monitoring and execution. Procurement plan shall be prepared contract wise. of purchase demand, shall type primarily of be based and per on the value of Method of the

contract (or tender as applicable). Other relevant factors are urgency of the goods/services Limit of value availability contract different tender as sources of supply etc (or

applicable) applicable to the particular procurement procedure shall be strictly adhered to. I t s h a l l b e e n s u r e d t h a t t h e p r o c u r e m e n t i s b a s e d s t r i c t l y o n a c t u a l need. Procurement Manual for NACP - III 9 b) Procurement Procedure

The procurement procedure broadly consists of the following steps*: 1. Assessment of requirement 2. Deciding procurement strategy including technical specifications* 3. Mode of procurement 4. Preparation of tender document* 5. Advertisement of the tender* 6. Issue of tender documents 7. Opening of the tender 8. Evaluation of the tender* 9. Award of contract* 10.Notification of delivery to consignee 5.Explain the different types of product returns. Briefly explain the impact of Reverse Supply Chain Management on profitability ANSWER The different types of product returns are as belo w - Product Defective - Poor performance not meeting customer expectations - Improper marketing - Convenience returns due to variety of reasons like remorse, rental , better price etc. Today, those in industry and academia rarely consider the reverse supply chain as a business process. Instead, they look at it as a series of fairly independent activities, that is, they use a silo approach to reverse supply chains, considering each activity in isolation without considering the integrated nature of reverse supply chains. In addition, people in both industry and academia focus on the operational or tactical, as opposed to the strategic. Both groups assume that the larger strategic question of profitability has already been resolved , which is incorrect. In our experience, many firms look at remanufacturing as a technical operational problem: how to turn an ill functioning returned product into a functioning product that satisfies all the quality requirements of a new product. Companies often passively accept returns from the market or the channel. They do not actively manage the process of acquiring returns; hence, returns are uncertain in quality, quantity, and timing, and the companies do not align the corresponding remanufacturing costs and selling

opportunities. Similarly, sales and marketing departments are not concerned with remanufacturing. At best, they are neutral; more often they fear remanufactured sales will cannibalize new sales and damage brand image. Also, salespersons typically get lower commissions for selling remanufactured products than they would for selling new products. Sales channels for remanufactured products are ill developed, and sales quantities and timing are uncertain. Finally, companies rarely encourage design engineers to design products to facilitate disassembly or easy remanufacturing. Researchers and practitioners working on reverse supply chains can learn from practices used in forward supply chains, but first they need to adopt a business approach to the entire process (Guide and Van Wassenhove 2003). By concentrating on the technical aspects of remanufacturing, passively accepting returns, and spending little effort in developing sales channels for the remanufactured products, they will not make reverse supply chains effective, let alone profitable. In taking a silo approach to reverse supply chains, managers ignore the importance of speed. They commonly view fast response time as essential for forward supply chains, especially in fast clocks peed industries in which products value erodes rapidly. Given consumers increasing tendency to return products to resellers (commercial returns), taking a passive approach to the reverse process can slow the returns velocity so much that most of the value in the remanufactured products is lost by the time they hit the market again. A company with the right business model must implement it carefully and integrate the reverse-supply chain processes. Reverse supply chains and their contexts are not yet stable and well defined; all the stages in the chain (acquisition; reverse logistics; sorting, testing, and disposition; remanufacturing; and remarketing) are potential showstoppers. The activities are interrelated, mutually reinforcing, and often dependent on business functions outside the supply chain, such as marketing and product design. Given that reverse supply chains are not near a firms core business, aligning their elements, obtaining the right resources, and getting top managers attention is difficult . 6.List out six major computer based information systems and explain each of them briefly with examples. ANSWER Typically, systems degree) information people, used are systems to or the and more common software, analyze legacy and information (by information.

include that

procedures, gather

data,

hardware

digital

Specifically computer-based information systems are complementary networks of hardware/software that people and organizations use to collect, filter, process, System(s) create, (CIS) & is distribute often a data (computing). within the Computer Information field track computer science

studying computers and algorithmic processes, including their principles, their software & hardware designs, their applications, and their impact on society. Overall, an IS discipline emphasizes functionality over design.

data warehouses enterprise resource planning enterprise systems expert systems geographic information system global information system office automation