Professional Documents
Culture Documents
Dr. S Panneerselvam Associate Professor P.G. Dept. of Management Studies Siddaganga Institute of Technology Tumkur 572 103.
Books
Sunil Chopra and Peter Meindl, Supply Chain Management Strategy, Planning and Operation, PHI, 4th Edition, 2011. Martin Christopher, Logistics and Supply Chain Management, Prentice Hall, 3rd Edition, 2005. Jeremy F Shapiro, Modeling the Supply Chain, Cengage Learning, 2nd Edition, 2007. Mohanty R P, Deshmukh S G, Supply Chain Management, Theories and Practices, biztantra, 2005. Supply Chain Logistics Management, Donald J Bowersox, David J Closs, M Bixby Cooper, Tata McGraw-Hill, 2nd Edition, 2008 Supply Chain Management, K Shridhara Bhat, 2010, Himalaya Publishing House
Books
Wisner, Keong Leong and Keah-Choon Tan, Principles of Supply Chain Management A Balanced Approach, Thomson Press, 2005. David Simchi-Levi et al, Designing and Managing the Supply Chain Concepts, Strategies, and Case Studies, McGraw Hill International Edition 2003. Gattorna J L and Walters D W, Managing the Supply Chain A Strategic Perspective, Palgrave 1996. Sahay B S, Supply Chain Management in the twenty-first century, Macmillan 2000.
Evolution of SCM
Until about mid 1950's, the term supply chain (management) was unheard of. The piecemeal and isolated fragmented set of activities was rampant. Production and manufacturing were given uppermost attention. The inventory was the responsibility of the marketing, accounting and/or production areas. Order processing was an accounting or sales responsibility. This fragmented way resulted in a great deal of friction on account of the conflicting objectives between production, marketing, accounting and finance.
SCM, which began literally as a tool for managing supply of produced goods, has come a long way to occupy a key position in an organisations decision making process. Traditional Vs SCM Approach
In the earlier days, an organisations link to manufacturers, suppliers, distributors and customers were inflexible. They somehow managed to get products to the market. An organization was often involved in paper-heavy transactions with questionable inventory forecasts, ironclad manufacturing plans and hypothetical shipping schedules. SCM has transformed this archaic process with its just-intime delivery, precise inventory visibility and real time distribution tracking capabilities.
Importance of SCM
The supply chain management system doesnt call for a Big Bang approach as in the case of ERP. Modest beginnings can also see enterprises notch up large gains, as the SCM cycle takes firm root. Earlier, companies often used supply chain to cut costs from existing operations rather than exploring opportunities for competitive advantage and differentiation. Now, for large corporates, supply chain is the fulcrum around which they operate. The Internet's ability to remove inefficiencies, break down communication barriers, reach disparate audiences and foster collaboration perfectly suit supply chain management. Businesses have leveraged the Internet for the same reason.
Indian Scenario
Indian corporations has shown a huge appetite for change and are able to withstand the vagaries of competition. The transformation that began in the 1990s has become more pronounced in the new millennium. A business confidence survey conducted by ET-NCAER in October 2002 covering 580 companies showed that most of the firms of size more than 100 crores are the first to introduce changes, be it in upgradation of information technology, introduction of IT in supply chain or retaining existing customers. An AT Kearney study ranked India sixth in terms of SCM potential. Indian companies have been far less wary than the Japanese in breaking decades-old supplier relationships.
$352, $455 Billion $221, $311 Billion $27, $31 Billion 11%, 10.5% of GNP
4%
21%
Profit
Logistics Cost
Marketing Cost Manufacturing Cost
Marketing Cost
Manufacturing Cost
27%
48%
Within each company, the supply chain includes all functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service)
Customer is an integral part of the supply chain Includes movement of products from suppliers to manufacturers to distributors, but also includes movement of information, funds, and products in both directions Probably more accurate to use the term supply network or supply web Typical supply chain stages: customers, distributors, manufacturers, suppliers retailers,
All stages may not be present in all supply chains (e.g., no retailer or distributor for Dell)
The appropriate design of the supply chain will depend on both the customers needs and the roles of the stages involved in filling those needs. In India, typically, it is a multi-echelon distribution model.
Detergent Manufacturer
3 PL or own logistics
Customer
Chemical Manufacturer
Packaging
Paper Manufacturer
Timber Industry
Supply Chain
Supplier
Supplier
Manufacturer
Manufacturer
Distributor
Distributor
Retailer
Retailer
Customer
Customer Customer
Supplier
Manufacturer
Distributor
Retailer
Customer
Funds