CHAPTER -1

INTRODUCTION
1.1 INTRODUCTION TO ASIAN PAINTS LTD.
Asian Paints Ltd is Indias largest paint company and Asias
third largest paint company. The company, along with their
subsidiaries, has operations in 22 countries globally with
27 paint manufacturing facilities servicing consumers in 65
countries through Berger International, SCIB Paints, Apco
Coatings and Taubmans. Asian Paints manufactures a wide
range of paints for decorative and industrial use. The
products of the company include ancilliaries, automotive,
decorative paints, and industrial paints. The company has
manufacturing plants in Maharashtra, Gujarat, Andhra
Pradesh, Uttar Pradesh, Tamil Nadu and Haryana.
In Decorative paints, the company is present in all the four
segments, namely Interior Wall Finishes, Exterior Wall
Finishes, Enamels and Wood Finishes. They have also
introduced many innovative concepts in the Indian paint
industry like Colour Worlds (Dealer Tinting Systems),
Home Solutions (painting solutions Service), Kids World
(painting solutions for kids room), Colour Next (Prediction
of Colour Trends through in-depth research) and Royale
Play Special Effect Paints, just to name a few.
Asian Paints Ltd was incorporated in the year 1945. In the
year 1965, the name of the company was changed to Asian
Paints (India) Pvt Ltd. In the year 1973, the company was
converted into a public limited company. In the year 1972,
they undertook a major modernization programme to
streamline the paint production facilities by improving the
layout of machines, addition to balancing equipment and
replacement of old machinery to meet the demand.
In the year 1985, the Company had set up a third paint unit
at Patancheru, a notified backward area near Hyderabad,
for the manufacture of 15,000 MT of paints and enamels.
Also, they entered into a collaboration agreement with
Nippon Paints Company Ltd, Japan, to obtain technical
know-how to manufacture powder coating and coil
coatings. In the year 1987, the company commissioned a
plant for the manufacture of synthetic rubbers lattices with
a capacity of 1,200 tonnes per annum. Also, the company
in association with Tamil Nadu Industrial Development
Corporation (TIDCO) promoted a joint sector company
under the name of Pentasia Chemicals Ltd (PCL), for the
purpose of manufacture 3,000 TPA of pentaerythritol and
1,800 TPA of sodium formate.
In the year 1990, the company promoted two joint venture
companies, namely Asian Paints (South Pacific) Ltd, in Fiji
and Asian Paints (Tonga) Ltd. Apart from this, the
company formulated two more joint ventures under the
names and styles of Asian Paints (Nepal) Pvt Ltd and
Asian Paints (S.I.) Ltd. In May 1991, the company
acquired 19,10,000 equity shares of Pentasia Chemicals
Ltd from TIDCO and thus PCL became a subsidiary of the
company.
During the year 1992-93, the company installed and
commissioned the manufacturing facilities for the powder
coatings with a capacity of 300 MT at Kasna plant. In the
year 1993, they set up a joint venture unit along with their
overseas subsidiaries, in Queens land, Australia for
manufacture of paints, enamels and varnishes. In the year
1994, Pentasia Chemicals Ltd was amalgamated with the
company with effect from October 1, 1994. In the year
1995, the company set up a joint venture unit for the
manufacture of paints, enamels and varnishes in the
Republic of Mauritius.
In the year 1996, the company and PPG Industries, Inc. of
USA set up a joint venture company namely Asian PPG
Industries Pvt Ltd to market and/or manufacture
automotive paints and certain Industrial products. In the
year 1998, they introduced three new products, NC range
of wood finishes, ACE Exterior Emulsion and Asian wall
putty. Also, they launched a new marketing thrust with the
introduction of a one-stop Colour shop for paints complete
with software for consumers to choose and select their
different shade combinations. They launched their first
exclusive showroom in Mumbai.
In the year 1999, the company acquired 76% of equity
stake in Sri Lanka-based Delmege Forsyth & Co (Paints)
Ltd. In the year 2000, they launched two variants in
polyurethane (PU) wood finish under the brand name Opal.
They opened a manufacturing plant in Oman in partnership
with a local company. Also, they acquired the entire paints
business of Pacific Paints Company based in Australia for
over of Rs. 1 crore. In the year 2001, the company
introduced Utsav Enamel for the festival season.
In 2002, the company revamped their international
operations and transferred shares in their subsidiaries in
Fiji, Tonga, Solomon Island, Vanuata, Australia and the
Sultanate of Oman to the Mauritius based subsidiary Asian
Paints International. Also, they acquired controlling stake
of 50.1% in Berger International, Singapore, for the
consideration of Rs. 58 crore. In the year 2003, the
company through their Singapore-based subsidiary, Berger
International, signed a technology and brand licensing
agreement with PT Abadi Coatings Solusi, an Indonesian
paint company. Also, they acquired Taubmans Paints (Fiji)
Ltd through their subsidiary, Asian Paints (South Pacific)
Ltd in Fiji.
During the year 2003-04, Pentasia Investments Ltd, a
wholly owned subsidiary of the company was amalgamated
with the company. In the year 2004, the company launched
paint solutions for kids. In January 2005, they set up a new
paint plant at Sriperumbudur, in Tamil Nadu and
commenced commercial production. In the year 2006, the
company commissioned a manufacturing facility for
powder coatings at Baddi, Himachal Pradesh. In September
2007, the company tailored their first exclusive industrial
coatings manufacturing facility at Taloja in Maharashtra,
with an installed capacity of 14,000 KL per annum. During
the year 2007-08, the company commissioned the polymer
plant in Sriperumbudur. Also, they commenced expansion
of the Sriperumbudur plant. Also, Asian Paints
(International) Ltd, the companys direct subsidiary
divested their entire stake in Asian Paints (Queensland) Pty
Ltd, Australia.
During the year 2008-09, the company made a tie up with
Dupont USA to co-brand the Royale range of Emulsions
with Teflon, the product synonymous with toughness and
durability. The company commenced introducing a new
chain of Colour ideas where retail outlets have been
modified to offer slice of the Signature Store thereby
providing the same inspiration to consumers in process of
designing their homes. The first two stores have been
inaugurated at Hyderabad and Chennai.
During the year, the company increased the capacity of the
Sriperumbudur Plant to 100,000 KL per annum. Also, they
commissioned the Distribution Centres at Kasna Plant and
Ankleshwar Plant. Asian Paints (International) Ltd, the
companys direct subsidiary, purchased the balance 49%
stake in Asian Paints (Tonga) Ltd for a consideration of
TOP 646,800 (approx. USD 314,000) making it a wholly
owned subsidiary.During the year 2009-10, the company
increased the capacity of Sriperumbudur Plant in Tamil
Nadu to 140,000 KL per annum. They procured land for
setting up a manufacturing facility for Decorative Paint in
Kesurdi, Maharashtra. As per the scheme of amalgamation,
Technical Instruments Manufacturers (India) Ltd (TIM), a
100% subsidiary of the company was amalgamated with
the company with effect from April 1, 2009. In April 12,
2010, the company commissioned the first phase of sixth
Decorative paint plat at Rohtak, Haryana as a cost of
approx. Rs 500 crore with an initial capacity of 150,000
KL per annum.
During the year 2010-11, the company augmented the
synthetic resins and polymer capacity by 50,000 MT. The
company launched a number of new products. Water based
wood finishes launched in North India would be launched
across the country in a phased manner. New textured
finishes for the exteriors - Duracast Pebbletex and Crosstex
were launched and met with good response from builders/
contractors for large projects.
During the year, the company approved the plans to
enhance its 14 year relationship with PPG Industries Inc.
(PPG), to accelerate growth of their non-decorative
coatings businesses in India. As part of this arrangement,
the company and PPG will expand their existing non-
decorative coatings presence in India by expanding their
current 50-50 joint venture relationship, Asian PPG
Industries Ltd (APPG), and also establish a second 50-50
joint venture.
The company decides to increase the installed capacity at
the Rohtak Plant from 150,000 KL per annum to 200,000
KL per annum. The company commenced the construction
at Khandala near Pune (in Maharashtra) for the seventh
Decorative Paints plant with an initial capacity of 300,000
KL per annum of paints with an investment of around Rs.
1000 crore. The plant will be commissioned sometime
around the last quarter of FY 2012-13. The Khandala plant
can be expanded to 400,000 KL per annum later.
Asian Paints with its intent to enter the Home Improvement
and Decor space in India acquired 51% stake in Sleek
International Private Limited (Sleek), a kitchen solutions
provider in August 2013. Mumbai-based Sleek Group is a
major organised player in the modern kitchen space and is
engaged in the business of manufacturing, selling and
distributing kitchens, kitchen components including wire
baskets, cabinets, appliances, accessories, etc, with pan
India presence.
In June 2014, Asian Paints acquired the entire front and
sales business including Brands, Network and Sales
Infrastructure of Ess Ess Bathroom products Pvt Ltd. Ess
Ess is a prominent player in the bath fittings business.
On 3 April 2017, Berger International Private Limited
(BIPL), Singapore, an indirect subsidiary of Asian Paints
completed the acquisition of 100% controlling stake in
Causeway Paints Lanka (Private) Limited, Sri Lanka
(CPLPL), a key player in the Sri Lanka coatings market.
On 5 September 2017, PT Asian Paints Indonesia,
Indonesia (PT API) a wholly owned subsidiary of Berger
International Private Limited, Singapore (an indirect
subsidiary of the Asian Paints) commenced manufacturing
operations with a capacity of 5,000 tons per annum on a
single shift basis in Jawa Barat region in Indonesia.
On 11 December 2017, Asian Paints acquired the entire
remaining 49% stake in kitchen solution provider company
Sleek International Private Limited from the Ahuja family,
thereby making it a wholly-owned subsidiary of the
company.

Management
Chairman
Ashwin Choksi
Vice Chairman
Ashwin Dani
Non Executive Director
Mahendra Choksi
Independent Director
Mahendra Shah
Independent Director
Deepak Satwalekar
Independent Director
S Sivaram
CFO & Company Secretary
Jayesh Merchant
Independent Director
S Rama Dorai
Managing Director & CEO
K B S Anand
Independent Director
M K Sharma
Non Executive Director
Malav Dani
Independent Director
Vibha Paul Rishi
Non Executive Director
Amrita Vakil
Non Executive Director
Abhay Vakil
Independent Director
R Seshasayee

History and Annual Growth

1945 - The Company was incorporated as a private limited
company under the name of Asian Oil and Paint Company
Pvt. Ltd. It was converted into a public limited company in
1973. The Company manufacture a wide range of surface
coatings catering to different end-uses. It also manufactures
vinyl pyridine latex used in the manufacture of rubber tyres.
- The company expanded its products range, developed its
own technology, set up a distribution network penetrating in
smaller towns and ploughed back a large part of earnings
into creation of new facilities. 1965 - The name was changed
from Asian Oil and Paint Company Pvt. Ltd. to Asian Paints
(India) Pvt. Ltd.
1974 - A major modernisation programme was undertaken
to streamline the paint production facilities by improving the
layout of machines, addition to balancing equipment and
replacement of old machinery. The Company embarked on
phased modernisation of resin manufacturing facilities as
well. - The Bhandup plant of the Company is reportedly the
largest single paint factory in the country and one of the
most up-to-date with sophisticated machinery and
equipment for manufacturing a wide range of paints and
other products besides adequate resin manufacturing
capacity to meet its entire requirements.

1975 - Bonus Equity shares issued in the prop. 1:2 in 1961,

1:3 in 1962, 1:1 in 1966, 1:2 in 1969, 2:3 in 1971 and 1:2 in
1975. 1978 - 1,00,000 Bonus Equity shares issued in the
prop. 2:3. 1980 - 50,000 unclassified shares classified as
prefernece shares and issued. They are redeemable during
the period 30.6.1987/1990.

1982 - The main objects of the public issue of capital during

August, were to fulfill the listing requirements of the Stock
Exchange and to provide part of the finance for the
increased operations.

1983 - Equity shares subdivided. 10,00,000 Bonus shares

issued in prop. 2:5, 16,85,185 No. of Equity shares issued
(prem. Rs 13 per share) through prospectus in August 1982.
Out of these, 84,259 shares and 33,704 shares were reserved
for preferential allotment to the employees and to the
business associates of the company respectively. 15,67,222
shares offered to the public of which 4,21,296 shares were
offered to NRIs on repatriation basis.
1985 - The Company undertook to set up a third paint unit at
Patancheru, a notified backward area near Hyderabad, for
the manufacture of 15,000 MT of paints and enamels. - A
letter of Intent was obtained for setting up a fourth paint
plant in Uttar Pradesh with a capacity of 23,000 tonnes per
annum of paints, varnishes and enamels and 65,000 tonnes
per annum of synthetic resins (for captive consumption). -
The Company entered into a collaboration agreement with
Nippon Paints Co. Ltd., Japan, to obtain technical know-
how to manufacture powder coating and coil coatings under
an exclusive licence. Necessary manufacturing facilities for
the powder coatings with a capacity of 300 MT were
installed and commissioned at Kasna plant during 1992-93. -
31,11,111 Bonus equity shares issued in prop. 3:5.

1987 - The Company commissioned a plant for the

manufacture of synthetic rubbers lattices with a capacity of
1,200 tonnes per annum. The Company received a letter of
intent to manufacture 9,000 tonnes of phthalic anhydride.
The project would be based on imported Van Heyden low
energy process technology with engineering package from
Davy McKee of Cologne, West Germany. The project was
commissioned in March 1990. But, a fire accident in the
succeeding month damaged a storage tank, nearby pipes and
support structures. The plant was repaired and restarted only
in August 1990. - The Company jointly with Tamil Nadu
Industrial Development Corporation (TIDCO) promoted a
joint sector Company under the name Pentasia Chemicals
Ltd. (PCL), for the manufacture of 3,000 TPA of
pentaerythritol and 1,800 TPA of sodium formate. The
project commissioned in March. - 41,48,148 Bonus equity
shares issued in prop. 1:2.

1988 - The Company issued 9,00,000 - 14% secured non-

convertible debentures of Rs 100 each to ICICI, UTI, LIC,
GIC, NIC, New India Assurance Company Ltd., Oriental
Insurance Co., Ltd and United India Insurance Co., Ltd. on
private placement basis. These debentures are redeemable in
five equal instalments on the expiry of 5th, 6th, 7th, 8th and
9th year from the date of allotment at a premium of Rs 5 per
debenture.

1989 - A scheme of arrangement was finalised for vesting of

the assets and liabilities of the Company's Apcotex division
with Apcotex Lattices Ltd. (ALL). As per the scheme of
arrangement, one equity share of Rs 10 each of ALL was
allotted without payment in cash to the shareholders of
Asian Paints (India) Ltd., for every 13 equity shares held by
them in the company, i.e., Asian Paints (India) Ltd. - The
first phase of the project with an initial installed capacity of
16,000 tonnes per annum was commissioned during the
year. 1990 - Asian Paints (South Pacific) Ltd., in Fiji and
Asian Paints (Tonga) Ltd., are two joint venture set up
abroad with the Company supplying the necessary know-
how. Both these are the Company's subsidiaries and the
equity participation by the Company amounted to 51% in
the former and 25% in the latter as at 31st December. Asian
Paints (South Pacific) Ltd., holds an additional 25% in the
equity capital of Asian Paints (Tonga) Ltd. - The Company
also set up two more joint ventures under the names and
styles of Asian Paints (Nepal) Pvt. Ltd., and Asian Paints
(S.I.) Ltd., both of which are subsidiaries of the Company. -
The Company had set up a joint venture unit Asian Paints
(Vanuatu) Ltd., for the manufacture of paints and enamels in
the Pacific Island of Vanuatu. The Vanuatu company had
issued 54,000 ordinary shares of US $1 each to the
Company as fully paid-up shares against the plant and
machinery supplied.

1991 - Pentasia Chemicals Ltd., became a subsidiary of the

Company. Pentasia Investments Ltd., is a subsidiary of the
Company. - The Company acquired 19,10,000 equity share
of Rs 10 each in the share capital of Pentasia Chemicals
Ltd., from TIDCO in May. Consequently, PCL became a
subsidiary of the Company. - The Company issued 5,00,000
- 17.5% secured non-convertible redeemable debentures of
Rs 100 each aggregating to Rs 500 lakhs to Unit Trust of
India on private placement basis. These debentures are
redeemable in three equal instalments on the expiry of 6th,
7th and 8th years from the date of allotment at a premium of
Rs 5 per debenture. 1992 - 74,66,666 Bonus equity shares
issued in prop. 3:5. 1993 - Sales of phthalic division was
lower due to planned shutdown of the plant for 25 days and
also due to lower selling prices. - The Company undertook
to set up a joint venture unit along with its overseas
subsidiaries, in Queensland, Australia for manufacture of
paints, enamels and varnishes. The Company was to invest a
$2,00,000 in the share capital of Asian Paints (Queensland)
Pvt. Ltd. a joint stock company, Australia.
1994 - The Company proposed to expand its existing
capacities for the manufacture of paints and enamels to
50,000 tonnes per annum at each of its plants in
Ankleshwar, Patancheru and Kasna. - The Company placed
before the operating agency approached by BIFR, the
proposal to amalgamate with itself Pentasia Chemicals Ltd.
1995 - Pantasia Chemicals Ltd. (PCL) was merged with the
Company. The assets and liabilities of the erstwhile PCL are
vested with the Company with effect from 1.10.1994. - The
company undertook to set up a joint venture unit for the
manufacture of paints, enamels and varnishes in the
Republic of Mauritius. The joint venture involves a total
cost of 1,83,00,000 Mauritius Rupees of which 49% will be
financed by the Company and the balance from Mauritian
parties. - 199,11,110 No. of Equity shares allotted as bonus
shares on 1.1.1996. Another 2,94,000 No. of Equity Shares
of Rs 10 each were allotted by the Company in pursuant to
the order of BIFR to PCL in prop. 1:25.

1996 - The Company proposed to set up a fifth point

manufacturing plant at Ratnagiri, Maharashtra. - During 21st
February, a fire broke and in the paint manufacturing block
of Mumbai plant causing extensive damage to the materials
stored in the block. - A joint venture company viz. Asian
PPG Industries Pvt. Ltd. ws set up alongwith PPG
Industries, Inc. of USA to market and/or manufacture
automotive paints and certain Industrial products as may be
decided upon mutually between the partners.

1998 - As at 31st March, a sum of Rs 1008 lakhs was

outstanding against loans from Financial Institutions. - The
new initiative to install 350 colourworlds received
encouraging response and made significant contribution to
performance. Three new products, NC range of wood
finishes, ACE exterior emulsion and Asian wall putty were
launched. - Asian Paints, the Rs.737.20 crore paints major,
has launched a new marketing thrust with the introduction of
a one-stop colour shop for paints complete with a software
for consumers to choose and select their different shade
combinations. - Asian Paints, India's No.1 Paint Company
recently, launched their latest offering `Asian Paints Colour
World'. - Credit Rating Information Services of India Ltd
(Crisil) has assigned a `AAA' rating to the proposed non-
convertible debenture (NCD) obligation of Asian Paints Ltd
(APL). - Two subsidiaries of Asian Paints - Pentasia
Chemicals and Pentasia Investments - have been merged
with the p arent company following the approval of the
Board for Industrial & Financial Reconstruction (BIFR). -
Asian Paints Limited, the largest paint company in India,
launched its first exclusive showroom in Mumbai. 1999 -
The company has joint venture companies in the overseas
market. All these ventures are doing well and have a strong
hold in their respective markets. - In its first-ever acquisition
overseas, Asian Paints Ltd (APL) has acquired a 76 per cent
equity stake in Sri Lanka-based Delmege Forsyth & Co
(Paints) Ltd.

2000 - Asian Paints has launched two variants in

polyurethane (PU) wood finish under the brand name Opal. -
The Company has proposed to issue bonus shares in the
ratio of three shares for every five shares held. - Asian
Paints has opened a manufacturing plant in oman in
partnership with a local company. - Asian Pains has
acquired the entire paints business of Pacific Paints
Company based in Australia for over Rs 1 crore. - Asian
Paints has lifted the lockout at its factory in Uttar Pradesh.
The Company suspended operations at Kasna in July after
the workers resorted to a "sit-in-strike".

2001 - Asian Paints has introduced Utsav Enamel for the

festive season. - Asian Paints has appointed senior parnter of
the solicitor firm Crawford Bailey & Co, R A Shah and
Deputy Director, National Chemical Laboratory Dr
Swaminathan Sivaram as directors on the company's board.
- Asian Paints India Ltd has posted a marginal drop in net
profit at Rs 29.62 crore for the quarter ended September 30,
2001.

2002 -Revamps its international operations, transferres

shares in its subsidiaries in Fiji, Tonga, Solomon Island,
Vanuata, Australia and the Sultanate of Oman to the
Mauritius based subsidiary Asian Paints International -
Executes agreement for purchase of 60% equity capital of
SCIB Chemicals S.A.E., Egypt -Launches its $3 million
joint venture with Bangladesh-based Confidence Cements in
which the holds 51 per cent stake -Acquires controlling
stake of 50.1 per cent in Berger International, Singapore, for
Rs 58 crore, appoint Jalaj Dani as CEO 2003 -Board
recommends issue of bonus shares by capitalisation of
Reserves in the ratio of 1 equity share for every 2 equity
shares held on the record date -Asian Paints, via its
Singapore-based subsidiary - Berger International - inks a
technology and brand licensing agreement with PT Abadi
Coatings Solusi, an Indonesian paint company -Shareholders
approve the Scheme of Arrangement proposed to be made
between Pentasia Investment Ltd with Asian Paints India
Ltd and the consequential reduction of share capital of Asian
Paints India Ltd. -Berger International starts restructuring
exercise to curtail cost -Acquires Taubmans Paints (Fiji)
Ltd. through its subsidiary in Fiji, Asian Paints (South
Pacific) Ltd (APSP) -Acquisition of 9.2% shares in ICI India
Ltd. -Asian Paints bags Ken Sharma award 2004 -10th
Asian Paints Star Screen Weekly Awards- aura of mystery -
Asian Paints launches paint solutions for kids' 2005 -Berger
Intl partners with Filipino firm Dutch Boy -Company has
changed its name from Asian Paints (India) Ltd. to Asian
Paints Ltd. 2006 -Asian Paints - APICL's new mfg plant at
Baddi commences commercial production 2008 -Asian
Paints launches new campaign 2009 - Asian Paints Ltd has
submitted the disclosure under Regulation 7(3) of SEBI
(Substantial Acquisition of Shares & Takeovers)
Regulations, 1997 to BSE - Asian Paints Ltd has appointed
Shri. S Ramadorai as an Additional Director of the
Company pursuant to Section 260 of the Companies Act,
1956. 2010 -Berger International Ltd Singapore (BIL), a
subsidiary of Asian Paints Ltd , which is a wholly owned
subsidiary of the Company -The Company's new paint plant
at Rohtak in the State of Haryana has commenced
commercial production -Asian Paints Signed a MOU with
Maharashtra Govt. to set up a Mega Project for manufacture
of Paints & Intermediate 2011 -Asian Paints to form second
Joint Venture with PPG Industries. -Asian Paints -
Company's subsidiary, SCIB Chemicals SAE has
temporarily restarted the operations of its two plants in
Egypt 2012 -Asian Paints - Production at the Company's
Plant at Rohtak, Haryana has been restarted 2013 -Asian
Paints completes acquisition of Sleek Group -
Commencement of commercial production at new plant -
Asian Paints has splits its face value from Rs 10/- to 1/-
2014 -Asian Paints Ltd Enters into binding agreement with
Ess Ess 2015 -Asian Paints Ltd has signed a Memorandum
of Understanding (MoU) with the Government of Andhra
Pradesh to set up a manufacturing facility for paints and
intermediates Vishakhapatnam District, Andhra Pradesh.
1.2 INTRODUCTION TO SUPPLY CHAIN
MANAGEMENT
SCM is management of material and information flow in a
supply chain to provide the highest degree of customer
satisfaction at the lowest possible cost. SCM requires
commitment of supply chain partners to work closely to
coordinate order generation, order taking and order
fulfillment thus, creating an “extended enterprise” spreading
far beyond the producer’s location. Supply chains
encompass the companies and the business activities needed
to design, make, deliver and use a product or service.
Businesses depend on their supply chains to provide them
with what they need to survive and thrive. Every business
fits into one or more supply chains and has a role pay in
each of them. And also supply chain management is the
integration of key business processes from initial raw
material extraction to the final or end customer, including
intermediate processing, transportation and storage activities
and final sale to the end customer. Today, the practice of
supply chain management is becoming extremely important
to achieve and maintain competitiveness. Many firms are
just now beginning to realize the advantages of supply chain
integration. Supply chain management is an out-growth and
expansion of logistic and purchasing activities and has
grown in popularity and use since the 1980s. Important
elements in supply chain management are in the areas of
purchasing, operations and production and distribution.
Finally, as markets, political forces, technology and
competition change around the world, the practice of supply
chain management must also change.
In commerce, supply chain management (SCM), the
management of the flow of goods and services, involves the
movement and storage of raw materials, of work-in-process
inventory, and of finished goods from point of origin to
point of consumption. Interconnected or interlinked
networks, channels and node businesses combine in the
provision of products and services required by end
customers in a supply chain. Supply-chain management has
been defined as the "design, planning, execution, control,
and monitoring of supply chain activities with the objective
of creating net value, building a competitive infrastructure,
leveraging worldwide logistics, synchronizing supply with
demand and measuring performance globally." SCM
practice draws heavily from the areas of industrial
engineering, logistics, procurement, information technology,
and marketing and strives for an integrated approach.
Marketing channels play an important role in supply chain
management. Current research in supply chain management
is concerned with topics related to sustainability and risk
management, among others. Some suggest that the “people
dimension” of SCM, ethical issues, internal integration,
transparency/visibility, and human capital/talent
management are topics that have, so far, been
underrepresented on the research agenda

Origin of the term and definitions

In 1982, Keith Oliver, a consultant at Booz Allen
Hamilton (now Strategy), introduced the term "supply chain
management" to the public domain in an interview for
the Financial Times.
In the mid-1990s, more than a decade later, the term "supply
chain management" gained currency when a flurry of
articles and books came out on the subject. Supply chains
were originally defined as encompassing all activities
associated with the flow and transformation of goods from
raw materials through to the end user, as well as the
associated information flows. Supply chain management
was then further defined as the integration of supply chain
activities through improved supply chain relationships to
achieve a competitive advantage.

In the late 1990s, "supply chain management" (SCM) rose to

prominence, and operations managers began to use it in their
titles with increasing regularity.
Other commonly accepted definitions of supply chain
management include:
The management of upstream and downstream value-added
flows of materials, final goods, and related information
among suppliers, company, resellers, and final consumers.

The systematic, strategic coordination of traditional business

functions and tactics across all business functions within a
particular company and across businesses within the supply
chain, for the purposes of improving the long-term
performance of the individual companies and the supply
chain as a whole

A customer-focused definition is given by Hines : "Supply

chain strategies require a total systems view of the links in
the chain that work together efficiently to create customer
satisfaction at the end point of delivery to the consumer. As
a consequence, costs must be lowered throughout the chain
by driving out unnecessary expenses, movements, and
handling. The main focus is turned to efficiency and added
value, or the end-user's perception of value. Efficiency must
be increased, and bottlenecks removed. The measurement of
performance focuses on total system efficiency and the
equitable monetary reward distribution to those within the
supply chain. The supply chain system must be responsive
to customer requirements."
The integration of key business processes across the supply
chain for the purpose of creating value for customers and
stakeholders (Lambert, 2008)

According to the Council of Supply Chain Management

Professionals (CSCMP), supply chain management
encompasses the planning and management of all activities
involved in sourcing, procurement, conversion, and logistics
management. It also includes coordination and collaboration
with channel partners, which may
be suppliers, intermediaries, third-party service providers,
or customers. Supply chain management integrates supply
and demand management within and across companies.
More recently, the loosely coupled, self-organizing network
of businesses that cooperate to provide product and service
offerings has been called the Extended Enterprise.

A supply chain, as opposed to supply chain management, is

a set of organizations directly linked by one or more
upstream and downstream flows of products, services,
finances, or information from a source to a customer. Supply
chain management is the management of such a chain.
Supply chain management software includes tools or
modules used to execute supply chain transactions, manage
supplier relationships, and control associated business
processes. Supply chain event management (SCEM)
considers all possible events and factors that can disrupt a
supply chain. With SCEM, possible scenarios can be created
and solutions devised. In many cases the supply chain
includes the collection of goods after consumer use for
recycling. Including third-party logistics or other gathering
agencies as part of the RM re-patriation process is a way of
illustrating the new endgame strategy.

Functions
Supply chain management is a cross-functional approach
that includes managing the movement of raw materials into
an organization, certain aspects of the internal processing of
materials into finished goods, and the movement of finished
goods out of the organization and toward the end consumer.
As organizations strive to focus on core competencies and
become more flexible, they reduce their ownership of raw
materials sources and distribution channels. These functions
are increasingly being outsourced to other firms that can
perform the activities better or more cost effectively. The
effect is to increase the number of organizations involved in
satisfying customer demand, while reducing managerial
control of daily logistics operations. Less control and more
supply chain partners lead to the creation of the concept of
supply chain management. The purpose of supply chain
management is to improve trust and collaboration among
supply chain partners thus improving inventory visibility
and the velocity of inventory movement,
Importance
Organizations increasingly find that they must rely on
effective supply chains, or networks, to compete in the
global market and networked economy.In Peter Drucker's
(1998) new management paradigms, this concept of business
relationships extends beyond traditional enterprise
boundaries and seeks to organize entire business processes
throughout a value chain of multiple companies.
In recent decades, globalization, outsourcing,
and information technology have enabled many
organizations, such as Dell and Hewlett Packard, to
successfully operate collaborative supply networks in which
each specialized business partner focuses on only a few key
strategic activities (Scott, 1993). This inter-organisational
supply network can be acknowledged as a new form of
organisation. However, with the complicated interactions
among the players, the network structure fits neither
"market" nor "hierarchy" categories (Powell, 1990). It is not
clear what kind of performance impacts different supply
network structures could have on firms, and little is known
about the coordination conditions and trade-offs that may
exist among the players. From a systems perspective, a
complex network structure can be decomposed into
individual component firms (Zhang and Dilts, 2004).
Traditionally, companies in a supply network concentrate on
the inputs and outputs of the processes, with little concern
for the internal management working of other individual
players. Therefore, the choice of an internal management
control structure is known to impact local firm performance
(Mintzberg, 1979).
In the 21st century, changes in the business environment
have contributed to the development of supply chain
networks. First, as an outcome of globalization and the
proliferation of multinational companies, joint ventures,
strategic alliances, and business partnerships, significant
success factors were identified, complementing the earlier
"just-in-time", lean manufacturing, and agile
manufacturing practices.Second, technological changes,
particularly the dramatic fall in communication costs (a
significant component of transaction costs), have led to
changes in coordination among the members of the supply
chain network (Coase, 1998).

Many researchers have recognized supply network

structures as a new organisational form, using terms such as
"Keiretsu", "Extended Enterprise", "Virtual Corporation",
"Global Production Network", and "Next Generation
Manufacturing System". In general, such a structure can be
defined as "a group of semi-independent organisations, each
with their capabilities, which collaborate in ever-changing
constellations to serve one or more markets in order to
achieve some business goal specific to that collaboration"
(Akkermans, 2001).

Supply chain management is also important for

organizational learning. Firms with geographically more
extensive supply chains connecting diverse trading cliques
tend to become more innovative and productive. The
security management system for supply chains is described
in ISO/IEC 28000 and ISO/IEC 28001 and related standards
published jointly by the ISO and the IEC.Supply Chain
Management draws heavily from the areas of operations
management, logistics, procurement, and information
technology, and strives for an integrated approach.

Historical developments
Six major movements can be observed in the evolution of
supply chain management studies: creation, integration, and
globalization (Movahedi et al., 2009), specialization phases
one and two, and SCM 2.0.
Creation era
The term "supply chain management" was first coined
by Keith Oliver in 1982. However, the concept of a supply
chain in management was of great importance long before,
in the early 20th century, especially with the creation of
the assembly line. The characteristics of this era of supply
chain management include the need for large-scale changes,
re-engineering, downsizing driven by cost
reductionprograms, and widespread attention to Japanese
management practices. However, the term became widely
adopted after the publication of the seminal
book Introduction to Supply Chain Management in 1999 by
Robert B. Handfield and Ernest L. Nichols, Jr., which
published over 25,000 copies and was translated into
Japanese, Korean, Chinese, and Russian.
Integration era
This era of supply chain management studies was
highlighted with the development of electronic data
interchange (EDI) systems in the 1960s, and developed
through the 1990s by the introduction of enterprise resource
planning (ERP) systems. This era has continued to develop
into the 21st century with the expansion of Internet-based
collaborative systems. This era of supply chain evolution is
characterized by both increasing value added and cost
reductions through integration.
A supply chain can be classified as a stage 1, 2 or 3 network.
In a stage 1–type supply chain, systems such as production,
storage, distribution, and material control are not linked and
are independent of each other. In a stage 2 supply chain,
these are integrated under one plan and enterprise resource
planning (ERP) is enabled. A stage 3 supply chain is one
that achieves vertical integration with upstream suppliers
and downstream customers. An example of this kind of
supply chain is Tesco.
Globalization era
The third movement of supply chain management
development, the globalization era, can be characterized by
the attention given to global systems of supplier
relationships and the expansion of supply chains beyond
national boundaries and into other continents. Although the
use of global sources in organisations' supply chains can be
traced back several decades (e.g., in the oil industry), it was
not until the late 1980s that a considerable number of
organizations started to integrate global sources into their
core business. This era is characterized by the globalization
of supply chain management in organizations with the goal
of increasing their competitive advantage, adding value, and
reducing costs through global sourcing.

Specialization era (phase I): outsourced manufacturing

and distribution
In the 1990s, companies began to focus on "core
competencies" and specialization. They abandoned vertical
integration, sold off non-core operations, and outsourced
those functions to other companies. This changed
management requirements, by extending the supply chain
beyond the company walls and distributing management
across specialized supply chain partnerships.
This transition also refocused the fundamental perspectives
of each organization. Original equipment manufacturers
(OEMs) became brand owners that required visibility deep
into their supply base. They had to control the entire supply
chain from above, instead of from within. Contract
manufacturers had to manage bills of material with different
part-numbering schemes from multiple OEMs and support
customer requests for work-in-process visibility and vendor-
managed inventory (VMI).
The specialization model creates manufacturing and
distribution networks composed of several individual supply
chains specific to producers, suppliers, and customers that
work together to design, manufacture, distribute, market,
sell, and service a product. This set of partners may change
according to a given market, region, or channel, resulting in
a proliferation of trading partner environments, each with its
own unique characteristics and demands.

Specialization era (phase II): supply chain management

as a service
Specialization within the supply chain began in the 1980s
with the inception of transportation brokerages, warehouse
management (storage and inventory), and non-asset-based
carriers, and has matured beyond transportation and logistics
into aspects of supply planning, collaboration, execution,
and performance management.
Market forces sometimes demand rapid changes from
suppliers, logistics providers, locations, or customers in their
role as components of supply chain networks. This
variability has significant effects on supply chain
infrastructure, from the foundation layers of establishing and
managing electronic communication between trading
partners, to more complex requirements such as the
configuration of processes and work flows that are essential
to the management of the network itself.
Supply chain specialization enables companies to improve
their overall competencies in the same way that outsourced
manufacturing and distribution has done; it allows them to
focus on their core competencies and assemble networks of
specific, best-in-class partners to contribute to the overall
value chain itself, thereby increasing overall performance
and efficiency. The ability to quickly obtain and deploy this
domain-specific supply chain expertise without developing
and maintaining an entirely unique and complex competency
in house is a leading reason why supply chain specialization
is gaining popularity.
Outsourced technology hosting for supply chain solutions
debuted in the late 1990s and has taken root primarily in
transportation and collaboration categories. This has
progressed from the application service provider (ASP)
model from roughly 1998 through 2003, to the on-demand
model from approximately 2003 through 2006, to the
software as a service (SaaS) model currently in focus today.

Business Integration
Successful SCM requires a change from managing
individual functions to integrating activities into key supply
chain processes. In an example scenario, a purchasing
department places orders as its requirements become known.
The marketing department, responding to customer demand,
communicates with several distributors and retailers as it
attempts to determine ways to satisfy this demand.
Information shared between supply chain partners can only
be fully leveraged through process integration.
Supply chain business process integration involves
collaborative work between buyers and suppliers, joint
product development, common systems, and shared
information. According to Lambert and Cooper (2000),
operating an integrated supply chain requires a continuous
information flow. However, in many companies,
management has concluded that optimizing product flows
cannot be accomplished without implementing a process
approach. The key supply chain processes stated by Lambert
(2004) are:
Customer relationship management
Customer service management
Demand management style
Order fulfillment
Manufacturing flow management
Supplier relationship management
Product development and commercialization
Returns management
Much has been written about demand management. Best-in-
class companies have similar characteristics, which include
the following:
Internal and external collaboration
Initiatives to reduce lead time
Tighter feedback from customer and market demand
Customer-level forecasting
One could suggest other critical supply business processes
that combine these processes stated by Lambert, such as:
Customer service management process
Customer relationship management concerns the
relationship between an organization and its customers.
Customer service is the source of customer information. It
also provides the customer with real-time information on
scheduling and product availability through interfaces with
the company's production and distribution operations.
Successful organizations use the following steps to build
customer relationships:
Determine mutually satisfying goals for organization and
customers
Establish and maintain customer rapport
Induce positive feelings in the organization and the
customers
Procurement process
Strategic plans are drawn up with suppliers to support the
manufacturing flow management process and the
development of new products. In firms whose operations
extend globally, sourcing may be managed on a global basis.
The desired outcome is a relationship where both parties
benefit and a reduction in the time required for the product's
design and development. The purchasing function may also
develop rapid communication systems, such as electronic
data interchange (EDI) and Internet linkage, to convey
possible requirements more rapidly. Activities related to
obtaining products and materials from outside suppliers
involve resource planning, supply sourcing, negotiation,
order placement, inbound transportation, storage, handling,
and quality assurance, many of which include the
responsibility to coordinate with suppliers on matters of
scheduling, supply continuity (inventory), hedging, and
research into new sources or programs. Procurement has
recently been recognized as a core source of value, driven
largely by the increasing trends to outsource products and
services, and the changes in the global ecosystem requiring
stronger relationships between buyers and sellers.

Product development and commercialization

Here, customers and suppliers must be integrated into the
product development process in order to reduce the time to
market. As product life cycles shorten, the appropriate
products must be developed and successfully launched with
ever-shorter time schedules in order for firms to remain
competitive. According to Lambert and Cooper (2000),
managers of the product development and
commercialization process must: coordinate with customer
relationship management to identify customer-articulated
needs; select materials and suppliers in conjunction with
procurement; and
develop production technology in manufacturing flow to
manufacture and integrate into the best supply chain flow for
the given combination of product and markets.
Integration of suppliers into the new product development
process was shown to have a major impact on product target
cost, quality, delivery, and market share. Tapping into
suppliers as a source of innovation requires an extensive
process characterized by development of technology
sharing, but also involves managing intellectual property
issues.

Manufacturing Flow Management Process

The manufacturing process produces and supplies products
to the distribution channels based on past forecasts.
Manufacturing processes must be flexible in order to
respond to market changes and must accommodate mass
customization. Orders are processes operating on a just-in-
time (JIT) basis in minimum lot sizes. Changes in the
manufacturing flow process lead to shorter cycle times,
meaning improved responsiveness and efficiency in meeting
customer demand. This process manages activities related to
planning, scheduling, and supporting manufacturing
operations, such as work-in-process storage, handling,
transportation, and time phasing of components, inventory at
manufacturing sites, and maximum flexibility in the
coordination of geographical and final assemblies
postponement of physical distribution operations.

Physical Distribution
This concerns the movement of a finished product or service
to customers. In physical distribution, the customer is the
final destination of a marketing channel, and the availability
of the product or service is a vital part of each channel
participant's marketing effort. It is also through the physical
distribution process that the time and space of customer
service become an integral part of marketing. Thus it links a
marketing channel with its customers (i.e., it links
manufacturers, wholesalers, and retailers).
Outsourcing/partnerships
This includes not just the outsourcing of the procurement of
materials and components, but also the outsourcing of
services that traditionally have been provided in-house. The
logic of this trend is that the company will increasingly
focus on those activities in the value chain in which it has a
distinctive advantage and outsource everything else. This
movement has been particularly evident in logistics, where
the provision of transport, storage, and inventory control is
increasingly subcontracted to specialists or logistics
partners. Also, managing and controlling this network of
partners and suppliers requires a blend of central and local
involvement: strategic decisions are taken centrally, while
the monitoring and control of supplier performance and day-
to-day liaison with logistics partners are best managed
locally.

Performance Measurement
Experts found a strong relationship from the largest arcs of
supplier and customer integration to market share and
profitability. Taking advantage of supplier capabilities and
emphasizing a long-term supply chain perspective in
customer relationships can both be correlated with a firm's
performance. As logistics competency becomes a critical
factor in creating and maintaining competitive advantage,
measuring logistics performance becomes increasingly
important, because the difference between profitable and
unprofitable operations becomes narrower. A.T. Kearney
Consultants (1985) noted that firms engaging in
comprehensive performance measurement realized
improvements in overall productivity. According to
experts[according to whom?], internal measures are generally
collected and analyzed by the firm, including cost, customer
service, productivity, asset measurement, and quality.
External performance is measured through customer
perception measures and "best practice" benchmarking.

Warehousing management
To reduce a company's cost and expenses, warehousing
management is concerned with storage, reducing manpower
cost, dispatching authority with on time delivery, loading &
unloading facilities with proper area, inventory management
system etc.

Workflow management
Integrating suppliers and customers tightly into
a workflow (or business process) and thereby achieving an
efficient and effective supply chain is a key goal of
workflow management.

• Importance of SCM

Many firms, thought, have discovered value, long term

benefits from their supply chain management efforts. Firms
with large system inventories, many suppliers, complex
product assemblies, and highly valued customers with large
purchasing budgets have the most to gain from the practice
of supply chain management. For these firms, even
moderate supply chain management success can mean lower
purchasing and inventory costs, better product quality, and
higher levels of customer service and sales. Purchasing
inventory, and transportation cost saving is quite sizable for
firms utilizing supply chain management strategies. Firms
must realize that their management efforts can start small –
for instance, with just one key supplierand build through
time to include more supply chain participants- such as other
important suppliers, key customers, and shippers- and,
eventually, second-tier suppliers and customers. So why is
this integration activity important? As alluded to earlier,
when a firm, its customers, and its suppliers all know each
others’ future plans, the planning process is easier and more
accurate.

1.2.2 The Five Major Supply Chain Drivers

Companies in any supply chain must make decisions

individually and collectively regarding their actions in five
areas. These are the five major supply chain drivers. •
Production (what, how, and when to produce) • Inventory
(how much to make and how much to store) • Location
(where best to do what activity) • Transportation (how and
when to move product) 2 • Information (the basis for making
these decisions) Effective supply chain management calls
first for an understanding of each driver and how it operates.
Each driver has the ability to directly affect the supply chain
and enable certain capabilities. The next step is to develop
an appreciation for the results that can be obtained by
mixing different combinations of these drivers.

1.2.3 Useful Model of Supply Chain Operations

 In this useful model identifies four categories of operations.
We will use the following four categories to organize and
discuss supply chain operations, plan, source, make, deliver.
• Plan: This refers to all the operations needed to plan and
organize the operations in the other three categories. •
Source: Operations in this category include the activities
necessary to acquire the inputs to create products or
services. These operations are procurement and credit&
collection. • Make: This category includes the operations
required to develop and build the products and services that
a supply chain provides. • Deliver: These operations
encompass the activities that are part of receiving customer
orders and delivering products to customers.

1.2.4 Purchasıng Issues in SCM

Purchasing management
Over the last decade, the traditional purchasing function has
evolved into an integral part of supply chain management.
Purchasing is an important strategic contributor to overall
business strategy. It is the largest single function in most
organizations, controlling activities and transactions valued
at more than fifty percent of sales. Every single dollar saved
due to better purchasing impacts business operations and
profits directly. Purchasing personnel talk to customers;
users; suppliers; and internal design, finance, marketing, and
operation personnel, in addition to top management. The
information they gain from all this exposure can be used to
help the firm to provide better, cheaper, and timelier
products and services to both internal and external
customers. Savvy business executives are thus turning to
purchasing to improve business and supply chain
performance.

Creating and Managing Supplier Relations

Over the past two decades we have seen the buyersupplier

relationship evolve from an arm’s-length/ adversarial
approach to one favoring developing longterm partnerships.
Significant competitive advantage can be achieved by
organizations working closely with their suppliers. Without
a shared vision, mutual benefits, and top management
commitment, partnership are likely to be short-lived. Other
ingredients necessary for developing and managing lasting
supplier relationships are trust, creating personal
relationships, effective change management, information
sharing, and using performance metrics to create superior
capabilities. Mutually agreeable measures to monitor
supplier performance provide the basis for continuous
improvement to enhance supplier quality, cost, and delivery.
Supplier certification ensures that buyers continue to work
with their best suppliers to improve cost, quality, delivery,
and new product development to gain a competitive
advantage. Finally supplier relationship management
software automates the exchange of information and allows
for improved efficiency and effectiveness in managing
supplier relationships and improving performance.

Strategic Sourcing for Successful SCM

Achieving supply chain management success starts with the

sourcing activity. The strategic role played within the firm
by the purchasing function and the impact of purchasing on
the management of supply chain. Firms that fail to recognize
this importance will simply not experience the same level of
success in the long run. The sourcing activity is comprised
of a number of related activities that, when taken together,
provide sustainable competitive advantage for the firm.
Firms can maximize this advantage by developing effective
supply chain strategies and then assessing and revising these
strategies periodically as markets, competitors, and
technologies change.

1.2.5 Operatıon Issues ın SCM

Process management: Just-in-time and total quality

management issues in SCM

Supply chain management, the just-in-time philosophy, and

total quality management make up a hierarchy for
breakthrough competitive advantage. In order for 3 supply
management to reach its full potential and provide benefits
its members, trading partners must adopt a JIT operating
philosophy. Similarly, the primary ingredient in the success
of a JIT program is the use of TQM and its improvement
tolls. There are a number of practices mentioned within each
of the three topics that overlap or are very similar such as
top management and workforce involvement and continuous
improvement. This is not surprising given the close ties
between supply chain management, JIT and TQM. JIT and
TQM have a critical importance in achieving successful
supply chain management.
Demand forecasting and collaborative planning,
forecasting, and replenishment

Proper demand forecasting enables better planning and

utilization of resources for business to be competitive.
Forecasting is an integral part of demand management since
it provides an estimate of future demand and the basis for
planning and making sound business decisions. A mismatch
in supply and demand could result in excessive inventories
and stock-outs and loss of profits and goodwill. Both
qualitative and quantitative methods are available to help
companies forecast demand better. The qualitative methods
are based on judgment and intuition, whereas the
quantitative methods use mathematical techniques and
historical data to predict future demand.

1.2.6 Dıstrıbutıon Issues in SCM

Domestic and International Transportation

In this section I will mention the important role of
transportation to any industrialized society-and to supply
chains in particular. There are some elements within
transportation to give the reader an adequate understanding
of the entire field of transportation. These elements included
the modest of transportation, transportation pricing,
regulation and deregulation of transportation, third-party
transportation providers, warehousing, international
transportation, transportation management, and e-commerce
issues in transportation. It is hoped that readers have gained
an understanding of the many elements within the broad
topic of transportation and why these are so important to the
management of supply chains.
Customer Relationship Management
Customer relationship management is really all about just
treating customers right; for as long as there have been
businesses, some firms have been very successful at keeping
customers satisfied and coming back, while others have not.
For the past ten or fifteen years, though, both the level of
competition in the market place and the available computer
technology and software capabilities has been increasing
quite dramatically. Firms today are learning how to combine
many channels of customer contact to better serve
customers, resulting in better service and more sales. While
many of the CRM applications and ASPs are very
expensive, firms can use a structured approach to design an
appropriate plan and then analyze and select the right
applications and vendors to implement a successful CRM
program.

Service Response Logistics

Services constitute a large and growing segment of the

world economy. Managing the supply chains of services is
thus becoming an important part of an overall competitive
strategy for services. Since service customers are most often
the final consumers of the service provided, successfully
managing service encounters involves managing productive
capacity, managing waiting lines, managing distribution
channels, and managing service quality. These four concerns
are the foundations of service response logistics.
1.2.7 Sustaınıng Competıtıve Advantage
Supply Chain Process Integration

Process integration should be considered the primary means

to achieving successful supply chain management, but it is
the one thing most firms struggle with then setting out to
manage their supply chains; for, without the proper support,
training, tools, trust, and preparedness, process integration
most likely will be impossible to ever fully achieve. The
supply chain integration model provides the framework for
integrating processes first within the firm and then among
trading partners.

Performance Measurement Along The Supply Chain

Measuring the performance of supply chains and their

member firms is critical for identifying underlying supply
chain problems and in keeping end customers 4 satisfied in
today’s highly competitive, rapidly changing marketplace.
Unfortunately many firms have adopted performance
measurement systems that measure the wrong things and are
thus finding it difficult to achieve strategic goals and align
their goals with those of the other supply chain members and
the supply chain as a whole. Good performance measures
drive performance and can turn a mediocre supply chain into
a world-class supply chain that benefits all of its members.
Financial performance, while important to shareholders, is
argued to provide too little information regarding the long-
term effectiveness of the firm in satisfying customers. Thus,
use of measures that say something about the firm’s product
quality, productivity, and customer service capabilities have
begun to be used successfully in many organizations. World-
class organizations realize how important it is to align
strategies with the performance of their people and
processes, and performance measurement systems give these
firms a means for directing efforts and firm capabilities
toward what the firm is trying to do over the long haul- meet
strategic objectives and satisfy customers. Performance
measurement systems should be a mix of financial,
nonfinancial, quantitative, cost oriented, process-oriented
and customer oriented measures that effectively link the
actions of the firm to the strategies defined by the firm’s
executive managers. Firms trying to manage their supply
chains have an added layer of performance measure
requirements-measures must be added that link the
operations of member firms as well as linking the actions of
the firms to the competitive strategies of the supply chain.

Looking to the Future of Supply Chain Management

At the final section of this text discussed the current trends

and the future outlook of supply chain management. A
number of issues currently facing the practice of supply
chain management are discussed, including the global
expansion of supply chains; expanding the supply chain’s
influence to include second-and third-tier supply chain
members; the greening of supply chains; increasing the
responsiveness of supply chains; and reducing supply chain
costs through purchase cost reductions, outsourcing supply
chain functions, and managing supply chain inventories
more efficiently. As competition among supply chains
increases and the demand for varied products and services
continues, supply chain members will need to become adept
at improving the performance of their supply chains to
maintain profitability. This has already become a continuous
effort among leading supply chains and their members.
CHAPTER -2
REVIEW OF
LITERATURE
REVIEW OF LITERATURE

Vaart and Pieter (2012) drawn conclusions on the need for

an inter-disciplinary approach, combining the technical and
relational aspects from the respective fields of system
dynamics and collaboration in order to deliver superior order
replenishment performance.

Gunasekaran (2012) indicated that E-Business, product,

and service-quality, all have a significant direct effect on
customer behavioral intentions to purchase again. The
methodology based on spreadsheet that provided enhanced
solutions in complex environments with multiple products
and bottleneck situations. Reviewed literature dealing with
buyer vendor coordination models that have used quantity
discount as coordination mechanism under deterministic
environment and classified the various models.
Burgess (2013) reviewed 100 randomly selected articles
from 614 usable articles found in the ABI/Inform Database
across a 19 year (1985 to 2003) period.. Thei sample
addressed manufacturing and consumer goods industries,
and the research articles reviewed by them focused on a
more narrowly defined operations management approach to
Supply Chain Management. They classified the articles into
four groups, namely (1) Descriptive features of SCM, (2)
Definition issues, (3) Theoretical concerns and (4) Research
methodological issues. They found SCM to be a relatively
young field with exponential growth in interest from
researchers in the recent past. The importance of this
research in contrast to Burgess et al. (2006) is that instead of
sampling 100 articles from a pool of 614 over a 5-year
period, we examined 588 articles over 18 years. This not
only makes for a more in-depth review, but provides a larger
base from which to chart the maturation of the SCM field. It
also helps to assess gaps in the literature and project future
trends, thereby underscoring the importance and robustness
of this study. Finally, Burgess et al., include books,
manuscripts and conference proceedings while this research
focuses solely on published articles in peer reviewed SCM
journals.

Carter and Ellram (2014) surveyed the articles published

in the Journal of Supply Chain Management for the total
period of 35 years since its launching i.e. for 1965 to 1999.
Their objective was to offer a greater understanding of the
evolution of purchasing and supply research over the first 35
years of the Journal of Supply Chain’s existence, and to
provide guidance and prescriptions for future supply
management research. They observed that nearly 90% of the
journal articles under study consisted of normative literature,
methodology reviews, and exploratory studies. They further
noted that the use of hypothesis testing had increased
significantly over the past 10 years of their review (1989-
1999), yet they consider that a greater use of hypothesis
testing and the scientific method is recommended as the
Supply Management discipline continued to mature.

Croom (2015) analyzed that 84 studies on SCM in terms of

level of analysis and research methodologies, but the time
period for their data collection is ambiguous. Their study
represents an early attempt to categorize the SCM literature.
Significant growth has taken place both in the practice and
theory of Supply chain Management since this attempt,
making it necessary for reviews of current knowledge and
literature. Finally they describe and categorize the research
methods into two dimensions: theoretical and empirical and
do not provide the number of articles associated with each
level of analysis.

Giunipero (2016) noted that the literature, in reality, is still

very fragmented and although several studies purport to
discuss supply chain issues, most of the existing research
only examines one link of the chain, or more importantly
only focuses on one ingredient in the supply chain
performance mix. They pointed out that the SCM literature
reviewed by them revealed several gaps identified by them
as (1) Small sample sizes (2) One-tier investigations (3)
Limited methodological analysis (4)Lack of longitudinal
studies, and (5) Limited global supply chain analysis.
Rungtusanatham (2016) carried out a comprehensive
review of 285 SCM articles published in 6 operations
management journals during a period of 21 years from 1980-
2000. They noticed the occurrence of major changes in the
last 5 years of their sampling period, and that two topics
stood out as showing fastest ascendancy to
prominenceoperations strategy and supply chain
management. They observed that the SCM related articles
increased significantly after the first half of 1990s, thereby
implying the increased interest of researchers in this field
and accelerated growth of this discipline. It shows that SCM
is a booming and growing field, and offers plenty
opportunities in research.

A literature review reveals a considerable spurt in research

in theory and practice of SCM. Combining and informing on
features of Supply Management and distribution
Management. This integration has resulted in the concept of
extended enterprise and the supply chain is now manifest as
the collaborative supply chain across intercompany borders
to maximize the value across the entire supply chain.
CHAPTER -3
NEED, SCOPE AND
OBJECTIVES OF
THE STUDY
3.1 Need of the Study

The brief study on review of literature revealed the fact that

number of studies have been carried out in the area of
supply chain management but in Indian context, still a wide
gap exist in the research field with particular stress on the
same aspect. In order to fill the research gap of focus only
on the supply chain management practices and the need
aroused to study on supply chain management practices
adopted by Asian Paints, Jalandhar

3.2 Scope of the Study

The scope of the study was limited to dealers of Asian Paints

in Jalandhar region.
3.3 Objectives of the Study

• To study the company’s supply chain

management practices.
• To study the satisfaction level with the
current public policy regarding SCM
• To study the area where the company needs
much attention and progress to boost the production.
CHAPTER -4
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

4.1 Research
Research methodology is a way to systematically solve the
research problem. It may be understood as a science of
studying how research is done scientifically. In it, we study
the various steps that are generally adopted by a researcher
in studying the research problem along with the logic behind
them.
According to D. Slesinger and M. Stephenson research
may be defined as ”the manipulation of things, concepts or
symbols for the purpose of generalizing to extend, correct or
verify knowledge, whether that knowledge aids in the
construction of theory or in the practice of an art”. Thus it is
original contribution to the existing stock of knowledge of
making for its advancement.
The research frame for the study is given detailed below.
The purpose of research was to discover the answer to
question through some specific procedure.

4.2 Research Design

A Research design is a framework or blueprint for
conducting the marketing research project. It details the
procedures necessary for obtaining the information needed
to structure or solve marketing research problems. The
research problem having been formulated in clear-cut term
helps the researcher to prepare a research design. The
preparation of such a design facilitates in conducting it in an
efficient manner as possible. It is a blue print for the
fulfillment of objectives and answering questions.
This research is descriptive and conclusion oriented.

4.2.1 Descriptive Research

Descriptive research includes surveys, facts, finding and
inquiries of different kinds. Descriptive research is that kind
of research where the researcher has no control over the
variables. Researcher can only report what has happened or
what is going to happen. But these incidents cannot be
changed by the researcher. The research is descriptive
research because in the research, data is collected from
respondents and is described as it is.
 • Conclusion Oriented Research
Conclusion oriented research is that which is concluded on
basis of research done. While doing conclusion oriented
research, a researcher is free to pick up a problem regarding
the inquiry and can conceptualize as he wishes. Present
research is conclusion oriented.

• Sample Design
• Universe: In this study the universe is all the
delars of Asian Paints in Jalandhar area.
• Sample Size: A sample of minimum
respondents has been selected from various areas of
Jalandhar. An effort had been made to select
respondents evenly. The survey was carried out on 50
respondents.
• Sample Unit: It indicates who is to be
surveyed. In this project sampling unit is the dealers of
Asian Paints in Jalandhar region.
• Sampling Technique: For the purpose of
this Research, Convenience Sampling was being used.
Different people were contacted for required
information.

• Data Collection and Analysis

4.4.1 Data Collection

Research work is exploratory in nature. In this study data

was collected from following sources:
• Secondary Sources:
Secondary data are those which have already been collected
by someone else and which have already been passed
through the statistical process. Secondary data either is
published data or unpublished data. In this study, secondary
data was collected from websites and books.
• Primary Sources:
Primary data are those, which are collected for the first time,
and thus happen to be original in character. It is the
backbone of any study. It was obtained from respondents
with the help of widely used and well-known method of
survey, through a well-structured questionnaire. In this study
primary data from respondents was collected through a well-
structured questionnaire.
Data Analysis and Interpretation
In order to extract meaningful information from the data,
analysis of the data was done. Analysis was done by using
certain statistical tools like bar-graphs, pie-charts,
percentages etc. and from these analysis interpretations were
drawn.

4.4.2 Tools of Analysis and Presentation

It means what all tools are used to present data in a

meaningful way so that it becomes easily understandable. To
analyze the data obtained with the help of questionnaire,
following tools are used..
• Weighted Average Score: This toolwas
used to calculate highest and lowest rank.
• Tables: This tool was used to present the
data in tabular form.
• Percentage and Pie Charts: These tools
were used for analysis of data.

4.5 Limitations of the Study

Limitations are always accompanied with any work. I had

completed his study within short span of 6 weeks & it was
not possible to understand practically all aspects of the
subjects. Each and every factor has been carried out
carefully as much as possible limitation to the study is
beyond control.
 • Lack of knowledge: Some of the
respondents could not answer the questions due to
lack of knowledge.
• Inadequate data: The data provided was
not sufficient due to which the generalizations cannot
be made.
• Time factor: The research was carried out
in a short period. Therefore the sample size and the
parameters were selected accordingly so as to finish the
work within the given time frame.
CHAPTER -5
DATA ANALYSIS
AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION

The data has been processed and analyzed by tabulation

interpretation so that findings can be communicated and can
be easily understood. The findings are presented in the best
possible way. Tables and graphs had been used for
illustration of findings of the research.
Table 5.1: Demographic Profile of Respondents
Demographic Factors
Categories
No. of Resp.
Percentage of Respondents
Gender of Owner
 Male
Female
24
10
80%
20%

Female
6
20%
AGE
Below 25 Years
12
40%

25-40 Years
7
24%

41-55 Years
6
20%

Above 55 Years
5
 16%
Total
30
100
QUALIFICATION
Under Graduate
12
40%

Graduate
9
30%

Post Graduate
9
30%
Total
30
100
AVERAGE MONTHLY INCOME (Rs.)
Below Rs. 50,000
12
40.00%

Above Rs. 50,001 to1,00,000

 6
20%

Above Rs. 1,00,001 3,00,000

3
10%

Above 3,00,001 5,00,000

4
14%

Above 5,00,000
5
16%
Total
30
100
Q1. Since how long you are the customer of Asian
Paints?

Table 5.2 Time Period Since the Customer of Asian

Paints
Response
No. of Respondents
% of Respondents
1-6 months
6
20
6 months -1 year
6
20
1 – 3 Years
12
40
More than 3 Years
6
20
Total
30
100
 Figure 5.1 Time Period Since the Customer of Asian
Paints

Analysis and Interpretation

From the above table and graph it is quite clear that each
20% of the respondents are customer of this company since
1-6 months, 6 months- 1 years and more than 3 years.
Remaining 40% of the respondents are the customers of this
company since 1-3 years.
Q2.How did you come to know about Asian Paints
Limited?

Table 5.3: Source of Knowledge about Asian Paints

Response
No. of Respondents
Percentage
Seminars
9
30%
Banner/Hoarding
9
28%
Reference Group
9
30%
Print Media
3
12%
Online
0
0%
Total
30
 100%

Figure 5.2: Source of Knowledge about Asian Paints

Analysis and Interpretation:

From the above figure it can be analyzed that each 30% of
the respondents awareness of the company through seminars
and reference group. 28% respondents through
banner/hoardings and 12% respondents got awareness
through print media. And there is no source of knowledge
have been derived from online medium.
Q3. How well Asian Paints service meet your needs?
Table 5.4: Asian Paints Service Meet Customers Needs
Response
No. of Respondents
Percentage
Strongly Agreed
3
10%
Agreed
15
50%
Neutral
3
10%
Disagreed
0
0%
Strongly Disagreed
9
30%
Total
30
100%
Figure 5.3: Asian Paints Service Meet Customers Needs

Analysis and Interpretation:

From the above table and graph it is clear that according to
50% respondent’s agreed with the company’s service is
followed by each 10% respondents strongly agreed and 10%
are Neutral. Remaining 30% respondents are strongly
disagreed with the services provided by Company.
Q4: What type of clients do you deal with?

Table 5.5 Type of Client You Deal With

Customer
No. of Respondents
Percentage of Respondents
B2B
15
50
B2C
15
50
Both
0
0
Total
30
100

Figure 5.4 Type of Client You Deal With

Analysis and Interpretation

From the above table and graph it is quite clear that the
respondents deal with B2B clients.
Q5. How do the company manage supply chain?

Table 5.6: Management of Supply Chain

Response
No. of Respondents
Percentage
Close Partnership with Suppliers
2
7
Jit Supply
1
3
Outsourcing
3
10
Many Suppliers
20
67
Holding Safety Stock
4
13
Total
30
100
 Figure 5.5: Management of Supply Chain

Analysis and Interpretation

From the above table and graph it is clear that out of 30
respondents of Asian Paints maximum no. of respondents
think that supply chain management of Asian Paints is
managed by many suppliers.

Q6. How successful do you think is your company in

managing its supply chain in general?
Table 5.7: Successfulness in Managing Supply Chain
Response
No. of Respondents
Percentage
Not Successful at all
0
0
Not Successful
0
0
Somewhat Successful
4
 13
Successful
20
67
Very Successful
6
20
Total
30
100

Figure 5.6: Successfulness in Managing Supply Chain

Analysis and Interpretation

From the above table and graph it is clear that most of the
respondents think that Asian Paints is managing Supply
Chain Management successfully.

Q7. Does your company have a separate logistics

department?

Table 5.8: Separate Logistics Department

Response
No. of Respondents
Percentage
Yes
30
100
No
0
0
Total
30
100

Figure 5.7: Separate Logistics Department

Analysis and Interpretation

From the above table and graph it is clear that the company
has a separate logistic department.
Q8. Does your company has a clear logistics strategic
plan?

Table 5.9: Company has clear Logistics Strategic Plan

Response
No. of Respondents
Percentage
Yes
28
93
No
2
7
Total
30
100

Figure 5.8: Company has clear Logistics Strategic Plan

Analysis and Interpretation

From the above table and graph it is clear that most of the
respondent’s i.e. 93% are agree that the company has clear
logistics strategic plan.
Q9. What types of systems are currently in use in your
company to support Supply Chain Management?

Table 5.10: Systems Currently in Use to Support Supply

Chain Management
Response
No. of Respondents
Percentage
Subcontracting
6
20
3PL
3
10
Supply Chain Benchmarking
19
63
Vertical Integration
2
7
Total
30
100
Figure 5.9: Systems Currently in Use to Support Supply
Chain Management

Analysis and Interpretation

From the above table and graph it is clear that out of 30
respondents 19 think that supply chain benchmarking
supports supply chain management of Asian Paints

Q10. What types of systems company plan to implement

in the near future (within the next 2 years)?

Table 5.11: Types of Systems company Plan to

Implement in the Near Future
Response
No. of Respondents
Percentage
E-procurement
13
44
EDI
7
23
Outsourcing
1
3
Subcontracting
4
13
Plan Strategically
5
17
Total
30
100

Figure 5.10: Types of Systems company Plan to

Implement in the Near Future

Analysis and Interpretation

From the above table and graph it is clear that out of 30
respondents 13 respondents think that in future there is need
of implementing e-procurement.

Q11. How satisfied are you with the current public policy
regarding SCM and IT?
Table 5.12: Satisfaction with the Current Public Policy
regarding SCM and IT
Response
No. of Respondents
Percentage
Satisfied
22
73
Very Satisfied
5
17
Same What Satisfied
2
7
Not Satisfied
1
3
Total
30
100

Figure 5.11: Satisfaction with the Current Public Policy

regarding SCM and IT
Analysis and Interpretation
From the above table and graph it is clear that out of 30
respondents of 22 respondents are satisfied with the current
public policy regarding SCM and IT. 5 respondents are very
satisfied.

Q12. Is supply chain management having all the address

of the sub distributor’s branches of the company?
Table 5.13: SCM having all the address of the Sub
Distributor’s Branches
Response
No. of Respondents
Percentage
Yes
27
90
No
3
10
Total
30
100
 Figure 5.12: SCM having all the address of the Sub
Distributor’s Branches

Analysis and Interpretation

From the above table and graph it is clear that according to
maximum number of respondents the company knows the
address of the sub distributors.

Q13. Rate the working strategies of supply chain

management department on the basis of the current
programs?

Table 5.14: Working Strategies of Supply Chain

Management Department
Response
No. of Respondents
Percentage
Outstanding
2
7
Excellent
8
26
Good
2
7
Average
18
60
Total
30
100

Figure 5.13: Working Strategies of Supply Chain

Management Department

Analysis and Interpretation

From the above table and graph it is clear that out of 30
respondents 18 respondents think that the working strategies
of supply chain management department are average.
Q14. Is the supply chain management department is
having sufficient transportation?

Table 5.15: Sufficient Transportation for Supply Chain

Management
Response
No. of Respondents
Percentage
Yes
25
83
Not Sufficient
5
17
Total
30
100

Figure 5.14: Sufficient Transportation for Supply Chain

Management

Analysis and Interpretation

From the above table and graph it is clear that out of 30
respondents, 25 think that the supply chain management has
sufficient transportation.
Q15. According to the current growth process of the
organization, which of the following needs much
attention and progress to boost the production?

Table 5.16: Attributes to Boost the Production

Response
No. of Respondents
Percentage
Operational Activities
25
83
Tactical Activities
3
10
Current Programming Strategies
2
7
Total
30
 100

Figure 5.15: Attributes to Boost the Production

Analysis and Interpretation

From the above table and graph it is clear that out of 30
respondents, 25 think that there is a need to pay attention on
operational activities.
Q16. How do you rate the delivery activity of the
department?

Table 5.17: Rating of the Delivery Activity of the

Department
Response
No. of Respondents
Percentage
Excellent
3
10
Very effective
5
17
Good
13
43
Average
9
30
Total
30
100
 Figure 5.16: Rating of the Delivery Activity of the
Department

Analysis and Interpretation

From the above table and graph it is clear that out of 30
respondents 13 respondents says that delivery system is very
good.

CHAPTER -6
FINDINGS OF THE
STUDY
FINDINGS OF THE STUDY

• It is quite clear that each 20% of the

respondents are customer of this company since 1-6
months, 6 months- 1 years and more than 3 years.
Remaining 40% of the respondents are the customers
of this company since 1-3 years.
• It can be analyzed that each 30% of the
respondents awareness of the company through
seminars and reference group. 28% respondents
through banner/hoardings and 12% respondents got
awareness through print media. And there is no source
of knowledge have been derived from online medium.
• It is clear that according to 50%
respondent’s agreed with the company’s service is
followed by each 10% respondents strongly agreed and
10% are Neutral. Remaining 30% respondents are
strongly disagreed with the services provided by
Company.
• It is quite clear that the respondents deal
with B2B clients.
• It is clear that out of 30 respondents of Asian
Paints maximum no. of respondents think that supply
chain management of Asian Paints is managed by
many suppliers.
• It is clear that most of the respondents think
that Asian Paints is managing Supply Chain
Management successfully.
• It is clear that the company has a separate
logistic department.
• It is clear that most of the respondent’s i.e.
93% are agree that the company has clear logistics
strategic plan.
 • It is clear that out of 30 respondents 19 think
that supply chain benchmarking supports supply chain
management of Asian Paints
• It is clear that out of 30 respondents 13
respondents think that in future there is need of
implementing e-procurement.
• It is clear that out of 30 respondents of 22
respondents are satisfied with the current public policy
regarding SCM and IT. 5 respondents are very
satisfied.
• It is clear that according to maximum
number of respondents the company knows the address
of the sub distributors.
• It is clear that out of 30 respondents 18
respondents think that the working strategies of supply
chain management department are average.
• It is clear that out of 30 respondents, 25
think that the supply chain management has sufficient
transportation.
• It is clear that out of 30 respondents, 25
think that there is a need to pay attention on operational
activities.
• It is clear that out of 30 respondents 13
respondents says that delivery system is very good.
CHAPTER -7
CONCLUSION AND
RECOMMENDATI
ONS OF THE
STUDY
7.1 CONCLUSION OF THE STUDY

During the last decade the increase in productions of paint is

increasing in high volume. With the changing of rapid
Economy, domestic house and construction work are going
very fast.
According to the study done on the feedback of
questionnaire, data interpretation and analysis the final
conclusion is as follows-
The Asian Paints practices supply chain with the help of
many suppliers. Meanwhile the company is managing its
supply chain successfully. The company has a separate
logistics and dispatch department. Asian Paints has a clear
and sophisticated logistic plan. Operational activities and
supply chain management activities of the Asian Paints are
by the support of supply chain benchmarking. The company
is planning to implement and practice the e-procurement,
EDI plan strategically in future. Current supply chain
management and IT activities of the company are going
flawless and in future there is scope for better supply chain
and distribution network. The current transportation and
logistics management of the company is sufficient and is
flexible enough so as to change the current policies if any.
The study has shown us that there is some obstacles during
handling and storage of Asian Paints products which creates
hurdle in SCM therefore should be eradicated.
7.2 RECOMMENDATIONS OF THE STUDY
• In order to motivate the channel members it
is also very essential for the company to increase the
distributors for the selling items
• Asian Paints should go in for main
distributors and dealer coming up these days and any
location where footfalls are large in number. The
advantages of this channel will be:
• Full range display
• Convenience for distributors.
• Easier to access new customers.
• Easy to push impulse purchase products
• Brand building will be facilitated
• In order to practice a better supply chain
management Asian Paints should make use of
updated/upgraded/latest ERP packages.
REFERENCES
REFERENCES

• Burgess et al. (2013). A model-based

rescheduling framework for managing abnormal
supply chain events, Journal of Computers and
Chemical Engineering, (31: 5/6), 2007, pp. 496-518.
• Carter and Ellram et al. (2014). E-fulfillment
and multi-channel distribution – A review, European
Journal of Operational Research (), 2007
• Croom D. (2015). The Structural Influence
of Marketing Journals: A Citation Analysis of the
Discipline and Its Sub areas Over Time, Journal of
Marketing, (67: 2), 2003, pp 123-139
• Giunipero et al. (2016). Economic
production quantity model with a shifting production
rate, International Transactions in Operational
Research, (15: 1), 2008, pp 87-101
• Gunasekaran P. (2012). The theory of
constraints and the make-or-buy decision: an update
and review, The Journal of Supply Chain Management,
(41: 1), 2005, pp. 40-47.
 • Rungtusanatham S. (2016). An Empirically
Derived Agenda of Critical Research Issues for
Managing Supply Chain Disruptions, International
Journal of Production Research, (43: 19), 2005, pp.
4067-4081
• Vaart and Pieter et al. (2012). Supply Chain
Management: A Structured Literature Review and
Implications for Future Research, International
Journal of Operations and Production Management,
(26: 7), 2006, pp. 703-729
ANNEXURE
QUESTIONNAIRE

Dear Respondent,
I am a student of MBA 3rdsem at Sant
Baba Bhag Singh University, Jalandhar. I am conducting
a study on the topic “A Study on Supply Chain
Management practices adopted by Asian Paints”. Kindly
help me to gather the information by sparing your 5-10
minutes for filling the questionnaire. I assure you that the
information will be kept confidential. I will be very thankful.

Q1. Since how long you are the customer of Asian

Paints?
1-6 months [ ]
6 months -1 year [ ]
1 – 3 years [ ]
More than 3 years [ ]

Q2. How did you come to know about Asian Paints

Limited?
Seminars [ ]
Banner/Hoarding [ ]
Reference Group [ ]
Print Media [ ]
Online [ ]
Others(please specify)___________________

Q3. How well Asian Paints’s service meet your needs?

Strongly disagree [ ]
Disagreed [ ]
Neutral [ ]
Agreed [ ]
Strongly agreed [ ]

Q4. What type of clients do you deal with?

B2B [ ] B2C [ ]
Both [ ]
Q5. How do the company manage supply chain?
Holding Safety Stock [ ]
Many Suppliers [ ]
Outsourcing [ ]
Jit Supply [ ]
Close Partnership with Suppliers [ ]

Q6. How successful do you think is your company in

managing its supply chain in general?
Very Successful [ ]
Successful [ ]
Somewhat Successful [ ]
Not Successful [ ]
Not Successful at all [ ]

Q7. Does your company have a separate logistics

department?
Yes [ ] No [ ]

Q8. Does your company has a clear logistics strategic

plan?
Yes [ ] No [ ]

Q9. What types of systems are currently in use in your

company to support Supply Chain Management?
Vertical Integration [ ]
Supply Chain Benchmarking [ ]
3PL [ ]
Subcontracting [ ]

Q10. What types of systems do you plan to implement in

the near future (within the next 2 years)?
Plan Strategically [ ]
Subcontracting [ ]
Outsourcing [ ]
EDI [ ]
E-procurement [ ]

Q11. How satisfied are you with the current public policy
regarding SCM and IT?
Not Satisfied [ ]
Same What Satisfied [ ]
Very Satisfied [ ]
Satisfied [ ]

Q12. Is supply chain management having all the address

of the sub distributor’s branches of the company?
Yes [ ] No [ ]

Q13. Rate the working strategies of supply chain

management department on the basis of the current
programs?
Average [ ]
Good [ ]
Excellent [ ]
Outstanding [ ]

Q14. Is the supply chain management department is

having sufficient transportation?
Yes [ ] Not Sufficient [ ]
Q15. According to the current growth process of the
organization, which of the following needs much
attention and progress to boost the production?
Current Programming Strategies [ ]
Tactical Activities [ ]
Operational Activities [ ]
Q16. How do you rate the delivery activity of the
department?
Average [ ]
Good [ ]
Very Effective [ ]
Excellent [ ]