Documente Academic
Documente Profesional
Documente Cultură
MANAGEMENT
TOPIC -2
CASES OF SCM
• GODREJ LOCKS- A DIV. OF GODREJ & BOYCE CO.
• - REDUCED ITS ORDER-TO-DELIVERY CYCLE FROM
THREE WEEKS TO 3 DAYS
• HEWETT PACKARD
• -HAS CUT ITS CYCLE TO DELIVER TO CUSTOMER
IN INDIA FROM US BY 1/3RD, THAT IS FROM 37 DAYS
TO10 DAYS
CONCEPT
• THE SUPPLY CHAIN ENCOMPASSES ALL
ACTIVITIES ASSOCIATED WITH THE FLOW &
TRANSFORMATION OF GOODS FROM THE RAW
MATERIALS STAGE(EXTRACTION), THROUGH TO
THE END USER, AS WELL AS THE ASSOCITATED
INFORMATION FLOWS. MATERIALS & INFORMATION
FLOW BOTH UP & DOWN THE SUPPLY CHAIN.
• SCM IS INTEGARTION OF THESE ACTIVITIES,
THROUGH IMPROVED SUPPLY CHAIN
RELATIONSHIPS, TO ACHIEVE A SUSTAINABLE
COMPETITIVE ADVANTAGE.
CONCEPT
CUSTOMER
W T
T
W T VENDORS/
PLANTS/
PORTS
VALUE CHAIN OF SCM
• - CORPORATES USING SCM TO GAIN
COMPETITIVE EDGE , DUE TO ITS
VALUE ADDITION CAPABILITY IN
COST –EFFECTIVE WAYS
• SCM FOCUES ON SPEEDIER FLOW OF
GOODS, CASH, VALUE AND RELATED
INFO WITHIN THE COMPLETE SUPPLY
CHAIN PROCESS
EVOLUTION OF LOGISTICS TOWARD SUPPLY
CHAIN
• DEMAND FORECASTING PURCHASING/ MATERIALS MANAGEMENT
• PURCHASING
• REQUIREMENT PLANNING
• PRODUCTION PLANNING
• MANUFACTURING INVENTORY
• WAREHOUSING LOGISTICS SCM
• MATERIALS HANDLING
• PACKAGING
• FINISHED GOODS INVENTORY
• DISTRIBUTION PLANNING PHYSICAL DISTRIBUTION
• ORDER PROCESSING
• TRANSPORTATION
• CUSTOMER SERVICE
• STRATEGIC PLANNING
• INFORMATION SERVICES
• MARKETING/ SALES
• FINANCE
VA
LU SUPPLIER
E
SHIPPER
QU
AL I
PRODUCER
TY
CO
ST
S
TRANSPORTER
U
R
I
FLOW OF INFO
Q ESP
CK O
WAREHOUSING
NS E
AV
CASH FLOW
AIL
A B
CUSTOMER
FLOW OF GOODS
IL
IT
Y
C
O
N
VALUE CHAIN OF SCM
SI
ST MARGIN
EN
C
Y
SECOND
GENERATION
FIRST GENERATION
CONTD
• 1PL- In era of mass production, LSPs confined to the
flow of goods from point of origin to point of
consumption. Primary activity was mere transportation
• 2PL- with increased awareness manufacturing firms
began to closely collaborate with LSPs to handle both
inward and outward movement of goods and some
sharing of information. However, LSPs still treated with
some suspicion because they may disclose information
related to suppliers and consumers to their competitors.
• 3PL- increased use of IT , LSPs improved their
relationship and work in tandem with the firm to meet
their supply chain activities and help manufacturing firms
to tap new markets.
Infrastructure required for a 3PL
• 1.Warehouse
• 2.Fleet of vehicles
• 3.Use of IT to take care of information
needs
• 4.Advanced material handling capabilities.
• 5.Good team of consultants
• 6Trained manpower
• 7.Reach in terms of geography.
3PL SERVICES
• Shipment consolidation
• Warehouse Management
• Carrier selection
• Rate negotiations
• Fleet management/ Operation
• Logistic info system
• Product Returns
• Order Fulfilment
• Order Processing
• Relabeling/ Repacking
• Spare Parts
• Inventory Mgmt
• Product Assembly
• Product Testing
• Multimodal Transport
ADVANTAGES OF 3PL
• 1. COST REDUCTION
• 2. MAXIMIZING REVENUES
• 3.COST CONTROL
• 4 GOOD FACILITIES
Operations of Indian 3PLs
• 1.Gati
• 2. Transport Corporation of India Ltd.
• 3.Blue Dart Logistics
• 4. DHL logistics
• 5.FedEx
• 6..Safe Express
Value added activities of 3PL
• 3PL service provider offers
• -to give information to clients regarding
customer demographics
• -reverse logistics
• -kitting (pick & pack)services
• -custom clearances
Blue Dart Logistics
• Some e-commerce initiatives of Blue Dart
• 1.Track Dart- Track status of shipment
• 2.mail dart- Track shipment using mail
• 3.Location finder-Find service location
• 4.Transit time finder-check transit time for
shipping
• 5.Billing- receive invoices online
• 6.Scedule a pickup- to schedule customer
consignments picking
• 7.Image dart- Tool for downloading proof of
delivery
Transport Corporation of India
• Main services offered:
• Consulting,
• Transport management services
• Warehousing services
• IT & MIS reporting services & others
• Value- added services:
• 1. Reverse logistics
• 2.PDI services
• 3.Kitting services
• 4. Custom clearance services
• 5.E-logistics
• 6.Risk & tax facilitating management
3PL IN INDIA
ARCHITECT/ INTEGRATOR
CONTROL ROOM
(INTELLIGENCE)
4PL
SUPPLY-CHAIN INFOMEDIARY
RESOURCE PROVIDER
4PL TOTAL SCM PROVIDER
ARCHITECT- CHANGE LEADER:
• SUPPLY-CHAIN VISIONARY
• MULTIPLE CUSTOMER RELATIONSHIP
• DEAL SHAPER & MAKER
• SUPPLY CHAI RE-ENGINEERS
• PROJECT MANAGEMENT
• SERVICE, SYSTEMS & INFO INTEGRATOR
• CONTINUOUS INNOVATION
4PL
• DECISION MAKERS:
• Experienced logisticians
• Optimisation engines & decision support
• Neutral positioning
• Manage multiple 3PLs
• Continuous improvement
• INFORMATION
• IT system integration
• IT infrastructure provision
• Real-time data tracking
• Convert data to information
• Provide info to point of need
• Technical support
4PL
• ASSETS
• Transportation asset provider
• Warehouse, cross-dock, property facility
• Manufacturing- outsourcing
• Procurement service
• Co-packing service
Technology component of 4PL
• GPS Technology
• GIS Technology
BULLWHIP : CONCEPT
• -EFFECT OF FLUCTUATIONS IN DEMAND ON THE ENTIRE
SUPPLY CHAIN
• - DUE TO INFORMATION DISTORTIONS
• -SUCH DISTORTIONS ARE AMPLIFIED AS INFO IS PROCESSED
AND PASSED ON FROM ONE END TO ANOTHER END OF THE
CHAIN
• -THE PROPOGATION OF DEMAND VARIABILITY UP THE
SUPPLY CHAIN IS KNOWNIN THE INDUSTRY AS “ BULLWHIP”
OR “WHIPLASH” EFFECT.
BULLWHIP EFFECT
• REASONS:
• THE NO. OF LAYERS IN THE SUPPLY CHAIN
• DELAYS IN INFORMATION FLOW ACROSS THESE LAYERS
• VARIATIONS IN DECISION MAKING PATTERNS AT EACH LAYER
• INDEPENDENCE OF EACH MEMBER IN THE SUPPLY CHAIN
• HOW TO MINIMISE?
• -CUTTING OF SEVERAL DECISIONS CUTTING ACROSS THE
SUPPLY CHAIN
• REDUCE DELAY OF INFORMATION FLOW IN THE SUPPLY CHAIN
• REDUCING LEAD TIME OF THE BUSINESS PROCESSES