Sunteți pe pagina 1din 34

SUPPLY CHAIN

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

• AN EXTERNAL INTEGRATION OF INTERRELATED FUNCTIONS


OF THE FIRM WITH ITS CHANNEL MEMBERS, VENDORS, AND
ALL THIRD-PARTY LOGISTICS SERVICES PROVIDERS WHO
CONTRIBUTE IN THE FLOW OF GOODS(RAW MATERIALS,
SEMI-FINISHED AND FINISHED PRODUCTS) AND RELATED
INFORMATION FROM THE POINT OF INCEPTION TO THE
POINT OF CONSUMPTION WITH EFFECIENCY
• ( AGARWAL,2001)
SCM FOR AN INDIVIDUAL FIRM

CUSTOMER
W T
T

FACT INFO FLOW


ORY

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

END USER / CUSTOMER


PROBLEMS
• IDENTIFY THE KEY SUPPLY CHAIN ELEMENTS IN THE
FOLLOWING CASES:
• A MAJOR MULTI- SPECIALITY HOSPITAL
• AN AIRLINES OPERATOR
• A PREMIER EDUCATIONAL INSTITUTE
• A NEWPAPER BUSINESS
• A MACHINE TOOL OPERATOR
• A MANUFACTURER OF SHAMPOO SACHET
• A LAW CONSULTING FIRM
DIFFERENT TYPE OF FLOWS IN
VALUE CHAIN
• VALUE FLOW
• GOODS FLOW
• CASH FLOW
• INFORMATION FLOW
SUPPLY CHAIN STRUCTUTRE
• TIER-2 SUPPLIERS
• TIER-1 SUPPLIERS
• FACTORY
• FACTORY WARE HOUSE
• DISTRIBUTORS
• RETAILERS
• CUSTOMERS
PROBLEM
• IDENTIFY AN APPROPRIATE TYPE OF SUPPLY CHAIN FOR
EACH OF THE FOLLOWING PRODUCT CATEGORIES:
• JEWELLRY WATCHES
• TOOTH PASTE & BRUSHES
• EARTHMOVING EQUIPMENTS
• DESIGNER WEAR CLOTHES
• BICYCLES
• PASSENGER CARS
• HEAVY COMMERCIAL VEHICLES
OUT SOURCING & 3PL
• EMPHASIS ON CORE COMPETENCY
• “ TO DO WHAT YOU ARE BEST AT AND LEAVE ALL
OTHER NON-VALUE –ADDED ACTIVITIES TO MORE
SUITED PLAYERS”

• SEEKING THE SERVICES OF EXTERNAL AGENCIES /


ORGANIZATIONS THAT COULD HANDLE NON-
VALUE ADDING SERVICES.
• Logistic & distribution activities- 5 %
• Inventory costs- 15% of the entire costs
• Both add to the total costs
• Implies companies to cut these costs
3PL
• Third party logistics is the activity of
outsourcing activities related to logistics
and distribution.
• The 3PL industry includes Logistic
Solution provider(LSPs) and shippers
whose business process they support.
Why companies opt for 3PL?
• 1. improved strategic focus- can concentrate on their
core tasks & better customer satisfaction
• 2.Resource constraints- no additional manpower
available
• 3.Lowered costs- about 15-30 % of the inventory costs
can be reduced. The 3PL service providers invests huge
amount of money in developing processes that aims to
achieve logistical excellence normally not available to
others.
• 4. Expansion of markets: outsourcing 3PL allows
companies to get into new businesses, new markets or
new channels of distribution quickly.
Contd.
• 5.More professional & scientific approach to
logistical problems.
• 6. Improvement in service levels with improved
response time.
• 7. efficient management of inventory resulting in
better utilization of working capital
• 8. Increased flexibility- 3PL contract provides
short term commitments thus freeing up
resources for other uses.
Evolution of 3PLs
THIRD
GENERATION

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

• EXCEPT FOR AUTOMOTIVE, NO OTHER INDUSTRY IS


CURRENTLY UTILIZING THE SERVICES OF 3PL IN INDIA
• IT REVEALS THE STATE OF OUTSOURCING IN INDIA

• IN FMCG, PAINTS AND CONSUMER DURABLES COMPANIES IN


INDIA, THE C& F AGENTS ARE DOING THE JOB OF LOGISTICS
PROVIDERS SO THE COMPANIES DO NOT FEEL THE NEED TO
OUTSOURCE.

• IN CASE OF STEEL AND CEMENT, NONE OF THE COMPANY


FELT THE 3PL IMPORTANCE.
FOURTH PARTY LOGISTICS(4PL)
• “An integrator that assembles the
capabilities, technology and resources of
its own organisation and other
organisations to design, build and run
comprehensive supply chain solutions”.

• Defined by Accenture Consulting in mid


1990s
Key components of a 4PL

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

S-ar putea să vă placă și