supply chain management

1. Presented By:
Dr. Mona Verma
Assistant Professor,CCSHAU,Hisar
Supply Chain Management
& Role of Branding

2. Introduction
In recent years, “world class” organizations purchase products, move and
market goods and services on a global basis in order to meet customers’ needs
on a timely basis, with relevant and high quality products produced and
delivered in a cost effective manner.
To achieve this goal, the concept of supply chain management (Cox et al.,
1995) has proven to be of vital importance especially for textile and garment
industries.
 The primary goal of an intelligent textile supply chain management
system is to promote corporate innovation and information sharing, and
generate infrastructure which reduces the gap of the competitiveness across
the textile supply chain and enhance the collaboration, which in turn
improve the competitiveness of the textile industry as a whole.

3. In a global supple chain of textile industry, the main objective is to
supply a quality product to customers at an affordable cost and to
increase the profit margin for investors and shareholders.
The product cost has mainly three components:
(1) procurement of raw materials like yarn, fabric and supplies
(2) the production or the fabrication process; and
(3) shipping to customers. Additionally, government stability,
reliability, terrorism, sensitivity to commitment, and time of
delivery are other factors.

4. Various definitions of a supply chain have been offered in recent
years as the concept has gained popularity.
The APIC dictionary (Cox et al., 1995) describes the supply chain
as:
 The process from the initial raw materials to the ultimate
consumption of the finished product linking across supplier-user
companies; and
The functions within and outside a company that enable the value
chain to make products and provide services to the customers.
The supply chain management has been accepted as an
alternative to improve the competitive power. SCM became a
general and strategic concept of dealing with efficient logistics
and network collaboration within a same value chain.

5. The Supply Chain Council (1997) uses the definition:
The supply chain – a term increasingly used by logistics professionals –
encompasses every effort involved in producing and delivering a final
product, from the supplier’s supplier to the customer’s customer.
Four basic processes – Plan, Source, Make, Deliver – broadly define these
efforts, which include managing supply and demand, sourcing raw materials
and parts, manufacturing and assembly, warehousing and inventory tracking,
order entry and order management, distribution across all channels and
delivery to the customers.
Definition provided by the APICS dictionary it defines supply chain
management as the “designing, 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”.

6. Quinn (1997) defines the supply chain as:
All of those activities associated with moving goods from the raw
materials stage through to the end-user. This includes:
sourcing and procurement,
production scheduling,
order processing,
inventory management,
transportation,
warehousing and customer services.
Importantly, it also embodies the information systems so necessary to
monitor all of those activities.
It is the management of a network of interconnected business involved
in the ultimate provision of product and service packages required by
end customer. Supply chain management spans all movements and
storage of raw materials, work in process inventory and finished goods
from point of consumption.

7. Leung found that the key issues that constrain the flexibility of the
supply chain were:
little sharing of information amongst retailers, distributor and
suppliers; and fluctuation of fabric demand.
For the suppliers, key constraints for the supply chain flexibility were:
batch size of greige goods;
quota restriction to US market;
lead-times; and
insufficient experience in managing demand.

8. STAGES OF SUPPLY CHAIN:
•Customers
•Retailers
•Wholesalers /distribution
•Manufactures
•Component/raw-material suppliers
In today’s world of globalization many apparel retailers are building
strong supply chain to gain advantage over their competitors by offering
the best value to their customer. The supply chain management has
become very critical to manage risk, dynamism and complexities of
sourcing. A totally integrated supply chain is required for the company to
get gain the maximum benefits.

9. Plan /design
Source
Produce SellDistributeSupply
Product architecture
Make /buy
Early supplier
involvement
Strategic partnerships
Suppliers selection
Supply contracts
DevelopmentChain
Supply Chain
Enterprise development and supply chain management

10. OBJECTIVE OF SUPPLY CHAIN MANAGEMENT:
Supply chain management takes into consideration every facility that has
impact on cost and plays a role in making the product conform the customer
requirements: from supplier to manufacturing facilities through warehouse
and distribution centers to retailer and stores.
The objective of supply chain management to be efficient and cost effective
across the entire system: total costs, from transportation and distribution to
inventories of raw material, work in process, and finished goods are to be
minimized. Thus, the emphasis is not only simply minimizing transportation
cost or reducing inventories but, rather, on taking a system approach to
supply chain management.
Supply chain management revolves around efficient integration of suppliers,
manufacturers, warehouse and stores, it encompasses the firm’s activities at
many levels, from logistics level though the tactical to the operational level.

11. Key Issues In Supply Chain Management:
Strategic level: It deals with decisions that have a long lasting effect on the
firm. This includes decisions regarding product design, what to make
internally and what to outsource, supplier’s selection and strategic partnering
as well as decisions on the number, location and capacity of warehouses and
manufacturing plants and the flow of material through the logistic network.
Tactical level: It includes decisions that are typically updated anywhere
between once every quarter and once every year. There includes purchasing
and production decisions, inventory policies and transportation strategies
including the frequency with which customers are visited.
Operational level: It refers to day to day decisions such as scheduling lead
times quotations, routing and truck loading.

12. Production
What, how and when
to produce
Location
Where best to do what
activity
Transportation
How and when to
move product
Inventory
How much to make
and how much to store
Information
The basis for
making these
decisions
Five major drivers of supply chain

13. Factors which make supply chain management challenging problem:
•The supply chain is a complex network
•Different facilities in the supply chain frequently have different,
conflicting objectives.
•The supply chain is a dynamic system.
•System variation overtime.

14. FRAMEWORK OF SUPPLY CHAIN MANAGEMENT:
A supply chain management is characterized by the flow of goods ,
services, money and information both within the among business entities
including suppliers , manufacturers and customers.
It also includes all types of organizations engaged in transportation ,
warehousing , information processing and material handling, sourcing,
procurement, production scheduling, manufacturing, order processing,
inventory management, warehousing and finally customer service are
functions performed throughout the supply chain.
The ultimate goal of SCM is to meet customer’s demand more efficiently
by providing the right product, in right quantity, at the right location, on
right time and in the right condition.

16. Supply chain management’s aims four major goals:
•Waste reduction
•Time compression
•Flexible response
•Unit cost production
Seven principles of Supply chain management:
Segment customer based on service needs.
Customizes the logistics network.
Listen to the signals of market demands and plan accordingly.
Differentiate product closer to the customer.
Source strategically.
Develop supply chain-web technology strategy.
Adopt channel spanning performance measures.

17. BENEFITS OF SUPPLY CHAIN MANAGEMENT:
1. Supply chain management in determining the needs of customer
and achieving their satisfaction.
2. It allows the reduction of response time within the supply chain.
3. It is useful in integrating the activities within the supply chain.
4. Supply chain management system facilitates the creation of trust
among supply chain members.
5. Supply chain management makes communication among Supply
chain members fast, easier, and more frequent.

18. 6. Supply chain management increases the just-in-time (JIT) capability
of the company and suppliers.
7. Supply chain management enables the sharing of information both
through informal and formal means.
8. Supply chain management helps in obtaining useful feedback from
suppliers.
9. Supply chain management allows the company to build closer and
stronger relations with customers.
10. Supply chain management helps the company in improving its
current supply chain system.

19. End customer benefits
Improved product quality
Improved timeliness
Improved flexibility
Improved value
Financial benefits
Higher profit margins
Improved cash flow
Revenue growth
Higher return on assets
SCM Improvement
Product/process
innovation partnership
management
Information flow
Threats/ substitutes
SCM
Waste reduction
Time compression
Flexible response
Unit cost reduction

20. REQUIREMENT OF SUPPLY CHAIN MANAGEMENT:
1. Customer: All sources agree the fundamental focus of supply chain
management begins by understanding the customer, their values and
requirement. This includes internal customers of the organization and the
final customer as well.
Companies must seek to know exactly what the customer expects from the
product or service and must then focus their efforts on meeting these
expectations. The process of suppliers must be aligned with the buying
process of the customer.
2. Information flow: Industries must invest in the technology that will
provide access to greater amounts of timely information. Information makes
it possible to move to more instantaneous merchandise replenishment and
allow all parties in the chain to respond quickly to all changes. Information
facilitates the decisions of the supply chain such as evaluation and
exploration of alternatives.

21. 3. Employee and management support: supply chain must also be highly
flexible; supply chain strategies often require changes in process and
traditional roles. All the members of the supply chain must be open to new
methods and ideas.
The flexibility and change required is often difficult for organization and their
employee. It is however, the ability to embrace necessary changes that will
position a company to make advantage of the benefits of supply chain
management.
4. Measurement: often industries undertake ways to improve themselves
without also thinking about how to measure whether or not they have been
successful. Performance measurement must consider the entire supply chain
and be related to the effect on the ultimate goal of customer satisfaction.
Therefore the final concept of supply chain management is ensuring
measurement techniques are adequately considered during the
implementation of supply chain management techniques.

22. Critical Success Factors of Textile SCM

24. Sources of risk for global supply chains

25. Sources of risk from inside to outside

26. David A Aaker, book Managing Brand Equity1states
"A brand is a distinguishing name and/or symbol (such as logo,
trademark, or package design) intended to identify the goods or services
of either one seller or a group of sellers, and to differentiate those goods
or services from those of competitors. A brand thus signals to the
customer the source of the product, and protects both the customer and
the producer from competitors who would attempt to provide products
that appear to be identical."
Branding is creating that individual niche in the consumer’s psyche and
owning it. More than just marketing, branding is the entire effect that
creates a memorable identity.
Effective branding creates a perception that there is no other product,
service, organization or community quite like yours. Whether the
distinction is a result of function, form, ease of use, price or prestige, the
consumer believes you offer something exceptional.

27. Nine Branding Principles:
1. Keep It Simple: one big idea is best.
2. Mass-produced word of mouth (PR) builds brands.
3. Focused brands are more powerful than diffused brands.
4. Somehow, some way, you have to be different.
5. The first brand in a category has a huge advantage.
6. Avoid sub-brands at all cost.
7. Quality is important, but not as important as the perception of quality.
8. Be consistent and patient. Building a strong brand takes time.
9. Put your brand definition in writing, otherwise you'll get off course.

28. Factors affecting the brand of an organization can be both
tangible and intangible, including :
office décor,
personnel attire,
organization philosophy,
product/service quality,
design of printed materials and value-added services,

29. According to Schmitt, brands can help to create five different types of
experiences:
• Sense experiences involving sensory perception.
• Feel experiences involving affect and emotions.
• Think experiences which are creative and cognitive.
• Act experiences involving physical behaviour and incorporating individual
actions and lifestyles.
• Relate experiences that result from connecting with a reference group or
culture.

30. Brand Equity:
The effect of a positive brand attitude leads to something marketers
call brand equity.
Most marketers would agree that it is that ‘something’ attached to a brand
that adds value over and above the objective characteristics of the
product or service. Whatever that ‘something’ is, it is embodied in
people’s attitudes towards that brand.
It is dynamic, and subject to change over time. It attaches itself to the
brand name, providing a current summary of people’s feelings,
knowledge and experience with that product or service.

31. Customer-level brand equity can largely be captured by five aspects
that form a hierarchy or chain, which are bottom (lowest level) to
top (highest level) as follows:
(a) awareness (ranging from recognition to recall);
(b) associations (encompassing tangible and intangible product or
service considerations);
(c) attitude (ranging from acceptability to attraction);
(d) attachment (ranging from loyalty to addiction);
(e) activity (including purchase and consumption frequency and
involvement with the marketing program, other customers through
word of mouth, etc., or the company).

32. A number of broad criteria are useful for choosing and designing brand
elements to build brand equity (Keller 2003):
(1) memorability,
(2) meaningfulness,
(3) aesthetic appeal,
(4) transferability (both within and across product categories and across
geographical and cultural boundaries and market segments),
(5) adaptability and flexibility over time, and
(6) legal and competitive protectability and defensibility. Brand elements
vary in their verbal versus visual content and product specificity.

33. Functions of brand

35. The benefits of a strong brand image
High levels of brand awareness and a positive image increase the
probability of a product being chosen and decrease the vulnerability to
competitive forces. Here are nine specific benefits which a company will
obtain from a strong brand image.
1. Premium prices can be obtained. A brand with a positive image will
command larger margins and be less susceptible to competitive forces.
There will be less pressure to sell at low prices or offer discounts.
2. The product will be demanded. A brand which people think is a good
will be asked for specifically. People will search out a brand they really
want.
3. Competitive brands will be rejected. A strong brand will act as a
barrier to people switching to competitors products. A brand is a defence
which is permanently erected.

36. 4. Communications will be more readily accepted. Positive feelings
about a product will result in people being able to accept new claims
on its performance and they will warm them up so that they can be
more easily persuaded to buy more.
5. The brand can be built on. A brand which is well known and well
regarded becomes a platform for adding new products as some aspects
of the positive imagery will cross over and help in the launch of new
products.
6. Customer satisfaction will be improved. A positive image will give
customers enhanced satisfaction when they use the product. They will
feel more confident about buying it.

37. 7. The product will be pulled through the distribution network. A brand
which people ask for can more easily be sold into wholesalers and
distributors who are extremely responsive to what their customers want.
8. Licensing opportunities can be opened up. A strong brand may
support joint venture deals or allow the brand to be licensed for use in
new applications or in other countries.
9. The company will be worth more when it is sold. A company with a
good brand name will obtain a higher premium for the goodwill, if and
when it is sold.

38. Branding benefits to the customer
1. A strong brand is a summary of all the values associated with it.
Making industrial buying decisions is complicated by the need to
weigh up all the details of a product's performance, its price, the
delivery, the guarantee etc. A brand with a strong image is a
synthesis to the buyer of everything that a supplier stands for and
offers.
2. A strong brand makes customers feel confident in their choice.
People shop at Marks & Spencer often without comparing products
from elsewhere because they trust the brand. Strong industrial
branding gives customers the same comforts.

39. 3. A strong brand makes customers feel more satisfied with their
purchase. The quality perceptions translate to a `feel good factor' which
makes customers happier than if the product had come from an
unknown supplier. In the end successful marketing is about convincing
customers that they will sleep easier and worry less by using a strongly
branded product.