SUPPLY CHAIN MANAGEMENT A BETTER UNDERSTANDING

1. Supply Chain Management 1
Article by MC-SARAVANAN
What is Supply Chain
A series of companies with their
capability, capacity aligned with their
objective which encompass in create
and distribute a product.
While supply chain has existed for a
long time, most companies are
focussed to their activities within their
spreads. But it resulted disconnect and
often un-convincing supply chain. Also
it was not integrated during the time
from supplier to next and followed
chain. It is existing is still many years.
General Understanding
 Product move from one supplier
another production supplier at next
levels.
 Makeover of raw item into semi &
finished good items through the
companies’ facilities & process.
 Circulation of products to end
customer & their downstream
clients at all levels.
Basic Flow
Basically the information flows both
side from Supplier to Customer as vice
versa; Supply Management enhanced
into SCM the influenced core is
Procurement.
Trends & National View
 A research says that 22% of aggregate sales are trapped in inventory; far less
technology-driven than international industries compared to our country
 Upstream/Downstream logistics and transportation are the key factors impacts
goods cost, adding an average overhead of 20% to 30%, compared to global peers
 Ever changing consumer habits & poor reliability of 3PL providers, logistics and SCM
or together in the cycle of chain.
 Many feels that SCM is only a Purchase function, where it compromises the whole
chain from plan, procure to delivery
 A land of extreme from SCM perspective – a booming economy with some poor
infrastructures, extremely changed weathers, varied taxation policy, and a volatile
political climate
 These will not be eradicated overnight, the future of SCM is brighter than before
 However awareness is catching up rapidly and many organizations are working in all
areas of to make it more efficient, effective and responsive
“A quantifiable thing that reaches to an end user with involved
unified efforts of multiple parties & companies; these are
jointly are called as the Supply Chain”
High Profits equates with 7 Goals
1. The Exact Product
2. To The Exact Customer
3. At The Exact Time
4. At The Exact Place
5. In The Excellent Condition
6. In The Precise Quantity
7. At The Honest Cost
Many organizations focus to match the
demand & supply as much as can, where
everlasting triumph results followed only
by 7 goals as endless objectives.
Integration & Extended SCM
Integration is the essential concern
here; and developing alliances by
integrating org functions, process &
companies.
Uncertainty Aspects
 Improper Forecasts
 Supplier Stock-Outs
 Unpunctual Deliveries
 Poor Quality/Product
 Transport Failures
 Void Orders
 Flawed Information

2. Supply Chain Management 2
Article by MC-SARAVANAN
Growing Interest in SCM
As manufacturing becomes more efficient (or it is outsourced) companies look for ways to reduce
costs; several significant success stories are already by the giant’s viz. Walmart, HP, Dell, and
Lenovo. It considers the broad, integrated view of materials management from purchasing
through distribution, the huge growth of interest in the web has spawned cloud based models
from dot com retailers to B2B business models.
This support creates many Supply Chain Management Job around the spread of industries
connected in the cycle, some still developing their internal and external SCM courses for better
industrial practices. Although many reference PPT, PDF are available in all form of media.
Also the Supply Chain Manager have a tremendous impact on the success of an organization.
These managers are engaged in every facet of the business process – planning, purchasing,
production, transportation, storage & distribution, customer service, and more. In short, they are
the glue that connects the different parts of the organization. Their performance helps
organizations control expenses, boost sales, and maximize profits.
SCM Risks
This should be approached widespread, slightly than splitting strategies for independent specific area, since all the variety aspects
are co-related.
SCM Risk Management  Management of SC through collaboration or coordination among the partners so as to ensure profitability
and continuity. Risk  Operational, Disruption Mitigation  Supply Management, Demand Management, Product Management,
Information Management
Evolution of Periods
Existed ever since business has been organized to bring products & services to the end customers, increasing global coordination,
vertical disconnect and concentrate on core functions shall led to perception that organizations are linked in a networked chain.
Ancient Times : The first SCM was the Barter system
1904 : Traces of outsourcing was seen when Charles S Rolls became selling agent for cars made by F Henry Royce
1960-1975 : The essence of SCM was understood with the first phase characterized as an inventory push era that focused
primarily on physical distribution of finished goods.
1975-1990 : Companies began migrating from an inventory push to a customer pull channel
1980 : Emergence of SCM
1985 : Walmart introduced the concept of cross docking
1996 : Internet revolutionized distribution system of the business
1998 : Concept of e-commerce changed the definition of business
20xx : New era of integrations between the systems also in Cloud
Evolution of SCM: Data Source ISM-India
Conclusion
The system of organizations, people, actions, information and resources involved in distribute a product or service from supplier to
customer. Activities transform raw materials and components into a finished product that is delivered to the end customer.