Management

Under the guidance of: Prof. Awesh. Bhornya

DECLARATION

We student of AIAIMS Allana Institute of Management Studies FYMMS semester I. We hereby declare that we have completed the project on Supply Chain Management in academic year 2012-2013. We declare that the information submitted by us, in this hardcopy on Supply Chain Management has been done solely by us, and is true and original to the best of our knowledge.

ACKNOWLEDGEMENTS
A PROJECT REPORT is never successfully completed without the guidance from appropriate person. We hereby acknowledge our sincere gratitude towards all those, who directly or indirectly helped us to draft the project report.

First of all we would like to thank our DIRECTORDr. Lukman Patelwho gave us the opportunity to do this project work. Secondly we all are very much obliged toProf.AweshBhornya for providing guidance and helping us to complete the project successfully.

Weall are thankful to the AIAIMS for providing the platform to do the project. We must mention our hearty gratitude towards our family for their kind co-operation, other internal and external faculties and friends whosupported to go ahead with the completion of project.

Supply Chain Management

Supply Chain Management is a cross functional interenterprise system that uses information technology to help support and manage links between some of the companys likey business processes and those of its suppliers, customers and business partners.SCM refers to the practices and processes aiming for effective and efficient flow of materials and information between a company and its immediate suppliers and customers. As for IT systems, when discussing the use of IT in SCM, we refer to the use of interorganizational systems that are used for information sharing and/or processing across organizational boundaries. Thus, besides internal IT systems such as Enterprise Resource planning system Supply chain management (SCM) is concerned with the flow of products and information between supply chain members' organizations. Recent development in technologies enables the organization to avail information easily in their premises. These technologies are helpful to coordinates the activities to manage the supply chain. The cost of information is decreased due to the increasing rate of technologies.

The importance of information in an integrated supply chain management environment:

Prior to 1980s the information flow between functional areas with in an organization and between supply chain member organizations were paper based. The paper based transaction and communication is slow. During this period, information was often over looked as a critical competitive resource because its value to supply chain members was not clearly understood. IT infrastructure capabilities provides a competitive positioning of business initiatives like cycle time reduction, implementation, implementing redesigned cross-functional processes. Several well know firms involved in supply chain relationship through information technology. Three factors have strongly impacted this change in the importance of information. First, satisfying in fact pleasing customer has become something of a corporate obsession. Serving the customer in the best, most efficient and effective manner has become critical. Second information is a crucial factor in the managers' abilities to reduce inventory and human resource requirement to a competitive level. Information flows plays a crucial role in strategic planning.

Uses of Information Technology In Supply Chain Management

Supply chain management normally involves purchasing the raw materials from the vendors, manufacturing the products, passing of finished products to the wholesaler, then to retailer and finally to the consumer. Information technology (IT) refers to the application of computer based programs to store and manipulate information. The IT applications have great impact on the supply chain management. By applying IT techniques on the the supply chain management of a company, the following benefits are offered for a company: One of the greatest advantage, the companies can get by using IT applications in their supply chain by installing the web based programs or intranets is that, it helps the participants in the supply chain to share the information and this when used appropriately can translate into management efficiency and reduced risks. Technology has many financial effects on the supply chain, the management can apply the technology to make supply chain cost effective and it also saves time for the company. For example, manufacturers, suppliers, retailers can make the orders and payments electronically with the help of electronic data interchange. The technology helps the businesses to trouble shoot the problems like delays in the manufacturing or the shipment and allows the parties in the supply chain to identify these problems. With the use of IT applications in the supply chain the company can easily identify and they can adjust to the changing market conditions. If economic conditions change and inventory levels are growing, then adjustments can be made to decrease manufacturing. While installing a IT program in the company the company has to consider initial development and implementation costs. Systems quickly become outdated, if some of the partners in the supply chain are not ready to provide the data. Supply Chain is a set of various processes procurement of raw material, production of final good and distribution to end user. Supply chain management can be understood as management of the supply chain which includes its design, planning, execution, control and monitoring.

In most of the cases above mentioned entities exist and in multiples. Due to involvement of many separate entities, collaboration and coordination between these units is very crucial to the performance of whole supply chain. Information technology provides the desired tools to facilitate flow of information to support collaboration and coordination. In general, material flows from left to right in the above diagram. On the other hand information sharing is required by both the parties How much of what product at which time has to be transferred/required?

What kinds of people pursue SCM degrees?

good problem solving skills ability to effectively manage time and resources a clear vision of the big picture as well as the small details a desire to work closely with other people excellent communication skills ability to think strategically about technology a desire to take responsibility for developing and implementing their own ideas

DRIVERS FOR USING IT IN SCM

Elimination of human errors Reduction of costs Speeding up information transfer Volume of transactions Unpredictable and logistically demanding environment Project-orientation of the business In-transit delivery consolidation

BENEFITS OF SCM IN AN IT FIRM

From all the above, it is clear that Information Technology plays a very important role in effective supply chain management. But it would be worth noticing that supply chain management also plays an equally important role in the success of IT firms. The principles and practices of supply chain management can be employed by IT firms serve their customers better. A good example to cite in this regard would be that of Lucent Technologies. Lucent technologies was originally, an offshoot of AT&T. The firm achieved notable success through redesign of the supply chain, for their flagship product, the 5ESS digital switch. The 5ESS switch was a large-scale, software based digital platform, which provided communications service for any type of signal over any medium. It connected end-users to central phone offices and phone offices to each other. Customers included major telephone companies. The 5ESS was at a time, the worlds most reliable and widely used switching system. Prior to the redesign, the Asian demand for the product was met by supplying directly from the United States, a time-consuming and costly approach. But as part of the revamp of the supply chain, the Asia related manufacturing and material sourcing of the 5ESS switch had been moved to Asia, with Taiwan designated as the support hub. As a result, the firm was able to achieve a dramatic cut in costs and reduced product delivery times. This inevitable led to significant improvements in customer satisfaction and increased market share.

In the early 1990s, Asia became an important part of Lucents business. Beginning in 1995, Asia was the fastest growing region for the 5ESS switch. However, two critical competitive issues emerged at the time, which were cost and delivery time. The existence of multiple suppliers and the rapid development of infrastructures in many countries were the reasons for the same.

Supply Chain Information System

INTRAFIRM INFORMATION SYSTEMS
As stated earlier, firms could develop more effective supply chain information systems if they first developed effective intrafirm information systems. Some of the common examples of such systems are Warehouse management systems (WMS), transportation management systems (TMS), Decision support systems (DSS), Intranet and Enterprise resource planning systems (ERP).

INTRAFIRM APPLICATIONS
Intrafirm applications are the concepts and techniques which have benefited greatly through the advances in intrafirm information systems and technology. The main applications of Intra-firm information systems are Materials requirement planning (MRP) and Distribution requirements planning (DRP).

INTER-FIRM INFORMATION SYSTEMS

These permit information flow between the focal firm and its suppliers and/or customers. The increasingly uncertain business environment has seen the growth of inter-firm information technology. These systems eliminate redundant pools of inventory (at the different phases of a supply chain) and duplicate service operations. Some of the important inter-firm systems are EDI, Internet, etc.

INTER-FIRM APPLICATIONS
The major applications which benefit from Information systems technology that goes beyond the firm are Just-in-time (JIT) manufacturing and Cross-docking. At the strategic manufacturing planning level, the company must address such issues as planned production capacity levels for the next three years andbeyond, the number of facilities it plans to operate, their locations, the resources the company will assign to its manufacturing operations and numerous other important long-term decisions. Decisions made at the strategic level place constraints on the tactical planning level. At the tactical level, typical planning activities include the allocation of capacity and resources to product lines for the next 12 to 18 months, aggregate planning of workforce levels, the development or fine-tuning of distribution plans and numerous other activities. Within the

constraints of the companysmanufacturing and distribution infrastructure (an infrastructure determined by previous strategic decisions), managers make tactical (annual) planning decisions designed to optimize the use of the existing infrastructure. Planning decisions carried out at the tactical level impose constraints on operational level. At this level, activities such as distribution resource planning, rough cut capacity planning, master production scheduling, shop floor control scheduling and many other decisions occur. Here all the short term planning takes place ( weekly,daily).

Ghatgepatil industries
Ghatgepatil industries is a manufacturing firm in kolhapur. It is an ISO 9001 and 9002 certified engineering company manufacturing high-precision thin-walled Grey and SG iron castings on high-pressure moulding lines, catering to leading automotive and tractor manufacturers; brake drums, hubs, transmission cases, flywheel housings, cylinder heads, cylinder blocks, rear axle housings and differential cases; hydraulic and mechanical power transmission products including marine gear boxes, high pressure gate valves as per API6A, mechanical clutches and power take offs, automotive power take offs, electromagnetic clutches and brakes, fluid couplings, numbering machines and axles, transmissions steering clutches, hydraulic control valves, brake systems for leading earthmoving equipment manufacturers.

Ghatgepatil industries have implemented SAP ( System, Applications and Products)

Implementation of ERP- SAP in Ghatgepatil industries have resulted in overall performance of the company. It defines the manufacturing stages which includes, production, testing, packaging, delivery of goods. A complete track of the materials procured, suppliers and client database is recorded and updated. The quality of the raw material and the materials required to manufacture the product is recorded in the software in SCM system which can be accessed further and a proper track is kept of the materials brought and used. A proper maintenance of the stock is done using this in integrated software. Thus, SCM has led to many benefits to the firm especially in large manufacturing industries and has brought about overall efficiency and successful working of the business organization

Bibliography
1. www.google.com 2. www.gpi.co.in 3. www.erpwisdom.com 4. http://business.highbeam.com/company-profiles/info/469807/ghatge-patil-industries-ltd 5. www.wikipedia.com/ supply chain management