INTRODUCTION OF SUPPLY CHAIN MANAGEMENT (SCM

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A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Supply chain management is typically viewed to lie between fully vertically integrated firms, where the entire material flow is owned by a single firm and those where each channel member operates independently. Therefore coordination between the various players in the chain is key in its effective management. Cooper and llram !"##$% compare supply chain management to a well&balanced and well&practiced relay team. Such a team is more competitive when each player knows how to be positioned for the hand&off. The relationships are the strongest between players who directly pass the baton 'stick(, but the entire team needs to make a coordinated effort to win the race. )elow is an example of a very simple supply chain for a single product, where raw material is procured from vendors, transformed into finished goods in a single step, and then transported to distribution centers, and ultimately, customers. *ealistic supply chains have multiple end products with shared components, facilities and capacities. The flow of materials is not always along an arborescent network, various modes of transportation may be considered, and the bill of materials for the end items may be both deep and large.

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To simplify the concept, supply chain management can be defined as a loop+ it starts with the customer and ends with the customer. All materials, finished products, information, and even all transactions flow through the loop. ,owever, supply chain management can be a very difficult task because in the reality, the supply chain is a complex and dynamic network of facilities and organizations with different, conflicting ob-ectives. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. .nlike commercial manufacturing supplies, services such as clinical supplies planning are very dynamic and can often have last minute changes. Availability of patient kit when patient arrives at investigator site is very important for clinical trial success. This results in overproduction of drug products to take care of last minute change in demand. */0 manufacturing is very expensive and overproduction of patient kits adds significant cost to the total cost of clinical trials. An integrated supply chain can reduce the overproduction of drug products by efficient demand management, planning, and inventory management. Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. These organizations have their own ob-ectives and these are often conflicting. 1arketing2s ob-ective of high customer service and maximum sales dollars conflict with manufacturing and distribution goals. 1any manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. 3urchasing contracts are often negotiated with very little information beyond historical buying patterns. The result of these factors is that there is not a single, integrated plan for the organization&&&there were as many plans as businesses. Clearly, there is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such integration can be achieved.

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IMPLICATIONS OF SCM ON LOGISTIC MANAGEMENT
The challenge of integrating and coordinating the flow of materials from multitude of suppliers, including offshore, and similarly managing the distribution of the finished product by way of multiple intermediaries. Achieving cost reduction or profit improvement at the expense of their supply chain partners does not make companies more competitive. Transferring cost upstream or downstream leads to 5logistics myopia6 as all costs ultimately will make way to the final market place to be reflected in the price paid by the end user. Therefore, the leading edge companies seek to make the supply chain as a hole more competitive through the value it adds and the cost it reduces overall. Thus today the real competition is not the companies against the companies but rather supply chain against supply chain.

DEFINITIONS
Supply Chain 1anagement 'SC1( is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer re7uirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work&in&process inventory, and finished goods from point&of&origin to point&of&consumption. According to the Council of Supply Chain Management Professionals (CSCMP), a professional association that developed a definition in 4889, Supply Chain 1anagement 5encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities6. :mportantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third&party service providers, and customers. :n essence, Supply Chain 1anagement integrates supply and demand management within and across companies.

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According to Cohen & Lee (19

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Supply Chain 1anagement is 5The network of organizations that are having linkages, both upstream and downstream, in different processes and activities that produces and delivers the value in form of products and services in the hands of ultimate consumer.6 Thus a shirt manufacturer is a part of supply chain that extends up stream through the weaves of fabrics to the spinners and the manufacturers of fibers, and down stream through distributions and retailers to the final consumer. Though each of these organizations are dependent on each other yet traditionally do not closely cooperate with each other. An integrated supply chain management streamlines processes and increases profitability by delivering the right product to the right place, at the right time, and at the lowest possible cost. According to !aneshan & "arrison (#$$1) Supply Chain 1anagement is a 5systems approach to managing the entire flow of information, materials, and services from raw materials suppliers through factories and warehouses to the end customer.6 Supply chain event management 'abbreviated as SC 1( is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. ;ith SC 1 possible scenarios can be created and solutions can be planned. Some e%perts distinguish supply chain management and logistics management, &hile others consider the terms to 'e interchangea'le( )rom the point of *ie& of an enterprise, the scope of supply chain management is usually 'ounded on the supply side 'y your supplier+s suppliers and on the customer side 'y your customer+s customers( Supply chain management is also a category of soft&are products(

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<ogistics is essentially a framework that creates a single plan for the flow of products and information through a business Supply Chain Management Supply Chain 1anagement deals with integration of all the partners in the value chain. delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. including receiving shipments. COMPONENTS OF SUPPLY CHAIN MANAGEMENT The following are the five basic components of Supply Chain 1anagement+ 1( Plan. A big piece of planning is developing a set of metrics to monitor the supply chain so that it is efficient. And put together processes for managing the inventory of goods and services you receive from suppliers. > . and the organization it self. Supply chain builds upon this framework and seeks to achieve linkage and coordination between process of other entities in the pipeline i. transferring them to your manufacturing facilities and authorizing supplier payments. costs less and delivers high 7uality and value to customers.e. #( Source.Choose the suppliers that will deliver the goods and services you need to create your product.This is the strategic portion of SC1. =ou need a strategy for managing all the resources that go toward meeting customer demand for your product or service. suppliers and costumers. 0evelop a set of pricing.DIFFERENCE BETWEEN LOGISTICS MANAGEMENT AND SCM Logistics Management <ogistics management is primarily concerned with optimizing flows within the organization. verifying them.

measure 7uality levels. These organizations have their own ob-ectives and these are often conflicting. 3urchasing contracts are often negotiated with very little information beyond historical buying patterns. As the most metric&intensive portion of the supply chain. pick carriers to get products to customers and set up an invoicing system to receive payments. 0( 1eli*er.The problem part of the supply chain.This is the manufacturing step. The result of these factors is that there is not a single.This is the part that many insiders refer to as logistics. Clearly. manufacturing.( Ma/e. OBJECTIVES/NEED FOR SCM Traditionally. Supply chain management is a strategy through which such integration can be achieved. Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products. 1arketing2s ob-ective of high customer service and maximum sales dollars conflict with manufacturing and distribution goals. 2( 3eturn. production output and worker productivity. integrated plan for the organization&&&there were as many plans as businesses.. packaging and preparation for delivery. 1any manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. testing. distribution. and the purchasing organizations along the supply chain operated independently. develop a network of warehouses. there is a need for a mechanism through which these different functions can be integrated together. planning. Coordinate the receipt of orders from customers. ? . Schedule the activities necessary for production. marketing.

@ . ensuring that orders are placed with the appropriate amount of time available to be filled. in many cases. 1( )ulfillment of ra& materials. an organization needs an efficient and proper supply chain management system so that the following strategic and competitive areas can be used to their full advantage if a supply chain management system is properly implemented.  transportation systems and  whole distribution networks so that organizations are able to meet or even exceed their customers2 expectations. :n addition to cost reduction. the only possible way to further reduce costs and lead times is with effective supply chain management. Therefore. nsuring the right 7uantity of parts for production or products for sale arrive at the right time. )roadly. :t enables the management of+  inventories.1oreover. This is enabled through efficient communication. in recent years it has become clear that many companies have reduced their manufacturing costs as much as it is practically possible. The supply chain management system also allows a company to constantly see what is on stock and making sure that the right 7uantities are ordered to replace stock. increased competition. shortened product life cycles. The ma4or o'4ecti*e of supply chain management is to reduce or eliminate the buffers of inventory that exists between originations in chain through the sharing of information on demand and current stock levels. and heightened expectations of customers have forced many leading edge companies to move from physical logistic management towards more advanced supply chain management. the supply chain management approach also facilitates customer service improvements. Additionally.

:f the correct 7uantity is not ordered and delivered at the re7uested time. Supply chain management reduces costs by increasing inventory turnover on the shop floor and in the warehouse controlling the 7uality of goods thus reducing internal and external failure costs and working with suppliers to produce the most cost efficient means of manufacturing a product. 3roduction can run smoothly as a result of fulfillment and logistics being implemented correctly. . 1anaging the supply chain improves a company flexibility to respond to unforeseen changes in demand and supply. Aeeping the cost of purchased parts and products at acceptable levels. 0( 5ncrease in 3e*enue & profit. allows the company to make this decision. trains. B .( Smooth Production. The system can allow the company to track where the re7uired materials are at all times.ere the supply chain management system enables a company to have constant contact with its distribution team. which could consist of trucks. production will be halted. . The cost of transporting materials as low as possible consistent with safe and reliable delivery.#( Logistics. As well. nsuring no sales is lost because shelves are empty. or any other mode of transportation. but having an effective supply chain management system in place will ensure that production can always run smoothly without delays due to ordering and transportation. it may be cost effective to share transportation costs with a partner company if shipments are not large enough to fill a whole truck and this again. 2( 3eduction in Costs. )ecause of this. a company has the ability to produce goods at lower prices and distribute them to consumers 7uicker then companies without supply chain management thus increasing the overall profit. nsuring production lines function smoothly because high&7uality parts are available when needed.

Supply chain activities can be grouped into strategic. and operational levels of activities. they have reduced their ownership of raw materials sources and distribution channels. The purpose of supply chain management is to improve trust and collaboration among supply chain partners. Consumers can benefit as well through higher 7uality goods provided at a lower cost. enhance product 7uality. cut lead times. This relationship allows a company to have access to current. tactical. -oint work on 7uality. and capacity development. and support by the buyer of the supplierDs managerial. <ess control and more supply chain partners led to the creation of supply chain management concepts. while reducing management control of daily logistics operations. obtain lower inventory levels. Among supply chain partners ensures mutual success. # . These functions are increasingly being outsourced to other corporations that can perform the activities better or more cost effectively. forecasting and replenishment 'C3C*( is a longer&term commitment.6( Mutual Success. SCE* is a supply chain management model promoted by the Supply&Chain Council. The suppliers also benefit from the cooperative relationship through increased buyer input from suggestions on improving the 7uality and costs and though shared savings. technological. reliable information. Another model is the SC1 1odel proposed by the Flobal Supply Chain Corum 'FSCC(. improve forecasting accuracy and ultimately improve customer service and overall profits. Several models have been proposed for understanding the activities re7uired managing material movements across organizational and functional boundaries. thus improving inventory visibility and improving inventory velocity. Collaborative planning. ACTIVITIES/FUNCTIONS OF SCM Supply chain management is a cross&functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end&consumer. The effect has been to increase the number of companies involved in satisfying consumer demand. As corporations strive to focus on core competencies and become more flexible.

(') 7actical. and (c) 8perational.  )enchmarking of all operations against competitors implementation of best practices throughout the enterprise. including fre7uency. and third&party logistics. Transportation strategy. including 7uantity. 0aily production and distribution planning.(a) Strategic.  :nformation Technology infrastructure.  . location. creating communication channels for critical information and operational improvements such as cross docking. routes. to support supply chain operations. Strategic network optimization.here to make and what to make or buy decisions. location. so that new and existing products can be optimally integrated into the supply chain. and contracting. scheduling. and customers.  3roduction scheduling for each manufacturing facility in the supply chain 'minute by minute(. distribution centers and facilities.  :nventory decisions.  Strategic partnership with suppliers. including contracting. distributors. including all nodes in the supply chain. "8 .  3roducts design coordination. Sourcing contracts and other purchasing decisions. direct shipping. and 7uality of inventory. and size of warehouses. locations. and planning process definition.  3roduction decisions. including the number.

planning. including all suppliers. including the consumption of materials and flow of finished goods. coordinating the demand forecast of all customers and sharing the forecast with all suppliers. :nbound operations. manufacturing facilities. including current inventory and forecast demand. "" . Availability of patient kit when patient arrives at investigator site is very important for clinical trial success. distribution centers. clinical supplies planning is very dynamic and can often have last minute changes. :mplementation of *3 system 'such as SA3( in */0 can have ma-or *E: by an efficient supply and inventory management system and also by reducing overproduction. This results in overproduction of drug products to take care of last minute change in demand. in collaboration with all suppliers. all fulfillment activities and  Erder promising. at the right time.nlike commercial manufacturing supplies.  Eutbound operations. including transportation to customers. . An integrated supply chain can reduce the overproduction of drug products by efficient demand management. including transportation from suppliers and receiving inventory. 0emand planning and forecasting.  3roduction operations. and inventory management. and at the lowest possible cost.  Sourcing planning. and other customers. INTEGRATED SUPPLY CHAIN MANAGEMENT An integrated supply chain management streamlines processes and increases profitability by delivering the right product to the right place. */0 manufacturing is very expensive and overproduction of patient kits adds significant cost to the total cost of clinical trials. accounting for all constraints in the supply chain. 3erformance tracking of all activities.

⇒ "o& 5ntegration 5s Achie*ed 5n Supply Chain9 Stage 1 Complete functional independence where each business function such as production or purchasing does its own thing in complete isolation from other business function. Stage ! Companies recognize the need of limited integration between ad-acent functions such as distribution and inventory management or purchasing and material control. supply chain management is not the same as vertical integration. very thing else is Gout&sourcedD i. Ence. procured from outside the firm. Stage " A natural extension of stage two. A concept of linkage and coordination is achieved. leading to establishment and implementation of end& to&end integration. Iertical integration normally implies ownership of upstream suppliers and down stream customer. Cor instance. ⇒ 5s Supply Chain Management Same As :ertical 5ntegration9 Ho. :t represents true supply chain integration.e.e. Corce of supply chain management is on trust and cooperation and the recognition that is properly managed Gthe whole cane be greater then the sum of its partD. the vertical integration used to be describable strategy but increasingly the companies are focusing on their Gcore businessD i. This concept is also called Gco&managed inventoryD 'C1:(. production function seeking to optimize its unit cost of manufacture by long production runs with out regard for build up of finished goods inventory and advance impact it will have on the warehousing as well as working capital. "4 . the activities that they do really well and where they have a differential advantage. STAGE # The linkage achieved in stage three is extended upstream to suppliers and down stream to customers.

Location 1ecisions. En the other hand. and level of service. "(. Production 1ecisions The long term decisions include what products to produce. The geographic placement of production facilities. 3roduction. duties and duty drawback. 4(.e classify the decisions for supply chain management into two broad categories J Short term / <ong term decisions. As before. local content. short term decisions focus on activities over a day&to&day basis. 4(. These decisions should be determined by an optimization routine that considers production costs. number. and will have a considerable impact on revenue. and location of these are determined. Ence the size. and sourcing points is the natural first step in creating a supply chain. and there are both short term and long&term elements in each of these decision areas. allocation of suppliers to plants. <ocation. and 0C2s to customer markets.SUPPLY CHAIN DECISIONS . these decisions have a big impact on the revenues. tariffs. and which plants to produce them in. distribution costs. These are closely linked to the corporate strategy and guide supply chain policies from a design perspective. As the term implies. These decisions assume the existence of the facilities. cost. long term decisions are made typically over a longer time horizon. There are four ma-or decision areas in supply chain management+ "(. plants to 0C2s. Although location decisions are primarily long term they also have implications on short term level. taxes. Transportation 'distribution(. costs and customer service levels of the firm. but determine the exact path's( through "$ . etc. and 9(. production limitations. :nventory. The location of facilities involves a commitment of resources to a long&term plan. so are the possible paths by which the product flows through to the final customer. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets. $(. stocking points.

owever. Their primary purpose to buffer against any uncertainty that might exist in the supply chain. :t is long term in the sense that top management sets goals. and setting safety stock levels. "9 . These are closely linked to the inventory decisions. control policies &&& the determination of the optimal levels of order 7uantities and reorder points. They can also be in&process between locations. at each stocking location. and 7uality control measures at a production facility. Since transportation is more than $8 percent of the logistics costs. since the best choice of mode is often found by trading&off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode. These decisions include the construction of the master production schedules. reliable. most researchers have approached the management of inventory from short term perspective. and warrant lesser safety stocks. routing and scheduling of e7uipment are key in effective management of the firm2s transport strategy. but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainty associated with them. Short term decisions focus decisions focus on detailed production scheduling. and e7uipment maintenance. These refer to means by which inventories are managed. scheduling production on machines. These levels are critical. . . Since holding of inventories can cost anywhere between 48 to 98 percent of their value. 5n*entory 1ecisions. $(. 7ransportation 1ecisions. Shipment sizes 'consolidated bulk shipments versus <ot&for& <ot(. their efficient management is critical in supply chain operations. 9(. they are expensive. semi&finished or finished goods. Ether considerations include workload balancing. Another critical issue is the capacity of the manufacturing facilities&&and this largely depends the degree of vertical integration within the firm. The mode choice aspect of these decisions is the more long term ones. since they are primary determinants of customer service levels. 1eanwhile shipping by sea or rail may be much cheaper.hile air shipments may be fast.which a product flows to and from these facilities. Therefore customer service levels and geographic location play vital roles in such decisions. operating efficiently makes good economic sense. :nventories exist at every stage of the supply chain as either raw material. These include deployment strategies 'push versus pull(.

the purchasing function develops rapid communication systems. interfaced with several distributors and retailers and attempted to satisfy this demand. :n firms where operations extend globally. in many companies.owever. Customer service provides the source of customer information. 3rocess integration means collaborative working between buyers and suppliers. The purchasing department placed orders as re7uirements became appropriate and marketing. -oint product development. . The key critical supply business processes stated by <ambert and Cooper are as follows+ 1( Customer ser*ice management process. Shared information between supply chain partners can only be fully leveraged through process integration. responding to customer demand. which in turn assist to achieve the best product flows. sourcing should be managed on a global basis. :t also provides the customer with real&time information on promising dates and product availability through interfaces with the company production and distribution operations #( Procurement process. operating an integrated supply chain re7uires continuous information flows. The desired outcome is a win&win relationship. Strategic plans are developed with suppliers to support the manufacturing flow management process and development of new products. such as $1. management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business. where both parties benefit. and reduction times in the design cycle and product development is achieved.SCM PROCESS INTEGRATION Successful SC1 re7uires a change from managing individual functions to integrating activities into key supply chain processes. According to <ambert and Cooper '4888(. Also. common systems and shared information. such as electronic data interchange and :nternet linkages to faster transfer possible re7uirements. Activities related to "> .

inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations. thus to reduce time to market. meaning improved responsiveness and efficiency of demand to customers. According to <ambert and Cooper. changes in the manufacturing flow process lead to shorter cycle times. includes the responsibility to coordinate with suppliers in scheduling. customers and suppliers must be united into the product development process. the appropriate products must be developed and successfully launched in ever shorter time&schedules to remain competitive. As product life cycles shorten. such as work&in&process storage. transportation. order placement. Activities related to planning. managers of the product development and commercialization process must+ a( coordinate with customer relationship management to identify customer&articulated needsK b( select materials and suppliers in con-unction with procurement. Also. handling. "$ Product de*elopment and commerciali. supply continuity / research to new programmes. scheduling and supporting manufacturing operations. negotiation. supply sourcing. Erders are processes on a -ust&in&time 'M:T( basis in minimum lot sizes. The manufacturing process is produced and supplied products to the distribution channels based on past forecasts. and must accommodate mass customization.ere. "? . inbound transportation. 1anufacturing processes must be flexible to respond to market changes. and c( develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the productLmarket combination 0( Manufacturing flo& management process.obtaining products and materials from outside suppliers re7uires performing resource planning. storage and handling and 7uality assurance Also. and time phasing of components.ation. .

As Aearney Consultants '"#B>( noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity.g. warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. According to internal measures are generally collected and analyzed by the firm including "( Cost. and >( NualityO. . thus it links a marketing channel with its customers 'e. &$ 8utsourcing< Partnerships. 4( Customer Service. to manage and control this network of partners and suppliers re7uires a blend of both central and local involvement. :n physical distribution. This concerns movement of a finished productLservice to customers. This movement has been particularly evident in logistics where the provision of transport. retailers(. :t is also through the physical distribution process that the time and space of customer service become an integral part of marketing. links manufacturers. but also outsourcing of services that traditionally have been provided in&house. logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes narrower. the customer is the final destination of a marketing channel. $( 3roductivity measures. strategic decisions need to be taken centrally with the monitoring and control of supplier performance and day&to&day liaison with logistics partners being best managed at a local level. The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage and everything else it will outsource.%$ Physical 1istri'ution. )y taking advantage of supplier capabilities and emphasizing a long& term supply chain perspective in customer relationships can be both correlated with firm performance. wholesalers.ence.. 9( Asset measurement. "@ . Hot -ust outsourcing the procurement of materials and components. '$ Performance Measurement. and the availability of the productLservice is a vital part of each channel participant. As logistics competency becomes a more critical factor in creating and maintaining competitive advantage. Also.

3/F knows when to make ship and display more products at the .al&1art2s distribution centers.al&1art2s call. ROLE AND APPLICATION OF SOFTWARE(S IN SCM Supply chain management software is possibly the most fractured group of software applications on the planet. 1ost companies need to track demand.al&1art Plow. logistics 'i.ith this kind of minute&to&minute information. everyday pricesP without putting itself out of business. :f there are two companies that have made supply chain a household word. Ho need to keep products piled up in warehouses awaiting . :t lets 3/F monitor the shelves through real&time satellite link&ups that send messages to the factory whenever a 3/F item swoops past a scanner at the register. the system goes all the way to the individual . . The system saves 3/F so much in time. )or e%ample. <et2s look at consumer packaged goods for an example of collaboration. retailers shared very little information with manufacturers. reduced inventory and lower order&processing costs that it can afford to give . ach of the five ma-or supply chain steps previously outlined composes dozens of specific tasks. Some vendors have assembled many of these different chunks of software together under a single roof. )efore these two companies started collaborating back in the 2B8s. they are . )or e%ample. the system sends an automatic alert to 3/F to ship more products. manufacturing status.Corce of supply chain management is on trust and cooperation and the recognition that is properly managed 2the whole cane be greater then the sum of its part2. but no one has a complete package that is right for every company.e. :nvoicing and payments happen automatically too. They also need to share data with supply chain partners at an ever increasing rate. )ut then the two giants built a software system that hooked 3/F up to .al&1art and 3rocter / Famble.al&1art stores. supply. . .hile products from large *3 vendors like SapDs Advanced 3lanner and Eptimizer "B . where things are in the supply chain(. and distribution. :n some cases. many of which have their own specific software.al&1art store.hen 3/F2s products run low at the distribution centers.

)ut if they showed their hands they could all benefit. )efore the :nternet came along. reality isn2t 7uite that happy and cooperative. many companies decide to go with targeted best of breed products instead. the aspirations of supply chain software devotees were limited to improving their ability to predict demand from customers and make their own supply chains run more smoothly. reliable basis from all the areas of the company. The goal of these pro-ects is greater supply chain visibility. Theoretically you could assemble the information you need to feed the SC1 applications from legacy systems 'for most companies this means xcel spreadsheets spread out all over the place(. even if some integration is an inevitable conse7uence. you can connect your supply chain with the supply chains of your suppliers and customers together in a single vast network that optimizes costs and opportunities for everyone involved. ⇒ 3elationship 'et&een >3P and SCM. Ef course. 1any SC1 applications are reliant upon the kind of information that is stored in the most 7uantity inside *3 software. and manufacturers wouldn2t have to order more than they need from suppliers to make sure they have enough on hand if demand for their products unexpectedly goes up. but it can be nightmarish to try to get that information flowing on a fast. and "# . universally accepted communication standards have thrown things wide open. *3 is the battering ram that integrates all that information together in a single application. How. )ut the cheap. because each industry2s supply chain has a uni7ue set of challenges. ⇒ !oal of installing SCM soft&are=s. cooperative family. The players don2t want to show their cards because they don2t trust anyone else with the information. Suppliers wouldn2t have to guess how many raw materials to order. along with its simple. And retailers would have fewer empty shelves if they shared the information they had about sales of a manufacturer2s product in all their stores with the manufacturer. ubi7uitous nature of the :nternet. This was the reason for the )4) explosionK the idea that everyone you do business with could be connected together into one big happy.'A3E( can perform many or all of these tasks. The supply chain in most industries is like a big card game. but today most companies share at least some data with their supply chain partners.

P Ef course. =our people will need to change the way they work and so will the people from each supplier that you add to your network. They are+ 1( !aining trust from your suppliers and partners.Supply chain automation is uni7uely difficult because its complexity extends beyond your company2s walls. ⇒ 3oad'loc/s in installing SCM Soft&are=s. Applications that simply automate the logistics aspects of SC1 are less dependent upon gathering information from around the company. *3 is expensive and difficult. These days. Enly the largest and most powerful manufacturers can force such radical changes down suppliers2 throats. . )or e%ample. manufacturing status and delivery. your goals in installing the system may be threatening to those suppliers. most *3 vendors have SC1 modules so doing an *3 pro-ect may be a way to kill two birds with one stone. if you want to build a private website for communicating with your customers and suppliers. Companies will need to decide if these products meet their needs or if they need a more specialized system. There are some hurdles which come in way while installing the SC1 softwareDs in the organizations. you2ll need to have these applications communicate with *3 in some fashion. so they tend to be independent of the *3 decision.al&1art2s collaboration with 3/F meant that 3/F would assume more responsibility for inventory management. 1ost companies have to sell outsiders on the system. They call the *3 pro-ects Pputting your information house in order.SC1 applications benefit from having a single ma-or source to go to for up& to&date information. to say the least. so you may want to explore ways to feed your SC1 applications the information they need without doing *3 first. 1ost C:EDs who have tried to install SC1 applications say they are glad they did *3 first. Cor example. you will want to pull information from *3 and supply chain applications together to present updated information about orders. something retailers have 48 . :t2s important to pay attention to the software2s ability to integrate with the :nternet and with *3 applications because the :nternet will drive demand for integrated information. )ut chances are. 1oreover. payments.

they will easily find ways to work around it.traditionally done on their own. :f they are not warned about the system2s initial naivetQ 'simplicity(.There is a diabolical twist to the 7uest for supply chain software acceptance among your employees. an automaker put in an order for an unusually large number of units. they began to accept and use the new technology. -ust before a large automotive industry supplier installed a new supply chain forecasting application to predict demand for a product. #( 5nternal resistance to change. That created another problem+ Corecasters stopped trusting the system and worked strictly with their own data. you have to be willing to compromise and help them achieve their own goals. :f you can2t convince people that using the software will be worth their time. 4" . The company caught the problem but only after a demand forecaster threw out the system2s numbers and used his own. which helped 3/F manufacture its products more efficiently. and will most likely want to keep it that way. Ence employees understood that they would be merging their expertise with the system2s increasing accuracy. .al& 1art2s product demand. faxes and hunches scrawled on paper. . Eperations people are accustomed to dealing with phone calls. and then work on reestablishing employees2 confidence. )lindly following the system2s numbers could have led to inaccurate orders for materials being sent to suppliers within the chain. it isn2t much easier inside. Hew supply chain systems process data as they are programmed to do.( Many mista/es at first. The system responded by predicting huge demand for the product based largely on one unusual order. they will think it is useless. but the technology cannot absorb a company2s history and processes in the first few months after an implementation.:f selling supply chain systems is difficult on the outside. The supplier had to fine&tune the system itself. Corecasters and planners need to understand that the first bits of information they get from a system might need some tweaking.al&1art had the clout to demand this from 3/F. To get your supply chain partners to agree to collaborate with you. :n one case. but it also gave 3/F something in return&better information about . =ou cannot disconnect the telephones and fax machines -ust because you have supply chain software in place.

.⇒ Conclusions.e live in interesting times. MANAGING THE GLOBAL SUPPLY CHAIN .se of databases. <atin America / China is creating a tidal&wave of change in the competitive environment. ( turbulent markets that change rapidly and unpredictably.hat has enabled the effective implementation of supply chain managementR The answer is found from the rapid developments in information and communications technologies. 44 . Erganisations that once felt insulated from overseas low&priced competitors now find that they too must not only continue to constantly create new value for customers. Ene of the keys to success is the creation of an agile supply chain on a worldwide scale. and foremost advanced computer software are crucial for the development of a modern cost&effective supply chain management. ii. There is now widespread recognition of the role that supply chain management can play in enabling organisations to compete in volatile markets. Continuous change is a phenomenon with which the supply chains have had to cope for some time. . iii. ( ever greater rates of technological innovation in products and processes. ⇒ 7he Agile Supply Chain. ( highly fragmented 2niche2 markets instead of mass markets. )ut due to high rate of competition in todayDs market the logistics environment of the new millennium will have to contend with+ i.owever. 3owerful forces are re&shaping the global business scene+ financial and economic upheaval in the Car ast. To meet the challenge of simultaneously reducing cost and enhancing customer value re7uires a radically different approach to the way the business responds to marketplace demand. but must do so at a lower price. experience suggests that there are significant barriers both within the company and between its upstream and downstream partners in achieving the re7uired level of responsiveness across the chain as a whole. . communication systems.

iv. Cor example. ( shorter product life&cycles. :ncreasingly however these situations are tending to become fewer as the global forces we have described lead to higher levels of market volatility. The main driver for such moves often being low labour costs. The key factor is agility & rapid strategic and operational adaptation to large scale.ow do global supply chains achieve agilityR :n a sense the very process of globalisation has retarded agility.owever. many companies in their search for lower production costs have moved much of their manufacturing and assembly offshore. And all of the a'o*e to 'e achie*ed at less cost? These severe challenges mean that a new operating paradigm is needed. Agility implies responsiveness from one end of the supply chain to the other. ( growing demand for tailored products & 2mass customisation2. vi. ( the delivery of complete 2solutions2 to customers. v. unpredictable changes in the business environment. . . in particular where the product is standard and volume demand is high and predictable. :t focuses upon eliminating the barriers to 7uick response. Cigure " suggests that whilst there will still be conditions where lean concepts are appropriate. in so doing they run the risk of extending 4$ . comprising products and services. be they organisational or technical.

more volatile products. Thus we find. flexible facilities for producing less predictable. it is still the case that for many businesses the functional 2barons2 still wield significant power. companies need to adopt a number of guiding principles+& ⇒ 3emo*e the organisational 'arriers. Too many companies are hindered in their attempts to streamline their supply chains because of their out&molded organisational structures. Similarly. for instance. has followed a very similar strategy enabling it to respond more rapidly to changes in demand.their lead&times significantly thus generating the need for more inventory in the pipeline. 49 . :t is not possible to even contemplate a seamless global pipeline if there are 7uasi& independent national subsidiaries making their own decisions on sourcing. Sara. The solution has to be to re&engineer the organisation structure so that supply chains are managed on a truly integral basis with cross&functional teams being given the responsibility for managing the pipeline from source to final market. distribution facilities and inventory for example. As a result decisions are taken which are based on a narrow definition of 2optimisation2 & in other words the focus is on improving performance within a function without regard for its wider supply chain impact. :n a global marketplace this tunnel vision can lead to a damaging loss of competitiveness. Ether companies are using low cost sources of supply to manufacture products where there is a predictable demand and using more local. To overcome the potential loss of agility through extended global supply chains. Some organisations have actually sought to reverse this trend by bringing manufacturing back closer to their main markets & 0ell Computer being a case in point. that often factories are designed and built to maximise the economies of scale rather than to enhance flexibility of response. As a result their agility is reduced. the successful Spanish fashion retailer.

forward&looking organisations are taking a different view. greater levels of customer value can often be achieved at less cost to the supply chain as a whole. 3articularly as supply chains become global it will often make sense to move to a greater level of 2localisation2. This trend has been particularly observable in global corporations where there has been recognition that the complexity of managing a worldwide logistics chain re7uires specialist resources. is that they have little visibility of 2real2 demand. the final finishing or configuration of the product being performed much closer to the point of demand. As a result there is a greater willingness to out&source than was previously the case. )y working more closely with specialist providers. specialist third party logistics service providers have emerged who can now act as extensions of the company2s value chain. even going to the lengths of re&designing it so that a generic semi&finished global version could be built centrally with localisation being performed by regional partners. There is now a great opportunity to start thinking of the supply chain as a value chain.⇒ Ma/e the supply chain the *alue chain. *ather than accepting the conventional view that believes that all value&creating activities need to be conducted under the same corporate roof. ⇒ Shift the de-coupling point.ewlett 3ackard has adopted this concept for many of its products such as the 0esk Met printer. The idea that companies should focus on their core competencies is rapidly taking hold. . :n structuring cost&effective and agile global supply chains the 7uestion of where in that chain the value creation should take place becomes crucial. :n other words decisions on production and distribution are based upon forecasts or orders 'which themselves do not necessarily reflect demand but rather tend to be based on arbitrary 2rules2 such as re&order points and re&order 7uantities(. 4> . )ecause global supply chains tend to be extended with multiple echelons of inventory between the point of production and the final market place they tend to be forecast driven rather than demand driven. A ma-or problem in all supply chains. To enable this to be achieved on a global basis. but significantly worse for global business.e. i.

e. mphasis will increasingly have to be placed on creating a business model that recognises that competitive advantage is created through the management of the supply chain as a single entity rather than through fragmented. :t2s going to produce oceans of information about when and where merchandise is manufactured.hereas barcodes only identify the product. it is going to have a really big impact. . standard semi& finished products awaiting final assembly or localisation. :t2s going to create rivers of numbers telling retailers about the expiration dates of their perishable items& numbers that will have to be stored. FUTURE OF SCM The most notable is *adio Cre7uency :dentification. These decoupling points also tend to dictate the form in which inventory is held. information from the marketplace should flow as far upstream and in as close to real time as possible. cartons.The point to which real demand penetrates upstream in a supply chain is termed the decoupling point. totes and individual products in the supply chain. i. where it has been. 1anaging the global supply chain re7uires a level of agility and responsiveness several magnitudes greater than that re7uired in the old model of 2local for local2 manufacturing. *C:0 tags are essentially barcodes on steroids. financial and other enterprise systems. :n this way all the parties in the supply chain work to the same information and reduce their dependency on the forecast. inventory management. At the same time opportunities for postponing the final configuration of finished inventory should be investigated. packed and shipped. transmitted in real&time and shared with warehouse management. locally&focused decision making units. :n the lower example demand is only visible at the end of the chainK hence inventory will be in the form of finished product. *C:0 tags can tell what the product is. Cor the foreseeable future leadership in global markets will belong to those organisations that exhibit greater agility than their competitors. :n other words. cases. picked. *C:0 technology is going to generate mountains of data about the location of pallets. when it expires. :deally. Thus in the uppermost example in Cigure 4 demand penetrates right to the point of manufacture and inventory is probably held in the form of components or materials. or *C:0. whatever information someone wishes to program it with. 4? . The aim of the global supply chain should be to carry inventory in a generic form.

The benefits are divided into two parts (a) Be)e*+t. The amount of data that can be stored inside *C:0 tag ranges from few bits to " 1) for active tags. you know there are "8 items. using *C sensing as opposed to optical sensing in the case of barcodes. :f the container is e7uipped with an *C:0 tag. that container2s whereabouts can be automatically sent to . and does not re7uire physical sight or contact between readerLscanner eliminating the problems mentioned for barcodes. unlike barcodes.ga)+. *C:0 is fast. lot number. Think like you are a . reliable.idget Co. :t2s like knowing there are ". @1A7A@ :n current systems. and the terminal has an *C:0 sensor network.ith *C:0. The range of sensing *C:0 tags from a reader varies from a few centimeters to a few meters. and that information is compiled in an enterprise planning software system. .⇒ 7he a ' c(((((( 1 of 3)51. :magine a truck carrying a container full of widgets entering a shipping terminal in China. without the truck ever slowing down. their age. :t has the potential to add a substantial amount of visibility into the extended supply chain. *C:0 tags can be read automatically by electronic readers. ⇒ Aenefits. t.  Trigger alerts around inventory movement based on business rules you construct. depending on the fre7uency and the type of tags 'active or passive(.  Track discrete movement of tagged inventory. *adio fre7uency identification '*C:0( can be broadly categorized as an 2e&tagging2 technology. 4@ . you know their names. The main benefit of *C:0s is that.ith *C:0. .888 people in a city.ouldn2t that be greatR That2s the power of *C:0& the 0ATA.at+-)  Inventory Management: 1aintain a real&time view of tagged inventory as it flows through the supply chain.O. you may know there are "8 items on the shelf. *C:0 enables passive ob-ect tagging and automatic data capture. and expiration date and warehouse origin.* manager of a global corporation who remembers all the employees by their namesTT .

01e. )y 48"8. the broad adoption of *C:0 is on its way. the goal is to maximize warehouse space. t.C-).. Allowing -ust&in&time practices. *C:0 tags represent a significant step forward from traditional bar code technology and offer highly reliable data most notably. *ight now the 4B . a )ritish retailer. Therefore. allowing retailers to monitor and replenish stock levels with far more accuracy at the end of each day to make sure that every size. .S 0epartment of 0efense re7uires their suppliers to ship products with *C:0 tags from 488? onwards. style and color remains in stock.ithin the retail environment goods shrinkage is widely perceived to account for up to one per cent of stock. representing a significant dent in profit margin. (/) Be)e*+t. This will improve utilization without undermining the ease with which goods can be moved in and out.  Minimizing errors in delivery 1isdirected deliveries or incorrect orders can immediately result in on&shelf out&of&stock situations leading to reduced sales and damaged customer relationships. has -ust extended a trial in which tags are applied to suits.ith the high costs associated with storage real estate. for organizations relying on the delivery of specific components to fulfill their own order schedule. Ene example of improving customer service+ a customer could take a tagged suit to a kiosk.  Maximizing warehouse space:.  Value Innovation in customer service 1arks / Spencer. *C:0 should be ubi7uitous throughout industries. the smart tags could help to drive sales. )eyond improving efficiencies. which could then suggest a matching shirt and tie. :ndeed.  Minimizing goods shrinkage:Theft combined with imprecise inventory management can create a significant shortfall in actual versus expected goods available. shirts and ties for men. such errors can have a serious impact on customer satisfaction. the .

:nternet auctions 'for selecting suppliers. Humber and location of suppliers.two biggest hurdles to widespread *C:0 adoption are the cost of building the infrastructure and the lack of agreed&upon industry standards. third party logistics. &logisticsK ?. including demand signals. lectronic payment protocolsK $. #() 1istri'ution Strategy. work&in& process and finished goods. . warehouses and customers. etc. :ntegrate systems and processes through the supply chain to share valuable information. :nternet&based shared services manufacturingK etc. forecasts. demand forecasting. production facilities. 0() 5n*entory Management. distributors. SUPPLY CHAIN MANAGEMENT PROBLEMS Supply chain management must address the following problems+ 1() 1istri'ution Bet&or/ Configuration. direct shipment. inventory and transportation. pull or push strategies. 4# . cross docking. Nuantity and location of inventory including raw materials. Some Aey technologies which are going to change the face of SC1 in coming days are+ ". Centralized versus decentralized.(K 9.() 5nformation. 0: 'for exchange for information across different players in the supply chain(K 4. lectronic )usiness 3rocess EptimizationK >. distribution centers. Continuous tracking of customer orders through the :nternetK @.

increasing the level of service (product/spare part availability) typically means higher levels of inventory. speeding up customer response times without raising inventories. 0oing so enables a company to set expectations and properly manage this tradeoff. they must rely on effective supply chains. For any given supply chain. allowing you to maintain (or enhance) service levels with less finished'goods inventory. !owever.SUPPLY CHAIN MANAGEMENT CURRENT 2EY TOPIC TRADEOFF CURVES One of the fundamental tradeoffs in supply chain management is that between inventory levels and customer service. !ow might this wor"# $hrough effective supply chain management you may be able to reduce lead times. without costly swings from one place on the curve to another as different functional groups PfightP for either lower inventories or higher service. :ncreasingly. CURRENT SITUATION OF SUPPLY CHAIN MANAGEMENT Howadays. 4889(. Most companies have discovered their "best place" on the curve. or ris" pooling. to successfully compete in the global market and networked economy ')aziotopoulos. 3eter 0ruckerDs '"##B( managementDs new paradigms. one of the few outcomes in the constantly changing business world is that organizations can no longer compete solely as individual entities. $his would shift the curve to the right. improving customer service levels with no increase in inventory). this concept of business relationships extends beyond traditional $8 . that can lower the curve. or networks. These two responsibilities should not be separated & in fact. lowering your inventory levels without adversely affecting your customers (or the reverse. depending on what their customers re uire and what their competition offers. they should report to the same desk. %upply &hain Module SC1"8? reviews a strategy called postponement. supply chain strategies can shift the entire curve. Ene of the first steps in improving a supply chain is making sure that organizational responsibility for inventory levels and customer service are appropriately managed. $his tradeoff curve provides a perfect e(ample of how silo behavior 'in which functional areas lose sight of cross&functional optimizations( can cause problems in supply chains.

companies in a supply network concentrate on the inputs and outputs of the processes. globalization. to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities 'Scott.omack and Mones.ewlett 3ackard. Therefore. can be defined as 5a group of semi&independent organizations. has led to changes in coordination among the members of the supply chain network 'Coase. there have been few changes in business environment that contributed to the development of supply chain networks. . particularly the dramatic fall in information communication costs. 1any researchers have recognized these kinds of supply network structure as a new organization form. a paramount component of transaction costs. 5 xtended nterprise6. with the complicated interactions among the players. 5Iirtual Corporation6.owever. "##@K 1onden. "###(. and 5Hext Feneration 1anufacturing System6 '0rucker. 0uring the past decades. following the earlier 5Must&:n&Time6. "##$(. This inter&organizational supply network can be acknowledged as a new form of organization. "##B(. as an outcome of globalization and proliferation of multi&national companies. the network structure fits neither 5market6 nor 5hierarchy6 categories '3owell. technological changes. "##?K 0ilts. :n general. "##BK Tapscott. Cirst. "###(. with little concern for the internal management working of other individual players. Second.enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. :n the 4"st century.elper. :t is not clear what kind of performance impacts different supply network structures could have on firms. "#@#(. 4889(. 5<ean 1anagement6 and 5Agile 1anufacturing6 practices '1ac0uffie and . such structures. and little is known about the coordination conditions trade&offs that may exist among the players. the choice of internal management control structure is known to impact local firm performance '1intzberg. Flobal 3roduction Hetwork6. outsourcing and information technology have enabled many organizations such as 0ell and . which $" . -oint ventures. "##8(. "##$K . a complex network structure can be decomposed into individual component firms 'Shang and 0ilts. using terms such as 5Aeiretsu6. strategic alliances and business partnerships were found to be significant success factors. "##?K Funasekaran. each with their capabilities.Crom a systemDs point of view. Traditionally.

488"(.collaborate in ever&changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration6 'Akkermans. $4 .

A) !igh Inventory "evels: Total average inventory holding at )S*s was B.ation Aac/ground. $$ . is a leading consumer 3roducts Company dealing in cosmetics and personal care products with its head office located at <ondon '. The expert found out some discrepancies which are as follows.CASE STUDY 1 MATRI3 LABORATORIES (INDIA) LTD$ This study focuses on the inventory&related issues at bonded stock rooms ')S*Ds( and depots in a huge supply chain network of a leading consumer products company dealing in cosmetics and other personal care products.. The company had a supply chain network of $ factories with bonded stock rooms ')S*( attached for despatch to the depots and $> depots for servicing distributors. ⇒ 8rgani. 1atrix <aboratories ':ndia( <td.4 weeks of sales and at depots was ?. Ether depots receive stocks from the 1other depot and sell them to distributors.A(. 1$ To reduce inventory level at the )S* and depots. )S* dispatches stocks to 1other CCAs 'depot(. The company appointed an external Supply Chain expert from .S to help them out of their problems stated above. ⇒ )indings. !$ To improve inventory accuracy at stocking points including both )S*s and "$ depots. ⇒ Cey Concerns for the Company. Foods move from the factory to the )S*.> weeks of sales. To identify the damaged stocks across the chain and initiate action in a timely manner.

Communication of details of dead stocks to the relevant teams was based on manually filed reports which were time&taking and open to error. Ho system was in place to monitor and correct the same during the year. The process to monitor and act on dead stocks was not adhered to.  Stocking across all points in the distribution chain was driven by a push&oriented system that did not have provisions to be tuned to market re7uirements. *) Inaccuracy in inventory records: The organisation did not have a clear policy on periodic reconciliation of physical stock with book records. in line with market feedback. 4. $9 . Thus inaccuracies grew over time. 0ead stocks were allowed to accumulate in the system mainly because+ ". compounded with process failure on accounting for dead stocks. *ecords of slow&moving L old Lwithdrawn L damaged stocks were not maintained methodically at the stocking points.  Stock allocation from depots was manual. 9.igh inventory of oldLwithdrawn stocks and damaged stocks for a long time 'over $ months( )ook and physical stocks had discrepancy of over $8U. There was an absence of visibility into inventory details across stocking points. $.They were very high across the distribution chain because+  Sales and despatch forecasts that were not in line with actual primary L secondary sales.  There was no process to periodically review and refine the Annual Corecasts. Erders received from distributors were manually processes and no process was in place to automatically collate orders and allocate stocks.  Actual safety stocks maintained at depots were significantly higher that target safety stocks agreed at the beginning of the year. #) !igh "evels o$ %ld & 'ithdrawn &(amaged & )low-moving stocks+ 0epots were holding . *ecords were inaccurate.

The expert advised and undertook some steps in the organization as follows+  )in card system was implemented for each rack at the CCAs and the delivery staff was trained in relevant bin card maintenance practices. $> .  An :T solution was identified and implemented for+ ∗ ∗ ∗ ∗ ∗ ∗ Accounting the Cycle count process. The process of setting safety stocks at depots was made periodic and dynamic. Clear action steps were laid down to li7uidate or destroy these stocks.  A process to regularly reconcile physical and book stocks using the cycle& count process was implemented.  0emand planning and forecasting were made a periodic activity using the above :T solution to align forecasting with market orders and actual sales.  *esponsibility and accountability were set to in the organisation to monitor and authorise activities in this regard based on visibility provided by the :T solution. Automatically allocating stocks using C:CE principle at the depots. providing 1:S on deviations and accounting the ad-ustment notes. Calculating safety stock level based on number of weeks of sales target. with factoring for promotions and seasonality.  Horms were set to act on damaged Lold and other dead stocks. Computing the forecast using consolidated orders. based on updated sales data. Cacilitating communication of closing stock data from )S* and depots to logistics department.⇒ Action Steps Dnderta/en. Cacilitating communication of damaged and un&saleable stock 7uantity to commercial department.

( Stock level reduction  Crom B.( *eduction in proportion of old and damaged stocksK 'iii. stock management and product development fronts to reduce damages.> weeks at the )S*. 'c( Transparency of saleable and damaged stocks 7uantities across the supply chain resulting in more accurate demand planning. stock allocation and production. This was achieved mainly by reducing inventory levels across the chain and also by better stock management at the depots.⇒ Aenefits. 0ue to above steps were implemented properly the results were fascinating and this increased the profits of the company by 48U. 'ii.  Timely action on transport.  Timely destruction of unusable and potentially harmful products. 'i.()etter management of damaged and un&saleable stocks+  Sales realisation on salvaging and selling damaged stocks at a discounted price. handling.> weeks to 9 weeks at the depots which included damaged inventory.ithin 43lanning cycles i. 'a( The organisation achieved an inventory record accuracy 'book stocks correctly reflecting physical stocks( of #>U within 4 months .4 weeks to >. 4 1onths( 'i. $? . 'b( The company achieved '.e.  Crom ?.  *eduction in stock value holding across the supply chain.( Cacilitation of ensuring fresher stocks in the market.

<ogistics 0istribution / Transportation and Supply Chain :ntegration. ix. ii. Erder 1anagement. The Supply Chain 1anagement solutions and services help manage and optimize the many facets of Supply Chain 3lanning. Supplier Collaboration.CASE STUDY ! INFOSYS( SCM SOFTWARE SOLUTIONS :nfosys2 Supply Chain 1anagement solutions help organizations in creating strategic differentiation and operational superiority by configuring and implementing solutions that are aligned with the elements of organizationDs competitive strategy. 1anufacturing 3lanning and Scheduling. v. Track and Trace. :nfosysD supply chain management solutions include+ i. iii. (i() 7he Client.ith sales of almost . . Sourcing / 3rocurement.S0 V> billion.arehouse 1anagement. . vi. The client is a global leader in pressure&sensitive technology. faster roll&outs and de&risked upgrades of the highest 7ualityK all delivered with the on&time. 1oreover the organization can recover their investments earlier. This is because of the Pextended work dayP concept of the Flobal 0elivery 1odel 'F01(. Hetwork 0esign and Eptimization. :nventory Eptimization. vii. Collaborative Iendor 1anaged :nventory 'I1:(. 3rocurement 1anagement. iv. :nfosys2 Flobal 0elivery 1odel 'F01( also reduces the Total Cost of Ewnership 'TCE( by cutting operational costs to the tune of anything between 48&$>U. self& adhesive base materials. the client is best known for its office automation and $@ . on&budget. viii. Sales and Eperations 3lanning. Culfillment 1anagement. which :nfosys pioneered. The results are+ robust implementations. and on&spec industry& benchmark of :nfosys 3redictability. and self&adhesive consumer and office products and specialized label systems and ranks among the Cortune >88.

(iii() 7he 5nfosys Solution. automated retail tag and labeling systems. user productivity and forecast accuracy. and hence more cost&effective. *adio Cre7uency :dentification '*C:0( labels.(. and a key component of supply chain management is accurate forecasting and demand planning. reflective and graphic materials. The team then came up with 49 recommendations for improvement of utilization. (ii() Ausiness Beed and Challenges. :t wanted to move towards a demand planning model that was based around collaborative and consensus forecasting. These recommendations were analyzed from two aspects viz. peel&and&stick postage stamps. Specifically. 2ease of implementation2 and 2delivered business value2 to arrive at the priority classification for implementation. To facilitate this.consumer products. specialty tapes and chemicals. label stock and related services and systems. The :nfosys team conducted diagnostics to identify issues with current implementation and potential opportunities to optimize the system. reducing supply chain costs. the client had been looking at forecasting the . :nfosys was engaged to conduct diagnostics to identify issues in 03 implementation and to tune&up the overall forecasting process. the office products division of the client had already implemented i4 0emand 3lanning '03(. industrial labeling solutions. and most importantly. clubbed under four Clusters with an ob-ective to improve forecasting process. self&adhesive materials. Cor the client. The client was looking for a way to make its supply chain more streamlined. the :nfosys team was asked to implement eight of the statistical modeling initiatives. but poor forecast accuracy and sub&optimal forecasting process took its toll on overall system efficiencies and diminished user confidence. :n the second phase. focusing on customer service.nit 'SA. success re7uired managing short product lifecycles. Eptimized supply chain management is crucial for the success of companies in this industry. user productivity 'by making the system user friendly and flexible( and implementing various advanced $B . An :nfosys team was deployed to identify the re7uisite improvements with a 7uick turn round time of > weeks.S sales for each Stock Aeeping .

 :ncreased forecast accuracy & rror reduction by 4U and bias improvement by Bmn units over the year. implementing. The importance of this area is shown by a significant spurt in research in the last five years and also proliferation of supply chain solutions and supply chain companies. CONCLUSION Supply chain management 'SC1( is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. (i*() Aenefits.  A sustainable and repeatable knowledge base through user education and training. and controlling the operations of the supply chain with the purpose to satisfy customer re7uirements as efficiently as possible. All ma-or *3 companies are now offering supply chain solutions as a ma-or extended feature of their *3 packages. $# .  A roadmap for future enhancements. The above scope was completed within a short span of four months leveraging the :nfosys2 Flobal 0elivery 1odel with significant productivityL process improvements. reducing hours of manual work. and finished goods from point&of&origin to point& of&consumption. Supply chain management has emerged as the new key to productivity and competitiveness of manufacturing and service enterprises.features of 03 that were not being used. work&in&process inventory.  Clexible process to manage historical data cleansing and accounting for future promotions. :t is the process of planning.  :ncreased user confidence by making the process more transparent and flexible.  nhanced version management capability. Supply chain management spans all movement and storage of raw materials.

wikipedia.orgLwikiLSupplyXchainXmamagementY 9.&Ceb. T.aspY 4. Hotes of H1:1S.orgLwikiL0emandXchainXmanagementY 3eference 'oo/s. Whttp+LLwww. Whttp+LLen.):)<:EF*A3.arrison. 4. F. and <. Flobal Supply Chain 1anagement at 0igital 7uipment Corporation.= Ee'sites *isited. Trafton.wikipedia.comLindex. ). "##>. .comLservicesLpackaged& applicationsLsupplyXchainXmanagementXhome. ". )rown. F. 98 . 3.htmlY $. Whttp+LLen. "... C.lancoglobal.infosys. Man. Whttp+LLwww. :nterfaces. Arntzen.