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Supply Chain Management

Submitted by:
Muhammad Qasim
Reg - No 2143812
MBA - 1th Semester
Section - (A)
Submitted To:
Sir Mudassir Aziz

National College of Business


Administration and Economics

Supply Chain Management


Define supply chain management.
Supply Chain Management (SCM) includes all the activities that must take place to get the right product
into the right consumers hands in the right quantity and at the right time from raw materials extraction to
consumer purchase. SCM focuses on planning and forecasting, purchasing, product assembly, moving, storage,
distribution, sales and customer service. SCM professionals are involved in every facet of the business process
as they strive to achieve a sustainable competitive advantage by building and delivering products better, faster
and cheaper.

Value of Supply Chain Management in Modern business.


Supply Chain Management (SCM) is an essential element to operational efficiency. SCM can be
applied to customer satisfaction and company success, as well as within societal settings, including medical
missions; disaster relief operations and other kinds of emergencies; cultural evolution; and it can help improve
quality of life. Because of the vital role SCM plays within organizations, employers seek employees with an
abundance of SCM skills and knowledge. Supply chain management is critical to business operations and
success for the following reasons.

SCM is Globally Necessary


Basically, the world is one big supply chain. Supply chain management touches major issues, including
the rapid growth of multinational corporations and strategic partnerships; global expansion and sourcing;
fluctuating gas prices and environmental concerns, each of these issues dramatically affects corporate strategy
and bottom line. Because of these emerging trends, supply chain management is the most critical business
discipline in the world today.

SCM in Business
Clearly, the impact that SCM has on business is significant and exponential. Two of the main ways SCM
affects business include:
Boosts Customer Service
SCM impacts customer service by making sure the right product assortment and quantity are delivered in a
timely fashion. Additionally, those products must be available in the location that customers expect. Customers
should also receive quality after-sale customer support.
Improves Bottom Line
SCM has a tremendous impact on the bottom line. Firms value supply chain managers because they decrease
the use of large fixed assets such as plants, warehouses and transportation vehicles in the supply chain. Also,
cash flow is increased because if delivery of the product can be expedited, profits will also be received quickly.

SCM in Society
Supply chain management is necessary to the foundation and infrastructure within societies. SCM
within a well-functioning society creates jobs, decreases pollution, decreases energy use and increases the
standard of living. Two examples of the effect of SCM within societies include:
Hurricane Katrina 2005
In 2005, Hurricane Katrina flooded New Orleans, LA, leaving residents without access to food or clean water.
As a result, a massive rescue of the inhabitants had to be made. During the first weekend of the rescue effort,
1.9 million meals and 6.7 million liters of water were delivered.
Foundation for Economic Growth
A society with a highly developed supply chain infrastructure that includes interstate highways, a large railroad
network, ports and airports is able to trade many goods at low cost. Business and consumers are able to obtain
these goods quickly, resulting in economic growth.

Example No:1

Coca-Cola Enterprises
Challenge:
Required a more modern and
consistent supply chain
Needed a consistent process
to assist with acquisitions

Wanted to better integrate manufac-

A Modern Supply Chain for a Classic Beverage


When it comes to the worlds most powerful brands, Coca-Cola is still number one.
The iconic beverage maker, which has dominated the global soft drink market for
more than a century, continued its 12-year reign at the top in 2011, according to
Interbrands latest global rankings.

turing and retail operations

Solution:
Deploy SAP ERP
Outsource applications to CSC

Results:
Implemented a new supply
chain process featuring increased
automation
Brought newly acquired operations
online more quickly
Can see linked supply-and-demand

For Coca-Cola, achievements like this are byproducts of a vision and an operating
framework that is built on excellence. At Coca-Cola Enterprises (CCE), the
exclusive Coca-Cola bottler for its territories in Western Europe, the companys goal
is to be the number 1 or strong number 2 choice in every category it competes in.
But on the road to long-term, sustainable growth, CCE faces similar challenges to
many other manufacturing and logistics businesses. A top priority is replacing
dated systems with a modernized platform across markets to create a cohesive
view of metrics and streamlined processes.
Bottling iconic brands in Europe
CCE is one of the worlds largest marketers, producers and distributors of Coca-Cola
products. CCE buys concentrate from The Coca-Cola Company and combines it with
other ingredients to create some of the most popular beverages in Belgium, Great
Britain, France, Luxembourg, the Netherlands, Norway and Sweden.

data as a single system

In 2010, CCE completed a significant transaction with The Coca-Cola


Company, selling its North American operations, while retaining its European
territories and acquired new bottling rights for Sweden and Norway.
CCEs executives recognized that establishing a uniform IT program across all of
its business units would be critical for expanding CCEs footprint in Europe.

Filling a gap between supply and demand


The Genesys program is an integrated SAP Enterprise Resource Planning (ERP) solution that will
replace CCEs legacy systems in the processes of order to cash, requisition to payment, and record
to report. Genesys will allow CCE to shorten cycle time in these processes and be more productive. It
will also help bring more visibility into the business and improve decision making.
We are a shelf-replenishment company, a supply chain company, a sales and customer services
company, says Esat Sezer, senior vice president and chief information officer of CCE. It is very
important for us to integrate our manufacturing plants all the way up to the replenishment of shelves in
the retail outlets. Through the information side of the equation, we are basically tying those two ends of
the business process together: the manufacturing side, which drives the supply of our product, and the
shelf-replenishment side, which drives the demand part of our product.

CSC is playing a major role in expediting the delivery of Genesys across CCEs operations, allowing
CCE to deploy Genesys at multiple-country locations at a much faster pace than if CCE had forged ahead
alone.
There are a lot of technology areas that require some capacity that we might not have or some
technology areas that we might not have the knowledge about, says Sezer. So whenever we have those
knowledge gaps, we turn to our strategic partner CSC to fill in. Whenever an accelerated deployment
need arises, we leverage
CSC, and we can generate value much more quickly.

CCE Supply Chain at a Glance


Produces 11 billion bottles and cans at 17 plants, 96 production lines and 21 warehouses.
Serves more than 1 million customers with 1.7 million-plus deliveries.
Refreshes 170 million consumers annually with 30 billion servings.
It is very important for us to have a set of consistent standards and processes, so that
when we acquire and integrate new territories into our business we can easily put those
practices in place in a short time, says Kemal Cetin, vice president of European
deployment at CCE.

Driving regional expansion with IT


As part of its Genesys program, CCE set out to deploy a new supply chain management solution at all 17
of its European plants. The new system would replace and automate many of CCEs supply chain
processes and required new skill sets to ensure the required speed of deployment.
CCE needed a partner to help deliver this new SAP-enabled business transformation. This would
involve not only delivering a technology solution, but also training users on the new processes to
ensure the full benefits were realized.
CSC was selected because it has combined a strong front office business transformation and change
management consulting capability with a back office technology delivery capability for CCE since
2008. Prior to Genesys, CSC had already been supporting CCEs applications with SAP, including order
processing, manufacturing, financial transactions, human resources, procurement and other related
processes.
We started Project Genesys not as an IT project, but as a business transformation project to enable
CCEs day-to-day business to work in a harmonized way, says Cetin. Since CSC knew our processes,
people and solutions, we thought that would carry over very well into the deployment process, and
especially from an acceleration perspective, because the learning curve would be relatively short.
Beyond that, Cetin adds, CSC has very experienced and capable people from an implementation
perspective. And, we needed to make sure the cost-quality equation worked for us. CSC met our criteria
and satisfied us from that perspective as well.

How driving forces changing business Landscape.


Change has always been a constant in the business world. Yet in recent years it has hit us
with an unprecedented speed and intensity. The forces shaping our world today are
immense, complex, surprising and challenging.
More than ever, our prosperity as organizations, societies and individuals depends on the
extent to which we can adapt to these forces and deploy them to our advantage.
In the current economic climate, we may be tempted to focus our attention only on
immediate, fast-changing events, but we cannot afford to ignore longer-term trends if we
want to be positioned for market leadership in the future.

Five Driving Forces


1.
2.
3.
4.
5.

The Empowered Consumer


Power Shift in the Supply Chain
Deregulation
Globalization
Technology

1. The Empowered Consumer


The idea involves letting consumers take control of variables that are conventionally
pre-determined by marketers: product characteristics, place of access, exposure to
advertisements or product information, and even price. Consumers can shape the
marketing interaction, making it more relevant for themselves, and this should lead
to greater involvement and responsiveness.
Empowerment is sometimes captured in the slogan "get what you want, when you
want it, where you want it, on your own terms."

2. Power Shift in the Supply Chain


Consumers demand constant innovation, new products, functions and features every
quarter for all time. Consumer technology companies have to deliver on those
expectations because consumers have greater choice. Consumers make technology
choices more often, and consumers have a lower sunk cost that commercial firms.
Consumers move in and out of technologies at a torrid pace giving market innovators
constant opportunities. For example, consumers will switch cell phone carriers to get
the latest and greatest device, even if they have to pay a cancellation fee. It is hard to
imagine people changing ERM/CRM or Supply chain technologies at such a rate for
obvious reasons.

3. Deregulation
Greatly reducing government regulation in order to allow freer markets to create a
more efficient marketplace. After the stock-brokerage industry was deregulated in
the mid-1970s, commissions were no longer fixed. After the banking industry was
deregulated in the early 1980s, banks were given greater freedom in setting interest
rates on deposits and loans. Industries such as communications and transportation
have also been deregulated, with similar results: increased competition, heightened
innovation, and mergers among weaker competitors. Some government oversight
usually remains after deregulation.

4. Globalization
Process by which the experience of everyday life, marked by the diffusion of
commodities and ideas, is becoming standardized around the world. Factors that have
contributed to globalization include increasingly sophisticated communications and
transportation technologies and services, mass migration and the movement of
peoples, a level of economic activity that has outgrown national markets through
industrial combinations and commercial groupings that cross national frontiers, and
international agreements that reduce the cost of doing business in foreign countries.
Globalization offers huge potential profits to companies and nations but has been
complicated by widely differing expectations, standards of living, cultures and
values, and legal systems as well as unexpected global cause-and-effect linkages.

5. Technology
In order to stay competitive globally and remain on the cutting edge of a complex
business world, more companies are incorporating technology into their supply chain
management systems today. In recent years, consumers have become increasingly
demanding, setting their expectations high when it comes to quality and service. At
the same time, supply chain managers have come to realize that the latest technology
can help them ensure better accountability and visibility, allowing them to maintain
tight control and stay ahead of the pack.
Todays technology has extensive capability when it comes to keeping a companys
production on track, anticipating and repairing mistakes, and making modifications
that guarantee a top-quality product. Every link in the supply chain can be monitored
simultaneously, and automated notification systems are especially valuable for
sending a single message to many players through a variety of media channels.
Computerized shipping and tracking, and electronic invoicing, are also core
components of a modern supply chain management system that is designed to keep
customers satisfied.