PROJECT BASED LEARNING REPORT

ON

Supply Chain Management

MASTER OF BUSINESS ADMINISTRATION

Submitted To: Submitted By:

Pramod kumar shrivastava Shantanu Chaudhary
18GSOB2010038

MBA Batch 2 ,Sem 2

SCHOOL OF BUSINESS
 CERTIFICATE FROM FACULTY GUIDE

This is to certify that the research report entitled “A REPORT ON SUPPLY

CHAIN MANAGEMENT” has been prepared by SHANTANU CHAUDHARY
under my supervision and guidance. This research report is submitted towards the
partial fulfillment of two year full time Master of Business Administration.
Prof. Pramod kumar

Date: 15/04/19
 ACKNOWLEDGEMENT

I am grateful to Prof. Pramod kumar, Faculty Guide, Galgotias University

for her valuable support at all time and provided me all necessary information
through out of my research report has been successfully completed.

I am thankful to all those people who has supported and provided me all the
necessary information throughout this research report completed.

SHANTANU CHAUDHARY
18GSOB2010038
MBA Batch-2
 “Definition of Supply Chain Management”
“A supply chain is a network of manufacturers, suppliers, distributors,
transporters, storage facilities & retailers that perform functions like
procurement & acquisition of material, processing &transformation of
the material into intermediate & finished tangible goods, & finally, the physical
distribution of the finished goods to intermediate or final customers.”

A firm’s supply chain includes both its upstream supplier networks &
the downstream distribution networks, apart from its internal functional
departments.
 Origin of Supply Chain Management

Supply Chain Management existed for some time before it started to be

used as a description of any computer system. The Japanese work out the
concept of JIT in electronics & automobile industries which has brought up
revolution in the field of production & inventory control due to “pull
system”
 Introduction

Supply Chain Management is the network consisting of Customers, Retailers,

Distributors, Manufacturer and Supplier. It is a network of organizations
that are having linkage both upstream &downstream in different
process & activities. Every interface in the supply chain represents
movement of goods, information flow, transfer of documents and purchase &
sale.
 Flows in Supply Chain Management

 Material flows
Involve physical product flows from suppliers to customers through the
chain, as well as the reverse flows via product returns, servicing
recycling & disposal.

 Information flows:
Involve demand forecast ,order transmission & delivery status reports.

 Financial flows:
Involve credit card information, credit terms, payment schedules &
consignment & title ownership arrangements.
 Types of Supply Chain Management

 Pull-based SCM:
Pull-based SCM is also known as modern approach to SCM.It is known as
demand supply network. In this approach, the actual consumption pulls
distribution, which in turn pulls production, in term pulling material supply.

 Push-based SCM:
Push-based system is also known as traditional approach to SCM. In this
approach, materials & products are flowing from supplier to consumer, via
production & distributor unit
 Components of Supply Chain Management

A Supply chain may consist of a variety of components depending on

the business model selected by a firm. A typical supply chain
consists of the following components:

 Customers

 Distributors/Retailers

 Manufacturers

 Suppliers
CUSTOMERS

The customer forms the focus of any supply chain. A customer activates the
Processes in a supply chain by placing an order with the retailer. The customer
order is filled by the retailer, either from the existing inventories, or by
placing afresh order with the wholesaler/manufacturer. In some cases a
customer bypasses all these supply chain components by getting in touch with
the manufacturers directly. For example: In the case of an online
purchase of computer from dell computers, the customers place an order
directly with the manufacturers.

RETAILERS/ DISTRIBUTORS

The retailer acts as a link between the customers and the

distributors/manufacturers. He caters to the needs of the customer by
making the products available at his store. As part of this process,
retailer places order with the manufacturers to replenish the stock.

MANUFACTURERS

The manufacturer plays a key role in deciding the structure of a supply

chain. Depending on the market situation, the manufacturer either uses the
pull or the push strategy to generate demand required for the
movement of products in the supply chain. The manufacturer then plans for
a production schedule depending on the resultant demand.
SUPPLIERS

Suppliers facilitate the manufacturers Production process by ensuring

continuous supply of raw materials. Manufacturers place orders with suppliers
on the basis of forecasted customers demand. Since it is very difficult
to forecast demand accurately, manufacturers try to integrate their
processes with those of the suppliers to be in a better position to respond
to fluctuation in customer demands. Suppliers help manufacturers to decrease
their inventory levels by arranging for just in–time supplies.
SCM includes the following functions

 Supplier management:

The goal is to reduce number of suppliers & get them to become partners in
business relationship. The benefits are reduced Purchase order (PO)
processing cost, increased numbers of purchase orders processed by
fewer employees & reduced order processing cycle times.

 Inventory management:

The goal is to shorten the order-ship-bill cycle. The inventory

management solution enables the reduction of inventory levels, improves
inventory turns & eliminates out-of-stock occurrences.

 Distribution management:

The goal is to move documents related to shipping (purchase order,

advanced ship notices etc.). Paperwork that typically took days to cycle in
the past can now be sent in moments & contain more accurate data, thus
allowing improved resource planning.
  Channel management:

The goal is to quickly disseminate information about changing

operational conditions to trading partners. Electronically linking
production with their international distributor & reseller networks
eliminates thousands of labor in the process

 Payment management:

The goal is to link the company & the suppliers &distributors so that
payments can be sent & received electronically.

 Financial management:

The goal is to enable global companies to manage their money in various

exchange accounts. Companies must work with financial institutions to
boost their ability to deal on a global basis.

 Sales force productivity:

The goal is to improve the communication & flow of information among the
sales, customers & production functions.
Objectives of Supply Chain Management
The prime objective of SCM is to reduce or eliminate the buffers of
inventory that exists between organization in a chain through the sharing of
information on demand & current stock level.

 Solving supplier's problem and beyond his level.

 Customers service performance improvement.

 Reduction of pre and post production inventory.

 Minimum total cost of operations & procurement.

 Product quality control.

 Achieving maximum efficiency in using labor, capital & plant

throughout the company.

 Flexible planning & control procedures.

 Supply Chain Management & Vertical
Integration

Skims not the same as vertical integration. Vertical integration normally

implies ownership of upstream suppliers & downstream customers. Earlier
vertical integration used to be desirable strategy increasingly the
companies are focusing on their core business i.e. activities that they do really
well & where they act a differential advantage.

SCM raise the challenges of integrating & coordinating the flow of material
from multitude of suppliers & similarly managing the distribution of
finished products by way of multiple intermediaries.
Transferring cost upstream & downstream leads to logistics “MIOPIA”
as all
cost ultimately will make way to the final market place to be reflected
in the price paid by the end users.
Advantages of Supply Chain Management

 Benefits to the Customers:

The customer will get benefits by dealing with a well managed vendor
due to an effective supply chain organization in place are as follows: Natural
benefits will come due to consideration of the problems supplier &further
back supplier and their involvement in the process of developments.

 Improved customer service through fewer shortages.

 Improved product cost.

 Better delivery performance.

 Quicker response to changes in demand.

 Optimal purchase cost due to possibility of long-term purchase

contracts.
 Benefits to the Company:

 Reduction in tied-up capital & administrative costs due to

reduction/elimination of inventory at all levels.


 Reduction in time & money lost through production line stoppage.

 More flexibility in planning.

 Sustained growth of sales & company business.

 Increased shareholder value.

Example of Supply Chain Management

Coca Cola SCM

The Coca-Cola System (C.C.S):

 Sells over 1 billion servings of our beverages daily in over 200 countries.

 Produces in over 860 facilities located in over 150 countries.

 Employs more than 300,000 people.

 Targeting assessments at over 10,000 supplier facilities globally.

The Coca-Cola system’s Manual Distribution Center
(MDC) model, which is currently being implemented in various forms in
some 25 countries around the world, offers an interesting distribution
example.

 The Coca-Cola Company has made the MDC model a key component of
its public commitment to the Business Call to Action, an initiative
launched by the British Prime Minister Gordon Brown in 2007.

 Coca-Cola Company (CCC) is the largest non-alcoholic beverage

company in the world, manufacturing nearly 500 brands and 3,000
beverage products, and serving 1.6 billion consumers a day.

 In the 200 countries and territories in which it operates, CCC

provides beverage syrup to its bottling partners, who then
manufacture, package, distribute and sell products for local
consumption.
 CCC has more than 300 bottling partners worldwide, which are local
companies that are either independently owned or partially or fully
owned buck.

 It has had a presence in Africa since 1928 and today is one of the
continent’s largest private sector employers, operating about 160 bottling
and canning plants through its local bottling partners and working
with more than 9,00,000 retail outlets.

 CCC and its bottling partners (collectively known as “the Coca-

Cola system”) are renowned for their ability to make their products
available to consumers in even the most remote locations.

 In the most developed, urban parts of the continent, the system uses the
more traditional model of supplying large retailers such as grocery
stores, hotels, universities, and other institutions using delivery
trucks.