Geethanjali College of Engineering and Technology

Cheeryal (V), Keesara (M), Medchal District – 501 301 (T.S)

SUPPLY CHAIN MANAGEMENT

Course File

DEPARTMENT OF
COMPUTER SCIENCE AND ENGINEERING

Faculty HOD-CSE
G.Vijaya Lakshmi Dr. Sri Lakshmi
Asst.Professor
 Contents
S.No Topic Page. No.
1 Cover Page
2 Syllabus copy
3 Vision of the Department
4 Mission of the Department
5 PEOs and POs
6 Course objectives and outcomes
7 Brief notes on the importance of the course and how it fits into the curriculum
8 Prerequisites if any
9 Course mapping with POs
10 Instructional Learning Outcomes
11 Class Time Table
12 Individual time Table
13 Lecture schedule with methodology being used/adopted
14 Detailed notes
15 Additional topics
16 University Question papers of previous years
17 Question Bank
18 Assignment Questions
19 Unit wise Quiz Questions and long answer questions
20 Tutorial problems
21 Known gaps ,if any and inclusion of the same in lecture schedule
22 Discussion topics , if any
23 References, Journals, websites and E-links if any
24 Quality Measurement Sheets
A Course End Survey
B Teaching Evaluation
25 Student List
26 Group wise students list for discussion topic
 1. Cover Page
GEETHANJALI COLLEGE OF ENGINEERING AND TECHNOLOGY
DEPARTMENT OF COMPUTER SCIENCE & ENGINEERING

(Name of the Subject) 16MB3203- SUPPLY CHAIN MANAGEMENT

Programme : UG

Branch: CSE Version No: 1

Year: III Created on: 17/11/2018
Semester: II No. of pages :112

Classification status (Unrestricted / Restricted )

Distribution List :
Prepared by:
1) Name: G.Vijaya Lakshmi 
2) Sign :
3) Design: Asst. Prof
4) Date :

Verified by : * For Q.C Only.

1) Name: 1) Name:
2) Sign: 2) Sign:
3) Design: 3) Design:
4) Date : 4) Date :

Approved by: (HOD ) 1) Name : Dr.Sri Lakshmi

2) Sign:
3) Date:
 2. Syllabus
GEETANJALI COLLEGE OF ENGINEERING AND TECHNOLOGY (Autonomous)
Cheeryal (V), Keesara (M), R. R. dist-501 301, Telangana State

20MB32076- SUPPLY CHAIN MANAGEMENT

III Year. B. Tech. CSE - II Semester L T P/D C
Pre requisites: None 3 - - 3
Course Objectives: Develop ability to:
1. Distinguish the different functional areas in businesses management, understand the cross functional
integrations and map supply chains of various business sectors.
2. Identify different types of distribution/ modes of transport/ network design.
3. Analyze the operational issues in SCM.
4. Recognize the drivers of supply chain.
5. Interpret the importance of relationships with suppliers and customers.
Course Outcomes:
At the end of the course, student would be able to:
CO 1: Understand the role of an Engineer as well as Manager in Supply chain management
CO 2: Appreciate the importance of logistics in integrating different functional areas.
CO 3: Integrate operations with functional areas.
CO 4: Visualize the role of logistics and distribution as supply chain drivers
CO 5: Understand the importance of supplier and customer relationship management.

Unit I: Introduction to Supply Chain Management

Understanding the Supply Chain, Supply Chain Performance: Achieving Strategic Fit and Scope
including: Customer and Supply Chain Uncertainty, Competitive and Supply Chain Strategies, Product
development strategy, Marketing and sales strategy, Supply chain strategy, Scope of strategic fit; Supply
Chain Drivers and Metrics.

Unit II: Logistics Management

Designing distribution networks and applications to e-Business, Network design in the Supply Chain,
Designing global supply chain, network design, 3 PL, 4 PL, Transportation in supply chain
management.

Unit III: Planning and managing inventories

Managing Economies of Scale in a Supply Chain: Cycle Inventory, Managing Uncertainty in a Supply
Chain: Safety Inventory, Determining the Optimal Level of Product Availability. Demand Forecasting in
a Supply Chain, Aggregate Planning in a Supply Chain, Sales and Operations Planning: Planning
Supply and Demand in a Supply Chain, Coordination in a Supply Chain. E- Procurement, Global
alliances.

Unit IV: Managing Cross-Functional Drivers in a Supply Chain 

Importance of sourcing decisions in Supply Chain Management, Price and Revenue management, role
of Information Technology in a Supply Chain, Sustainability and the Supply Chain. Customer
Relationship management.

Unit V: Logistics and supply chain relationships

Identifying logistics performance indicators- channel structure- economics of distribution- channel
relationships- logistics service alliance. Managing global logistics and global supply chains: Logistics in
a global economy- Views of global logistics- global operating levels interlinked global economy. Global
supply chain, Supply chain management in Global environment Global strategy- Global purchasing-
Global logistics- Global alliances- Issues and Challenges in global supply chain management.

Text Books:
1. Sunil Chopra, Peter Meindle, D.V Kalra, Supply Chain Management 6/e, Pearson
2. Donald J. Bowersox and David J. Closs, Logistics Management: The Integrated Supply Chain
Process, TMH, 2006.
3. Sridhara Bhat: Logistics and Supply Chain Management, EXCEL, 2009

Reference:
1. The Toyota Way Paperback by Jeffrey Liker
 3. Vision of the Department

To produce globally competent and socially responsible computer science engineers contributing to the
advancement of engineering and technology which involves creativity and innovation by providing
excellent learning environment with world class facilities.

4. Mission of the Department

1. To be a center of excellence in instruction, innovation in research and scholarship, and service to

the stake holders, the profession, and the public.

2. To prepare graduates to enter a rapidly changing field as a competent computer science engineer.

3. To prepare graduate capable in all phases of software development, possess a firm understanding of
hardware technologies, have the strong mathematical background necessary for scientific
computing, and be sufficiently well versed in general theory and practice to allow growth within
the discipline as it advances.

4. To prepare graduates to assume leadership roles by possessing good communication skills, the
ability to work effectively as team members, and an appreciation for their social and ethical
responsibility in a global setting.
 5. PROGRAM EDUCATIONAL OBJECTIVES (PEOs) OF C.S.E.
DEPARTMENT

1. To provide graduates with a good foundation in mathematics, sciences and engineering

fundamentals required to solve engineering problems that will facilitate them to find
employment in industry and / or to pursue postgraduate studies with an appreciation for lifelong
learning.

2. To provide graduates with analytical and problem solving skills to design algorithms, other
hardware / software systems, and inculcate professional ethics, inter-personal skills to work in a
multi-cultural team.

3. To facilitate graduates to get familiarized with the art software / hardware tools, imbibing
creativity and innovation that would enable them to develop cutting-edge technologies of multi-
disciplinary nature for societal development.

PROGRAM OUTCOMES

1. Engineering knowledge: Apply the knowledge of mathematics, science, engineering fundamentals,

and an engineering specialization to the solution of complex engineering problems.
2. Problem analysis: Identify, formulate, review research literature, and analyze complex
engineering problems reaching substantiated conclusions using first principles of mathematics,
natural sciences, and engineering sciences.
3. Design/development of solutions : Design solutions for complex engineering problems and
design system components or processes that meet the specified needs with appropriate
consideration for the public health and safety, and the cultural, societal, and environmental
considerations.
4. Conduct investigations of complex problems: Use research-based knowledge and research
methods including design of experiments, analysis and interpretation of data, and synthesis of the
information to provide valid conclusions.
5. Modern tool usage: Create, select, and apply appropriate techniques, resources, and modern
engineering and IT tools including prediction and modelling to complex engineering activities with
an understanding of the limitations.
6. The engineer and society: Apply reasoning informed by the contextual knowledge to assess
societal, health, safety, legal and cultural issues and the consequent responsibilities relevant to the
professional engineering practice.
7. Environment and sustainability: Understand the impact of the professional engineering solutions
 in societal and environmental contexts, and demonstrate the knowledge of, and need for
sustainable development.
8. Ethics: Apply ethical principles and commit to professional ethics and responsibilities and norms of
the engineering practice.
9. Individual and team work: Function effectively as an individual, and as a member or leader in
diverse teams, and in multidisciplinary settings.
10. Communication: Communicate effectively on complex engineering activities with the engineering
community and with society at large, such as, being able to comprehend and write effective reports
and design documentation, make effective presentations, and give and receive clear instructions.
11. Project management and finance: Demonstrate knowledge and understanding of the
engineering and management principles and apply these to one’s own work, as a member
and leader in a team, to manage projects and in multidisciplinary environments.
12. Life-long learning : Recognize the need for, and have the preparation and ability to engage
in independent and life-long learning in the broadest context of technological change.

PSO (Program Specific Outcome):

PSO 1: To identify and define the computing requirements for its solution under given constraints.
PSO 2: To follow the best practices namely SEI-CMM levels and six sigma which varies from time
to time for software development project using open ended programming environment to produce
software deliverables as per customer needs.
 6. Course Objectives

Course Objectives: Develop ability to:

1. Distinguish the different functional areas in businesses management, understand the cross
functional integrations and map supply chains of various business sectors.
2. Identify different types of distribution/ modes of transport/ network design.
3. Analyze the operational issues in SCM.
4. Recognize the drivers of supply chain.
5. Interpret the importance of relationships with suppliers and customers.

Course Outcomes

At the end of the course, student would be able to:

CO16MB3203.1: Understand the role of an Engineer as well as Manager in Supply chain
management
CO16MB32032: Appreciate the importance of logistics in integrating different functional areas.
CO16MB32033: Integrate operations with functional areas.
CO16MB32034: Visualize the role of logistics and distribution as supply chain drivers
CO16MB32035: Understand the importance of supplier and customer relationship management.

7. Brief Importance of the Course and how it fits into the curriculum
1. What role does this course play within the Program?
It is well known that supply chain management is an integral part of most businesses and is essential to
company success and customer satisfaction. 
Boost Customer Service
 Customers expect the correct product assortment and quantity to be delivered.
 Customers expect products to be available at the right location. (i.e., customer satisfaction di-
minishes if an auto repair shop does not have the necessary parts in stock and can’t fix your car
for an extra day or two).
 Right Delivery Time – Customers expect products to be delivered on time (i.e., customer satis-
faction diminishes if pizza delivery is two hours late or Christmas presents are delivered on De-
cember 26).
 Right After Sale Support – Customers expect products to be serviced quickly. (i.e., customer sat-
isfaction diminishes when a home furnace stops operating in the winter and repairs can’t be
made for days)

Reduce Operating Costs

 Decreases Purchasing Cost – Retailers depend on supply chains to quickly deliver expensive
products to avoid holding costly inventories in stores any longer than necessary. For example,
electronics stores require fast delivery of 60” flat-panel plasma HDTV’s to avoid high inventory
costs.
 Decreases Production Cost – Manufacturers depend on supply chains to reliably deliver mate-
rials to assembly plants to avoid material shortages that would shutdown production.
  Decreases Total Supply Chain Cost – Manufacturers and retailers depend on supply chain
managers to design networks that meet customer service goals at the least total cost. Efficient
supply chains enable a firm to be more competitive in the market place. For example, Dell’s rev-
olutionary computer supply chain approach involved making each computer based on a specific
customer order, then shipping the computer directly to the customer. How is the course unique
or different from other courses of the Program?
2. What essential knowledge or skills should they gain from this experience?
 Students acquire knowledge in operations management about Supply Chain Management
(SCM).
3. What knowledge or skills from this course will students need to have mastered to perform well
in future classes or later (Higher Education / Jobs)?
Supply chain management (SCM) is the active management of supply chain activities to maximize
customer value and achieve a sustainable competitive advantage. It represents a conscious effort by
the supply chain firms to develop and run supply chains in the most effective & efficient ways
possible.
4. Why is this course important for students to take?
  Students learn the fundamentals of search. Supply Chain Management (SCM) is an important
part of every organization, whether small or large. SCM is the active management of supply
chain activities to maximize customer value and achieve a sustainable
5. What is/are the prerequisite(s) for this course? (NIL)
6. When students complete this course, what do they need know or be able to do?
 Able to analyze techniques of LSCM.
7. Is there specific knowledge that the students will need to know in the future?
 In future, students have to apply these concepts in Business applications.
8. Are there certain practical or professional skills that students will need to apply in the future?
 YES. Students can develop process of logistics and supply chain management knowledge.
9. Five years from now, what do you hope students will remember from this course?
 This course gaining knowledge about manufacturing. Since supply chains begin with the
process of manufacturing and end with getting the product into the hands of the consumer,
manufacturing jobs are among the most important in the field.
k. What is it about this course that makes it unique or special?
 This course supply chain management (SCM), ... use cases to help you make the best choice
based on your business' unique needs.
l. Why does the program offer this course?
 This course helps the students to understand Supply chain management (SCM) is the active
integration and coordination of all supply chain activities to provide you, the customer, with the
best value.
  Providing you with the best value means providing you with a quality product for a reasonable
price.
m. Why can’t this course be “covered” as a sub-section of another course?
 It is not possible as it covers many topics such as Logistics, Operations, Procurement etc.
n. What unique contributions to students’ learning experience does this course make?
 Students will be able to understand how logistics and supply chain works in business.
o. What is the value of taking this course? How exactly does it enrich the program?
 This course plays a vital role in marketing in operations.
The supply chain creates the core value of any business. Supply chain management (SCM) is
responsible for this value creation. SCM deals with the factors and processes directly involved in
producing an output, the value that hopefully people are willing to pay for at the end. Buyers pay
for the value the supply chain delivers.
p. What are the major career options that require this course
 Masters in Logistics/Supply Chain Management Programs.
 Associates in Logistics.
 Project Management Progra.ms
 Operations manager in processing.

8. Prerequisites Management Science

9. Mapping of Course to PEO’s and PO’s

Course PEOs POs

 Supply PEO2, PEO3 PO1, PO2, PO3, PO4, PO6, PO7, PO10, PO11, PO12.
chain
management

Mapping of Course outcomes to Program Outcomes

S.No. Course Outcome POs

CO16MB3203.1: Understand the role of an Engineer as well as PO1,PO2, PO4, PO6,
1 Manager in Supply chain management PO7, PO10.
CO16MB3203.2: Appreciate the importance of logistics in integrating PO1,PO3, PO7, PO4,
2
different functional areas. PO11.
CO16MB3203.3: Integrate operations with functional areas. PO2, PO4, PO10,
3
PO12
CO16MB3203.4: Visualize the role of logistics and distribution as PO2, PO5, PO8,
4
supply chain drivers PO11.
CO16MB3203.5: Understand the importance of supplier and customer PO2, PO6, PO9,
5
relationship management. PO11, PO12.
Mapping of Course Outcomes with PO’S

 Supply chain management

1 2 3 4 5 6 7 8 9 10 11 12
CO16MB3203.1: Understand the role of an Engineer as
2 3 - 2 - 2 2 - - 2 - -
well as Manager in Supply chain management
CO16MB3203.2: Appreciate the importance of logistics
2 - 3 2 - - 3 - - - 2 -
in integrating different functional areas.
CO16MB3203.3: Integrate operations with functional
- 3 - 2 - - - - - 3 - 2
areas.
CO16MB3203.4: Visualize the role of logistics and
- 3 - - 2 - - 3 - - 3 2
distribution as supply chain drivers
CO16MB3203.5: Understand the importance of supplier
- 3 - - - 3 - - 2 - 2 2
and customer relationship management.

3-Substantial (High) 2-Moderate (Medium) 1-Slight (Low) -: Not Related

10. Instructional learning outcomes

S.No Unit Contents Outcomes(Ability to)
Understand the role of an Engineer as
Introduction to Supply Chain
1 I well as Manager in Supply chain
Management
management
II Appreciate the importance of logistics in
2 Logistics Management
integrating different functional areas.
Integrate operations with functional
3 III Planning and managing inventories
areas.
Managing Cross-Functional Drivers in a Visualize the role of logistics and
4 IV
Supply Chain distribution as supply chain drivers
Understand the importance of supplier
5 V Logistics and supply chain relationships
and customer relationship management.
 11. Class Time Table

Geethanjali College of Engineering & Technology

Department of Computer Science & Engineering
EVEN Semester
WEF:-10-12-
Year/Sem/Sec: III-B.Tech I-Semester A-Section Room No:LH-131 A.Y : 2018 -19 2018(V0)
Class Teacher:A.Lalitha      
Time 09.00-9.50 9.50-10.40 10.40-11.30 11.30-12.20 12.20-1.00 1.00-1.50 1.50-2.40 2.40-3.30
Period 1 2 3 4 5 6 7
Monday IS IS & SE LAB SE Finishing School
Tuesday IS SE AI MS BEC/LIB SPORTS

LUNCH
Wednesday SCM IS FRENCH AI AELCS LAB
Thursday SE SCM FRENCH MS IS Finishing School
Friday SE SCM IS* AI MS FRENCH LIB/CACG
Saturday IBM TRAINING LIB ORACLE TRAINING CLASSES

Geethanjali College of Engineering & Technology

Department of Computer Science & Engineering
EVEN Semester
Year/Sem/Sec: III-B.Tech I-Semester D-Section Room No:LH-138 A.Y : 2018 -19 WEF:-10-12-2018(V0
Class Teacher:Mr.Mahender    
Time 09.00-9.50 9.50-10.40 10.40-11.30 11.30-12.20 12.20-1.00 1.00-1.50 1.50-2.40 2.40-3.30
Period 1 2 3 4 5 6 7

Monday SE AI MS IS SCM Finishing School

Tuesday IS SE MS SCM BEC/CACG/MH LIB/SPORT
LUNCH

Wednesday AI AELCS LAB IS French SE

Thursday IS IS & SE LAB French Finishing School

Friday SE IS* French AI SCM MS MH
Saturday IBM TRAINING LIB/MH ORACLE TRAINING CLASSES
12. Individual Time Table:

Mr.Vijaya Lakshmi(SCM)
09.00- 9.50- 10.40- 11.30- 12.20- 1.00- 1.50- 2.40-
Time
9.50 10.40 11.30 12.20 1.00 1.50 2.40 3.30
Period 1 2 3 4 5 6 7

Monday   III CSE E III CSE B III CSE D    

Tuesday III CSE B III CSE D      

   

LUNCH
Wednesday III CSE A   III CSE E      
 
Thursday III CSE E III CSE A    
 
Friday III CSE A III CSE D III CSE B
   
Saturday            
 
 13. Lesson Plan

Lesson Plan
Academic Year: 2022-23 Course-Year-Sem-Branch-Sec: B.Tech-III-II-CSE-D&E
Subject: SUPPLY CHAIN MANAGEMENT No.of Periods/Week:3+1
Faculty Name: G.Vijaya Lakshmi Designation: Asst. Prof.
         
S.No No. of Regular/ Teaching Aids Used
Topics to be covered
. Periods Additional LCD/OHP/BB/LCD
UNIT-I
1 1 Introduction to Supply Chain Management Regular BB/LCD/OHP
2 1 Understanding the Supply Chain Regular BB/LCD/OHP
3 1 Supply Chain Performance Regular BB/LCD/OHP
4 2 Achieving Strategic Fit and Scope including Regular BB/LCD/OHP
5 1 Customer and Supply Chain Uncertainty Regular BB/LCD/OHP
6 2 Competitive and Supply Chain Strategies Regular BB/LCD/OHP
7 1 Product development strategy Regular BB/LCD/OHP
8 1 Marketing and sales strategy Regular BB/LCD/OHP
9 2 Supply chain strategy, Scope of strategic fit Regular BB/LCD/OHP
UNIT-II
10 1 Logistics Management Regular BB/LCD/OHP
Designing distribution networks and applications to e- BB/LCD/OHP
11 1 Regular
Business
12 1 Network design in the Supply Chain Regular BB/LCD/OHP
13 1 Designing global supply chain Regular BB/LCD/OHP
14 1 Network design, 3 PL, 4 PL Regular BB/LCD/OHP
15 2 Transportation in supply chain management Regular BB/LCD/OHP
UNIT-III
16 1 Planning and managing inventories Regular BB/LCD/OHP
Managing Economies of Scale in a Supply Chain: BB/LCD/OHP
17 1 Regular
Cycle Inventory
Managing Uncertainty in a Supply Chain: BB/LCD/OHP
18 1 Regular
Safety Inventory
Determining the Optimal Level of Product BB/LCD/OHP
19 1 Regular
Availability
20 1 Demand Forecasting in a Supply Chain Regular BB/LCD/OHP
21 2 Aggregate Planning in a Supply Chain Regular BB/LCD/OHP
Sales and Operations Planning BB/LCD/OHP
22 2 Regular
Planning Supply and Demand in a Supply Chain
23 1 Coordination in a Supply Chain Regular BB/LCD/OHP
24 1 E- Procurement Regular BB/LCD/OHP
25 1 Global alliances Regular BB/LCD/OHP
UNIT-IV
Managing Cross-Functional Drivers in a Supply BB/LCD/OHP
26 2 Regular
Chain 
Importance of sourcing decisions in Supply Chain BB/LCD/OHP
27 2 Regular
Management
28 2 Price and Revenue management Regular BB/LCD/OHP
29 2 Role of Information Technology in a Supply Chain Regular BB/LCD/OHP
30 1 Sustainability and the Supply Chain Regular BB/LCD/OHP
31 2 Customer Relationship management Regular BB/LCD/OHP
 UNIT-V
32 1 Logistics and supply chain relationships Regular BB/LCD/OHP
33 Identifying logistics performance indicators Regular BB/LCD/OHP
34 Channel structure- economics of distribution Regular BB/LCD/OHP
35 1 Channel relationships Regular BB/LCD/OHP
36 1 Logistics service alliance Regular BB/LCD/OHP
37 1 Managing global logistics and global supply chains Regular BB/LCD/OHP
38 1 Logistics in a global economy Regular BB/LCD/OHP
39 2 Views of global logistics Regular BB/LCD/OHP
40 2 Global operating levels interlinked global economy Regular BB/LCD/OHP
41 2 Global supply chain Regular BB/LCD/OHP
Supply chain management in Global environment BB/LCD/OHP
42 1 Regular
Global strategy
43 1 Global purchasing/ Global logistics/ Global alliances Regular BB/LCD/OHP
Issues and Challenges in global supply chain BB/LCD/OHP
44 2 Regular
management.

Lesson Schedule for “D&E” Sec

 Lesson Plan
Academic Year: 2022-23 Course-Year-Sem-Branch-Sec: B.Tech-III-II-CSE-A&D
Subject: SUPPLY CHAIN MANAGEMENT No.of Periods/Week:3+1
Faculty Name: G.Vijaya Lakshmi Designation: Asst. Prof.
         
S.No No. of Regular/ Teaching Aids Used
Topics to be covered
. Periods Additional LCD/OHP/BB/LCD
UNIT-I
1 1 Introduction to Supply Chain Management Regular BB/LCD/OHP
2 1 Understanding the Supply Chain Regular BB/LCD/OHP
3 1 Supply Chain Performance Regular BB/LCD/OHP
4 2 Achieving Strategic Fit and Scope including Regular BB/LCD/OHP
5 1 Customer and Supply Chain Uncertainty Regular BB/LCD/OHP
6 1 Competitive and Supply Chain Strategies Regular BB/LCD/OHP
7 1 Product development strategy Regular BB/LCD/OHP
8 1 Marketing and sales strategy Regular BB/LCD/OHP
9 2 Supply chain strategy, Scope of strategic fit Regular BB/LCD/OHP
UNIT-II
10 1 Logistics Management Regular BB/LCD/OHP
Designing distribution networks and applications to e- BB/LCD/OHP
11 2 Regular
Business
12 1 Network design in the Supply Chain Regular BB/LCD/OHP
13 1 Designing global supply chain Regular BB/LCD/OHP
14 1 Network design, 3 PL, 4 PL Regular BB/LCD/OHP
15 1 Transportation in supply chain management Regular BB/LCD/OHP
UNIT-III
16 1 Planning and managing inventories Regular BB/LCD/OHP
Managing Economies of Scale in a Supply Chain: BB/LCD/OHP
17 1 Regular
Cycle Inventory
Managing Uncertainty in a Supply Chain: BB/LCD/OHP
18 1 Regular
Safety Inventory
Determining the Optimal Level of Product BB/LCD/OHP
19 2 Regular
Availability
20 1 Demand Forecasting in a Supply Chain Regular BB/LCD/OHP
21 2 Aggregate Planning in a Supply Chain Regular BB/LCD/OHP
Sales and Operations Planning BB/LCD/OHP
22 2 Regular
Planning Supply and Demand in a Supply Chain
23 1 Coordination in a Supply Chain Regular BB/LCD/OHP
24 1 E- Procurement Regular BB/LCD/OHP
25 1 Global alliances Regular BB/LCD/OHP
UNIT-IV
Managing Cross-Functional Drivers in a Supply BB/LCD/OHP
26 2 Regular
Chain 
Importance of sourcing decisions in Supply Chain BB/LCD/OHP
27 1 Regular
Management
28 1 Price and Revenue management Regular BB/LCD/OHP
29 1 Role of Information Technology in a Supply Chain Regular BB/LCD/OHP
30 1 Sustainability and the Supply Chain Regular BB/LCD/OHP
31 2 Customer Relationship management Regular BB/LCD/OHP
UNIT-V
32 1 Logistics and supply chain relationships Regular BB/LCD/OHP
33 1 Identifying logistics performance indicators Regular BB/LCD/OHP
34 1 Channel structure- economics of distribution Regular BB/LCD/OHP
35 1 Channel relationships Regular BB/LCD/OHP
36 1 Logistics service alliance Regular BB/LCD/OHP
37 1 Managing global logistics and global supply chains Regular BB/LCD/OHP
38 1 Logistics in a global economy Regular BB/LCD/OHP
39 1 Views of global logistics Regular BB/LCD/OHP
40 1 Global operating levels interlinked global economy Regular BB/LCD/OHP
41 1 Global supply chain Regular BB/LCD/OHP
Supply chain management in Global environment BB/LCD/OHP
42 1 Regular
Global strategy
43 1 Global purchasing/ Global logistics/ Global alliances Regular BB/LCD/OHP
Issues and Challenges in global supply chain BB/LCD/OHP
44 1 Regular
management.

Total no. of Classes: 54

 14. Detailed Notes

UNIT-I
INTRODUCTION TO SUPPLY CHAIN MANAGEMENT

Supply Chain Management can be defined as the management of flow of products and services, which
begins from the origin of products and ends at the product’s consumption. It also comprises movement
and storage of raw materials that are involved in work in progress, inventory and fully furnished goods.

The main objective of supply chain management is to monitor and relate production, distribution, and
shipment of products and services. This can be done by companies with a very good and tight hold
over internal inventories, production, distribution, internal productions and sales.

In the above figure, we can see the flow of goods, services and information from the producer to the
consumer. The picture depicts the movement of a product from the producer to the manufacturer, who
forwards it to the distributor for shipment. The distributor in turn ships it to the wholesaler or retailer,
who further distributes the products to various shops from where the customers can easily get the
product.

Supply chain management basically merges the supply and demand management. It uses different
strategies and approaches to view the entire chain and work efficiently at each and every step involved
in the chain. Every unit that participates in the process must aim to minimize the costs and help the
companies to improve their long term performance, while also creating value for its stakeholders and
customers. This process can also minimize the rates by eradicating the unnecessary expenses,
movements and handling.

Here we need to note that supply chain management and supply chain event management are two
different topics to consider. The Supply Chain Event Management considers the factors that may
interrupt the flow of an effective supply chain; possible scenarios are considered and accordingly,
solutions are devised for them.
Supply Chain Management - Advantages
In this era of globalization where companies compete to provide the best quality products to the
customers and satisfy all their demands, supply chain management plays a very important role. All the
companies are highly dependent on effective supply chain process.

Let’s take a look at the major advantages of supply chain.

The key benefits of supply chain management are as follows −

 Develops better customer relationship and service.

 Creates better delivery mechanisms for products and services in demand with minimum delay.

 Improvises productivity and business functions.

 Minimizes warehouse and transportation costs.

 Minimizes direct and indirect costs.

 Assists in achieving shipping of right products to the right place at the right time.

 Enhances inventory management, supporting the successful execution of just-in-time stock

models.

 Assists companies in adapting to the challenges of globalization, economic upheaval, expanding

consumer expectations, and related differences.

 Assists companies in minimizing waste, driving out costs, and achieving efficiencies throughout
the supply chain process.

These were some of the major advantages of supply chain management. After taking a quick glance at
the concept and advantages on supply chain management, let us take a look at the main goals of this
management.

Supply Chain Management - Goals

Every firm strives to match supply with demand in a timely fashion with the most efficient use of
resources. Here are some of the important goals of supply chain management −

 Supply chain partners work collaboratively at different levels to maximize resource productiv-
ity, construct standardized processes, remove duplicate efforts and minimize inventory levels.

 Minimization of supply chain expenses is very essential, especially when there are economic
uncertainties in companies regarding their wish to conserve capital.

 Cost efficient and cheap products are necessary, but supply chain managers need to concentrate
on value creation for their customers.

 Exceeding the customers’ expectations on a regular basis is the best way to satisfy them.

 Increased expectations of clients for higher product variety, customized goods, off-season avail-
ability of inventory and rapid fulfillment at a cost comparable to in-store offerings should be
matched.
  To meet consumer expectations, merchants need to leverage inventory as a shared resource and
utilize the distributed order management technology to complete orders from the optimal node
in the supply chain.

Lastly, supply chain management aims at contributing to the financial success of an enterprise. In
addition to all the points highlighted above, it aims at leading enterprises using the supply chain to
improve differentiation, increase sales, and penetrate new markets. The objective is to drive
competitive benefit and shareholder value.

Supply Chain Management - Process

Supply chain management is a process used by companies to ensure that their supply chain is efficient
and cost-effective. A supply chain is the collection of steps that a company takes to transform raw
materials into a final product. The five basic components of supply chain management are discussed
below −

Plan
The initial stage of the supply chain process is the planning stage. We need to develop a plan or
strategy in order to address how the products and services will satisfy the demands and necessities of
the customers. In this stage, the planning should mainly focus on designing a strategy that yields
maximum profit.

For managing all the resources required for designing products and providing services, a strategy has
to be designed by the companies. Supply chain management mainly focuses on planning and
developing a set of metrics.

Develop(Source)
After planning, the next step involves developing or sourcing. In this stage, we mainly concentrate on
building a strong relationship with suppliers of the raw materials required for production. This involves
not only identifying dependable suppliers but also determining different planning methods for
shipping, delivery, and payment of the product.

Companies need to select suppliers to deliver the items and services they require to develop their
product. So in this stage, the supply chain managers need to construct a set of pricing, delivery and
payment processes with suppliers and also create the metrics for controlling and improving the
relationships.

Finally, the supply chain managers can combine all these processes for handling their goods and
services inventory. This handling comprises receiving and examining shipments, transferring them to
the manufacturing facilities and authorizing supplier payments.

Make
The third step in the supply chain management process is the manufacturing or making of products that
were demanded by the customer. In this stage, the products are designed, produced, tested, packaged,
and synchronized for delivery.

Here, the task of the supply chain manager is to schedule all the activities required for manufacturing,
testing, packaging and preparation for delivery. This stage is considered as the most metric-intensive
unit of the supply chain, where firms can gauge the quality levels, production output and worker
productivity.

Deliver
The fourth stage is the delivery stage. Here the products are delivered to the customer at the destined
location by the supplier. This stage is basically the logistics phase, where customer orders are accepted
and delivery of the goods is planned. The delivery stage is often referred as logistics, where firms
collaborate for the receipt of orders from customers, establish a network of warehouses, pick carriers to
deliver products to customers and set up an invoicing system to receive payments.

Return
The last and final stage of supply chain management is referred as the return. In the stage, defective or
damaged goods are returned to the supplier by the customer. Here, the companies need to deal with
customer queries and respond to their complaints etc.

This stage often tends to be a problematic section of the supply chain for many companies. The
planners of supply chain need to discover a responsive and flexible network for accepting damaged,
defective and extra products back from their customers and facilitating the return process for customers
who have issues with delivered products.

Supply Chain Management - Process Flow

Supply chain management can be defined as a systematic flow of materials, goods, and related
information among suppliers, companies, retailers, and consumers.

Types
There are three different types of flow in supply chain management −

 Material flow
 Information/Data flow
 Money flow
Let us consider each of these flows in detail and also see how effectively they are applicable to Indian
companies.

Material Flow
Material flow includes a smooth flow of an item from the producer to the consumer. This is possible
through various warehouses among distributors, dealers and retailers.

The main challenge we face is in ensuring that the material flows as inventory quickly without any
stoppage through different points in the chain. The quicker it moves, the better it is for the enterprise,
as it minimizes the cash cycle.

The item can also flow from the consumer to the producer for any kind of repairs, or exchange for an
end of life material. Finally, completed goods flow from customers to their consumers through
different agencies. A process known as 3PL is in place in this scenario. There is also an internal flow
within the customer company.

Information Flow
Information/data flow comprises the request for quotation, purchase order, monthly schedules,
engineering change requests, quality complaints and reports on supplier performance from customer
side to the supplier.

From the producer’s side to the consumer’s side, the information flow consists of the presentation of
the company, offer, confirmation of purchase order, reports on action taken on deviation, dispatch
details, report on inventory, invoices, etc.

For a successful supply chain, regular interaction is necessary between the producer and the consumer.
In many instances, we can see that other partners like distributors, dealers, retailers, logistic service
providers participate in the information network.

In addition to this, several departments at the producer and consumer side are also a part of the
information loop. Here we need to note that the internal information flow with the customer for in-
house manufacture is different.
Money Flow
On the basis of the invoice raised by the producer, the clients examine the order for correctness. If the
claims are correct, money flows from the clients to the respective producer. Flow of money is also
observed from the producer side to the clients in the form of debit notes.

In short, to achieve an efficient and effective supply chain, it is essential to manage all three flows
properly with minimal efforts. It is a difficult task for a supply chain manager to identify which
information is critical for decision-making. Therefore, he or she would prefer to have the visibility of
all flows on the click of a button.

SCM - Flow Components

After understanding the basic flows involved in the supply chain management, we need to consider the
different elements present in this flow. Thus, the different components of the flow of supply chain are
described below.

Transportation
Transportation or shipment is necessary for an uninterrupted and seamless supply. The factors that have
an impact on shipment are economic uncertainty and instability, varying fuel prices, customers’
expectations, globalization, improvised technologies, changing transportation industry and labor laws.

The major elements that influence transportation should be considered, as it is completely dependent
on these factors for order completion as well as for ensuring that all the flows work properly. The
major factors are −

Long-term Decisions
Transportation managers should acknowledge the supply freight flow and accordingly design the
network layout. Now, when we say long term decision, we mean that the transportation manager has to
select what should be the primary mode of transportation.

The manager has to understand the product flows, volume, frequency, seasonality, physical features of
products and special handlings necessities, if any. In addition to this, the manager has to make
decisions as to the extent of outsourcing to be done for each and every product. While considering all
these factors, he should carefully consider the fact that the networks need not be constant.

For example, in order to transport stock to regional cross dock facilities for sorting, packaging and
brokering small loads to individual customers, stock destinations can be assembled through contract
transportation providers.

Lane Operation Decisions

These functional decisions stress on daily freight operations. Here, the transportation managers work
on real time information on products’ requirements at different system nodes and must collaborate
every move of the product that is both inbound and outbound shipping lanes so as to satisfy their
services demands at the minimal possible cost.

Managers who make good decisions easily handle information and utilize the opportunities for their
own profit and assure that the product is moved to them immediately, whenever it is demanded, that
too in the right quantity. At the same time, they are saving cost on transportation also.

For example, a shipment has landed from a supplier who is based in New Jersey and in the same
week, a product needs to be dispatched to New York as it becomes available for movement. If the
manager is aware of this information in advance, he would prepare everything as per the demand and
the products could be shipped out immediately.

Choice and Mode of Carrier

A very important decision to be made is to choose the mode of transportation. With the improvement in
the means of transportation, modes of transport that were not available in the traditional transportation
modes in the past can be now be a preferred choice.

For example, rail container service may offer a package that is cost-efficient and effective as
compared to a motor transport. While making a decision, the manager has to consider the service
criteria that need to be met, like the delivery time, date special handling requirements, while also
taking into consideration the element of cost, which would be an important factor.

Dock Level Operations

This involves the last level of decision-making. This comprises planning, routing and scheduling. For
example, if a carriage is being loaded with different customers’ orders, the function of the dock-level
managers is to assure that the driver is informed of the most efficient route and that loads are placed in
the order of the planned stops.

Warehousing
Warehousing plays a vital role in the supply chain process. In today’s industry, the demands and
expectations of the customers are undergoing a tremendous change. We want everything at our door
step – that too with efficient price. We can say that the management of warehousing functions demands
a distinct merging of engineering, IT, human resources and supply chain skills.
To neutralize the efficiency of inbound functions, it is ideal to accept materials in an immediately
storable conveyance, like a pallet, case or box. For labeling the structure, tool selection and business
process demand the types and quantities of orders that are processed. Further, the number of stock-
keeping units (SKU’s) in the distribution centers is a crucial consideration.

The Warehouse Management Systems (WMS) leads the products to their storage location where they
should be stored. The required functionality for the completion and optimization of receiving, storing
and shipping functions is then supplied.

Sourcing and Procurement

Sourcing and procurement are a vital part of the supply chain management. The company decides if it
wants to perform all the exercises internally or if it desires to get it done by any other independent
firm. This is commonly referred as the make vs buy decision, which we will be discussing in brief in
another chapter.

Returns Management
Returns management can be defined as the management that invites the merger of challenges and
opportunities for inbound logistics. A cost-effective reverse logistics program links the available supply
of returns with the product information and demand for repairable items or re-captured materials. We
have three pillars that support returns management processes. These are as follows −

 Speed − It is a must to have quick and easy returns management and automate decisions regard-
ing whether to produce return material authorizations (RMAs) and if so, how to process them.
Basically, the tools of speed return processing include automated workflows, labels & attach-
ments and user profiles.

 Visibility − For improving the visibility and predictability, information needs to be captured ini-
tially in the process, ideally prior to delivering the return to the receiving dock. Most effective
and easily implementable approaches for obtaining visibility are web-based portals, carrier inte-
gration and bar-coded identifiers.

 Control − In case of returns management, synchronizing material movements is a common is-

sue that needs to be handled. The producers need to be very cautious and pay close attention to
receipts and reconciliation and update the stakeholders of impending quality issues. In this case,
reconciliation activates visibility and control all over the enterprise. The key control points in
 this process are regulatory compliance, reconciliation and final disposition and quality assur-
ance.

Software solutions can assist in speeding up the returns management by supporting user profiles and
workflows that state supply chain partners and processes, by labeling and documentation that tracks the
material along with the web-based portals and by exception-based reporting to deliver information for
timely reconciliation. These characteristics, when executed with the three pillars mentioned above,
support a reliable and predictable returns process to count value across the company.

Post - Sales Service

Now that the ordered shipment is over, what is the next step? The post sales service in supply chain
tends to be an increasingly essential factor as businesses offer solution instead of products.

The post sales services comprise selling spare parts, installing upgrades, performing inspection,
maintenance and repairs, offering training & education and consulting.

Presently, with the growing demands of the clients, a high volume of after sales service proves to be a
profitable business. Here, the services are basically heterogeneous and the value-added services are
different from those provided prior to sales service.

Decision phases can be defined as the different stages involved in supply chain management for taking
an action or decision related to some product or services. Successful supply chain management
requires decisions on the flow of information, product, and funds that fall into three decision phases.

Here we will be discussing the three main decision phases involved in the entire process of supply
chain. The three phases are described below –

Supply Chain Management - Decision Phases

Supply Chain Strategy
In this phase, decision is taken by the management mostly. The decision to be made considers the
sections like long term prediction and involves price of goods that are very expensive if it goes wrong.
It is very important to study the market conditions at this stage.
These decisions consider the prevailing and future conditions of the market. They comprise the
structural layout of supply chain. After the layout is prepared, the tasks and duties of each is laid out.

All the strategic decisions are taken by the higher authority or the senior management. These decisions
include deciding manufacturing the material, factory location, which should be easy for transporters to
load material and to dispatch at their mentioned location, location of warehouses for storage of
completed product or goods and many more.

Supply Chain Planning

Supply chain planning should be done according to the demand and supply view. In order to
understand customers’ demands, a market research should be done. The second thing to consider is
awareness and updated information about the competitors and strategies used by them to satisfy their
customer demands and requirements. As we know, different markets have different demands and
should be dealt with a different approach.

This phase includes it all, starting from predicting the market demand to which market will be provided
the finished goods to which plant is planned in this stage. All the participants or employees involved
with the company should make efforts to make the entire process as flexible as they can. A supply
chain design phase is considered successful if it performs well in short-term planning.

Supply Chain Operations

The third and last decision phase consists of the various functional decisions that are to be made
instantly within minutes, hours or days. The objective behind this decisional phase is minimizing
uncertainty and performance optimization. Starting from handling the customer order to supplying the
customer with that product, everything is included in this phase.

For example, imagine a customer demanding an item manufactured by your company. Initially, the
marketing department is responsible for taking the order and forwarding it to production department
and inventory department. The production department then responds to the customer demand by
sending the demanded item to the warehouse through a proper medium and the distributor sends it to
the customer within a time frame. All the departments engaged in this process need to work with an
aim of improving the performance and minimizing uncertainty.

SCM - Performance Measures

Supply chain performance measure can be defined as an approach to judge the performance of supply
chain system. Supply chain performance measures can broadly be classified into two categories −
  Qualitative measures − For example, customer satisfaction and product quality.

 Quantitative measures − For example, order-to-delivery lead time, supply chain response time,
flexibility, resource utilization, delivery performance.

Here, we will be considering the quantitative performance measures only. The performance of a supply
chain can be improvised by using a multi-dimensional strategy, which addresses how the company
needs to provide services to diverse customer demands.

Quantitative Measures
Mostly the measures taken for measuring the performance may be somewhat similar to each other, but
the objective behind each segment is very different from the other.

Quantitative measures is the assessments used to measure the performance, and compare or track the
performance or products. We can further divide the quantitative measures of supply chain performance
into two types. They are −

 Non-financial measures
 Financial measures
Non - Financials Measures
The metrics of non-financial measures comprise cycle time, customer service level, inventory levels,
resource utilization ability to perform, flexibility, and quality. In this section, we will discuss the first
four dimensions of the metrics −

Cycle Time
Cycle time is often called the lead time. It can be simply defined as the end-to-end delay in a business
process. For supply chains, cycle time can be defined as the business processes of interest, supply
chain process and the order-to-delivery process. In the cycle time, we should learn about two types of
lead times. They are as follows −

 Supply chain lead time

 Order-to-delivery lead time

The order-to-delivery lead time can be defined as the time of delay in the middle of the placement of
order by a customer and the delivery of products to the customer. In case the item is in stock, it would
be similar to the distribution lead time and order management time. If the ordered item needs to be
produced, it would be the summation of supplier lead time, manufacturing lead time, distribution lead
time and order management time.

The supply chain process lead time can be defined as the time taken by the supply chain to transform
the raw materials into final products along with the time required to reach the products to the
customer’s destination address.

Hence it comprises supplier lead time, manufacturing lead time, distribution lead time and the logistics
lead time for transport of raw materials from suppliers to plants and for shipment of
semi-finished/finished products in and out of intermediate storage points.
Lead time in supply chains is governed by the halts in the interface because of the interfaces between
suppliers and manufacturing plants, between plants and warehouses, between distributors and retailers
and many more.

Lead time compression is a crucial topic to discuss due to the time based competition and the
collaboration of lead time with inventory levels, costs, and customer service levels.

Customer Service Level

The customer service level in a supply chain is marked as an operation of multiple unique performance
indices. Here we have three measures to gauge performance. They are as follows −

 Order fill rate − The order fill rate is the portion of customer demands that can be easily satis-
fied from the stock available. For this portion of customer demands, there is no need to con-
sider the supplier lead time and the manufacturing lead time. The order fill rate could be with
respect to a central warehouse or a field warehouse or stock at any level in the system.

 Stockout rate − It is the reverse of order fill rate and marks the portion of orders lost because of
a stockout.

 Backorder level − This is yet another measure, which is the gauge of total number of orders
waiting to be filled.

 Probability of on-time delivery − It is the portion of customer orders that are completed on-
time, i.e., within the agreed-upon due date.

In order to maximize the customer service level, it is important to maximize order fill rate, minimize
stockout rate, and minimize backorder levels.

Inventory Levels
As the inventory-carrying costs increase the total costs significantly, it is essential to carry sufficient
inventory to meet the customer demands. In a supply chain system, inventories can be further divided
into four categories.

 Raw materials
 Work-in-process, i.e., unfinished and semi-finished sections
 Finished goods inventory
 Spare parts

Every inventory is held for a different reason. It’s a must to maintain optimal levels of each type of
inventory. Hence gauging the actual inventory levels will supply a better scenario of system efficiency.

Resource Utilization
In a supply chain network, huge variety of resources is used. These different types of resources
available for different applications are mentioned below.

 Manufacturing resources − Include the machines, material handlers, tools, etc.

 Storage resources − Comprise warehouses, automated storage and retrieval systems.

  Logistics resources − Engage trucks, rail transport, air-cargo carriers, etc.

 Human resources − Consist of labor, scientific and technical personnel.

 Financial resources − Include working capital, stocks, etc.

In the resource utilization paradigm, the main motto is to utilize all the assets or resources efficiently in
order to maximize customer service levels, reduce lead times and optimize inventory levels.

Financial Measures
The measures taken for gauging different fixed and operational costs related to a supply chain are
considered the financial measures. Finally, the key objective to be achieved is to maximize the revenue
by maintaining low supply chain costs.

There is a hike in prices because of the inventories, transportation, facilities, operations, technology,
materials, and labor. Generally, the financial performance of a supply chain is assessed by considering
the following items −

 Cost of raw materials.

 Revenue from goods sold.

 Activity-based costs like the material handling, manufacturing, assembling rates etc.

 Inventory holding costs.

 Transportation costs.

 Cost of expired perishable goods.

 Penalties for incorrectly filled or late orders delivered to customers.

 Credits for incorrectly filled or late deliveries from suppliers.

 Cost of goods returned by customers.

 Credits for goods returned to suppliers.

In short, we can say that the financial performance indices can be merged as one by using key modules
such as activity based costing, inventory costing, transportation costing, and inter-company financial
transactions.

competitive and supply chain strategies :

SUPPLY CHAIN COMPETITIVENESS
Competitiveness can be defined as the ability of firm to design, produce and or market products superior
to those offered by competitors, considering the price and non-price qualities . The word competitiveness is
originated from the Latin word, competitor, which means involvement in a business rivalry for markets. It
has become common to describe economic strength of an entity with respect to its competitors in the
global market economy in which goods, services, people, skills, and ideas move freely across
geographical borders . Supply Chain Competitiveness (SCC) refers, in general way, to gain competitive
advantages by one supply chain on the other . Supply chain competitiveness comprised of competitiveness
of the elements of supply chain viz. supplier’s competitiveness, manufacturer’s competitiveness and distributor’s
competitiveness
STRATEGIES TO ACHIEVE SUPPLY CHAIN COMPETITIVENESS
1. Demand of Product Management : Demand management encompasses the traditional functions of
marketing along with coordination of the marketing activities with other functions in the company and
the supply chain . Demand comes from the customers and according to that demand the company
decides what to make and of what quality. Thus demand of products must be managed so as to get
competitive advantages.
2. Integration of Key Elements : A well-coordinated, informative and integrated structure of supply chain
makes it competitive enough to deliver better performances and services to the customers .
3. The key elements of supply chain are supplier’s suppliers, suppliers, manufacturers, distributors,
retailers, customers and customer’s customers . Their integration is a very necessary activity for SCC .
4. Inventory Management : Inventory is one of the most important aspects of supply chain to take
competitive advantages over the rivals . Inventory may result in high costs if not managed . The
importance of inventory management and the need for coordination of the inventory decisions and
transportation policies has been evident for a long time . Demands cannot be met with poor inventory
management and the lead time and average time to fulfill customer’s requirement go on increasing due to
lack of inventory management
5. Flexibility Being : flexible means having the capability to provide products/services that meet the
individual demands of customers. Many researchers have advocated flexibility as one of the critical notion
for the competitive advantage in supply chain . Flexibility can be achieved through logistics flexibility,
delivery flexibility and flexibility at the [manufacturer’s end ].
6. Information Technology (IT) : Capabilities SCM decisions should be based on exchange of substantial
quantities of information among the buyer, supplier, and carrier to increase the efficiency and
effectiveness of the supply chain . Information and communication can be effectively and efficiently
possible with the use of modern IT capabilities like Internet, EDI, ERP software, SCM software etc . These
variables are the essential ingredients of supply chain competitiveness.

Product development strategy:

Supply Chain Management (SCM) refers to management between companies by means of their business
processes; where they seek to maximize potential synergy, reduce waste, increase efficiency and the effectiveness
of business processes, with the objective of adding value for the clients and stakeholders, making the supply
chain more competitive. Initially, the business processes were regarded as a way of integrating companies’
corporative functions. Presently, companies seek to structure activities between the different members of a supply
chain through the business processes, so as to make them manageable in the long run.
The PDP is one of business process of SCM. PDP involves technical and management aspects, in which an
organization transforms market and technical possibility opportunities into information for the production of a
commercial product. This process includes the development of a new product in a way that is coherent with the
product’s lifecycle, which starts with its planning and ends when it is discarded or taken off the market. Aiming
to supply a common reference, a holistic vision of the product development process, leveling knowledge within
the different knowledge areas, a reference model for PDP was proposed.
Marketing and sales strategy:
American Marketing Association’s (AMA) definition of “marketing” right next to the Council of Supply Chain
Management Professionals (CSCMP) definition of “supply chain management.” Here are their definitions:
AMA – Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at large.
CSCMP – Supply Chain Management encompasses the planning and management of all activities involved in
sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes
coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service
providers, and customers. In essence, supply chain management integrates supply-and-demand management
within and across companies.
(Kudos to the AMA for having a more succinct definition).
Looking at the definitions led me to a few insights:
The definition of supply chain management has gotten broader over the years. In particular, what jumps out at
me in the CSCMP definition is the inclusion of procurement as a core SCM process. While this is undoubtedly
true, in most organizations the supply chain and procurement groups are distinct entities, with different,
nonintegrated, and often conflicting approaches to SCM (see “Do Procurement and Supply Chain Folks Exist in
the Same Universe” for a more in-depth discussion).
Compared to the supply chain team, marketing has far greater tools and data available to them to support demand
management. In general, and particularly in consumer goods companies, marketing should have final
responsibility for the demand plan because pricing, promotion, channel, and placement decisions factor so
heavily into demand planning. Also, because marketing is most comfortable doing planning at the product family
level, forecasters from the supply chain organization (who can provide historical forecasts at the SKU level)
should be co-located with sales and marketing. Further, while we on the supply chain side tend to talk about
sales and marketing as if they are on the same team, the chasm between sales and marketing can be as wide as the
gap between marketing/sales and operations.
Sales and Operations Planning (S&OP) is a proven process for integrating the sales, marketing, and supply chain
organizations. However, few companies have a robust S&OP process in place. In contrast, companies are in the
early stages of better integrating merchandising and supply chain management processes. This is the next
frontier for marketing-to-supply chain collaboration (see “The First Moment of Truth”).
In the retail/consumer goods supply chain, large retailers are beginning to understand how rationalizing the
number of SKUs they carry can lead to both less cluttered, more customer friendly stores, and to supply chain
efficiencies, such as inventory reductions and gains in labor productivity. This will lead to improved supply
chain synergies between retailers and many of their manufacturing suppliers. However, in some product
categories, some vendors will actually find their products are no longer needed (see “Walmart’s ‘Win-Play-Show’
Assortment Strategy”).
Internet retailing and e-fulfillment processes have gone through the hype, boom, and bust stages and have finally
ripened into a substantial and mature channel. This e-channel is supported by mature processes and technologies,
including online reservation systems, dynamic routing, distributed order management, and product information
management. All of this has occurred in a little more than ten years. Amazon’s recent acquisition of Zappos, an
online shoe retailer, for almost $900 million dollars is a reminder of how far we have come in such a relatively
short period of time.

SUPPLY CHAIN STRATEGY

We believe that successful supply chain strategies are, by definition, sustainable. We develop and execute supply
chain strategies that deliver competitive advantage year after year.
Supply Chain Strategy
Together, we'll blueprint a supply chain strategy that not only achieves current objectives, but helps sustain
success through shifts in economic conditions, corporate strategy, and technology as well as social, political and
environmental factors.
Right now, with market leaders on six continents, GEP is working to identify product-wise manufacturing and
storage locations, evaluate transportation options and providers, optimize resource allocation, understand and
manage performance, and implement more efficient, more effective processes.
We take into account key drivers that improve your ability to compete effectively:
Market Alignment: We align your supply chain operations with customer values, adding a new dimension to the
overall supply chain ― one that drives greater levels of customer service and higher profitability
Global Growth and Expansion: Enterprises can only grow as fast as their supply chains. GEP helps enterprises
develop global supply chain strategies that can support their business needs today and tomorrow
Supplier Relationships: Suppliers are critical to the success of every supply chain. GEP helps you work with
your suppliers to develop mutual capabilities to improve supply chain effectiveness and customer service
Process Redesign: Our experts will help you redesign your supply chain operations and processes to ensure
effective implementation of your supply chain strategies
Performance Management: GEP’s real-time data analysis and intuitive supply chain dashboards help you
evaluate the performance of your supply chain against predefined KPIs and benchmarks and take improvement
measures
What Do You Want your Supply Chain to Deliver?
1. Higher profitability
2. Enhanced customer value
3. More flexibility and agility
4. Greater resilience
5. Improved sustainability

ACHIEVING STRATEGIC FIT

This chapter is built on the idea that for any company to be successful, its supply chain strategy and
competitive strategy must fit together. Strategic fit means that both the competitive and supply chain
strategies have the same goal. It refers to consistency between the customer priorities that the
competitive strategy hopes to satisfy and the supply chain capabilities that the supply chain strategy
aims to build. The issue of achieving strategic fit is a key consideration during the supply chain strategy
or design phase discussed in Chapter
1. All functions that are part of a company's value chain contribute to its success or failure. These
functions do not operate in isolation; no one function can ensure the chain's success. Failure at
 anyone function, however, may lead to failure of the overall chain. A company's success or failure is
thus closely linked to the following keys:
2. The competitive strategy and all functional strategies must fit together to form a coordinated overall
strategy. Each functional strategy must support other functional strategies and help a firm reach its
competitive strategy goal.
3. The different functions in a company must appropriately structure their processes and resources to
be able to execute these strategies successfully. A company may fail either because of a lack of
strategic fit or because its processes and resources do not provide the capabilities to support the
desired strategic fit. In thinking of the major tasks of a chief executive officer (CEO), there are few
greater than the job of aligning all of the core functional strategies with the overall competitive
strategy to achieve strategic fit. If this alignment is not achieved, conflicts between different
functional goals arise. Such conflicts result in different functions targeting different customer
priorities. Because processes and resources are structured to support functional goals, a conflict in
functional goals leads to conflicts during execution. Consider, for example, a situation in which
marketing is publicizing the company's ability to provide a large variety of products very quickly;
simultaneously, distribution is targeting the lowest cost means of transportation. In this situation, it
is very likely that distribution will delay orders so it can get better transportation economies by
grouping several orders together. This action conflicts with marketing's stated goal of providing
variety quickly. To elaborate on strategic fit, let us return to the example of Dell Computer from
Chapter 1. Dell's competitive strategy is to provide a large variety of customizable products at a
reasonable price; customers can select from among thousands of possible PC configurations. In
terms of supply chain strategy, a PC manufacturer has a range of options. At one extreme, a
company can have an efficient supply chain with a focus on the ability to produce low-cost PCs by
limiting variety and exploiting economies of scale. At the other extreme, a company can have a
highly flexible and responsive supply chain that is very good at producing a large variety of
products. In this second case, costs will be higher than in an efficient supply chain. Both supply
chain strategies are viable by themselves. Both do not fit, however, with Dell's competitive strategy.
A supply chain strategy that emphasizes flexibility and responsiveness has a better strategic fit with
Dell's competitive strategy of providing a large variety of customizable products
To achieve strategic fit, a company must ensure that its supply chain capabilities support its ability to
satisfy the Targeted customer segments there are three basic steps to achieving strategic fit:
1. 1Understanding the customer and supply chain uncertainty. First a company must understand the
customer needs for each targeted segment and the uncertainty the supply chain faces in
satisfying these needs. These needs help the company define the desired cost and service
requirements. The supply chain uncertainty helps the company identify the extent of disruption
and delay the supply chain must be prepared for.
2. Understanding the supply chain capabilities. There are many types of supply chains, each of
 which is designed to perform different tasks well. A company must understand what its supply
chain is designed to do well.
3. Achieving strategic fit. If a mismatch exists between what the supply chain does particularly
well and the desired customer needs, the company will either need to restructure the supply
chain to support the competitive strategy or alter its strategy
The greater the implied demand uncertainty, the more responsive a supply chain has to be. More
responsive supply chains are more costly supply chains. When compared directly with less responsive
but more efficient supply chains, their costs may look excessive.
Expanding the Supply Chain Optimization and Strategic Fit Scope
1. Intra company Intra operation scope: The most limited scope over which strategic fit and
optimization can be attempted is one with operation within a functional area in a company.
2. Intra company Intra functional scope: If the competitive strategy and supply chain strategy
are aligned across all the operations functions of the company and optimization is attempted in
an integral manner including the raw material inventory, manufacturing operations, finished
goods inventory and warehouse, and transportation, the scope is extended to intra company intra
fictional level.
3. Intra Company Inter functional scope: At this level of scope, the entire company's activities
are viewed and modelled as one single system, and optimization is done and company profit is
maximized.
4. Intercompany Inter functional scope: The Maximum Supply Chain Surplus view: At this level
of optimization and fit making, the entire supply chain is modelled as a system and optimization
and fit is designed so that supply chain surplus is maximized.
5. Flexible Intercompany inter functional scope: The flexibility refers to dynamic situation.
Physically, the participants in the supply chain keep changing, products keep changing,
technologies keep changing, facilities keep changing. Mathematically, there are changes in
number of variables and variable values. A supply chain capable of optimizing and fit making
dynamically is a flexible intercompany inter fictional scope supply chain.

Drivers of Supply Chain Performance:

1. Facilities – The physical locations in the supply chain network where product is stored,
assembled, or fabricated.
2. Inventory– All raw materials, work in process, and finished goods within a supply chain.
3. Transportation– Moving inventory from point to point in the supply chain.
4. Information– Data and analysis concerning facilities, inventory, transportation, costs, prices, and
customers throughout the supply chain.
5. Sourcing– Who will perform a particular supply chain activity.
6. Pricing– How much a firm will charge for the goods and services that it makes available in the
supply chain.
Scope including customer and supply chain uncertainty:
To understand the customer, a company must identify the needs of the customer segment being served.
Let us compare 7-Eleven Japan and a discounter such as Sam's Club (a part of Wal-Mart). When
customers go to 7-Eleven to purchase detergent, they go there for the convenience ofa nearby store and
are not necessarily looking for the lowest price. In contrast, a low price is very important to a customer
going to Sam's Club. This customer may be willing to tolerate less variety and even purchase very large
package sizes as long as the price is low. Even though customers purchase detergent at both places, the
demand varies along certain attributes. In the case of 7-Eleven, customers are in a hurry and want
convenience. In the case of Sam's Club, they want a low price and are willing to spend time getting it.
In general, customer demand from different segments may vary along several attributes as follows:
1. The quantity of the product needed in each lot: An emergency order for material needed to repair
a production line is likely to be small. An order for material to construct a new production line is
likely to be large.
2. The response time that customers are willing to tolerate: The tolerable response time for the
emergency order is likely to be short, whereas the allowable response time for the construction
order is apt to be long.
3. The variety of products needed: A customer may place a high premium on the availability of all
parts of an emergency repair order from a single supplier. This may not be the case for the
construction order.
4. The service level required: A customer placing an emergency order expects a high level of
product availability. This customer may go elsewhere if all parts of the order are not
immediately available. This is not apt to happen in the case of the construction order where
along lead time is likely.
5. The price of the product: The customer placing the emergency order is apt to be much less
sensitive to price than the customer placing the construction order.
6. The desired rate of innovation in the product: Customers at a high-end department store expect a
lot of innovation and new designs in the store's apparel. Customers at Wal-Mart may be less
sensitive to new product innovation. Each customer in a particular segment will tend to have
similar needs, whereas customers in a different segment can have very different needs. Although
we have described the many attributes along which customer demand varies, our goal is to
identify one key measure for combining all of these attributes. This single measure then helps
define what the supply chain should do particularly well. Implied Demand Uncertainty At first
glance, it may appear that each of the customer need categories should be viewed differently, but
in a very fundamental sense, each customer need can be translated into the metric of implied
demand uncertainty. Implied demand uncertainty is the uncertainty that exists due to the portion
of demand that the supply chain is required to meet.
 We make a distinction between demand uncertainty and implied demand uncertainty. Demand
uncertainty reflects the uncertainty of customer demand for a product. Implied demand uncertainty, in
contrast, is the resulting uncertainty for only the portion of the demand that the supply chain must
handle and the attributes the customer desires. For example, a firm supplying only emergency orders for
a product will face a higher implied demand uncertainty than a firm that supplies the same product with
a long lead time. Another illustration of the need for this distinction isthe impact of service level. As a
supply chain raises its level of service, it must be able to meet a higher and higher percentage of actual
demand, forcing it to prepare for rare surges in demand. Thus, raising the service level increases the
implied demand uncertainty even though the product's underlying demand uncertainty does not change.
Both the product demand uncertainty and various customer needs that the supply chain tries to fill affect
implied demand uncertainty.

Scope of strategic fit:

The Process of Achieving Strategic Fit
Strategic fit between competitive strategy and supply chain strategy refers to the consistency between
the customer needs that the competitive strategy aims to satisfy and the supply chain capabilities that
the supply chain strategy aims to build. Chopra and Meindl stated an important point: no one function
can ensure the chain's success. However, failure at one function may lead to failure of the overall chain.
Three steps are involved.
1. Understanding the customer needs regarding attributes of supply.
2. Understanding the supply chain attributes (alternatives available).
3. Achieving strategic fit.
Making decision on the supply chain to best serve the needs of the target segment customers.
Understanding the Needs of the Customer Regarding Supply Attributes
Some of the attributes or dimensions of the supply are as follows:
1. The quantity of the product needed in each lot purchased. Preferred purchase quantity of the
customer.
2. The response time from customer's enquiry.
3. The variety of products needed (applicable in case of a retail store, restaurant etc.).
4. The service level required (shortage of items)
5. The price of the product or service.
6. The desired rate of innovation.
 UNIT II
Logistics management
Logistics management is the governance of supply chain management functions that helps organizations
plan, manage and implement processes to move and store goods. Logistics management activities
typically include inbound and outbound transportation management, fleet management, warehousing,
materials handling, order fulfillment, logistics network design, inventory control, supply/demand
planning and management of third-party logistics services providers.
Logistics management functions
To varying degrees, logistics management functions include customer service, sourcing and
procurement, production planning and scheduling, packaging, and assembly. Logistics management is
part of all the levels of planning and execution, including strategic, operational and tactical.

Further, it coordinates all the logistics activities, and it integrates logistics activities with other
functions, including marketing, sales, manufacturing, finance and information technology.

Importance of logistics management

Effective logistics management is important to companies for a number of reasons, both positive and
negative.
Good logistics management ensures that products are shipped in the most economical, safe, efficient
and timely manner. This results in cost savings for the company and more satisfied customers.
In contrast, poor logistics management can result in damaged or delayed shipments, which can then lead
to dissatisfied customers, returns and scrapped products. The consequences of these problems include
higher costs and customer relation problems. In order to avoid these results, effective logistics
management includes careful planning, proper software system selection, proper vetting and selection
of outsourced vendors, and adequate resources to handle the processes.

Logistics management process

Logistics management generally consists of processes for inbound and outbound logistics traffic.
Inbound logistics is the process of moving goods from suppliers into a warehouse, then into a
production facility to make products. Inbound logistics can include raw materials, tools, component
parts, office equipment and supplies. Outbound logistics is the process of moving finished products out
of warehouse inventory and shipping them to customers.
Designing Distribution networks and Applications to E-Business:
The Role of Distribution in the Supply Chain
Distribution: the steps taken to move and store a product from the supplier stage to the customer stage
product from the supplier stage to the customer stage in a supply chain.
Distribution directly affects cost and the customer experience and therefore drives profitability.
Choice of distribution network can achieve supply chain objectives from low cost to high
responsiveness Examples: Wal-Mart, Dell, Proctor & Gamble, and Grainger
Factors Influencing Distribution Network Design
Distribution network performance evaluated along two dimensions at the highest level:
Two dimensions at the highest level:–
1. Customer needs that are me
2. t– Cost of meeting customer needs
Distribution network design options must therefore be compared according to their impact on customer
service and the cost to provide this level of service.
Factors Influencing Distribution Network Design
Elements of customer service influenced by network structure:
1. Response time
2. Product variety
3. Product availability
4. Customer experience
5. Order visibility
6. Returnability
Supply chain costs affected by network structure:
1. Inventories
2. Transportation
3. Facilities and handling
4. Information
Design Options for a Distribution Network
1. Manufacturer Storage with Direct Shipping
2. Manufacturer Storage with Direct Shipping and In Transit
Merge
1. Distributor Storage with Carrier Delivery
2. Distributor Storage with Last Mile Delivery
3. Manufacturer or Distributor Storage with Customer
4. Retail Storage with Customer Pickup
5. Selecting a Distribution Network Design

E-Business and the Distribution Network

1. Impact of E-Business on Customer Service
2. Impact of E-Business on Cost
3. Using E-Business: Dell, Amazon, Peapod, Grainger
Impact of E-Business on Customer Service
1. Response time
2. Product variety Product variety
3. Product Availability
4. Customer experience
5. Time to market
6. Order Visibility
7. Returnability
8. Direct Sales to Customers
9. Flexible Pricing, Product Portfolio, and Promotions
10. Efficient Funds Transfer

Supply Chain Network Design & Contributing Factors

Designing Supply Chain Network for each industry or business involves arriving at a satisfactory design
framework taking into all elements like product, market, process, technology, costs, external
environment and factors and their impact besides evaluating alternate scenarios suiting your specific
business requirements. No two supply chain designs can be the same. The network design will vary
depending upon many factors including location and whether you are looking at national, regional or
global business models.
Supply Chain Network in Simple and basic Terms Involves determining following process design:
1. Procurement
Where are your suppliers?
How will you procure raw materials and components?
2. Manufacturing
Where will you locate the factories for manufacturing/assembly?
Manufacturing Methodology
3. Finished Good
Where will you hold inventories, Number of Warehouses, Location of warehouses etc?
How will you distribute to markets - Transportation and Distribution Logistics?
All above decisions are influenced and driven by Key Driver which is the Customer Fulfillment.
4. Designing Supply Chain Network involves determining and defining following Elements:
Market Structure
Demand Plotting or Estimation
Market Segment
Procurement Cost
Product /Conversion Costs
 Logistics Costs including Inventory holding costs
Over heads
Cost of Sales
5. Network Design aims to define:
Best fit Procurement model - Buying decision and processes- VMI, JIT, Kanban, procurement cost
models etc.
Production processes - One or more number of plants, plant capacity design, Building to order,
build to stock etc, in-house manufacturing or outsource manufacturing and related decisions
including technology for production.
Manufacturing Facility design - Location, Number of factories, size of unit, time frames for the
plant setup project etc.
Finished Goods Supply Chain network - Number of warehouses, location & size of warehouses,
inventory flow and volume decisions, transportation.
Sales and Marketing Decisions - Sales Channel and network strategy, Sales pricing and promotions,
order management and fulfillment process, service delivery process definitions.
6. Network Design also examines:
Derives cost estimates for every network element
Examines ways to optimize costs and reduce costs
Extrapolates cost impact over various product lines and all possible permutations and combinations
to project profitability
7. Some of the key factors that affect the supply chain network modeling are:
Government Policies of the Country where plants are to be located.
Political climate
Local culture, availability of skilled / unskilled human resources, industrial relations environment,
infrastructural support, energy availability etc.
Taxation policies, Incentives, Subsidies etc across proposed plant location as well as tax structures in
different market locations.
Technology infrastructure status.
Foreign investment policy, Foreign Exchange and repatriation Policy and regulations.
Supply Chain Network designs not only provide an operating framework of the entire business to guide
the managements, they also examine the structure from strategic view point taking into account external
influences, interdependencies of all processes and critically evaluate opportunities to maximize
profitability.
Supply Chain Design consultants use various design softwares and optimization techniques coupled
with inputs from industry consultants and experts.
Global Supply Chain Networks:
In years past, companies redesigned their supply chain networks infrequently, usually in response to a
significant change in operations prompted by a merger or acquisition, the introduction of a new product,
or a shift in sales profiles.
Today, however, market dynamics drive leading companies to examine supply chain design more often.
Take global sourcing, for example. Many companies undertake complex global sourcing initiatives, but
fail to support them with similarly diligent network design analyses, notes Iain Prince, a senior manager
with Accenture's global supply chain practice.
"This is a critical disconnect, because a wholesale revamp of sourcing processes and policies affects
virtually every aspect of an organization's supply chain network," he says.

Global sourcing creates a whole new network-design ballgame, he explains, because of several
factors:
 The influence of low-cost labor.
 Geographic distances and their impact on service and availability.
 Barriers associated with language and technology sophistication.
 Volatility and reliability issues.
 Cultural and political barriers related to local governance.
 Additional supply chain links, handoffs, and customs challenges.
 Inventory visibility problems.
 The role of immediacy and perish ability in determining the optimal network.
 The impact of extensive transit times on inventory cost and ownership.
"Companies must assess network-related tradeoffs to reconcile the convenience and reliability of local
or near-shore suppliers against the economies associated with sourcing from low-cost countries," Prince
says.
"If companies do not conduct a holistic assessment of global sourcing's impact on their supply chain
network, their new suppliers may be the only ones who benefit from the arrangement."

Supply Chain Disruption Amplifiers

The impact of supply chain disruptions increases when any of the following global sourcing
parameters increase in a given supply chain:
 Location of supplier
 Number of brokers
 Lead time
 Concentration or clustering of suppliers
 Labor availability/workforce issues
 Customs regulations
 Storage requirements
  Security requirements
 Demand for product (volume)
 Legislative actions related to importing/global sourcing
 Poor communication
 Regional/country political issues
 Number of transfer points
 Vessel capacity and channel overload
 Port issues and infrastructure
 Potential for terrorism
 Natural disasters
 Lack of visibility of entire system/supply chain
The impact of supply chain disruptions increases when any of the following product/process
complexity parameters increase in a given supply chain:
 Product complexity (number of parts, levels in bill of material, difficulty in meeting
specifications)
 Proprietary technology
 Value of product
 Quality requirements
 Supplier manufacturing capacity
 Uniqueness of parts
 Part size

Network Design
Network Design determines the physical configuration and infrastructure of the supply chain. Key
decisions are made on the number, locations, and size of manufacturing plants and warehouses, the
assignment of retail outlets to warehouses, etc. At this stage, major sourcing decisions are also made.
The typical planning horizon is a few years.
Long-term location, capacity, technology, and supplier selection decisions have to be made under
considerable uncertainty with respect to market development and changing economic and legal
conditions. Our research in supply chain design focuses on the development of multi-stage stochastic
optimization methods for decision support under demand, freight rate, and exchange rate uncertainty.
We further investigate different approaches to uncertainty and scenario modeling.
Warehouse location:
If companies expand and want to build new factories or storage places, the Warehouse Location
Problem calculates among a set of possible locations the ones, that minimize fixed costs and operational
costs by fulfilling the required demand.
Traffic network design:
Facing increasing demand on transportation in cities, the traffic networks have to be extended. As the
budget is usually limited, the question is: Which projects should be built to improve the flow inside a
traffic network.
Reshoring:
For many years, OEM’s constantly achieved significant cost savings through outsourcing to low cost
countries. However, due to rising cost and other circumstances, the phenomenon „ reshoring“ has
recently emerged. It describes the process of moving some or all manufacturing back to its original
source.
3PL
3PL - Third-Party Logistics
In a 3PL model, an enterprise maintains management oversight, but outsources operations of
transportation and logistics to a provider who may subcontract out some or all of the execution.
Additional services may be performed such as crating, boxing and packaging to add value to the supply
chain. In our farm-to-grocery store example, a 3PL may be responsible for packing the eggs in cartons
in addition to moving the eggs from the farm to the grocery store.
Most 3PLs offer a bundle of integrated supply chain services, including:
 Transportation
 Warehousing
 Cross-docking
 Inventory management
 Packaging
 Freight forwarding
A 3PL can scale and customize services to meet customers' needs based on their strategic requirements
to move, store, and fulfill products and materials. Companies turn to 3PLs when their supply chain
becomes too complex to manage internally. For example, a company may grow through mergers and
acquisitions, so a supply chain that was manageable at one time outgrows the in-house capability.
The 3PL offers experience gained from working for multiple clients across many different industries.
They also offer technology solutions — in some cases, proprietary tools — such as transportation and
warehouse management systems beyond what the shipper could afford to invest in independently. Long-
term relationships with carriers can result in better pricing and service during periods when capacity
may come at a premium. The economy of scale can lower prices on everything from packing tape to
ocean shipping rates.
Advantages of 3PL
A 3PL will offer innovative strategies to transform your supply chain into a cost-effective, responsive
model. Consider what we're doing at Warehouse Anywhere as an example. In contrast to the traditional
single distribution center (DC) model, we have pioneered and perfected forward-deployed inventory
management. The common hub-and-spoke DC model is not able to keep up with the pace of business,
with large inventories and infrequent truck service. We've developed the forward-deployed model for
warehousing and distribution that uses a larger number of smaller locations to move products closer to
the customer. This decentralized, hyper-connected model provides the responsiveness needed to meet
customers' expectations for timely delivery.
No matter if you're direct-to-consumer or in a service-level agreement situation, customers expect
overnight delivery, or as close to it as possible. The Warehouse Anywhere system can optimize your
inventory per location to ensure stock is on hand in areas of highest demand. You will save on
transportation and logistics expenses while improving customer service.
Disadvantages of 3PL
While the 3PL model has been successful for decades, there are some things to consider. Perhaps the
most significant caveat is the lack of direct oversight and control. After all, a 3PL is an outsourced
service provider. That means some activities will take place outside of your direct supervision. Ensuring
quality control and customer service requires an extra level of diligence. If a 3PL fails to deliver on a
customer's expectation, the customer will blame your company, not the 3PL.
Another issue is the degree of dependency a 3PL can create. When you outsource a significant segment
of your business, it can be difficult to switch providers or take the operations in-house if pricing or
service levels no longer meet expectations.
Most 3PLs offer a bundle of integrated supply chain services, including:
 Transportation
 Warehousing
 Cross-docking
 Inventory management
 Packaging
 Freight forwarding
A 3PL can scale and customize services to meet customers' needs based on their strategic requirements
to move, store, and fulfill products and materials. Companies turn to 3PLs when their supply chain
becomes too complex to manage internally. For example, a company may grow through mergers and
acquisitions, so a supply chain that was manageable at one time outgrows the in-house capability.

The 3PL offers experience gained from working for multiple clients across many different industries.
They also offer technology solutions — in some cases, proprietary tools — such as transportation and
warehouse management systems beyond what the shipper could afford to invest in independently. Long-
term relationships with carriers can result in better pricing and service during periods when capacity
may come at a premium. The economy of scale can lower prices on everything from packing tape to
ocean shipping rates.
4PL
Fourth-Party Logistics
In a 4PL model, an enterprise outsources management of logistics activities as well as the execution
across the supply chain. The 4PL provider typically offers more strategic insight and management over
the enterprise's supply chain. A manufacturer will use a 4PL to essentially outsource its entire logistics
operations. In this case, the 4PL may manage the communication with the farmer to produce more eggs
as the grocery store's inventory decreases.
Typically, the 4PL does not own transportation or warehouse assets. Instead, it coordinates those aspects
of the supply chain with vendors. The 4PL may coordinate activities of other 3PLs that handle various
aspects of the supply chain. The 4PL functions at the integration and optimization level, while a 3PL
may be more focused on day-to-day operations. A 4PL also may be known as a Lead Logistics Partner
(LLP), according to the CSCMP.
The primary advantage of a 4PL relationship is that it is a strategic relationship focused on providing
the highest level of services for the best value, as opposed to a 3PL that may be more transaction
focused. A 4PL provides a single point of contact for your supply chain. With a 3PL, there may be some
aspects that you still have to manage. The 4PL should take over those processes for you, acting as the
intermediary for 3PLs, carriers, warehouse vendors and other participants in your supply chain.
The 4PL relationship simplifies and streamlines the logistics function using technology for greater
visibility and imposing operational discipline across many partners and suppliers. The enterprise can
focus on its core competencies and rely on the 4PL partner to manage the supply chain function for
maximum value. Basically, the 4PL acts as the enterprise would if the supply chain functions were
managed in-house.
As companies transition their supply chain model to forward deployment or decentralized distribution, a
4PL partner can step in and manage that complexity. Retailers, in particular, are shifting toward a more
nimble model to support e-commerce and omni channel services. A 4PL can manage the multiplying
number of resources that it takes to compete at that level. The days of the million-square-foot super
regional DC may be over, as companies opt for shared warehouse space near major customer centers to
speed up responsiveness. The 4PL can manage those relationships, as well as optimize the network to
use parcel carriers or couriers to support e-commerce, rather than LTL or truckload services.
Fourth-Party Logistics Advantages
Choosing a 3PL vs. a 4PL can be a complicated decision that depends on the complexity of your supply
chain and your company's strategic goals.
A 3PL relationship works well when the organization has a solid, high-performance supply chain
strategy in place and requires support to execute the plan. Working with a 3PL will typically require a
high level of internal management commitment and oversight to ensure performance meets your
standards. However, many day-to-day decisions are out of your hands as you count on the providers
selected by the 3PL to meet your service commitments. An asset-based 3PL may focus too much on
ensuring that its own assets are fully utilized at the expense of lower rates or better services from other
providers. For smaller companies, a 3PL can provide an immediate level of scale that would otherwise
be cost prohibitive.
A non-asset based 4PL is agnostic in choosing suppliers, concentrating on finding the best combination
of value and service. Typically, a 4PL will have integrated technology offerings that deliver a high level
of visibility into the supply chain for tactical and strategic analysis. Of course, internal resources are
still necessary to manage the 4PL performance, but it should be a higher level of oversight than a 3PL.
Warehouse Anywhere has performed as both a 3PL and 4PL for our clients. Recently, we've seen great
success in acting as a 4PL in managing forward-deployed inventories in a variety of vertical markets.
We can localize your inventory in hundreds of U.S. cities in a very short period of time.

Transportation in Supply Chain:

1. Usually supply chain management simply becomes a balancing act of time versus cost. This is seen
most easily in the transportation element. There are many ways available to ship goods from one
place to another, but with foresight, the cost of shipping can be balanced through different practices
and compared against relative shipping times. When manufacturers plan ahead to make sure the
materials are arriving in the most time efficient way, they can then achieve the lowest freight costs.
2. Many like to think of an enterprise supply chain as a living thing. Living things are always
changing. Some suppliers like to challenge incumbents with what seems to be better prices or
services, raw materials may fluctuate in price, or foreign exchange rates could change. Any of these
changes can affect the transportation supply chain as well. This basically means that the supply
chain is not static, and if the supply chain is not static then the distribution requirements are not
static either and will change. Transportation systems must change in response and it’s up to the
shipper putting in place systems either in-house or through a transportation management 3PL who
can supply that expertise immediately to be prepared for the constant of change.
3. Many problems in transportation supply chain can be addressed through the availability of analytics
provided through a transportation management system. Needing such insights to allow companies to
make smarter business decisions is especially true when supply chains become larger and begin
operating on a larger scale. Recent advancements in technology also help promise a better
integration between physical product movement and visibility. One good example is the surge of
interconnected devices to connect pallets, trailers and containers systems in order to provide greater
visibility. Of course, proper implementation is essential in order for these great technologies to
succeed.
4. Companies of all sizes must approach the transportation supply chain by implementing more
harmonious systems in order to achieve greater visibility and a lower occurrence of supply chain
errors. In the end this will result in lower total costs for the organization even beyond transportation
 costs.
5. Well executed transportation management system always lead to the greatest supply chain visibility.
When transportation systems feed into a predictive analytics scheme performance will be improved
across the board. In fact once the inventory is loaded into a channel it is the predictive analytics
responsibility to plan for efficient transportation.
6. Supply chain management ultimately has many moving parts, the starting point must always be
transportation, however, as it is anywhere from 40 to 60% of your supply chain costs.
 UNIT III
planning and management inventories
Managing Economies of Scale in the Supply Chain:
Producing or purchasing in large lots allows a stage of supply chain to exploit economies of scale and
lower cost. These economies of scale result due to fixed costs associated with ordering and
transportation, quantity discounts on buying larger lots, and short-term discounts or trade promotions.

Cycle Inventory

If purchasing is done in large lots and consumption is done in smaller lots, when the order is received
there is a sharp increase in stock or inventory. This inventory or stock gets depleted as consumption
takes place gradually and once again a big lot may be ordered and received. Thus the cycle repeats and
the average inventory held by a firm during each cycle is termed cycle inventory.

The inventory holding results in costs for a firm and this cost is called inventory holding cost or
inventory carrying cost.

Economic Order Quantity or Production Quantity Formulas

(1) Q = SQRT(2RS/hC)
R = demand in a period (usually a year)
S = Ordering cost
h = holding cost per year per dollar of inventory
C = unit price of the item

 To reduce lot sizes that arise due to presence of ordering costs, a number of individual items are
ordered in a single order. This will distribute the transportation cost over a number of items and
lot sizes for individual items can be small.

 To take decisions in case of quantity discounts, the total inventory cost when discount is taken is
compared with total inventory cost when discount is not taken and appropriate decision is taken.

In case of trade promotions also retailers compare the total inventory cost when the trade promotion is
used to accumulate inventory with the total inventory cost when the trade promotion is not utilized.

Estimating Cycle Inventory Related Costs

Inventory holding cost

 Cost of capital
 Obsolescence cost
 Handling cost
 Occupancy cost
 Miscellaneous cost
Order Cost

 Buyer time
 Transportation cost
 Receiving cost
 Other costs
Managing Uncertainty in the Supply Chain: Safety Inventory
Safety Inventory
Safety inventory or safety stock is inventory carried for the purpose of satisfying the demand that
exceeds the amount forecasted as systematic component for a given period.
While in olden days, if an item is out of stock, customer used to wait and come back to the store after
sometime, in the E-commerce days, customer will search another site that offers availability. Hence,
availability is a critical issue in the modern supply chains.
The appropriate level of safety inventory is determined by taking into consideration, the uncertainty of
demand represented by the forecast error, and the desired level of product availability.
Measures of uncertainty of demand
Given a past demand history of 'n' periods we can find the average demand and standard deviation.
If lead time is k periods the forecasted demand during the leadtime will be 'k' multiplied by the average
demand for the period and standard deviation of demand during lead time will be square root of 'k'
multiplied by standard deviation of demand.
Measures of Product Availability
Some important measures are:
1. Product fill rate
2. Order fill rate
3. Cycle service level (CSL)
Cycle service for an item can be evaluated using the EXCEL Function NORMDIST(ROP or
ROL,DL,SDL,1)
Where
ROP = reorder point
DL = demand during lead time
SDL Standard deviation during lead time
If the cycle service level (CSL) is given, safety inventory to be maintained can be found from the
EXCEL function NORMSINV(CSL) and SDL
Safety Inventory or Safety stock = NORMSINV (CSL) * SDL
Managerial Alternatives to Manage Uncertainty in Demand
1. Aggregation of Inventory in Supply Chain
2. Information centralization
3. Product substitution: Supplying a higher quality item when lower quality item is out of stock.
Customer pay the price of lower quality item only.
4. Informing customer of substitution possibilities: When a customer makes an enquiry for an item not
in stock, he is informed of the substitution possibilities.

Determining the Optimal Level of Product Availability

1. Identify the factors affecting the optimal level of product availability and evaluate the optimal cycle
 service level
2. Use managerial levers that improve supply chain profitability
3. Understand conditions under which postponement is valuable in a supply chain4.Allocate limited
supply capacity among multiple products to maximize expected profits
Importance of the Level of Product Availability
1. Product availability measured by cycle service level or fill rate
2. Also referred to as the customer service level Product availability affects supply chain
responsiveness
3. Trade-off:
4. High levels of product availability  increased responsiveness and higher revenues
5. High levels of product availability  increased inventory levels and higher supply chain costs
6. Product availability is related to profit objectives and strategic and competitive issues
Factors Affecting the Optimal Level of Product Availability
1. Cost of overstocking, Co ,the loss incurred for each unsold unit
2. Cost of under stocking, Cu, the margin lost for each lost sale unit
3. Possible scenarios
4. Seasonal items with a single order in a season
5. One-time orders in the presence of quantity discounts
6. Continuously stocked items
7. Demand during stock out is backlogged
8. Demand during stock out is lost

Demand Forecasting in Supply Chain

1. Demand Forecasting: This is the investigation of the companies demand for an item or SKU, to
include current and projected demand by industry and product end use.
2. Supply Forecasting: Is a collection of data about the current producers and suppliers &
technological and political trends that might affect supply.
3. Price Forecast: This is based on information gathered and analyzed about demand and supply.
Provides a prediction of short- and long-term prices and the underlying reasons for those ternds1.
4. Additionally, the importance of demand forecasting can be short-term, midrange, or long term.
Typically, firms would use all three types of forecasting.
5. Long-term Forecast: usually cover more than three years and are used for long-range planning and
strategic issues. These will be a performance in broad terms; that is sales by product line or division,
throughput capacity by ton per period or dollars per period.
6. Midrange Forecast: usually range from one to three years and address budgeting issues and sales
plans. Again, these might predict more than demand.
7. Short-term Forecast: are most important for the operational logistics planning process. They
project demand into the next several months and, in some cases, more than a year ahead. These are
 needed in units, by actual items to be shipped, and for finite periods of time- monthly or perhaps
weekly
Importance of Demand Forecasting in Supply Chain
1. Increasing Customer Satisfaction
In order to keep your customers satisfied you need to provide them with the product, they want when
they want it. This advantage of forecasting in business will help predict product demand. So that enough
product is available to fulfill customer orders with short lead time and on-time.
2. Reducing Inventory Stock outs
The interesting thing is you need realize the Importance of Demand Forecasting even if you are
working in JIT System or with long lead time suppliers like India or China. If you are buying from long
lead time suppliers then you need to send a demand forecast so that suppliers can arrange raw materials
in anticipation of actual customer orders.
3. Scheduling Production More Effectively
Forecasting is often compared to driving a car whilst looking in the rear-view mirror. The past gives a
few clues about the future, but not enough to stop you from driving off a cliff. But in my opinion this is
the best view you’ve got! If you look into the 5 Levels of Planning Hierarchs most business should need
robust SIOP and Master Scheduling to schedule production more effectively.
But I must emphasis the solution is not complex analytical software. The answer is this: Master the
present before trying to predict the future. There are signals everywhere that point to how demand is
changing. Adaptive manufacturers are watching and listening closely to the way customers consume
their product. Respond and adapt to these changes, and you will depend less on prediction.
4. Lowering Safety Stock Requirement
A good demand forecasting process will have a direct impact in the planning of inventory levels, Link:
Developing production requests to manufacturing operations
Planning for new product launches
Planning for promotional activity
Planning for seasonal variations in demand.
If a business is using forecasting to plan any of the above scenarios then you don’t need to carry high
safety stocks to manage those events.
5. Reducing Product Obsolescence costs
By identifying, repurposing or removing obsolete inventory the volume of inventory on hand will
decrease. With this, both direct and indirect costs of keeping the obsolete inventory will be reduced.
This closely links to reduced order sizes as a smaller volume of the inventory will be in stock and
demand forecast accuracy. Having a standardized reliable way of forecasting demand will mean that
excess stock is not ordered and this will reduce the chance of obsolete stock.
6. Managing Shipping Better
Nothing annoys me more than doing everything you can to make or buy a product so that it’s available
to ship on-time yet the warehouse guys won’t ship, as they don’t have enough people. This drives me
absolutely bonkers! For that reason the logistics guys are now part of the SIOP process and they have to
tell me how many people they need in the following 3 months. To ensure we have enough capacity to
ship material on time. This is one of the classic examples to demonstrate the importance of demand
forecasting.
7. Improving Pricing and Promotion Management
In some businesses, multiple promotions running concurrently may result in the cannibalization of both
promoted and non-promoted SKUs. Integrating distributor-level promotions and related forecasts will
allow you to improve the flow of goods. It also achieves better results in terms of availability and stock
fill rates. Similarly, improving the ability to forecast the impact price changes will have on both revenue
and gross margin dollars, when timed well!
8. Negotiating Superior Terms with Suppliers
This blog explains 7 Tips for Negotiating the Best Deal With Your Suppliers, even though I don’t agree
with heading “Sell Yourself as Someone Who Will Give Them a Lot of Business”, I do agree with the
point that, “When negotiating with suppliers, make sure they know you are someone who will give
them repeat business, over the long term”. And “And if you’re just starting out, provide them with a
sales projections plan that is based on logic and research”. By doing that you are positioning yourself as
a credible customer who wants to have a long-term relationship rather than one-off spot buy.
9. Plan Sales Strategies
If you can use demand forecasting to get a handle on either future revenue, plan production capacities
or manage stock outs, you can also use the same information to help functions like Product
Management, Marketing and Product Design. This will enable them to make decisions on promotions,
pricing and purchasing. When working concurrently each will influences your company’s results
positively.

Aggregate Planning in Supply Chain Management

When you look ahead three to 18 months to determine your supply needs, you can use the techniques of
aggregate planning. This approach gives you a comprehensive view of the supplies you'll need to meet
the demand for your products. By ordering for the entire planning period, you can qualify for bulk
discounts and avoid shortages. The process of aggregate planning requires you to make an appraisal of
your company's ability to sell and deliver.
1. A Solid Demand Forecast
You need to anticipate the demand for your products before you can plan your supply ordering. Use
previous years as a guide, as well as industry trends, economic forecasts and feedback from your
marketing manager to determine the probable demand for your products in the coming months. Your
forecast tells you how much you need to produce to meet demand so that you know the quantity of
supplies you will need to maintain productivity.
2. Production Capacity
 Your ability to produce depends on machinery, work staff and efficiency. You can evaluate your
production department to determine how many products you can reasonably produce during the
period you are planning for. This could be less than demand. Use your production ability to set goals
for producing products that are realistic. Allow for personnel shortages and machinery maintenance.
3. Limits on Capital
No matter what quantity of supplies you would like to order, you must take your cash into account.
You may be limited by what you can afford. If you plan to borrow to buy supplies, include the
interest costs in your estimates of the profits you will make from the products you manufacture. In
short, make sure you have the capital to purchase the supplies you will need.
4. Putting It All Together
Aggregate planning is a balancing act between what you think you can sell, how much you can
produce and the raw materials you can afford. You may find that you have to compromise. For
example, if you anticipate a demand for 10,000 units but your production capacity is 9,000 units,
order only enough supplies for 9,000 units. To give another example, if demand and production
capacity suggest you could make and sell 10,000 units but you can only afford supplies for 8,000
units, use the lower figure for your supplies. In other words, what you need to produce must always
be compared to what you can afford to produce. You don't have to stretch your budget to meet the
demands of the market.

Sales and Operations Planning:

Planning Demand and Supply in a Supply Chain
Sales and operations planning (S&OP), sometimes known as aggregate planning, is a process where
executive level management regularly meets and reviews projections for demand, supply, and the
resulting financial impact. S&OP is a decision-making process that makes certain that tactical plans in
every business area are in line with the overall view of the company's business plan. The overall result
of the S&OP process is that a single operating plan is created that identifies the allocation of company
resources, including time, money and employees.
Benefits of Sales and Operations Planning
Companies that use S&OP can give a number of benefits such as a greater visibility of the demand and
supply across the enterprise, improved inventory management, increased promotional planning,
increased accuracy in budget forecasting, and an improved product lifecycle management process.
Planning Demand and Supply in a Supply Chain
At its most basic level, Demand Planning is all about managing and planning for customer demand.
Supply Planning is about managing and planning the inventory supply to meet customer demand.
Simply put, it’s all about Customer Forecast versus Inventory Supply.
Of course, nothing is ever that simple is it? The same holds true for Demand and Supply Management.
There are a few pieces of the puzzle that make successful Demand and Supply Management possible.
Demand Planning is the management of the relationships between retailers/distributors and your
customers to deliver the best value at the least cost to the demand chain. Demand management is
conducted with special regard for the customers. Demand Planning is comprised of several components,
all necessary when managing that ‘customer component’. Let’s look at the first component-
forecasting.
Demand Forecasting – the ability to produce precise, segmented projections of upcoming customer
demand. Notice I said customer demand… not item demand.
The biggest awakening you can have is to understand that in forecasting you're trying to predict how
customers (and a few thieves, clumsy folks, etc.) will act on your items.
To truly understand the customer actions that drive demand, you must start by analyzing every customer
transaction to develop an understanding of patterns, trends and even fads. The connection between the
transaction and the distributor/retailer makes it possible for you to understand demand at that deeper
level of detail.
To help you truly understand demand, rather than just analyzing raw statistics without knowing the
cause of demand, a distribution/retail forecasting and planning solution needs to be geared toward an
environment that captures customer purchasing activity. This exposes influences, events, and causal
factors to predict customer demand more precisely. This level of precision is key to assuring product
availability and eliminating stock outs in the supply chain. It’s important to recognize that the forecast
consists of multiple segments that today’s distributors and retailers should be taking advantage of:
Causal Forecasting: demand that occurs either due to retailer/distributor action (example: sales push,
spiffs, promotions), market influences (example: news, social media, supplier advertising), or other
conditions (example: events, weather, etc.)
Deterministic Forecasting: demand that occurs in a known, or pre-determined way, such as order
schedules, committed or booked orders.
Stochastic Forecasting: demand for which the cause cannot be identified requires statistical techniques
be applied to generate a forecast.
Causal Forecasting is worth a shout out all its own – Truth be told, all demand is causal. Meaning,
something or some combination of things caused the customer to buy. Stochastic/Statistical forecasting
was only invented because the data and processing power didn’t exist to allow companies to know the
“cause” for demand.
Truth be told
All demand is Casual.
Most distributors and retailers have a common business problem: they are unable to accurately predict
events that affect sales and their attributes (e.g. spiffs to sales reps, price promotion in a circular, in-
store promotion, etc.).
The solution is quite simple: collect the attributes of past causal events that enable the creation of an
event forecast. When the impact of causal events create the forecast for similar upcoming events, the
totality of the forecast is much more accurate, enabling better event in-stocks.
Aggregate Forecast Management – Today’s planners are inundated with a multitude of responsibilities.
Arguably, the most important of those responsibilities is assuring that the different forecast inputs for an
ever increasing number of SKU/locations is as complete as possible. To manage these forecasts
effectively, planners must be able to:
1. Aggregate forecast inputs in order to make forecasts more accurately reflect upcoming demand
Segment and compile forecast inputs
2. Apply forecasts to the appropriate products and locations
3. By spending the time on the front end to gather forecast inputs, the forecast is more accurate prior to
demand occurring, demand fulfillment is more effective, inventories are more aligned with demand,
and the need for demand exception analysis is reduced.

Supply Chain Coordination

 The concept of working together with the aim of improving supply chain performance by
aligning the plans and the objectives of individual enterprises.
 Supply chain coordination aims at improving supply chain performance by aligning the plans
and the objectives of individual enterprises. It usually focuses on inventory management and
ordering decisions in distributed inter-company settings.
 A contract is said to coordinate the supply chain if no firm has a profitable unilateral deviation
from the set of supply chain optimal actions.

E-procurement
 Electronic procurement, also known as e-procurement, is the business-to-business (B2B)
requisitioning, ordering and purchasing of goods and services over the internet.
 In terms of supply chain management, e-procurement can be particularly beneficial for
procuring indirect materials (i.e., those items and services that are not directly involved in
producing whatever final product is sold by the organization). This category of goods typically
includes office supplies, janitorial and facilities supplies, and other lower-cost items.
 E-procurement may not work well for every type of purchase, however. One such area, for
example, is the procurement of mission-critical items that are available through only a few
suppliers; where inventories can run low; where procuring them involves complex negotiations;
and/or where the potential to lower costs through an e-procurement platform is minimal.

Global alliances:
A relationship formed by two or more organizations that share (proprietary), participate in joint
investments, and develop linked and common processes to increase the performance of both companies.
Many organizations form strategic alliances to increase the performance of their common supply chain.
 UNIT -IV

MANAGING CROSS-FUNCTIONAL DRIVERS IN

A SUPPLY CHAIN
IMPORTANCE OF SOURCING DECISIONS IN SUPPLY CHAIN MANAGEMENT, PRICE
AND REVENUE MANAGEMENT:

Decision phases can be defined as the different stages involved in supply chain management for taking
an action or decision related to some product or services. Successful supply chain management requires
decisions on the flow of information, product, and funds that fall into three decision phases.
Here we will be discussing the three main decision phases involved in the entire process of supply
chain. The three phases are described below −

Here we will be discussing the three main decision phases involved in the entire process of supply
chain. The three phases are described below –

ROLE OF IT IN SUPPLY CHAIN MANAGEMENT:

Companies that opt to participate in supply chain management initiatives accept a specific role to
enact. They have a mutual feeling that they, along with all other supply chain participants, will be
better off because of this collaborative effort. The fundamental issue here is power. The last two
decades have seen the shifting of power from manufacturers to retailers.

When we talk about information access for the supply chain, retailers have an essential designation.
They emerge to the position of prominence with the help of technologies. The advancement of inter
organizational information system for the supply chain has three distinct benefits. These are −

 Cost reduction − The advancement of technology has further led to ready availability of all the
products with different offers and discounts. This leads to reduction of costs of products.

 Productivity − The growth of information technology has improved productivity because of

inventions of new tools and software. That makes productivity much easier and less time
consuming.

 Improvement and product/market strategies − Recent years have seen a huge growth in not
only the technologies but the market itself. New strategies are made to allure customers and new
ideas are being experimented for improving the product.

It would be appropriate to say that information technology is a vital organ of supply chain
management. With the advancement of technologies, new products are being introduced within
fraction of seconds increasing their demand in the market. Let us study the role of information
technology in supply chain management briefly.
The software as well as the hardware part needs to be considered in the advancement and maintenance
of supply chain information systems. The hardware part comprises computer's input/output devices like
the screen, printer, mouse and storage media. The software part comprises the entire system and
application program used for processing transactions management control, decision-making and
strategic planning.

Here we will be discussing the role of some critical hardware and software devices in SCM. These are
briefed below −

Electronic Commerce

Electronic commerce involves the broad range of tools and techniques used to conduct business in a
paperless environment. Hence it comprises electronic data interchange, e-mail, electronic fund
transfers, electronic publishing, image processing, electronic bulletin boards, shared databases and
magnetic/optical data capture.

Electronic commerce helps enterprises to automate the process of transferring records, documents, data
and information electronically between suppliers and customers, thus making the communication
process a lot easier, cheaper and less time consuming.

Electronic Data Interchange

Electronic Data Interchange (EDI) involves the swapping of business documents in a standard format
from computer-to-computer. It presents the capability as well as the practice of exchanging information
between two companies electronically rather than the traditional form of mail, courier, & fax.

The major advantages of EDI are as follows −

 Instant processing of information

 Improvised customer service

 Limited paper work

  High productivity

 Advanced tracing and expediting

 Cost efficiency

 Competitive benefit

 Advanced billing

The application of EDI supply chain partners can overcome the deformity and falsehood in supply and
demand information by remodeling technologies to support real time sharing of actual demand and
supply information.

Barcode Scanning

We can see the application of barcode scanners in the checkout counters of super market. This code
states the name of product along with its manufacturer. Some other practical applications of barcode
scanners are tracking the moving items like elements in PC assembly operations and automobiles in
assembly plants.

Data Warehouse

Data warehouse can be defined as a store comprising all the databases. It is a centralized database that
is prolonged independently from the production system database of a company.

Many companies maintain multiple databases. Instead of some particular business processes, it is
established around informational subjects. The data present in data warehouses is time dependent and
easily accessible. Historical data may also be accumulated in data warehouse.

Enterprise Resource Planning (ERP) Tools

The ERP system has now become the base of many IT infrastructures. Some of the ERP tools are Baan,
SAP, PeopleSoft. ERP system has now become the processing tool of many companies. They grab the
data and minimize the manual activities and tasks related to processing financial, inventory and
customer order information.

ERP system holds a high level of integration that is achieved through the proper application of a single
data model, improving mutual understanding of what the shared data represents and constructing a set
of rules for accessing data.

With the advancement of technology, we can say that world is shrinking day by day. Similarly,
customers' expectations are increasing. Also companies are being more prone to uncertain
environment. In this running market, a company can only sustain if it accepts the fact that their
conventional supply chain integration needs to be expanded beyond their peripheries.

The strategic and technological interventions in supply chain have a huge effect in predicting the buy
and sell features of a company. A company should try to use the potential of the internet to the
maximum level through clear vision, strong planning and technical insight. This is essential for better
supply chain management and also for improved competitiveness.

We can see how Internet technology, World Wide Web, electronic commerce etc. has changed the way
in which a company does business. These companies must acknowledge the power of technology to
work together with their business partners.

We can in fact say that IT has launched a new breed of SCM application. The Internet and other
networking links learn from the performance in the past and observe the historical trends in order to
identify how much product should be made along with the best and cost effective methods for
warehousing it or shipping it to retailer.

Role of Information Technology in a Supply Chain

The most typical role of IT in SCM is reducing the function in transactions between supply chain
partners through cost-effective information flow. IT is viewed to have a role in supporting the
collaboration & coordination of supply chains through information sharing. It can be used for
Decision Support.

Supply chain management (SCM) is concerned with the flow of products and information between
supply chain members' organizations. Recent development in technologies enables the organization to
avail information easily in their premises. These technologies are helpful to coordinates the activities to
manage the supply chain. The cost of information is decreased due to the increasing rate of
technologies. In the integrated supply chain model (Fig.1) bi-directional arrow reflect the
accommodation of reverse materials and information feedback flows. Manager needs to understand
that information technology is more than just computers. Except computer data recognition equipment,
communication technologies, factory automation and other hardware and services are included.

Information and Technology: Application of SCM:

In the development and maintenance of Supply chain's information systems both software and hardware
must be addressed. Hardware includes computer's input/output devices and storage media. Software in-
cludes the entire system and application programme used for processing transactions management con-
trol, decision-making and strategic planning. Recent development in Supply chain management soft-
ware is:
1. Base Rate, Carrier select & match pay (version 2.0) developed by Distribution Sciences Inc. which is
useful for computing freight costs, compares transportation mode rates, analyze cost and service effec-
tiveness of carrier. 
2. A new software programme developed by Ross systems Inc. called Supply Chain planning which is
used for demand forecasting, replenishment & manufacturing tools for accurate planning and schedul-
ing of activities.
3. P&G distributing company and Saber decision Technologies resulted in a software system called
Transportation Network optimization for streamlining the bidding and award process.
4. Legibility planning solution was recently introduced to provide a programme capable managing the
entire supply chain.

Electronic Commerce:

It is the term used to describe the wide range of tools and techniques utilized to conduct business in a
paperless environment. Electronic commerce therefore includes electronic data interchange, e-mail,
electronic fund transfers, electronic publishing, image processing, electronic bulletin boards, shared
databases and magnetic/optical data capture. Companies are able to automate the process of moving
documents electronically between suppliers and customers.

Electronic Data Interchange:

Electronic Data Interchange (EDI) refers to computer-to-computer exchange of business documents in a

standard format. EDI describe both the capability and practice of communicating information between
two organizations electronically instead of traditional form of mail, courier, & fax. The benefits of EDI
are:
1. Quick process to information.
2. Better customer service.
3. Reduced paper work.
4. Increased productivity.
5. Improved tracing and expediting.
6. Cost efficiency.
7. Competitive advantage.
8. Improved billing.

Though the use of EDI supply chain partners can overcome the distortions and exaggeration in supply
and demand information by improving technologies to facilitate real time sharing of actual demand and
supply information.

Bar coding and Scanner:

Bar code scanners are most visible in the check out counter of super market.  This code specifies name
of product and its manufacturer. Other applications are tracking the moving items such as components
in PC assembly operations, automobiles in assembly plants.

Data warehouse:

Data warehouse is a consolidated database maintained separately from an organization's production sys-
tem database. Many organizations have multiple databases. A data warehouse is organized around infor-
mational subjects rather than specific business processes. Data held in data warehouses are time depen-
dent, historical data may also be aggregated.

Enterprise Resource planning (ERP) tools:

Many companies now view ERP system (eg. Baan, SAP, People soft, etc.) as the core of their IT infra-
structure. ERP system have become enterprise wide transaction processing tools which capture the data
and reduce the manual activities and task associated with processing financial, inventory and customer
order information. ERP system achieve a high level of integration by utilizing a single data model, de-
veloping a common understanding of what the shared data represents and establishing a set of rules for
accessing data.

SUPPLY CHAIN AND SUSTAINABILITY:

Supply chain management is an indispensable part of a business’s sustainability program. Knowing

the level of environmental, social, and economic impact and viability of your vendors and customers is
becoming increasingly common as all industries move towards a more sustainable future. Government
pressures are unlikely to be the driver of this change, but you're already seeing corporate pressures on
suppliers and vendors.

Companies are striving to operate in a more sustainable manner. There's no denying that going
green and being environmentally friendly is the way of the future. And, in order to meet the future head
on, companies are making their products or delivering their goods or services in a way that doesn’t
impact the environment, that doesn’t deplete natural resources, that doesn’t contribute to climate
change, that doesn’t contribute to social inequalities or injustice, and that in general, is done “the right
way”. One of the ways a company does this is by looking at their entire manufacturing process (when I
say manufacturing, I mean anything from a product to a service), from where the raw materials are
obtained, through the entire process within the plant, to the use and ultimately disposal or recyclability
of their product or service. We might call this evaluating the process from “cradle to cradle” (thinking
beyond cradle to grave) or on a “life-cycle assessment” type analysis.

Really, companies are looking at every aspect of the way them, and even you, do business.

And that includes things you might not think of when you think of sustainability. Not just
environmental factors, but also things like social factors and economic factors. Obviously, if your raw
materials are extracted by forced child labor in a third-world country, and your business with that
source is keeping them going, then you’re not running a sustainable business, no matter where you’re
located or what you say. A bit of an extreme example, but I think you get the point.
One aspect of running a sustainable business is your supply chain. Who do you get your raw materials,
your supplies, the things you need to make your operation go from? For example, it could be rare earth
minerals extracted from central African countries that you use to make electronic components. Or, it
could be locally harvested vegetables you serve in your restaurant. Or, it could be the cleaning products
on the shelf in your store. Where did those materials come from, and under what conditions?

Companies large and small are asking these questions about themselves, and their suppliers. They're
looking at creating supply chains of top performers with the ultimate goal of using them to create a
better, more environmentally sound, and ultimately more profitable company.

Determining a way to find out, and creating a policy based on how sustainable you want to be, is the
essence of sustainable supply chain management.

What is CRM?
1. CRM stands for Customer Relationship Management.
2. CRM is combination of a variety of strategies used for managing the companies relationships and
interactions with potential customers.
3. It helps you improve profitability.
4. It is the strongest and the most efficient approach in maintaining and creating relationships with
customers.
5. CRM helps in understanding the customer's needs and behaviors.
6. It defines appropriate actions for retaining customers such as special incentive programs.
7. It involves a process of continuously gathering data at all customer points and then turning that data
into knowledge for building more profitable customer relationships.

Features of CRM
1. CRM fulfills customer needs effectively and maintains a long-term deal.
2. CRM is customized by an organization to manage and administrate its customers and vendors in an
efficient manner to achieve excellence.
3. It considers customer satisfaction.
4. It focuses on customer loyalty, retention and complaints.
5. It delivers better information and services regarding all the products and brands to the customer.
Importance of CRM
1. CRM foresees customer needs effectively and increases business.
2. CRM includes a historical view and analysis of all the acquired customers.
3. It contains each and every bit of customer details making it easy to track customers and determine
the most profitable ones.
4. It is very cost effective.
5. It reduces the process time and increases the productivity.
 UNIT-V

LOGISTICS AND SUPPLY CHAIN RELATIONSHIPS

The most essential logistics key performance indicators

1) Order accuracy
Monitors the degree of incidents from the placement of the order to the delivery of a shipment. Ideal for
any freight forwarder looking to identify patterns and continuously correct errors in order to make trans-
portation safer.
2) On Time In Full
This logistics key performance indicator, also known as OTIF, measures the percentage of orders deliv-
ered within the stipulated time, without any problems or documentation issues. It is ideal for any freight
forwarder committed to providing punctual and safe deliveries.
3) Lead time
Lead Time is a KPI that tracks how long your company’s processes/operations last, from start to finish.
Ideal for freight forwarders to know the amount of time spent in each stage of the supply chain and
identify strategies to optimize this time.
4) Stock rotation
KPI that does an average between a company’s outflows with its stock balance at the warehouse. Ideal
for forwarders that offer warehousing services as part of their logistics solutions.
5) Warehousing Costs
Also ideal for the freight forwarders that offer warehousing services, this KPI monitors the expenses in-
volved in the management of your logistics company’s warehouse facilities.
6) Truck Turning
This KPI measures the truck’s turntable, that is, the average time spent between the exit for collect/de-
livery and the return of the vehicle to your company. Ideal for companies that offer road transportation.
7) Capacity utilization
Performance indicator that measures the utilization of the load capacity of a vehicle during road trans-
port or a container during sea freight. Ideal for freight forwarders that offer these services.
8) Productivity
This logistics key performance measures your company employees’ production rate (workforce/labor
hours/productivity). Ideal for forwarders to have a better overall idea of their business’ performance.
9) Transportation Costs
Measures all costs related to each logistics operation developed by your company, from order placement
to final delivery. This KPI can be helpful for forwarders to know the average spent in each shipment
and send accurate quotations to their customers/partners.
10) Number of shipments
Evaluates the average of cargoes handled by your company at a stipulated period of time (weekly/
monthly/yearly). Ideal for any freight forwarder looking to make constant financial balances and ana-
lyze their profit margins between incomes and outcomes.
In addition to the logistics key performance indicators mentioned above, there are many other KPIs that
can measure the performance and productivity of your business as a whole. However, in order to use the
right indicators, the first step is to define what kind of data you consider relevant to analyze in order to
improve your processes.

Channel Structures

B2C Channels

Brick-and-mortar and e-commerce are two main channels of business-to-consumer marketing.

A business-to-consumer market, or B2C, is the sale of goods and services from individuals or
businesses to the end user. The seller makes its products or purchases them at a wholesale price, then
sells them at a higher (or retail) price to the consumer, thus earning a profit. The consumer uses the
products for his or her own personal use and is not interested in reselling the product. The types of
product features consumers desire include value, convenience, efficiency in operation, dependability in
use, and/or improvement in earnings. In B2C marketing situations, the marketer must always:

 successfully match the product or service strengths with the needs of a definable target market

 position and price to align the product or service with its market

 communicate and sell it in the fashion that demonstrates its value effectively to the target mar-
ket

Business to Consumer Channels

There are two main channels for business-to-consumer selling. The first is the traditional “brick-and-
mortar” store – a physical location for consumers to visit. Shopping malls, grocery stores, and
restaurants are all examples of brick-and-mortar stores. Usually, a brick-and-mortar establishment offers
consumers the chance to see, touch, and/or try the products. It also allows companies to provide face-to-
face customer service.

Apple Retail Store: Apple’s retail store in Chicago, Illinois, is an example of a “brick-and-mortar”
store.

The other main channel for business-to-consumer selling is e-commerce, or commercial activity
conducted via the Internet. Sometimes known as “click-and-mortar,” this channel is rapidly expanding,
as more people use the Internet for purchases of both goods and information. Business-to-consumer e-
commerce reduces transaction costs by increasing consumer access to information and allowing them to
find the most competitive price for a product or service. For companies, developing and maintaining a
website is easier and less expensive than building and occupying a brick-and-mortar store. Examples of
e-commerce stores are amazon.com, walmart.com, and barnesandnoble.com.

B2B Channels

B2B channels are often the same as B2C channels, but typically there is a greater emphasis on personal
touch.

stores are amazon.com, walmart.com, and barnesandnoble.com.

B2B Channels

B2B channels are often the same as B2C channels, but typically there is a greater emphasis on personal
touch.

Key Points

 Business-to-Business (B2B) marketing describes commerce transactions between businesses,

such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

 B2B transactions often involve a large sum of money, and so are often a longer process than a
simple business-to- consumer transaction.

 Trade shows are popular ways for companies to engage each other in doing business and are an
important part of B2B selling.

Key Terms

 E-commerce: Commercial activity conducted via the Internet.

 Logistics: The process of planning, implementing, and controlling the efficient, effective flow
and storage of goods, services, and related information from their point of origin to the point of
consumption for the purpose of satisfying customer requirements.
 Trade show: An exhibition organized so that companies in a specific industry can showcase and
demonstrate their latest products and services, study activities of rivals and examine recent mar-
ket trends and opportunities.
Business to Business (B2B) marketing refers to a market where other businesses, not end consumers,
are the purchasers of the goods and services.
B2B describes commerce transactions between businesses, such as between a manufacturer and a
wholesaler, or between a wholesaler and a retailer. Usually B2B transactions involve purchasing items
that will make up the final product. For example, a chair manufacturer may buy steel for the frame from
one company, wood from another, and the fabric from another. All these are considered business to
business transactions. B2B marketing is usually quite different from other forms of marketing,
particularly business to consumer ( B2C )

Business-to-Business Channels

Like Business-to-consumer marketing, business to business also employs different channels, such as e-
commerce or physical stores. However, due to the substantial differences in how B2B marketing works
compared to B2C, there are additional channels. Many business-to-business transactions involve large
sums of money, because generally the business will buy in large quantities. Therefore, it often makes
sense to involve a representative from the selling company in developing, cultivating, and maintaining
relationships that lead to sales. This person can help the purchaser plan for, set up, and use the B2B
product.

Another channel, not as commonly used in business-to-consumer transactions, is that of trade shows. A
trade show provides a platform for many different companies in the same general industry to display
their products for other businesses to buy. A business will often purchase products at a trade show for
use in their own products, making trade shows an important component of Business-to-Business
transactions.

B2B Transactions: Trade shows are a common way to conduct B2B transactions.

Business-to-Business E-Commerce
One of the major differences between business-to-business (B2B) transactions and business-to-
consumer (B2C) transactions is the type of online (e-commerce) interaction. Typically, a B2C customer
will purchase a product or service and, once the transaction has been complete, will have limited
continued interaction with the company with regards to that product.

However, in a B2B transaction, the purchaser often expects an ongoing relationship with the seller. This
is also reflective of the types of products and services offered in a B2B e-commerce setting, which
includes logistics, outsourcing, solutions software, and content management software.

The most common marketing channels are business-to-consumer (B2C) and business-to-business
(B2B). However, there are also alternative channels that should be discussed. These include business-to-
government, consumer-to-consumer, and institutional markets.

United States Capitol: B2G transactions involve working with government entities such as federal,
state, and local.

Business-to-government (B2G)

Business-to-government marketing encompasses marketing products and services to various levels of

the government, such as federal, state, and local. This is also known as “public sector marketing” and is
somewhat similar to business-to-business transactions. However, there usually many more restrictions
and strict processes in order to gain government contracts. Usually, government organizations post a
request for proposal, and businesses respond to them. Most often, the bid with the lowest cost is
accepted.

Garage Sale : Garage sales are one type of consumer-to-consumer business.

Consumer-to-consumer

Consumer-to-consumer commerce is the completion of transactions between private individuals or

consumers. The increased use of consumer-to-consumer transactions can be directly related to the
growth of electronic, online marketplaces. Craigslist and eBay usually involve consumer-to-consumer
transactions. There are also older forms of consumer-to-consumer transactions, such as classified ads
and garage sales. Often, these types of transactions are for a lower cost than if they were conducted
through a business, as there is some added risk that the product will be defective or otherwise be not as
expected.

ECONOMICS OF
Logistics Management is a small portion of Supply Chain Management that deals with management
of goods in an efficient way. Although, if we talk about Supply Chain Management, it is a broader term
which refers to the connection, right from the suppliers to the ultimate consumer. People are quite puz-
zled between these two concepts.

It has been noticed that, there has been a drastic change in the manner in which business is conducted many
years ago and now. Due to the improvement in the technology, you can see all the areas of business has been
developed. Supply Chain Management also evolved as an improvement over Logistics Management, from past
years. Now coming to the point, let’s start understanding the difference between Logistics and Supply Chain
Management.

BASIS FOR COMPARI-

SON LOGISTICS MANAGEMENT SUPPLY CHAIN MANAGEMENT

The process of integrating the

movement and maintenance of The coordination and management of the
goods in and out the organization is supply chain activities are known as Sup-
Meaning Logistics. ply Chain Management.

Objective Customer Satisfaction Competitive Advantage

The concept of Logistics has been Supply Chain Management is a modern

Evolution evolved earlier. concept.

How many organizations

are involved? Single Multiple

Logistics Management is a fraction Supply Chain Management is the new

One in another of Supply Chain Management. version of Logistics Management.

Definition of Logistics Management

The management process which integrates the movement of goods, services, information and capital,
right from the sourcing of raw material, till it reaches its end consumer is known as Logistics Manage-
ment. The objective behind this process is to provide the right product with the right quality at the right
time in the right place at the right price to the ultimate customer. The logistic activities are divided into
two broad categories they are:

 Inbound Logistics: The activities which are concerned with procurement of material, handling,
storage and transportation
  Outbound Logistics: The activities which are concerned with the collection, maintenance and
distribution or delivery to the final consumer.

Apart from these, other activities are warehousing, protective packing, order fulfillment, stock control,
maintaining equilibrium between demand and supply, stock management. This will result in savings in
cost and time, high quality products etc.

Definition of Supply Chain Management

Supply Chain Management (SCM) is a series of interconnected activities related to the transformation
and movement from raw material to the finished goods till it reaches to the end user. It is the outcome of
the efforts of multiple organizations that helped in making this chain of activities successful. 

These organizations may include the firms with whom the organization is currently working like part-
ners or suppliers, manufacturers, wholesalers, retailers and consumers. The activities may include inte-
gration, sourcing, procurement, production, testing, logistics, customer services, performance measure-
ment, etc.

Supply Chain Management has a multi-dimensional approach which manages the flow of raw materials
and work in progress (semi finished goods) within the organization and the end product outside the or-
ganization till it reaches the hands of the final consumer with a complete emphasis on the customer re-
quirement.

Key Differences between Logistics and Supply Chain Management

The following are the major differences between logistics and supply chain management:

1. The flow and storage of goods inside and outside the firm is known as Logistics. The movement
and integration of supply chain activities is known as Supply Chain Management.
2. The main aim of Logistics is full customer satisfaction. Conversely, the main aim behind Supply
chain Management is to gain substantial competitive advantage.
3. There is only one organization involved in Logistics while a number of organizations are in-
volved in Supply Chain Management.
4. Supply Chain Management is a new concept as compared to Logistics.
5. Logistics is only an activity of Supply Chain Management.

CHANNEL RELATIONSHIPS

Competitive Priorities In Marketing Channels

One of the ways companies gain a competitive advantage in the market is through successful
incorporation and management of marketing channels. A marketing channel is a set of practices or
activities necessary to transfer the ownership of goods, and to move goods from production to
consumption. This process typically consists of all the institutions and marketing activities involved in
the promotion and distribution of goods. Management teams must evaluate competitive pressures to
assess whether their marketing strategies are effective and profitable, or ineffective and costly to the
organization. Sales remains the most popular way to measure performance.

Competition: Rebates and higher profit margins are tactics used by brands to gain favor with channel
intermediaries and preference on store shelves.

When developing, implementing and measuring the effectiveness of marketing channels, businesses
should consider:

 The link from producers to buyers

 Sales, advertising and promotion performance

 The company’s pricing strategy

 Product strategy through branding, policies, willingness to stock

 The Impact the attitudes of channel intermediaries have on the product

 Competition from other intermediaries and other product lines

All of these factors influence the positioning of products against their competitors in the market place.

Role and Design in the Marketing Mix

Distribution–one of the primary elements in the marketing mix –is key in determining how and when to
respond to competitive pressures in the promotion of goods and services. An alternative term is
distribution channel or ‘route-to-market’. It is a path or pipeline through which goods and services flow
in one direction (from vendor to the consumer), and the payments generated by them flow in the
opposite direction (from consumer to the vendor).

A marketing channel can be short, extending directly from the vendor to the consumer; or may include
several interconnected (usually independent but mutually dependent) intermediaries such as
wholesalers, distributors, agents, retailers. For example, merchants are intermediaries that buy and resell
products. Agents and brokers are intermediaries that act on behalf of the producer but do not take title to
the products. Each intermediary receives the item at one pricing point, and moves it to the next highest
pricing point until it reaches the final buyer. This grouping of organizations is often referred to as the
supply chain of a company.
Choosing Marketing Channels

Cost, flexibility and quick adaptation to changing markets and demand are usually the top factors sellers
consider when assess and choosing distribution channels. The types vary and heavily depend on product
category and target market. These distribution types include:

 Intensive distribution – this channel allows the producer’s products to be stocked in major, main-
stream outlets. This strategy is common for basic supplies, snack foods, magazines and soft drink
beverages.

 Selective distribution – producers rely on a few intermediaries to carry their product. This strat-
egy is commonly observed for more specialized goods that are carried through specialist dealers.
For example, brands of craft tools, or large appliances would fall into this marketing channel.

 Exclusive distribution – producers select only very few intermediaries. Exclusive distribution is
often characterized by exclusive dealing where the reseller carries only that producer’s products
at the exclusion of other products. This strategy is typical of luxury goods retailers.

Managing and Motivating Marketing Channels

During the marketing planning stage, marketers must choose and incorporate the most suitable channels
for the firm’s products, as well as select appropriate channel members or intermediaries. Ensuring these
intermediaries are trained and motivated to sell the firm’s products is crucial to a brand’s competitive
strategy; i.e., its accessibility and availability to buyers. Monitoring the channel’s performance over
time and modifying the channel to enhance performance is also imperative for organizations looking to
remain competitive in the market. Promotional tactics are often used by companies use to motivate
channel intermediaries to stock their brand over other products. These techniques include higher profit
margins, special deals, premiums and allowances for advertising or display on store shelves.

Channel Power, Control, and Leadership

Channels perform better if a party is in charge, providing a level of leadership to coordinate goals and
efforts.

on store shelves.

 In a type of business cold war, manufacturers and retailers are constantly trying to match each
other in size.

 The manufacturer should lead if the design and redesign of the channel is best done by the man-
ufacturer and if control of the product —merchandising, repair, etc.—is critical.
  The wholesaler should lead where the manufacturers and retailers have remained small in size,
large in number, relatively scattered geographically, financially weak, and lacking in marketing
expertise.

 The retailer should lead when product development and demand stimulation are relatively unim-
portant, and when personal attention to the customer is important.

Key Terms

 retailer: one who purchases goods or products in large quantities from manufacturers directly or
through a wholesale, and then sells smaller quantities to the consumer for a profit
 dictatorial: In the manner of a dictator, usually with callous disregard for others.

Logistics Alliances

A logistics alliance is a group or team of trading experts who work together to help companies
competently and successfully manage and deliver their products. Companies can hire or join logistic
alliance groups to empower the alliance group to provide assistance, establish supply chains and offer
business advice for the company.

Supply Chains

A primary function of most logistics alliances is to help companies organize and establish supply chains
to most effectively and efficiently deliver products. Thus, many alliances have advanced knowledge and
skills regarding the shipping and handling aspects of business. Some alliances help businesses ship
goods through their close relationships with certain transportation services, others assist companies by
connecting them with customers in various different regions, and some alliances help businesses plan,
schedule and supervise delivery services.

Specialties

Many logistics alliance groups specialize in certain types of products. These alliances tend to focus only
on the specific category of products for which they specialize. For instance, The Perishable Logistics
Alliance (PLA) is an alliance that helps many businesses across the globe effectively ship perishable
cargo, which are products that are temperature sensitive and that can lose their quality if not properly
maintained during the transportation delivery process. Products that can be handled by the logistic
services of the PLA include live animals, fruits and vegetables, meat and fish, pharmaceuticals and
high-tech equipment.
Management Services

In addition to providing chain supply services, many logistics alliances also help companies to manage
the delivery process. Alliances can help with inventory management, such as inventory planning,
inventory optimization and warehouse optimization. Logistics organizations can also offer businesses
planning strategies to help them design, develop and implement policies that relate to product
management or shipping methods. Additionally, some alliances provide project management assistance
by aligning the projects with the appropriate business requirements, reshaping organizations and
developing new staff programs to form more productive and motivated teams.

GLOBAL PURCASING:

Global sourcing is the practice of sourcing from the global market for goods and services
across geopolitical boundaries. Global sourcing often aims to exploit global efficiencies in the delivery
of a product or service. These efficiencies include low cost skilled labor, low cost raw material and
other economic factors like tax breaks and low trade tariffs. A large number of Information Technology
projects and Services, including IS Applications and Mobile Apps and database services are outsourced
globally to countries like Pakistan and India for more economical pricing.

Common examples of globally sourced products or services include: labor-intensive manufactured

products produced using low-cost Chinese labor, call centers staffed with low-cost English speaking
workers in the Philippines and Pakistan and India, and IT work performed by low-cost programmers in
India and Pakistan and Eastern Europe. While these examples are examples of Low-cost country
sourcing, global sourcing is not limited to low-cost countries.

Majority of companies today strive to harness the potential of global sourcing in minimizing cost.
Hence it is commonly found that global sourcing initiatives and programs form an integral part of
the strategic sourcing plan and procurement strategy of many multinational companies.

Global sourcing is often associated with a centralized procurement strategy for a multinational, wherein
a central buying organization seeks economies of scale through corporate-wide standardization
and benchmarking. A definition focused on this aspect of global sourcing is: "proactively integrating
and coordinating common items and materials, processes, designs, technologies, and suppliers across
worldwide purchasing, engineering, and operating locations (p. 304)" [1]

The global sourcing of goods and services has advantages and disadvantages that can go beyond low
cost. Some advantages of global sourcing, beyond low cost, include: learning how to do business in a
potential market, tapping into skills or resources unavailable domestically, developing alternate
supplier/vendor sources to stimulate competition, and increasing total supply capacity. Some key
disadvantages of global sourcing can include: hidden costs associated with different cultures and time
zones, exposure to financial and political risks in countries with (often) emerging economies, increased
risk of the loss of intellectual property, and increased monitoring costs relative to domestic supply.
Global Supply Chain Challenges To Ignore at Your Own Risk

If you ignore or mishandle these risks, they can result in cost penalties and distracting
inefficiencies. Identifying the risks up front, so you know what to look for, can be the key to
success. The following six risks can easily have a negative impact on your business:

1. Quality levels and defects. Manufacturing processes aren't perfect, so the industry typically ac-
cepts a certain quality level for products. Complexity and variability are part of any production
process, and unfamiliar sources might not adhere to accepted U.S. defect levels. Choosing a
non-U.S.-based sourcing firm can open up questions and disputes about which party is liable for
defect percentages that rise above normal.

2. Time zones. Some U.S. firms experience issues when dealing with companies on the other side
of the country—and never mind the 13-hour time difference between the United States and
Asia. Waking and working hours do not coincide, which can be a challenge when a pressing is-
sue arises. Waiting one day to clarify a product question or process change can often simply be
too long for companies that are trying to run nimble operations.

3. Long-range logistics. Purchasing items at a delivered price is easy, but the shipment can be de-
layed. Whether it is a factory hold-up or transit problem, ignoring the complexity of long-range
logistics can be a risk.

4. Accountability and compliance. Companies should consider social compliance every time they
look at global sourcing. They need to conduct due diligence about child labor practices, accept-
able working conditions, forced labor, and fair compensation practices. Barring the hiring of lo-
cal staff members, however, there isn't a surefire way to ensure social compliance from across
the globe. Risk comes in the form of severe brand damage due to unfair or illegal practices that
come to light.

5. Delays. To receive on-time product delivery, it is vital to have firm completion dates and ship-
ping timeframes. An item that is globally sourced, however, is often just a piece of a bill of ma-
terials that must be on hand for product completion. Delays from a non-U.S. source can derail
production and drive up related costs.

6. Language barriers. Global partners offer competitive pricing and efficiencies, but still often
conduct day-to-day business in a different language. Managers will likely speak English, but
their directions must be relayed to line staff, and your own words might be lost in translation.
Errors are bound to happen when communications aren't translated and interpreted perfectly.
 15. Additional Topics

1. Reverse Logistics.
2. Inventory management and its role in
3. Role of IT in SCM.
4. Retail SCM
5. Role of Packaging
6. Role of Human Resources in SCM.
7. Issues in Workforce Management in SCM
 16. Model Question paper

Code No: 16MB3231

Geethanjali College of Engineering and Technology, Hyderabad (Autonomous)
III B.Tech (CSE) II Semester (Regular) End Examinations, Novemeber2018

SUPPLY CHAIN MANAGEMENT (Open Elective)

Time: 3 Hours Max. Marks: 70

PART-A 10x 2M = 20M

1. Answer all questions.
a) Define the terms “Supply chain” and “Supply chain management”.
b) State the objectives of supply chain.
c) Third-party logistics
d) Write note on Logistics.
e) State the objectives of inventory management.
f) What is Cycle Inventory?
g) Define CRM in Supply chain.
h) What is Cross-Functional Drivers in a Supply Chain?
i) Define Global purchasing.
j) What are Global alliances?

PART-B 10x 5M = 50M

1. A) Explain the Elements of supply chain management.
B) What are “supply chain drivers”? Explain the role of supply chain drivers in the supply chain
decision making network.
(OR)
A) Discuss the obstacles a firm’s supply chain has to face in achieving the strategic fit.
B) Elaborate on Achieving Strategic Fit.
2. A) Elaborate on 3PL (third-party logistics).
B) Discuss the modes of transportation.
(OR)
A) Discuss about the multi model or Inter Model Transportation.
B) Discuss the role of warehousing in supply chain. What are the objectives, types, and operations
of warehousing?
3. A) State the objectives of inventory management.
B) Briefly explain about Aggregate Planning in a Supply Chain
(OR)
A) Write in detail on E- Procurement
B) Explain about Global alliances.
4. A) State the Importance of sourcing decisions in Supply Chain Management
 B) What is the role of Information Technology in a Supply Chain? Explain.
(OR)
A) Explain briefly on Customer Relationship management.
B) Distinguish between Supply chain management and Customer Relationship management.
5. A) Identify and explain logistics performance indicators
B) Write a note on logistics service alliance
(OR)

A) How global operating levels interlinked global economy? Explain.

B) Define Global SCM. Discuss various marketing strategies involved in global supply
chain.
17. QUESTION BANK

UNIT-I

1. Define the terms “Supply chain” and “Supply chain management”.

2. Describe the concepts of Supply Chain Management.
3. What are the functions of supply chain management?
4. Explain the Elements of supply chain management.
5. State the objectives of supply chain.
6. Describe a model of supply chain management with a diagram.
7. What is “supply chain dynamics”?
8. What are “supply chain drivers”? Explain the role of supply chain drivers in the supply chain
decision making network.
9. What is “strategic fit”?
10. Discuss the obstacles a firm’s supply chain has to face in achieving the strategic fit.
11. Briefly outline the evolution of supply chain management.
12. Elaborate on Achieving Strategic Fit.
13. Identify and discuss appropriate strategies of supply chain.
UNIT-II

1. Discuss about Logistic management and compare it with supply chain management.
2. Explain the concept of Integrated Logistics in SCM.
3. “Properly integrated outbound and inbound logistic can provide an efficient logistics system’.
4. Discuss the development of an integrated logistics strategy for SC?
5. What do you mean by reverse logistics? State its need and importance in modern era.
6. Elaborate on 3PL (third-party logistics).
7. Elaborate on Fourth Party Logistic Model (4PL).
8. Discuss the modes of transportation.
9. List out the factors influencing the choice of transport in terms of performance and selection.
10. Discuss about the multi model or Inter Model Transportation.
11. Discuss the role of warehousing in supply chain. What are the objectives, types, and operations
of warehousing?
12. Explain the various applications to e-business, network design in the supply chain.
UNIT-III

1. Explain about managing economies of scale in a supply chain.

2. State the objectives of inventory management.
3. What is Cycle Inventory?
4. Explain about Managing Uncertainty in a Supply Chain
5. Write a note on Safety Inventory
6. Elaborate on Demand Forecasting in a Supply Chain
7. Briefly explain about Aggregate Planning in a Supply Chain
8. What is Sales and Operations Planning
9. Explain the following
 A) Demand in a Supply Chain b) Coordination in a Supply Chain.
10. Write in detail on E- Procurement
11. Explain about Global alliances.
UNIT-IV

1. Write a note on Managing Cross-Functional Drivers in a Supply Chain.

2. State the Importance of sourcing decisions in Supply Chain Management
3. Explain about Price and Revenue management
4. What is the role of Information Technology in a Supply Chain? Explain.
5. Explain briefly on Customer Relationship management.
6. Distinguish between Supply chain management and Customer Relationship management.
UNIT-V

1. Distinguish the relationship between Logistics and supply chain.

2. Identify and explain logistics performance indicators
3. Explain about channel structure and economics of distribution.
4. Write a note on logistics service alliance
5. How to managing global logistics and global supply chains? Explain
6. Elaborate on Logistics in a global economy
7. How global operating levels interlinked global economy? Explain.
8. Explain the following
A) Global purchasing b) Global logistics c) Global alliances
9. Explain recent Issues and Challenges in global supply chain management.
10. Define Global SCM. Discuss various marketing strategies involved in global supply chain.
11. What are the risks involved in Global Supply chain?
 18 Assignment Questions

UNIT-I

1. Define the terms “Supply chain” and “Supply chain management”.

2. Describe a model of supply chain management with a diagram.
3. What is “supply chain dynamics”?
4. What are “supply chain drivers”? Explain the role of supply chain drivers in the supply chain
decision making network.
5. Elaborate on Achieving Strategic Fit.
UNIT-II

1. Elaborate on 3PL (third-party logistics).

2. Elaborate on Fourth Party Logistic Model (4PL).
3. Discuss the modes of transportation.
4. List out the factors influencing the choice of transport in terms of performance and selection.
5. Explain the various applications to e-business, network design in the supply chain.
UNIT-III

1. Explain about managing economies of scale in a supply chain.

2. Elaborate on Demand Forecasting in a Supply Chain
3. Briefly explain about Aggregate Planning in a Supply Chain
4. Write in detail on E- Procurement
5. Explain about Global alliances.
UNIT-IV

1. Write a note on Managing Cross-Functional Drivers in a Supply Chain.

2. State the Importance of sourcing decisions in Supply Chain Management
3. What is the role of Information Technology in a Supply Chain? Explain.
4. Explain briefly on Customer Relationship management.
5. Distinguish between Supply chain management and Customer Relationship management.

UNIT-V

1. Distinguish the relationship between Logistics and supply chain.

2. Identify and explain logistics performance indicators
3. Explain about channel structure and economics of distribution.
4. Explain the following
a) Global purchasing b) Global logistics c) Global alliances
5. Explain recent Issues and Challenges in global supply chain management.
 19 Unit wise Quiz Questions

UNIT I
Multiple choice questions
1. The supply chain management philosophy emerged in which decade?
a) 1960s b) 1970s c) 1980s d) 1990s
2. Which one of the following is not a feature of SCM?
a) Single Entity b) Flexibility c) SC Relationship d) Increasing Lead Time
3. Which one of the following is not a function of SCM?
a)Maximizing variety b)Managing Damage c) Reduce Lead Time d) Improve Flexibility
4. Which one of the following is not a supply chain strategy framework?
a) Collaboration Strategy b) Supply Flow Strategy
c) Customer Service Strategy d) Technology Integration Strategy
5. Which of the following is not an area of responsibility for a logistics manager?
a) Purchasing b) Warehousing c) Information systems d) Marketing
6. The companies manage their supply chains through online transaction by means of
a) Information b) Transportation modes c) Competitors d) The Internet
7. Using which of the following companies manage their supply chains?
a) Internet b) Competitors c) Information d) Transportation Mode
8. According to Professor Mentzer and colleagues, the supply chain concept originated in what discipline?
a) Logistics b) Marketing c) Operation d) Production
9. Which one of the following is not a part of supply chain?
a) Employees. b) Services. c) Information. d) Materials.
10. Which one of the following is not a Method for coping with the bullwhip effect?
a) Reducing uncertainty b) Increasing lead time
c) Reducing variability. d) Strategic partnerships.
11. Developing a single demand forecast which is shared between buyer and seller is part of:
a) e-procurement b) Supply chain replenishment
c) Collaborative planning. D) e-logistics.
12. Which one of the following perspectives is concerned with effective operation of the supply chain?
a) Organizational b) Tactical c) Operational d) Systematical
13. The last fifteen orders from a manufacturer to its suppliers range from $100,000 to $8,740,000. This
is an example of:
a) Order instability. B) The bullwhip effect.
c) Demand manipulation. d) Supply inadequacy.
14. In a manufacturing Organization, raw material enters its premises through:
a. Supply System b. Sales department
c. Production department d. Purchase department
15. The practice of certain basic concepts of Supply Chain can be traced back to industrial revolution in:
a. 20th century b. 18th century c. 17th century d. 19th Century
16. Which one of the following relates to Basic Concept of Supply Chain Management?
a. Globalization b. Distribution c. Planning d. Optimization
17. SCM is focused on Planning, while ERP is focused on
a. Implementing b. Supplying c. Execution d. Production
18. Which among the following is a process of centralized data management and retrieval?
a. Data management b. Meta data c. Data base d. Data Warehousing
19. Which one of the following can be defined as an association of customers and suppliers who use
management techniques, work together to optimize their collective performance?
a. Integration process b. Cost of integration
C. Integrated Supply Chain d. Benefits of integration
20. Firms involved in which one of the following areas can easily share the point of sales data among
the participants of the supply chain?
a. E- business b. E- commerce c. Integration process d. Production
21. Objective of Logistics technology is to minimize the overall costs by increasing operational
efficiency of
a. Operational process b. manufacturing process c. Process d Overall supply chain
22. Which one of the following identifies nine strategically relevant activities that create value and cost in a
specific business?
a.   Value proposition b.   Value chain c .Mission statement d.   Annual report

23. Which one of the following perspective deals with realization of strategic objective?
a) Organizational b) Tactical c) Operational d) Systematical
24. Which of the following is an approach to managing the effectiveness of use of cubic capacity in entire
system?
a) Inventory b) Order c) Utilization d) Integrity
25. Which of the following is not a typical supply chain member?
a) Wholesaler b) Reseller c) Customer d) Producer

26. Which of the following is not a cause of the bullwhip effect?

a) Order batching b) Long lead time
c) Price fluctuations d) Aligning incentives across the supply chain
27. Which one of the following is not a classification of collaboration strategy?
a) Supplier Collaboration b) Customer Collaboration
c) Collaboration with 3PL and 4 PL Providers d) Technology Collaboration
28. Which one of the following allows the supplier and the manufacturer to work together when designing
components for final product?
a) Design Channel b) Distribution Collaboration
c) Development Collaboration d) Design Collaboration
29.Which of the following is offers the opportunity to buy direct from the supplier with reduced costs and shorter
cycle  
a)Contra mediation b)Disintermediation c)Reinter mediation d)Counter mediation

30. An appropriate strategy to optimize for time and cost in the ordering process is

a) efficient replacement b) efficient store assortments c) supply chain planning d) information systems

Fill up the blanks

1. Value chain identifies the linkages and interdependencies between suppliers, buyers, intermediaries and end-
users.
2. Demand Planning is an important process in the segment of the supply chain management.
3. Supply chain consists of all activities starting from sourcing of raw material till delivery of finished products
to customer.
4. Supply chain management is an integrative philosophy to manage the total flow of distribution channel from
suppliers to ultimate user.
5. Supply chain management is an extended version of logistics.
6. Reverse supply chain management is disposition of any asset that is no longer suitable to perform its primary
functions.
7. The Internet has made it possible for other companies to eliminate intermediaries and sell directly to the end
consumer. 
8. In independent demand items are generally finished goods and can be forecasted.
9. SCOR model stands for Supply Chain Operations Reference model.
10. Demand chain is defined as the system by which organizations manage sales and distribution of products and
services to end users.
11. The main reason behind giving importance to reverse supply chain is it reduces operating cost by reusing
products.
12. Planning horizon is the time period over which the aggregate plan is to produce a solution.
13. Predictable variability is the change in demand that can be forecasted.
14. In a pull production strategy, orders are generated whenever more of the product is needed.
15. In a push model, production master schedules are based on forecasts or best guesses of demand for product
made available to customers.
16. Accumulation involves bringing together similar stocks from similar sources.
17. Accumulation and allocation refer to adjustments associated with the quantity of product.
18. The downstream supply chain is the distribution of products or delivery of services to customers
19. In derived demand items are generally components and demand for items can be derived based on demand
for finished goods?
20. Assorting refers to building up a variety of different products for resale to particular customers.
21. Value delivery system depends on the combinative capabilities of product delivery and service delivery
processes.
22. The process of soft drink bottles being returned and reused repeatedly is an example of reverse supply chain.
23. Demand forecast forms the basis for all supply chain planning.
24. Aggregate planning is the process by which a company determines levels of capacity, production, and
pricing over a specified time horizon.
25. Demand chain is defined as the system by which organizations manage sales and distribution of products
and services to end users.
26. The bullwhip effect distorts product demand information passed between levels of the supply chain.
27. Reverse supply chain is also known as backward supply chain.
28. Supply chain is a bridge between supply and demand.
29. The effective SCM is the result of powerful alliance between customer, manufacturer and the supplier.
30. The two major elements of SCM are SCM planning and SCM execution.
One mark questions
1. Supply chain strategy
2. Objectives of SCM
3. Supplier evaluation
4. 3PL and 4PL
5. Bull-whip effect
6. SCOR Model
7. Value chain
8. Value of delivery system of supply chain
9. Reverse Supply Chain
10. Value Delivery
 UNIT II
Multiple choice questions
1. The term fourth party logistics was coined around
a) Mid 60s b) Mid 70s c) Mid 80s d) Mid 90s
2. Which one of the following is designed for 3 party logistics operators to allow them to calculate
rd

billable fees based upon specific activities?

a) Browser based Costing b) Activity Based costing c) Cycle Costing d) Seasonal Cost
3. Which one of the following is not an advantage of 3PLs?
a) Cost Reduction b) Cost Control c) Minimizing Revenues d) Employee conflict
4. The use of Web technologies to manage warehousing and transportation processes is called
a) e-logistics b) e-replenishment c) Downstream processing d) Collaborative planning
5. The E-SCM process that includes integrated production and distribution processes is
a) e-procurement b) Supply chain replenishment
c) Collaborative planning. d) e-logistics.
6. Which one of the following is a factor that hinders growth of 3PLs?
a) Cost Reduction b) Cost Control c) Employee conflict d) Minimizing Revenues
7. Which one of the following is basically evolved to facilitate the operations at retail stores?
a) VMI b) 4PL c) 3PL d) JIT
8. Which one of the following is not an element of JIT system?
a) Continuous Improvement b) Pokka-Yoke c) Quality Control d) Employee management
9. Which one of the following classifications of inventory is a processed or semi-finished products
manufactured at various stages during the production cycle?
a) In-process b) M.R.O c) Total d) Production
10. M.R.O inventories stands for
a) Maintenance, Repair and Operation b) Maintenance, Repair and Outsourcing
c) Material, Repair and Operation d) Maintenance, Recycle and Operation
11. Which one of the following is not a prerequisite for a 3PL?
a) Warehouse b) Fleet of vehicles c) Consumer Orders d) Trained Manpower
12. The set of business process required to purchase goods and services is
a) Sourcing b) Permanence c) Inventory management d) Packaging
13. Which one of the following results in supply chain function being performed by third party?
a) Outsourcing b) JIT c) VMI d) Cross Dock
14. Which one of the following is the process used to rate supplier performance?
a) Supplier Scaling and assessment b) Supplier Scoring and assessment
c) Source Scoring and assessment d) Supplier Scoring and aggregate
15. Which one of the following is not a risk of using third party?
a) Process is Broken b) Ineffective Contract c) Incurred Cost d) Reduced Customers
16. The trend of outsourcing in a broad range of supply has grown since late
a) 1990s b) 1980s c) 1960s d) 1950s
17. The auction in which each potential supplier submits a bid is
a) First Price Auction b) Second Price Auction c) Dutch auction d) English Auction
18. Which one of the following has its possible benefits as reduced inventory levels, flexible &
quick response, and better man power utilization?
a) VMI b) JIT c) Outsourcing d) Milk Run
19. Which one of the following means using systems effectively for efficient deliveries?
a) Benchmarking b) BPR c) Handling systems d) VMI
20. Which kind of concept the grocery and apparel industry tends to use?
a) Efficient consumer Response b) VMI c) JIT d) Milk Run
21. The reuse of soft-drink bottles by sending them back to bottling plant is an example of
a) Reverse Logistics b) Reverse Supply Chain c) Logistics d) Supply Chain
22. Which one of the following is not a component of 4PL?
a) Integrator b) Control Room c) Resource Provider d) Customer Order Taker
23. Which one of the following function of logistics management deals with procurement of smooth
flow of raw material from suppliers to production centre?
a) Customer order b) Production c) Procurement d) Network Design
24. Which one of the following is not a component of logistics management?
a) Value chain b) Order Processing c) Procurement d) Network Design
25. Which one of the following is not a method of logistics management to gain competitive
advantage?
a) Flexibility b) High Cost c) Regeneration d) Value added Services
26. A company's channel decisions directly affect every

a)marketing decision b). employee in the channel c) customer's choices d) competitor's

actions

27. Intermediaries play an important role in matching

a) Information and promotion b) supply and demand c)manufacturer to product d)product to

region

28. A corporate VMS has the advantage of controlling the entire distribution chain under.

a) Mass distribution b) single ownership c) a few intermediaries d) a profit-maximizing strategic

plan

29. Companies should state their channel objectives in terms of targeted levels of 

a) fair prices b) profitability c)customer service d)co-op advertising

30. Which of the following is not an area of responsibility for a logistics manager?

a)Inventory b)Marketing c) purchasing d)warehousing

Fill up the blanks

1. The term logistics stems from a Greek word logistics.
2. Logistics is the process of planning, implementation and controlling of effective and efficient flow
of goods, services from point of origination to point of destination.
3.3PL refers to concept of outsourcing the logistics and distribution of a manufacturing or service firm
to a logistics service provider.
4. In first generation of 3PL the primary work of logistics service provider is only transportation
activity.
5.An integrator that assembles capabilities, technology and resources of its organization and other
organization to design, build and run SC solution is Fourth party logistics.
6.Logistics management includes the design and administration of system to control the flow of
material , work-in-progress and finished inventory to support business strategy.
7.The control room key component of 4PL is known as the brain and intelligence of 4PL .
8.Reverse logistics stands for all operations related to the reuse of products and materials.
9.The product recovery management is concerned with care for products and materials after they
have been used.
10. VMI stands for vendor managed inventory.
11. Global sourcing is leveraging global purchase volumes while taking advantage of local or regional
sourcing.
12. Source selection is identifying and quantifying sources that meet company’s strategic needs.
13. Inventory is defined as stock of commodities which has got some economic value, withdrawal of
which requires an authorization.
14. JIT came into practice since 1970.
15. JIT was first developed and perfected within the Toyota manufacturing plants.
16. Taiichi ohno is referred to as father of JIT.
17. JIT is a Japanese management philosophy.
18. Outsourcing means partnership between the company and the vendor or the service provider.
19. Environment friendly supply chain provides opportunities for organization to position themselves
as responsible corporate citizens.
20. E-procurement is use of electronic technologies to streamline and enable procurement activities of
an organization.
21. Outbound Logistics includes logistics from plant to customer via distribution channel
22. The link between supplier and operations is provided by the inbound logistics.
23. Fourth party logistics is a term coined by Accenture consultation.
24. Blue dart logistics provides various e-business solutions to its customers for information flow and
increase the visibility of goods.
25. In second generation of 3PL the work of logistics service provider is to handle both inward and
outward movement of goods and share information.
26. Logistics Management elements are called Wings of Logistics.
27. EDI Stands for Electronic data Interchange.
28. An intermediary distribution channel that usually sells to retail store is called wholesale.
29. DRP is stands for Distribution Requirement Planning.
30. MRP is stands for Manufacturing Requirements Planning.
One mark questions
1. Logistics Management
2. Outbound logistic
3. Logistic strategy
4. 3PL and 4PL
5. Reverse logistics
6. e-procurement
7. Inventory management
8. Global Sourcing
9. Inventory policies
10. Group Purchasing
11. Reverse Auctions
 UNIT III
Multiple choice questions
1. Which one of the following is not a distribution strategy?
a) Cross Docking b) Milk Run c) Direct Shipping d) Private Fleet
2. The movement of material from the receiving docks directly to shipping docks is
a) Cross Docking b) Pool Distribution c) Direct Shipping d) Hub and Spoke Model
3. Percentage of shipment that leaves on designated time or date as against the total number of
deliveries is
a) Transportation Cost shipment b) Delivery Cost
c) On time Delivery d) On Time Shipment
4. Percentage of shipment that reaches the customer location on designated date as against total number
of shipment is
a) Transportation Cost shipment b) Delivery Cost
c) On time Delivery d) On Time Shipment
5. Which one of the following IT applications is used in SCM?
a) EDI b) GPS c) Data Mart d) All The above
6. Warehouses which perform both packaging and labeling functions are
a) Value Addedb) Cold Storage c) Field d) Import-Export
7. Which one of the following transportation format provides its own transport?
a) Contract Carrier b) Private Fleet c) Common Carrier d) On-Hire
8 Which one of the following modes of transportation is used for digital products?
a) Internet b) Water c) Air d) Road
9. In which one of the following process packages are moved directly from arriving vehicles to
departing ones?
a)Milk Run b)Direct Shipping c)Flow through cross Dock d)Basic cross Docking
10. Which one of the following is a principle that uses machines to replace human effort?
a) Mechanization Principle   b) Automation Principle
  C) Computerized Principle   d) Simplification Principle
11. Which one of the following is not a component of logistics automation?
A) Fixed Machinery b) Mobile Technology c) Software d) Packaging
12. Which one of the following is not a function of warehousing?
A) Consolidation b) Break-Bulk c) Material Gathering d) Stock Piling
13. Which one of the following is a warehouse managed by public warehousing agency in premises of
a factory?
a) Bonded warehouse  b)Field Warehouse c) Cold Storages Warehouse d)Facilities Warehouse
14. Which one of the following means of transport the multi-model Trans-ship uses?
a)Road &Rail  b)Road & Water  c)Water & Air    d)Rail & water
15. The warehousing designed to retrieve and store data is
a) Data warehousing b) Data mart   c) Data Mining  d) EDI
16. Which one of the following model is also known as birdy-back?
A) Piggyback b) Fishy-back c) Trans-ship d) Air truck
17. Which one of the following is not a factor that affects transportation performance?
a) Cost   b) Speed  c) Material   d) Stow ability
18. Which one of the following warehouse facilities are operated by and owned or leased by a
company handling its own goods?
A) Private Warehouse b) Public Warehouse c) Contract Warehouse d)Buffer Warehouse
19. Piggyback was introduced in India in the year
a) 1960    b) 1980    c) 1990   d) 1970 
20. Which one of the following provides low level decision making, such as storing of
incoming container?
a) Integration Software    b) Operational control software 
c) Business control software   d) Mobile Technology
21. WMS stands for
A) Warehousing Management Software b) Warehousing Manufacturing System 
c) Warehousing Management System d) Warehousing Manufacturing Software 
22. A carrier method of charging for transportation services performed is
a) Private Fleet  b)Freight Bill   c) Contract Carrier d)Bill Of lading
23. Multi- Model transport is also known as
a) Intra Model Transport        b) Vehicle Scheduling 
c) Vehicle Routing     d) Inter- Model Transport.
24. Which one of the following warehouse facilities are operated by and owned by organizations like
government?
A) Private Warehouse b) Public Warehouse c) Contract Warehouse d)Buffer Warehouse
25. Which one of the following transportation formats offers service at non- discriminatory
prices to public?
 a) Private Fleet b) Freight Bill  c) Contract Carrier d) Common Carrier  
26. Which one of the following warehouse is licensed and authorized by the customs authorities for
storing of goods till import duty due on it is paid by government or private parties?
A) Bonded Warehouse b) Cold Warehouse c) Field Warehouse d) Buffer Warehouse
27. Among the warehousing management system functions ASN stands for 
A) Advanced Shipment Networks   b) Advanced Shipment Notifications 
c) Advanced Software Notifications   d) Advanced Software Networks  
28. The warehouse located nearer to market owned or leased by manufacturers to stock their final
goods for immediate supply is
A) Public Warehouse b) Cold Warehouse
c) Distribution Warehouse d) Field Warehouse
29. The warehouse located nearer to ports from where international trade is undertaken is
A) Public Warehouse b) Cold Warehouse
c) Field Warehouse d) Export and import Warehouse
30. Which one of the following serves as a document and receipts the commodities and
quantities that are shipped?
A) Bill of lading  b) Freight Bill   c) Shipping Manifest  d) Contract Carrier
31. The transportation companies such as FedEx, UPS are examples of which mode of transport?
a) Water b) Road c) Pipeline d) Package Carriers
32. Which one of the following means of transport the multi-model piggyback uses?
a)Road &Rail b)Road & Water c)Water & Air   d)Rail & water
33. Which one of the following is not a warehousing operation?
a) Receiving goods b) Site selection c) Stow Ability of goods d) Preparing records
34. In which one of the following routes the truck either delivers product from one supplier to
multiple retailers or from multiple suppliers to one retailer?
A) Milk Run b) Direct shipping c) Flow through cross Dock d) Basic cross Docking
35. Warehouse value added services focuses on
A) Packaging. b) Direct Shipping c) Flow through cross Dock d) Basic cross Docking
36. A transportation which operates on 24hour basis is
a) Pipelines  b) Water ways   c) Airways   d) Roadways
37. Which one of the following warehouse is managed by a public warehouse agency in premises of a
factory?
A) Bonded Warehouse b) Cold Warehouse c) Field Warehouse d) Buffer Warehouse
38. Which one of the following principles involves development of equipment that is preprogrammed
or self controlled?
a) Mechanized Principle    b) Automation Principle 
C) Computerized Principle    d) Gravity Principle

Fill up the blanks

1. Cross docking shifts the focus from supply chain to demand chain.
2. In flow through cross dock the materials arrive in large packages but these packages are opened and
broken into smaller quantities, sorted and then delivered.
3. Transportation is a means through which goods are transferred from one place to another.
4. Milk run is a route in which truck delivers product from single supplier to multiple retailers or goes
from multiple supplier to single retailer.
5. In basic cross dock packages are moved directly from arriving vehicle to departing vehicle ones.
6. Containerization is a system of inter-modal freight transport using standard inter modal containers
as prescribed by ISO.
7. An application of computer software and/or automated machinery to improve the efficiency of
logistics operation is logistics automation.
8. Revenue management is the use of pricing to increase the profit generated from a limited supply of
supply chain assets.
9. TOFC stands for Trailor – on – flat –car
10. Spoilage occurs when the capacity reserved for higher price buyers is wasted because demand from
higher price segment does not materialize.
11. Export and import warehouse are located near ports from where international trade is undertaken.
12. Spill occurs if higher-price buyers have to be turned away because the capacity has already been
committed to lower-price buyers.
13. Buffer storage warehouse are built at strategic locations with adequate transportation and
communication.
14. Dynamic pricing is the tactic of varying price over time.
15. The shipping manifest lists individual consignees when multiple shipments are placed on single
vehicle
16. Piggy back is also known as TOFC/COFC (TRAILOR-ON-FLAT –CAR/ CONTAINER-ON-
FLAT -CAR)
17. Decentralized warehouse are usually built around the market and have many dispatch points.
18. Pipeline is used for transportation of crude petroleum and natural gas.
19. In fishy back multi –model transport it uses water and road as a means of transport.
20. In direct shipment network all shipment comes directly from each supplier to each buyer location.
21. Tailored transportation is the use of different transportation network and modes based on customer
and product characteristics.
22. The warehouse which is provided for facilitating perishables is cold storage warehouse.
23. Water is typically the least expensive mode but it is also slowest mode.
24. Contract carrier provides transportation services for selected customers.
25. COFC stands for Container - on – flat -car
26. Centralized warehouse are usually built around the production site and have one or few dispatch
points.
27. Warehouse management system is a software solution to control movement and storage of
materials within warehouse.
28. AGVS stands for automated- guided-vehicle system.
29. The multi –model transport which uses air and road as a means of transport is air truck.
30. Stow ability refers to how product affects vehicle space utilization.
31. Warehouses are the go downs for keeping and storing goods and providing other related services
to preserve goods in systematic manner.
32. Multi- Model transport is also known as Inter- Model Transport.
33. The value added services provided by warehouse are packaging and labeling.
34. Fleet Management comprises the target-oriented, optimal planning, supervision and control of the
fleet operations based on the available resources, considering internal and external influencing factors.
35. Piggyback was widely used in USA in the year 1960.
36. Warehousing and transportation are substitutes for each other.

One mark questions

1. Railway transportation 8. Fleet management
2. Channel tasks 9. Warehouse automation
3. Handling system 10. Containerizations
4. e-procurement 11. RevenueManagement
5. COFC  12. RoleofITinSCM
6. Milk run 13.TypesofWareHouses
7. Cross docking
UNIT IV
Multiple choice questions
1. Which one of the following is formal or informal, common business objective between two
or more companies?
a) Collaborative Advantage b) Strategic alliances c) Merging d) Strategic Partnership
2. Fourth party logistics comes under which type of supply chain strategy?
a) Demand Flow Strategy b) Collaborative Strategy
c) Strategic Alliance d) Technology Integration Strategy
3. Which one of the following is not an approach to overcome problems in agile
manufacturing?

a) Rapid Prototyping b) Rapid tooling  c) Reverse engineering  d) Rapid response

4. Which one of the following is not a benefit of lean manufacturing?

a) Higher Quality b) Integrated Work c) Higher Profits d) Wastage Reduction
5. Which one of the following is not an objective of materials handling?
a) Reduction of Wastage b) Better Customer Service
c) Increase handling Cost d) Safety of Workers
6. Which one of the following is the method of continuous improvement that involves an ongoing and
systematic evaluation of services, processes and products?
a) Sortations    b) Rapid tooling   c) Rapid Selection d) Benchmarking
7. Which one of the following refers to variations in time required performing a special movement?
a) Consistency b) Cost c) Distance d) handling
8. Which one of the following benchmarking classification examines how top performing companies
accomplish a specific process?
a) Selection Benchmarking b) Process Benchmarking
c) Systematic Benchmarking d) Sequential Benchmarking
9. The preferred manufacturing tool in this competitive and shortened product lifecycle is
a) Lean Manufacturing b) Agile Manufacturing c) Mass Production d) Rapid tooling
10. Which one of the following is not a Semi automated handling equipment / system?

a) Sortations   b) Robotics  c) Cranes  d automated guided vehicle system

11. Which one of the following is like a human machine that can be programmed by micro
processors to perform one r a series of activities?

a) Cranes   b) AGVS  c) Sortations    d) Robotics

12. Revenue management technique are initially used by
a) Airlines b) Hotel c) Rented Cars d) All the above
13. just-in-time (JIT) does NOT include which one of the following? 
a) Batch sizes of one b) Fast-throughout manufacturing
c) High inventory production d) Lean manufacturing
14. Basic just-in-time techniques do NOT include: 
a)   Market research b) Line-stop authority
c) Flexibility d) Quality of working life (QWL)
15. Which one of the following encompasses a variety of approaches to reproduce a physical object
with aid of drawing documentation?
a) Rapid Prototyping b) Rapid tooling  c) Reverse engineering  d) Rapid response

16. Which one of the following is an example of the alliance type combined downstream
activity?

a) DHL   b) Ford/Mazda   c) McDonald   d) 3M & Abbot

17. Which one of the following equipment is used when weights are small?
a) Hand Power Equipment b) Crane c) Robotics d) Tow Tractor
18. Which one of the following principle answers the question “What is system expected to do?”?
a) Orientation Principle b) Unit Load Principle
c) Requirement Principle d) JIT Principle
19. Which one of the following is not a classification of equipment handling system?
a) Mechanized Handling System b) Semi-Automated Handling System
c) Computerized Handling System d) Automated Handling System
20. Which one of the following principle involves development of equipment that is pre-programmed
or self-controlled?
a) Ergonomics Principle b) Automation Principle
c) Safety Principle d) Computerization Principle
21. Which one of the following equipment is used in situation where relatively long hauls of
large volumes of goods are required?

A) Cranes b) Tow Tractor c) Forklift Truck d) Robotics

22. Which one of the following principle calls for orderly and logical flow of materials?
a) Flexibility Principle b) Automation Principle
c) Mechanization Principle d) Systems Flow Principle
23. Which one of the following principle uses machines to replace machines human efforts?
a) Flexibility Principle b) Automation Principle
c) Mechanization Principle d) Energy Principle
24. Irrespective of duration and objectives of business alliances, becoming a good partner is
a) Collaborative Advantage b) Strategic Advantage c) Strategic Alliance d) Merging
25. Which one of the following is not mechanized handling equipment?
a) Forklift truck  b) Tow Tractor   c) Cranes   d) Robotics
26. Which one of the following provides low level decision making such as storing of incoming
container?
a) Business Control Software b) Integration Software
c) Mobile Technology d) Operational Software
27. The trains carrying one single unit is referred to as
A) Fast train b) Traditional Train c) Unit Train d) Goods Train
28. JIT is a philosophy of
a)push production b) variability increase c)waste reduction d) re-engineering for breakthrough.
29. JIT has an internal focus and Lean Production begins with an external focus on
a)Logistics b) design c) supplier relationships d) customers
30. What is an advantage of holding inventory?
a)reduced material handling b) reduced obsolescence c)improved quality d) greater availability

Fill up the blanks

1. The systems flow principle in material handling indicates an orderly and logical flow of materials.
2. Benchmarking helps to understand gaps between best practices and current operating environment.
3. Horizontal relationships, such as those between 2 suppliers are known as alliance.
4. Vertical relationship between suppliers and customers or buyers is known as partnerships.
5. Agile manufacturing deals with things which cannot be controlled.
6. An example for partnership sourcing alliance whose objective is stability is McDonald’s.
7. Containerization changed the material handling from labor intensive to capital intensive operation.
8. The material handling principle that understands how human body should functions as it performs
task is Ergonomics principle.
9. Xerox company pioneered the modern bench marking.
10. Functional benchmarking became current practice in 1980.
11. The main objective of lean manufacturing is wastage reduction.
12. Lean manufacturing was first implemented by Toyota.
13. PPP stands for public private partnership.
14. Towing Tractors are used in situations where relatively long hauls of large volumes of goods are
required.
15. Process benchmarking examines how top performing companies accomplish a specific process.
16. Public warehouses are owned and operated by government.
17. Demand is the key driver in influencing warehousing location.
18. Orientation principle looks at entire system first to learn how and why it operates i.e., Physical
limitation.
19. The shipping manifest lists individuals’ consignees when multiple shipments are placed on a
single vehicle.
20. Orientation principle looks at entire system first to learn how and why it operates i.e., physical
limitation.
21. Contract carriers provide transportation services for selected customers.
22. Agility is ability to thrive and prosper in an environment of constant and unpredictable change.
23. ERP stands for enterprise resource planning.
24. AS/R stands for Automatic storage /Retrieval system.
25. Preventive maintenance helps to reduce the frequent breakdown of handling system.
26. Rapid prototyping is a relatively new class of technology used for building physical models and
prototype parts from 3D CAD data.
27. Lean manufacturing deals with things which can be controlled.
28. In handling system the automated sortation provides a primary benefit of reduction of labor.
29. Materials handling deals with movement of materials between two or more different points.
30. Lean manufacturing is a business initiative to reduce waste in manufactured products.
One mark questions
1. Re- engineering of supply chain 7. Mention the types of benchmarking supply
2. Strategic alliance chain
3. Bench Marking 8. Equipment warehousing,
4. Reengineering 9. Strategic partnerships,
5. Lean manufacturing 10. Mention the elements of lean manufacturing
6. Agile manufacturing 11.PPPEnvironment
 Unit V
Multiple choice questions
1. Which one of the following is a method of distribution of product to numerous destination points
within a particular geographic region?
a) Cross Docking b) Pool Distribution c) Direct Shipping d) Hub and Spoke Model
2. Which one of the following is a method of distribution where goods come directly from supplier to
retail stores?
a) Cross Docking b) Milk Run c) Direct Shipping d) Private Fleet
3. Which one of the following is not a classification of supply chain network design decision?
a) Facility Role b) Capacity Allocation c) Product Selection d) Facility Location
4. Which one of the following facility in global supply chain serves the role of being a low-cost supply
source for markets located outside the country where facility is located?
a) Offshore b) Source c) Contributor d) Outpost
5. Which one of the following is the 2nd phase in network design decision?
a) Supply Chain Strategy b) Location Choices
c) Desirable Sites d) Regional Facility Configuration
6. Which one of the following is not a process included in internal supply chain management?
A) Strategic planning b) Procurement c) Fulfillment d) Field Service
7. Which one of the following is a process that focuses on network design of supply chain?
a) Strategic planning b) Supply Planning c) Fulfillment d) Field Service
8. With respect to a channel of distribution, the number of intermediary levels within
The channel indicates what about a channel.
a. Width b. Depth c. Length d. Similarity
9. Which one of the following facility in global supply chain has an objective to supply the market
where it is located?
a) Contributor b) outpost c) Server d) Lead
10. Which one of the following is a process that forecasts demand and analyzes the impact on demand
of demand management tools?
a) Strategic planning b) Supply Planning c) Demand planning d) Field Service
11. Which one of the following is in many ways a manifestation of marketing oriented business?
a) Channel Design b) Customer Led Business c) Network Design d) Packaging
12. Which one of the following is the 3 phase in network design decision?
rd

a) Supply Chain Strategy b) Location Choices

c) Desirable Sites d) Regional Facility Configuration
13. Which one of the following suggests that companies give their major attention to develop “world
class” technology based products?
a) Production Orientation b) Marketing Orientation
c) Product Orientation d) Sales Orientation
14. In which one of the following both the partners require being strong and can contribute something
of value to relationship?
a) Interdependence b) Integration c) Individual Excellence d) Integrity
15. Which one of the following is not a benefit of RFID?
a) Remote Sensing b) Cluster Reading c) Mobility d) Cuts Cost
16. Among which one of the following gaps, typically manufacturers’ production ranges are narrower
than that preferred by customers?
a) Time Gaps b) Variety Gaps c) Space Gaps d) Quality Gaps
17. Which one of the following creates homogenous groups or ranges from a range of heterogeneous
suppliers?
a) Sorting Out b) Accumulation c) Allocation d) Assorting
18. The process which combines a number of product groups into a specific offer to meet the needs of a
target customer group is
a) Sorting Out b) Accumulation c) Allocation d) Assorting
19. Which one of the following distribution usually involves a restricted number of intermediaries
within limited market areas?
A) Selective Distribution b) Exclusive Distribution
c) Channel Distribution d) Product Distribution
20. Which one of the following is the cost when sales and profit are lost and opportunity to meet an
order is missed due to lack of product availability?
a) Opportunity b) Customer Service c) Transportation d) Inventory
21. Which one of the following is the cost that is involved in the processing activities required to
service customer orders?
a) Order Size b) Customer Service c) Transportation d) Opportunity
22. Which one of the following the selection of an assortment of goods related to a specific demand?
a) Sorting Out b) Accumulation c) Allocation d) Assorting
23. Among which one of the following gaps, manufacturing activities results in large quantities,
consumption occurs in small quantities?
a) Time Gaps b) Variety Gaps c) Space Gaps d) Quality Gaps
24. When a seller of a product requires that its dealers not handle competitors’ products,
The seller’s strategy is called:
a. Multilevel distribution. b. Prohibitive retailing.
c. Exclusive dealing. D. Bonded partnering.
25. Which one of the following distribution follows Movement of broken, unwanted, or excess
products returned by consumers or resellers?
a. Outbound b. Inbound c. Reverse d. Salvage
26. Which one of the following is not a supplier’s goal?
a) Increase Sales Volume b) Increase Customer Loyalty
c) Improve Demand Data d) Increased Cost
27. What is the causes of retail return?
a) Damaged Goods b) End of Life c) Product Recalls d) All the Above
28. Into how many phases network design decision are divided?
a) 4 b) 6 c) 8 d) 3
29. Which one of the following is not a factor that affects macroeconomics?
a) Taxes b) Tariffs c) Inventory Cost d) Exchange Rates
30. Which one of the following supply chain costs is not affected by changing the distribution network
design?
a) Inventories b) Packaging c) Information d) Transportation
31. Which one of the following is not the measure to influence structure of distribution network?
a) Response Time b) Return ability c) Product Fluctuation d) Product Availability
32. Which one of the following is not a factor which influences selection of package?
a) Nature of Content b) Distribution c) Marketing d) Customer
Fill up the blanks
1. Bar codes are usually produced from a set of bars, and spaces between bars of varying widths.
2. BTMS stands for Bar code, Tracking and Monitoring System.
3. Packaging serves as a link between production and consumption.
4. In Recycling the waste is prepared for reuse or is recovered to be used for some other purpose.
5. Response time is the amount of time it takes for a customer to receive an order.
6. Inbound transportation cost is cost incurred in bringing material into a facility.
7. RFID system consists of two parts a tag and a reader.
8. An outpost facility is located to obtain access to knowledge or skills that may exist within a certain
region.
9. Tariffs refers to any duties paid when products are moved across international boundaries.
10. Inventory and facility cost increases as the number of facilities in supply chain increases.
11. RFID is and automated data collection technology which relies on radio waves to transfer data
between reader and RFID tag
12. RFID uses radio frequencies to transmit data between a portable device and managing computer.
13. SC Integration the degree to which the firm can strategically collaborate with their sc partners and
manage the intra & inter-organization processes.
14. Retail logistics is the process of managing the flow of merchandise from the source of supply to
customer.
15. RFID was originally developed during World War II.
16. A barcode is an optical machine-readable representation of data, which shows certain data on
certain products.
17. Fragmented process with artificial boundaries impede the management of customer satisfactions a
thorough process.
18. Institutionalization is whereby relationship is formalized with clear responsibilities and decision
processes.
19. Integration is where partners develop linkages and share way of operation to facilitate their work
together easily.
20. A Contributor facility serves the market where it is located but also assumes responsibility for
other product customization.
21. Outbound transportation cost is cost incurred in sending material out of a facility
22. Return ability is the ease with which customer can return unsatisfactory merchandise and ability
of network to handle such return.
23. Order visibility is the ability of customers to track their orders from placement to delivery.
24. RFID stands for radio frequency identification device.
25. The time taken to bring a new product to market is time to market.
26. Product variety is the number of different products that are offered by distribution network.
27. Ditribution refers to steps taken to move and store a product from the supplier stage to customer
stage in supply chain.
28. Linear bar code consists of series of bars and spaces.
29. Packaging is an art, science and technology to protect preserve and present the products effectively
to satisfy the consumer.
30. Moving and storing a product from the supplier stage to a customer stage in the Supply Chain is
referred to as Distribution.
One marks questions
1. Channel Conflict
2. External SCM
3. Labor Relationship Management
4. Labor Management
5. customer-led business?
6. Customer Centric Supply Chain
7. RFID
8. Bar Coding
9. Mention the issues in retail SCM.
10. Internal supply chain management
11.Retail SCM
12.ComplaintHandling
 20.Tutorial Problems: NA

21. Known gaps ,if any and inclusion of the same in lecture schedule: NA

22.Discussion topics , if any

1. Reverse Logistics.
2. Inventory management and its role in
3. Role of IT in SCM.
4. Retail SCM
5. Role of Packaging
6. Role of Human Resources in SCM.
7. Issues in Workforce Management in SCM
23. References, Journals, websites and E-links if any
1. Operations and supply chain management - Online Courses - nptel
https://onlinecourses.nptel.ac.in/noc17_mg14

2. Supply Chain Management Lectures & Study Notes | AIMS UK

www.aims.education/study-online/supply-chain-management-notes

3. A Complete Guide for Ignou MBA: MS-55 : Logistics And Supply Chain ...
http://ignoumbasupport.blogspot.in/p/ignou-ms-55-studymaterial-freedownload.html

4. Logistics and Supply Chain Management

http://ebooks.lpude.in/management/mba/term_4/
DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT.pdf
5. https://www.tutorialspoint.com/supply_chain_management/supply_chain_managemen...

6. www.nitc.ac.in/app/webroot/.../Supply%20Chain%20Management%20-%20Note.pdf

7. library.ku.ac.ke/wp-content/.../08/.../fundamentals-of-supply-chain-management.pdf

8. catalogimages.wiley.com/images/db/pdf/R0471235172.01.pdf

9. 164.100.133.129:81/.../Session%201%20-%20Definition,nature%20and%20objective...

24. Quality Measurement Sheets

104
 25. Student List

Student List of CSE 3-1A

S.No Roll No. Student Name
1 15R11A0509 D VAISHNAVI
MUDRAGANAM SAI KRISHNA YA-
2 15R11A0592 DAV
NEELISETTY SRI SAI GURU
3 15R11A0597 KUSHAL
4 15R11A05A3 PESARU SANDEEP REDDY
5 16R11A0501 A ROOPA MAHESHWARI
6 16R11A0503 ATIFA NILOUFER
7 16R11A0505 BUYYAKAR MANISHA
8 16R11A0506 BANOTH SURESH
9 16R11A0507 GOLLAMUDI KESAVA LAHARI
10 16R11A0508 CHIRRAVURI PRATYUSHA
11 16R11A0509 DAMERA SAI AVINASH
12 16R11A0510 DANTURI SWATHI
13 16R11A0511 DASARI YOGESH
14 16R11A0512 DIYAVATH RAMYAKRISHNA
15 16R11A0513 DONIKENA ARAVIND
16 16R11A0514 G SAI TEJA
17 16R11A0515 GAJJA VENNELA
18 16R11A0516 GOPU JOSEPH ANURAG REDDY
19 16R11A0517 GUDALA SAI AAKANKSHA
20 16R11A0518 JELDI RITISH
21 16R11A0519 K C AKHILANDESWARI SANJANA
22 16R11A0520 KANDUKURI SRINIVAS
23 16R11A0521 KANKANALA SHALINI REDDY
24 16R11A0522 KAREDDY VINEETH REDDY
25 16R11A0523 KASTURI SWATHI
26 16R11A0524 KATKAM SAIPRIYA
27 16R11A0525 MACHAGIRI SHANTHI
MOHAMMED UMAR ZEESHAN
28 16R11A0526 SALAH
29 16R11A0527 NEERUDI SANTHOSHA
30 16R11A0528 NEKKANTI BHANU PRAKASH
31 16R11A0529 PALNATI MOUNICA
32 16R11A0530 PERUMALLA MOUNIKA
33 16R11A0531 PISINI SRI SAI SANTOSH
34 16R11A0532 PRUDHIVI LAXMI TEJASRI

105
 35 16R11A0533 PUCHA POOJA
36 16R11A0534 R MOUNIKA
37 16R11A0535 RACHAKONDA GOPI
38 16R11A0536 ROHITH KUMAR REDDY KOTA
39 16R11A0537 ROHITH V
40 16R11A0538 SHAIK LIAZZ LATIFUDDIN
41 16R11A0539 SRIRANGAM LIKHITA NAGA SAI
42 16R11A0540 T N D SINDHU
43 16R11A0541 T PRASAD
44 16R11A0542 UPPALA PRAVALLIKA
45 16R11A0543 UPPALAPATI SAI SUMANTH
V VENKATA SAIRAM
46 16R11A0544 KARTHIKEYA
47 16R11A0545 VUMMAL REDDY SAHITHI REDDY
YALAMANCHILI REVANTH SAI
48 16R11A0546 PRANEETH
49 16R11A0547 A V KARTHIK
50 16R11A0548 PALLAMAREDDY KAVYA REDDY
51 17R15A0502 LAKAVATH KIRAN KUMAR
52 17R15A0503 MUKKA MANISHA
53 17R15A0504 SUBHASH CHANDRA ROUTH
54 17R15A0505 DEEVANNAGARI AJITH

Student List of CSE 3-1D

S.No Roll No. Student Name
1 15R11A05C0 VIKRAM JAIDEEP SAI
2 15R11A05E3 K NISHANTH
3 15R11A05H4 V SNEHA
4 15R11A05P7 VANGARI RAHUL
5 16R11A05E5 PAGOLU CAROL NAVYA
6 16R11A05E6 KAGITALA PRIYANKA
7 16R11A05E7 V NAVEEN KUMAR
8 16R11A05E8 TURKAPALLI SUNIL
9 16R11A05E9 JAKKANNAGARI ANIRUDH
10 16R11A05F1 ANUGU SANDEEP REDDY
11 16R11A05F2 TELUKUNTLA VAMSHI
12 16R11A05F3 KOKKALA KONDA NAVYA
13 16R11A05F4 ANANYA ANAMANDALA
14 16R11A05F5 PRAKASH CHOYAL
15 16R11A05F6 KALA ESHWAR SAI
16 16R11A05F7 ALLIA SAI MANI KUMAR GOUD
17 16R11A05F8 RAVULA SAHEESHNA
106
18 16R11A05G0 NALLANAGULA KRISHNA LEELA
19 16R11A05G1 BANDI GREESHMA
20 16R11A05G2 RAPAKA ANEESHA
21 16R11A05G3 SAI ARCHAN MALKA
22 16R11A05G4 GUJARATHI MAMATHA
23 16R11A05G5 MAMIDI SUDEEP
24 16R11A05G6 ADIGAM RAHUL
25 16R11A05G7 J RAJ SHEKAR
26 16R11A05G8 BUDURU SAI VENKAT
27 16R11A05H0 TAMVADA ANJALI RAO
28 16R11A05H1 GUGULOTHU VINODKUMAR
29 16R11A05H2 ANNALURI SAI KEERTHI
30 16R11A05H3 GANGADHARI VAISHNAVI
KODUMAGULLA VISHWA
31 16R11A05H5 NAGESHWAR
32 16R11A05H6 ANUSHKA JAMMAIHAL
33 16R11A05H7 MAHANKALI NIDHI
34 16R11A05H9 BUSI REDDY GARI AISHVARYA
35 16R11A05J0 KONGARI NAVEEN KUMAR
36 16R11A05J2 K SREE POOJITHA
37 16R11A05J3 JALADI MAHITHA SAI
38 16R11A05J4 ALAPATI KARTHIKA SAHITH
39 16R11A05J5 METTIMI SAIPRIYA
40 16R11A05J6 VECHA BHARGAV
KOMATIREDDY KESHAVA
41 16R11A05J7 REDDY
42 16R11A05J8 YERUMSETTY PRIYANKA
43 16R11A05K0 BURRA SRIVIDYA
44 16R11A05K1 SRIRAM SHARANYA
45 16R11A05K2 AMANCHERLA SRI MOULIKA

107
26. Group wise students list for discussion topic

Student List of CSE 3-1A&D

Group-1
1 15R11A0509 D VAISHNAVI
MUDRAGANAM SAI KRISHNA YA-
2 15R11A0592 DAV
NEELISETTY SRI SAI GURU
3 15R11A0597 KUSHAL
4 15R11A05A3 PESARU SANDEEP REDDY
5 16R11A0501 A ROOPA MAHESHWARI
6 16R11A0503 ATIFA NILOUFER
7 16R11A0505 BUYYAKAR MANISHA
8 16R11A0506 BANOTH SURESH
9 16R11A0507 GOLLAMUDI KESAVA LAHARI
10 16R11A0508 CHIRRAVURI PRATYUSHA
Group-2
11 16R11A0509 DAMERA SAI AVINASH
12 16R11A0510 DANTURI SWATHI
13 16R11A0511 DASARI YOGESH
14 16R11A0512 DIYAVATH RAMYAKRISHNA
15 16R11A0513 DONIKENA ARAVIND
16 16R11A0514 G SAI TEJA
17 16R11A0515 GAJJA VENNELA
18 16R11A0516 GOPU JOSEPH ANURAG REDDY
19 16R11A0517 GUDALA SAI AAKANKSHA
20 16R11A0518 JELDI RITISH
Group-3
21 16R11A0519 K C AKHILANDESWARI SANJANA
22 16R11A0520 KANDUKURI SRINIVAS
23 16R11A0521 KANKANALA SHALINI REDDY
24 16R11A0522 KAREDDY VINEETH REDDY
25 16R11A0523 KASTURI SWATHI
26 16R11A0524 KATKAM SAIPRIYA
27 16R11A0525 MACHAGIRI SHANTHI
MOHAMMED UMAR ZEESHAN
28 16R11A0526 SALAH
29 16R11A0527 NEERUDI SANTHOSHA

108
 30 16R11A0528 NEKKANTI BHANU PRAKASH
Group-4
31 16R11A0529 PALNATI MOUNICA
32 16R11A0530 PERUMALLA MOUNIKA
33 16R11A0531 PISINI SRI SAI SANTOSH
34 16R11A0532 PRUDHIVI LAXMI TEJASRI
35 16R11A0533 PUCHA POOJA
36 16R11A0534 R MOUNIKA
37 16R11A0535 RACHAKONDA GOPI
38 16R11A0536 ROHITH KUMAR REDDY KOTA
39 16R11A0537 ROHITH V
40 16R11A0538 SHAIK LIAZZ LATIFUDDIN
Group-5
41 16R11A0539 SRIRANGAM LIKHITA NAGA SAI
42 16R11A0540 T N D SINDHU
43 16R11A0541 T PRASAD
44 16R11A0542 UPPALA PRAVALLIKA
45 16R11A0543 UPPALAPATI SAI SUMANTH
V VENKATA SAIRAM
46 16R11A0544 KARTHIKEYA
47 16R11A0545 VUMMAL REDDY SAHITHI REDDY
YALAMANCHILI REVANTH SAI
48 16R11A0546 PRANEETH
49 16R11A0547 A V KARTHIK
50 16R11A0548 PALLAMAREDDY KAVYA REDDY
51 17R15A0502 LAKAVATH KIRAN KUMAR
52 17R15A0503 MUKKA MANISHA
53 17R15A0504 SUBHASH CHANDRA ROUTH
54 17R15A0505 DEEVANNAGARI AJITH

Group-5
1 15R11A05C0 VIKRAM JAIDEEP SAI
2 15R11A05E3 K NISHANTH
3 15R11A05H4 V SNEHA
4 15R11A05P7 VANGARI RAHUL
5 16R11A05E5 PAGOLU CAROL NAVYA
6 16R11A05E6 KAGITALA PRIYANKA
7 16R11A05E7 V NAVEEN KUMAR
8 16R11A05E8 TURKAPALLI SUNIL
9 16R11A05E9 JAKKANNAGARI ANIRUDH
10 16R11A05F1 ANUGU SANDEEP REDDY
109
Group-6
11 16R11A05F2 TELUKUNTLA VAMSHI
12 16R11A05F3 KOKKALA KONDA NAVYA
13 16R11A05F4 ANANYA ANAMANDALA
14 16R11A05F5 PRAKASH CHOYAL
15 16R11A05F6 KALA ESHWAR SAI
16 16R11A05F7 ALLIA SAI MANI KUMAR GOUD
17 16R11A05F8 RAVULA SAHEESHNA
18 16R11A05G0 NALLANAGULA KRISHNA LEELA
19 16R11A05G1 BANDI GREESHMA
20 16R11A05G2 RAPAKA ANEESHA
Group-7
21 16R11A05G3 SAI ARCHAN MALKA
22 16R11A05G4 GUJARATHI MAMATHA
23 16R11A05G5 MAMIDI SUDEEP
24 16R11A05G6 ADIGAM RAHUL
25 16R11A05G7 J RAJ SHEKAR
26 16R11A05G8 BUDURU SAI VENKAT
27 16R11A05H0 TAMVADA ANJALI RAO
28 16R11A05H1 GUGULOTHU VINODKUMAR
29 16R11A05H2 ANNALURI SAI KEERTHI
30 16R11A05H3 GANGADHARI VAISHNAVI
Group-8
KODUMAGULLA VISHWA
31 16R11A05H5 NAGESHWAR
32 16R11A05H6 ANUSHKA JAMMAIHAL
33 16R11A05H7 MAHANKALI NIDHI
34 16R11A05H9 BUSI REDDY GARI AISHVARYA
35 16R11A05J0 KONGARI NAVEEN KUMAR
36 16R11A05J2 K SREE POOJITHA
37 16R11A05J3 JALADI MAHITHA SAI
38 16R11A05J4 ALAPATI KARTHIKA SAHITH
39 16R11A05J5 METTIMI SAIPRIYA
Group-9
40 16R11A05J6 VECHA BHARGAV
KOMATIREDDY KESHAVA
41 16R11A05J7 REDDY
42 16R11A05J8 YERUMSETTY PRIYANKA
43 16R11A05K0 BURRA SRIVIDYA
44 16R11A05K1 SRIRAM SHARANYA
45 16R11A05K2 AMANCHERLA SRI MOULIKA

110