“An overview of logistics and supply chain management”.

A Project Submitted to

University of Mumbai for partial completion of the degree

of Bachelor in Management Studies Under the Faculty of

Commerce

By

Mayuri Sandeep Bornak

Roll No. 77

Under the Guidance of

Dr. Madhu Shukrey

B. K. Birla College of Arts, Science and Commerce (Autonomous), Kalyan

November 2022-2023

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 B. K. Birla College of Arts, Science and Commerce (Autonomous), Kalyan
Department of Management Studies

CERTIFICATE

This is to certify that Mayuri Sandeep Bornak of Bachelor in Management Studies

Semester V (2022-2023) has successfully completed the project on “An overview of logistics

and supply chain management” under the guidance of Dr. Madhu Shukrey.

PROJECT SUPERVISOR:

HEAD, DEPARTMENT OF MANAGEMENT STUDIES:

INTERNAL EXAMINER:

EXTERNAL EXAMINER:

PRINCIPAL

Seal of the
College

Date of submission:

2
 Declaration by Student

I, the undersigned Miss / Mr Mayuri Sandeep Bornak hereby declare that the

work embodied in this project work titled “ An overview of logistics and

supply chain management”, forms my own contribution to the research work

carried out under the guidance of Dr. Madhu Shukrey is a result of my own

research work and has not been previously submitted to any other University for any

other Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly

indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and

presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Mayuri Sandeep Bornak

Certified by

Dr. Madhu Shukrey Ma’am.

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 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank our Director (Education) Dr. Naresh Chandra and
Principal Dr. Avinash Patil for providing the necessary facilities required for
completion of this project.

I take this opportunity to thank our Coordinator Mr. Anil Tiwari, for his moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide Dr. Madhu
Shukrey whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

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 Index-I
Chapter No Content Page No

1 Introduction 6- 46

▪ Topic 6- 44

▪ Statement of problem and Need of the study 45

▪ Rational of study 46

2 Research Methodology 47- 49

▪ Objective 47

▪ Hypothesis 47

▪ Scope of the study 47- 48

▪ Limitations 48

▪ Research Methodology 49

3 Review Of Literature 50-56

4 Data Analysis, Interpretation and Presentation 57- 69

5 Conclusion and Suggestions 70

❖ References 71-72

❖ Appendices 73- 77

▪ Questions 73-76

▪ Abbreviations 77

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 Index-II
(List of Tables)

Chapter No Name of Tables Page No

1 Supply chain management practices 37,38

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 Index-III
(List of Charts and Graphs)

Chapter No Name of Charts and Graphs Page No

1 Figure 1. logistics and supply chain 11
1 Figure 2. logistics management and supply chain management 14
1 Figure 3. logistics activities in supply chain 15
1 Figure 4. supply chain integration flow 17
1 Figure 5. SCOR model 26
1 Figure 6. warehouse management system (WMS) 33
3 Figure 7. The basic supply chain (Chopra and Meindl) 52

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 CHAPTER-1
Abstract.
India is one of the world's fastest-growing economies and the fourth-largest country in terms
of Purchasing Power Parity (PPP). Globalization of business, infrastructure limitations,
expanding supply chain network instability, shortened product life cycles, and an increase in
product variety have compelled Indian corporations to explore outside of their four walls. They
struggle with selecting and collaborating with the best supply chain partners (suppliers,
customers, and logistics service providers), building confidence among them, and creating the
best mechanism for evaluating performance.

This study provides a quick overview of supply chain management (SCM) and logistics
techniques in India. It is a result of managers, experienced professionals, and academics
perceiving the need to address logistics and supply chain methods on a national scale. The
emphasis is on supply chain collaboration and partnerships, supply chain structure, facility
network design, transportation, and logistics, as well as the use of information and
communications technologies (ICT). Analysis and evaluation of current logistics and SCM
processes, as well as the assessment of upcoming trends and problem areas, are focused.

This study gives insight into how far Indian businesses and their supply chains have progressed
in addressing significant logistics and supply chain concerns, as well as the practices that still
need to be prioritized.

1. Introduction
1.1 Introduction.
Meaning of logistics:

Most authors define logistics as the planning and management of the organizational,
managerial, and informational frameworks required to enable the delivery of products and
services over time and space. Logistics involves the planning and management of all variables
that may affect the timely and cost-effective delivery of the right goods to the right location.
Logistic is one of the key elements of SCM and its functional efficiency may well affect the
level of success of a firm (Bowersox etal, 2013). The logistics industry in India is evolving
rapidly and it is the interplay of infrastructure, technology and new types of service providers
that will define whether the industry is able to help its customers reduce their logistics costs

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and provide effective services (which are also growing). Changing government policies on
taxation and regulation of service providers are going to play an important role in this process.
Coordination across various government agencies requires approval from multiple ministries
and is a road block for multi modal transport in India. At the firm level, the logistics focus is
moving towards reducing cycle times in order to add value to their customers. Consequently,
better tools and strategies are being sought by firms in order to enhance their decision making.
In this paper, we provide a perspective on these issues, outline some of the key challenges with
the help of secondary information, and describe some interesting initiatives that some firms &
industries are taking to compete through excellence in managing their logistics. The complexity
of supplying goods to businesses and shipping goods out in an increasingly international supply
chain has caused the scope of logistics to expand beyond the functional level. Those involved
in logistic understand that supply chain operations have the tendency to expand as well as
engaged in many SCM activities and responsibilities (Stank et al, 2005). Because of this, the
range of logistics activities increasingly considers important SCM business processes, and the
efficiency and efficacy of these processes are directly influenced by logistics.

Logistics management:

Logistics management, as has been defined by CLM (Council of Logistics Management), refers
to the process of planning, implementing, and controlling the efficient, effective flow and
storage of goods, services and related information from the point of origin to the point of
consumption for the purpose of conforming to the customer requirements and expectations.

In order to fulfil consumer needs rather than their delight, logistics management is that portion
of the supply chain that plans, implements, and regulates the efficient, effective, forward, and
backward (reverse) flow and storage of goods, services, and information between the point of
origin and the point of consumption. A logistician is a person who practices the profession of
managing logistics.

Only in the 1950s did the concept of logistics begin to take shape. This was predominantly
caused by the growing complexity of supplying one's firm with resources and hauling out
products in a supply chain that has been becoming more and more globalized, necessitating the
services of specialists known as supply chain logisticians.

It is the study of process that is prevalent in all segments of the industry, and it can be defined
as providing the right product in the right amount at the right time at the right location for the

9
right price and to the right target customers (consumers). Managing project life cycles, supply
chains, and output efficiency is the aim of logistics work.

Delivering goods and services to where they are required or requested is the focus of logistics.
Without logistical help, marketing or manufacturing projects are challenging to undertake.
Information, transportation, inventory, warehousing, material handling, and packaging are all
integrated in this process. The geographic repositioning of raw materials, work-in-progress,
and finished inventories where necessary at the lowest cost possible is the operating duty of
logistics.

Retail, transportation, and other distribution- or service-oriented industries, in addition to the

manufacturing and assembly sectors, all depend on effective logistical management. As a result
of bitter feud in international markets, logistics management is seen as a key source of
competitive advantage. According to a study done by Council Logistics Management, top-tier
companies are more likely than their less developed competitors in developing nations to use
logistics as a core skill.

This Council Logistics Management study has identified what logistics firms can do to achieve
world-class status. Key focus areas include:

• Positioning with regards to adopting the strategic methods to direct logistics operations.

• The combination of internal logistical operating excellence and building of mutual trust
throughout the supply chain.

• The adaptability, flexibility, and agility in terms of relevance.

• Measurement of performance both internally and externally.

1.2 Origin and definition of logistics and supply chain management.

The term "logistics" originates from the ancient Greek "Zóyoç"("logos" — "ratio, word,
calculation, reason, speech, oration"). Logistics is considered to have originated in the
military's need to supply themselves with arms, ammunition, and rations as they moved from
their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were
military officers with the title ‘Logistikas’ who were responsible for financial and distribution
of supplies.

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The Oxford English dictionary defines logistics as: “The branch of military science having
to do with procuring, maintaining and transporting material, personnel and facilities.”

The American Council of Logistics Management defines logistics as “the process of

planning, implementing and controlling the efficient and effective flow, and storage of goods,
services and related information from the point of origin to the point of consumption for the
Purpose of conforming to customer requirements.”

Figure 1. logistics and supply chain

1.3 History of Logistics.

The origin of supply chain management, which has only been known about and gained
popularity in recent years, is logistics, which has a more than 5000-year history of development
in both economics and military art and science. The origin of supply chain management, which
has only been known about and gained popularity in recent years, is logistics, which has a more
than 5000-year history of development in both economics and military art and science.
Logistics is the process that adds value by timing and positioning inventory; it consists of a
firm's order management, inventory, transportation policy, warehousing, materials handling,
and packaging as integrated throughout a facility network. Despite the fact that the goal of
logistical work has largely remained constant throughout the years, the manner in which it is
carried out is always changing drastically in tandem with technological advancement and
managerial innovation. According to the 5 Right conception logistics is the process of delivery
the right product to the right place at the right time under the right condition and cost for the
right customer Douglas et al. (1998). According to Martin Christopher (1998) logistics is a

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process of strategic management of purchasing, transporting, storing materials, spare parts and
semi-finished products, products and proper information flow in a company and its distribution
channels to optimize profit now and in the future through carrying out all the orders at lowest
cost and as fast as possible. According to David Simchi-Levi (2000) logistics system (network,
chain) is a group of applied approaches linking suppliers, producers, warehouses, shopping
outlets in an effective way for the purpose that goods and services are to be produced
(delivered) and distributed in right quantity, right place, at right time in order to minimize cost
in the whole system in a response to the needs of customers in terms of their expected level of
service

1.4 History of Supply chain management.

Before the 1950s, military jargon was used to describe logistics (Ballou, 1978). It has to do
with the acquisition, maintenance, and transportation of military equipment, supplies, and
troops. The study and practice of physical distribution and logistics emerged in the 1960sand
1970s (Heskett et al., 1973). Prior to 1950, the logistics era has been referred to as the "dormant
years," when logistics was not viewed as a strategic function (Ballou, 1978). Changes that
could be categorized as the first "Transformation" started to happen about the 1950s. The
importance of logistics expanded significantly when physical distribution management in
manufacturing firms was acknowledged as a separate organizational function (Heskett et al.,
1964). The SCM concept was coined in the early 1980s by consultants in logistics (Oliver and
Webber, 1992). The authors emphasized that, in their original formulation, the supply chain
had to be managed as a unified unit and that top-down strategic decision-making was required.
Both channel theorists in marketing and logisticians share this viewpoint (Gripsrud, 2006).
SCM has become one of the most popular concepts within management in general (LaLonde,
1997) since its introduction in the early 1980s (Oliver and Webber, 1992). Numerous journals
in the fields of manufacturing, distribution, marketing, customer management, transportation,
integration, etc. published articles on SCM or issues linked to SCM. The evolution of SCM
continued into the 1990s due to the intense global competition (Handfield, 1998). Fernie (1995)
introduced SCM in the National Health Service. In fact, it was the first paper of SCM in the
service industry. Sampson (2000) researched how SCM in the service industry is related to the
customer-supplier duality in service organizations. Supply chain applications in the service
sector were explored by Kathawala and Abdou (2003). An educational supply chain was

12
proposed by O'Brien and Kenneth (1996) as a tool for strategic planning in tertiary education.
The study was based on a survey among employers and students. According to survey results,
collaboration and integration between students and companies ought to have been encouraged.

1.5 Logistics management and supply chain management.

The Council of Supply Chain Management Professionals, CSCMP (formerly known as the
Council of Logistics Management, CLM), has defined SCM and logistics management SCM
is defined as “Supply chain management encompasses the planning and management of all
activities involved in sourcing and procurement, conversion, and all Logistics Management
activities.” It is noteworthy as it also entails coordination and cooperation with channel
partners, which might include suppliers, intermediaries, third- party service providers, and
consumers. In short, supply chain management combines the management of supply and
demand within and across businesses. Supply chains include the organizations and commercial
activities required to design, manufacture, deliver, and use an item or service. Businesses rely
on their supply chains to offer them the resources they require to operate and succeed. Every
company is a part of one or more supply chains and plays a factor in each of them. It is
becoming more crucial for businesses to be aware of the supply chains they are a part of and
to comprehend the roles they play due to the speed of change and the inability to predict how
markets will develop. Businesses who develop and take part in resilient supply chains will have
a significant competitive edge in their marketplaces. In contrast to supply chain management,
which is the effort necessary to move and position inventory within a supply chain, logistics
refers to the art of calculation and reasoning. As a result, logistics is a component of and occurs
within the broader framework of a supply chain. The goal of supply chain management is to
maintain the optimal balance of responsiveness and efficiency for the market being served by
coordinating production, inventory, location, and transportation among the parties involved in
a supply chain. There is a difference between the concept of supply chain management and the
traditional concept of logistics. Supply chains are networks of businesses that collaborate and
coordinate their operations to deliver a product to market, while logistics often refers to
activities that take place within the confines of a single firm. Additionally, traditional logistics
focuses on tasks like inventory management, delivery, and maintenance. In addition to
acknowledging all conventional logistics, supply chain management also encompasses tasks
like marketing, developing new products, handling finances, and providing customer support.

13
In contrast to logistics management, which has been regarded as an organization's conventional
business or non-business activity since ancient times, supply chain management is a relatively
new idea of management that has gained prominence since 1980. As shown in the following
picture, analysing the definitions and fundamental ideas of supply chain management and
logistics management introduces us to a variety of schools of thought on the subject of their
interrelationships.

a) Logistics management is a part of supply chain management

b) Supply chain management is a part of logistics management

c) Supply chain management is strongly and strictly identified with logistics management
and vice versa

d) Supply chain management and logistics management have something in common and
something of their own.

Figure 2: supply chain management and logistics management.

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1.6 Role of logistics in supply chain management.

The management tasks that must be coordinated within a supply chain vary greatly from
company to company, obviously depending on specific organizational structures,
management's sincere disagreements over what exactly qualifies as logistics, and the
significance of individual tasks to logistics operations. Following the supply chain as depicted
in Figure 3 and noting the significant activities that typically occur, these are components or
activities as to where they are most likely to take place in the supply channel, according to the
Council of Logistics Management (chain).

Figure 3 : Logistics Activities in Supply Chain

Key and support activities are separated because the former will often occur in every logistics
channel (hub), whereas the latter will occur within a specific company based on the sector or
situation (case). Regarding significant activities, they either contribute the most to the logistics
task's overall cost or are crucial to its coordination and completion. The following are the key
activities:

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• The level of output and level of readiness to which the logistics system must respond
are determined by customer service requirements. Setting service standards has an
impact on the logistics expenses required to deliver that level of service since logistics
costs rise in direct proportion to the quality of customer service offered. Setting
extremely high service standards can drive up logistics costs to absurdly high levels.

• The main logistical activity that absorbs costs is transportation. Experience has shown
that it will account for between 50 and 70 percent of all logistics expenses. Transporting
goods and services gives them a place value, whereas having an inventory gives them
a time value. No modern business can function without arranging for the movement of
its raw materials, spare parts, semi-finished goods, and/or final items. The financial
difficulties brought on by so-called national calamities, such as a national railroad strike
or independent truckers refusing to transport goods due to rate disputes, etc., highlight
its vital character. Markets cannot be served in these situations, and products back up
in the logistical pipeline where they can degrade or become obsolete.

• Inventories are critical to logistics management since it is rarely practicable or viable

to give quick production or guaranteed delivery times to clients. They work as stopgaps
between supply and demand, ensuring that customers may continue to get the products
they need while giving production and logistics the flexibility to look for more effective
ways to produce and distribute the goods.

• The last major activity is the processing of orders. Usually, its expenses pale in
comparison to those associated with transportation or inventory upkeep. Order
processing is a crucial part of the overall time it takes for a consumer to obtain goods
or services, though. Additionally, it is the action that starts the distribution of goods and
services.

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The primary goal of supply chain management is to maximize efficiency through information
exchange and collaborative planning. From the initial supplier procurement to the ultimate
consumer acceptance, the entire supply chain is focusing on integrated management of all
logistical processes. The flow chart for supply chain integration below shows how this works.

Figure 4 : Supply chain integration flow.

Supply chain management can be thought of as a pipeline for the effective and efficient supply
of goods or services to clients via numerous intermediary entities.

Supply chain management is being used to increase channelized competitiveness. The

fundamental idea is to behave cooperatively because it lowers risk and boosts the effectiveness
of the entire logistical operation. It is necessary for this that they share their strategic knowledge
through the supply chain information system. It is beneficial to do tasks more quickly and

17
effectively. The waste and duplication of effort are also decreased or eliminated by this kind of
supply chain structure. This aids in maintaining the right level of inventory.

1.7 Concept of Logistics.

Logistics is a relatively new addition to the lexicon of integrated business management, having
previously been associated with the traditional fields of marketing, finance, production, and
personnel, although being a vital aspect of these sectors since the Industrial Revolution. There
are many terms being used to define and describe the idea of roughly the same subject—
logistics—including business logistics, physical distribution, materials management, outbound
logistics, in-bound logistics, logistics management, and supply chain management. This is
perhaps because the subject's scope and application have changed quickly.

Logistics can be defined as having the right quantity in the right place at the right time for the
right price. Process science is precisely what it is. supervises the completion of project life
cycles, supplier chains, and resulting efficiency while incorporating all industry sectors. The
requirement for the military to supply itself as they moved from their base to a forward position
is thought to have given rise to logistics as a concept. Military officials with the title
"Logistikas" oversaw finances and supply distribution in the ancient Greek, Roman, and
Byzantine empires.
During World War II, military forces employed a variety of models and logistics systems to
make sure that supplies and personnel were placed where they were needed to meet national
needs. As a result, from a military perspective, logistics refers to a system of support that
exemplifies the practical art of moving troops and materials involved in enemy conflict in order
to achieve the desired goals.

Only in the 1950s did logistics begin to develop as a distinct business idea. This was mostly
caused by the growing complexity of supplying one's firm with resources and shipping out
products in a supply chain that was becoming more and more global, necessitating specialists
in the industry.

1.7.1 Business Logistics

When it comes to business, logistics can either be internal or external, focusing on the flow
from the initial supplier to the final customer (see supply chain management). A logistics

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manager's primary responsibilities include managing and planning these tasks, as well as
purchasing, shipping, and warehousing. Managers of logistics integrate their general
understanding of each of these roles to coordinate the use of resources within a company. There
are two distinctly distinct types of logistics.

1.7.2 Military Logistics

Military logistics professionals oversee how and when resources are moved to where they are
needed. Since an armed force without access to food, fuel, and ammunition is vulnerable,
maintaining one's supply lines while damaging those of the adversary is a crucial—some would
even argue the most crucial—aspect of military strategy. A vivid illustration of the significance
of logistics is the Iraq War.

Bowersox and Closs (1996) provide a more systematic definition of logistics management as
follows: Logistics management comprises the design and administration of systems that govern
the flow of materials, work-in-process, and finished inventories to support business unit
strategy. A more thorough definition of logistics management is as follows: Logistics
management refers to designing, developing, producing, and operating an integrated system
that meets customer expectations by making the necessary quantity of necessary quality
products available as and when necessary to provide the best customer service at the most
affordable prices.

To ensure a seamless flow of raw materials from the point of origin to the first production point,
semi-finished goods throughout the production process, and finished goods from the last point
to the point of consumption, it is an internal integration of associated managerial functions.

As a result, several activities that fall under the broad category of logistics are involved,
including purchasing, materials handling, storage and warehousing, protective packaging,
order processing, forecasting processing, forecasting, inventory management, transportation,
and related information systems.

Following a thorough examination of numerous definitions, the following are the main
characteristics of logistics management:

1. It makes sure that all kinds of items, including raw materials, work-in-process, and
finished goods, flow smoothly.

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 2. It can deliver products that meet the needs and expectations of customers.

3. It ensures the delivery of high-quality goods.

4. It provides the best client at the most affordable price.

5. It is the integration of several managerial tasks for resource optimization.

6. It deals with the transportation and quantity-appropriate storage of products.

7. Profitability and productivity are increased.

1.8 Concept of Supply chain management (SCM)

Meaning of supply chain management:

Supply Chain Management is the management of the movement of products and services from
the point of origin to the point of consumption. Additionally, inventories and completely
furnished items are included, as well as the transfer and storage of raw materials used in work
in progress. Monitoring and connecting production, distribution, and transportation of goods
and services is the primary goal of supply chain management. Companies that have excellent
and tight control over internal inventory, production, distribution, internal productions, and
sales can do this.

1.9 Types of supply chain

Different types of supply chain are as follows:

1.9.1 Lean Supply Chain (LSC)

A LSC employs continuous improvement processes to focus on the elimination of waste or

non-value stops across the chain (Turkett , 2001). It is reinforced by reduced setup times that
enable the cost-effective manufacturing of small quantities, resulting in cost savings,
flexibility, and responsiveness to client demands. In order to increase internal responsiveness,
organizations adopt the time-based competition paradigm, which ensures that development and
lead time are reduced. This results in increased responsiveness and profitability, which can be
utilized to support higher prices for improved customer service as well as quick innovation and
lower quality costs.

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1.9.2 Agile Supply Chain (ASC)

The interface between a business and the market is where agility comes into play. By being
dynamic, context-specific, aggressively evolving, and growth-oriented, it makes money by
adapting to quick change and increasingly fragmenting global markets. Its products and
services are built with the needs of the consumer in mind.

1.9.3 Hybrid Supply Chain (HSC)

The existence of an intermediate chain known as the hybrid supply chain which is

similar in meaning with the word of ―legality‖ (Naylar et.al., 1999). An HSC deals with
products that are "assemble to order," whose demand can be predicted very precisely. Because
the chain delays product differentiation until final assembly, mass customization is made
possible.

1.10 Insights Of supply chain: There are three key aspects from which supply chain can
be examined.

1.10.1 Operational Supply Chain

The operational aspect is concerned with the effective functioning of the entities in the supply
chain and focuses on control and performance measures. To ensure dependable and cost-
effective distribution of goods and daily production plans, this is concerned with the day-to-
day operation of a facility like a factory or distribution operations.

1.10.2 Design Supply chain

Contributions from various fields are incorporated into the design. The structure of the supply
chain, such as the number of factories, warehouses, distribution centers, etc., is determined by
its design.

1.10.3 Strategic Supply chain

The assessment of how multiple objectives meet the demands of the business is a key
component of the strategic supply chain, and upper management is unquestionably responsible
for it. The study and identification of chances to improve the organization's competitiveness as

21
a component of the supply chain or network of supply chains are also included in the strategic
element.

1.11 Supply Chain Models

Over the past ten years, researchers have developed several different supply chain models.
Research is being supported thanks to the resurgence of interest in integrated supply chain
management. Although the perfect or ideal model has not yet been created, ground-breaking
work has been done. Although other models will be mentioned, only there will be covered in
detail.

To help organizations in their pursuit for supply chain optimization, researchers have realized
that models must be established. According to Stalk, Evans, and Shulman (1992), capabilities-
based competitors are integrating vertically at a time when cost pressures are pushing many
businesses to outsource an increasing number of activities. This is done to ensure that they, and
not a supplier or distributor, control the performance of key business processes. According to
Ganeshan and Harrison (1995), there are distinct many models. Firstly, there are models
created for strategic planning, most of which are either global or "all comprehensive "in that
they attempt to incorporate different aspects of the supply chain. These decisions are described
by huge models that need a lot of information. The authors furthermore state that these models
require vast quantities of data and have a wide range of options, they frequently only offer
approximations as answers. On the other hand, operational models focus on the daily activities
of the supply chain. As a result, operational models are frequently quite specialized. Due to
their narrow viewpoint, these models frequently consider a lot of information and offer
extremely good, if not ideal, solutions to the operational decisions. Operational models are
further divided by Ganeshan and Harrison into three distinct categories: network design, rough
cut methods, and simulation-based methods. Researchers have worked on these supply chain
model for decades. The earliest work started in 1974. An annualized finished product flow
optimization model for multicommodity logistics networks from factories to distribution points
to end users is presented by Geoffrion and Graves (1974). The three models of supply chain
are ‘Growth model’, the ‘Supply Chain Operation Reference Model (SCOR)’, and the ‘Supply
Chain Management System Framework (SCMSF)’.

1.11.1 The Growth Model

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This Poirier (1998) model consists of four stages that an organization must pass through in
order to achieve supply chain excellence. These tiers include network building, internal
excellence, sourcing and logistics, and industry leadership. The first phase of supply chain
progression is the sourcing and logistics stage, where reducing sourcing and logistics costs is
the main goal. A driver is chosen by the organization to oversee the project. A more senior
leader recruits these drivers with the goal of lowering the price of purchased items. In general,
the driver shows reluctance to take initiative. Usually, one or two specific projects are added
to redesign a particular aspect of the supply chain relationship. At this level, team members use
their functional experience and skills to unearth savings that previously escaped the
organization. The tools employed center around team building and development techniques.
The first level's initiatives are not really being guided by any model. Typically, the teams are
just seeking for immediate savings to support their initiatives and projects. As a result of
significant cost reductions, a few dependable suppliers may create some early relationships
with them in exchange for elevated positions. Teamwork is a key component of any training
that does occur. Making sure the renovations are genuine and not merely a brief transfer of
funds from buyer to seller that are eventually returned to the buyer is the main issue at this
stage.

The second level, known as the internal excellence stage, uses the chief information officer as
a catalyst and adds a new dimension to the role of information technology in the supply chain.
The strength of this crucial function is utilized in the creation of cutting-edge methods and
procedures that result in both internal excellence and higher customer satisfaction. The
anticipated advantages result from a list of improvement possibilities that have been prioritized
and are used to incorporate parts of continuous improvement into the effort.

The level two efforts are starting to produce a paradigm for success, but it is intra-corporate in
character. Therefore, the focus is still on how to raise the company's performance rather than
the entire supply chain. This is the second level of progression's fundamental flaw. Some
businesses put so much effort into achieving internal excellence that they become specialists
in processes that are not valued by customers or end users.

At this point, training is still mainly underdeveloped. Leaders start to take the initiative to
convey this message as firms start to realize that the supply chain may be a key point of
differentiation in the market.

The third level, or network construction stage, is thought of as a split between the internal and
external supply chain evolution stages. Firms in levels one and two focus solely on internal

23
excellence, missing the chance to collaborate with outside groups to find a superior overall
network solution. Organizations that are still stuck in the internal supply chain stages will
continue to concentrate their efforts on re-engineering the business model. They keep an intra-
enterprise view on progress, to put it briefly.

Three components are required for the last level, the stage of industrial leadership. They are
creativity, willpower, and technology. Moving to this level will be extremely tough for a
business with a culture that is heavily influenced by conventional thinking. The people will
continue to 2insist that internal ideas are the only good ones, that receiving credit for any
improvements is more important than coming up with new, effective methods, and that control
is more vital than innovation.

In this final stage of evolution, the driver must have management teams committed to breaking
through those barriers of conventional thinking and determined to make the value chain
constellation function. The team will promote the unconventional ideas that lead to tomorrow's
solutions. These teams will strive for the substantial rewards that come with network
dominance. Because consumers will only interact with one network, profitable profits will flow
to the market leader.

As sourcing and delivery are carried out globally, global demand and supply links become the
governing concepts. The value chain participants use the skills of their networks to concentrate
on specific consumers, with the global market serving as the defining model. The tentative
partnerships from the earlier stage have now developed into joint ventures as complementary
capital investments strengthen the network advantage. The training that started at level three is
now being developed more comprehensively to include all of the alliance partners, to find even
more chances for development, and to keep bringing innovations that will keep the value chain
far ahead of the competition.

1.11.2 The Supply Chain Management System Framework (SCMSF)

The (SCMSF) is defined as a core business system that integrates internal corporate resources
to efficiently manage and cooperate with external suppliers. Through better manufacturing
capacity, market reactivity, and customer-supplier connections, the goal is to improve the
company's performance.

The Supply Chain Management System Framework (SCMSF) is a tool for development and a
best-practice model based on a functional model of the SCM system.

24
This practical model serves as a model for perfecting SCM practices. It offers a unified vision
and vocabulary that can support the growth of a fully integrated system. The framework is
made up of several parts that represent important features and industry standards. The SCM
enablers, which are enabling organizational behaviors, support the overall effectiveness of the
SCMSF system.

1.11.3 The Supply Chain Operations Reference Model (SCOR)

A company's capacity to compete successfully is largely dependent on how well its supply
chain operations are managed, along with product quality and time-to-market. The capacity of
many businesses to satisfy growing client demands for delivery and flexibility is a determining
factor in their success. fast deployment of a steady stream of product and process changes are
required by certain demands.

Businesses that recognize the value of supply chain management are starting to succeed in the
global economy. Business process re-engineering, benchmarking, and process measurement
are well-known ideas that are integrated into a cross-functional framework via process
reference models. Companies can use common terminology and standard descriptions of the
process elements that make up the complex management process; they can use benchmark and
best practise information to set priorities, measure the benefits of targeted process changes, and
determine performance goals; they can comprehend the overall process and compare their
performance to that of rival companies both inside and outside of their industry; and they can
determine which software tools are most effective.

A complicated management process can be precisely characterized, consistently

communicated, and modified to gain a competitive advantage once it has been captured in a
process reference model. Additionally, the process itself can be measured, managed, and
controlled, and it may be improved to serve a particular purpose thanks to the use of standard
measurements for process elements and activities. A process reference model created
especially for integrated supply chain management is called the SCOR model.

The model focuses on four fundamental operations processes: plan, sourcing, manufacture, and
delivery. This includes the entire supply chain, starting with the supplier and ending with the
client's customer.

According to conventional process modelling, a high-level process is divided into a number of

process elements, which are then divided into groups of tasks, and lastly into particular

25
activities. Typically, these hierarchical models are used to describe a particular set of process
components that represent a certain process configuration. To identify a fundamental process
type, such as the supply chain, using hierarchical modelling approaches makes it easier to build
configurations. As the process elements are broken down into level one (process types), level
two (process categories), level three (process elements), and level four (process elements in
further detail), SCOR is defined (tasks and activities). The standard model, where the company-
specific implementation takes place, does not specify it.

Figure. 5 SCOR model

Companies who have adopted SCOR have discovered that by putting the SCOR framework to
use, the organization is now able to prioritize the deployment of practices according to their
strategic value. In addition, it can continue to align organizational and functional links while
setting performance goals and identifying related information needs. The model was used by
project participants, who discovered that it provided a common vocabulary and process
descriptions that allowed for quick agreement on the best supply chain configuration. The

26
creation of the supply chain map quickly highlighted interdependencies and functional
relationships.

1.12 Supply Chain Management Problems.

Organizations are more impacted by internal issues than external ones, which were primarily
concerned with information gaps, a lack of skilled workers, outdated equipment, an increase in
product inventories, longer design and development cycles, longer production runs, longer
distribution cycles, and longer tooling cycles (Manzouri, 2011). These issues are mostly a
direct outcome of the current global economic slowdown, globalization, rapid advances in
technology, supply chain management, and worldwide rivalry.These are some other supply
chain management issues: -

1. Lack of adoption and application of certain supply chain management techniques,

including: A study of the bullwhip effect the bullwhip effect is the term for the
phenomena when demand in a supply chain becomes more and more variable. The
bullwhip effect simply distorts consumer demand data artificially as they are conveyed
from the store back to the suppliers.

2. Lack of information sharing on numerous issues between suppliers and customers:

Information sharing throughout the chains will result in several changes, such as an
improvement in forecasting to lessen the bullwhip effect phenomena and an increase in
process visibility. The amount of inventory, order tracking, product development,
distribution, organization's production costs, demand, and order across the chain should
all be made transparent through the sharing of information.

3. The degree of difficulty in implementing supply chain management: Halldorsson et al.

(2008) discovered that without top management backing, SCM may fail. Lack of top
management support, funds, transportation facilities, coordination among supply chain
participants, use of contemporary technology, demand forecasting system, information
sharing with suppliers, raw material quality, lack of member trust, and remote locations
of suppliers and customers are obstacles to implementing supply chain management.

4. Unreliable suppliers: The purchasing price of materials is too expensive, the lead times
of the suppliers are too long, and the financial viability of the suppliers is now a concern
(after the onset of the economic crisis). Following the start of the recent economic crisis,

27
 both the financial stability of suppliers and the frequency of order changes from
customers both considerably worsened.

5. The low level of acceptance of third-party logistics (TPL) integration Apart from the
infrastructure issues, there are several other reasons why businesses in India lack access
to the best supply chain services. One aspect of the issue is the low level of acceptability
of integrated third-party logistics (TPL) companies in India. The combined TPL and
existing transportation companies have significant cost differences. Shippers therefore
struggle to justify the extra cost of a TPL, even though they would get high-tech support
and overall better service from such a provider.

1.13 Barriers to Effective Supply Chain Management

There are several impediments (barriers) to collaboration within the supply chain: pervasive
human aversion to change, the required time horizon and amount of investment, a lack of trust,
and inadequate communication. The first steps to attaining completely integrated supply chain
management are to recognize these obstacles and cultivate the collaborative mindset necessary
to go through them.

a) Lack of trust.

Most businesses have kept their suppliers and clients at arm's length for the most of the last
century. Additionally, it has been shown that many businesses participate in a number of
dubious business activities while dealing with local and international commercial partners.
There were noticeably lower levels of commitment and trust in the areas where these negative
behaviours took place. Initiatives to develop collaborative partnerships across the supply chain
will likely encounter resistance and mistrust because of this heritage.

b) Little commitment to or understanding of SCM

Most managers have some level of comfort managing relationships within their own
role. However, as the relationship incorporates other corporate departments, people
start to feel less at ease. And when it comes to interacting with other entities in their
supply chain, they feel the least at ease. As managers come to recognise the value of
integrated activity and commit to working for the improvement of the entire supply
chain rather than just their part, the inter-organizational comfort grows. If businesses
are unable to get over their aversion to ceding control and disclosing sensitive

28
 information, they will never engage in meaningful collaboration. Because time is such
a valuable resource for managers, this obstacle to the adoption of supply chain
management efforts is particularly concerning.

c) Fear of surrendering control

Most managers like to be judged on behaviors that are entirely under their control. It
makes sense that no one wants to be held accountable for outcomes that, whether within
or external to the business, are partially their fault. It is simple for supply chain
managers to feel at the mercy of another business or person as they work to achieve a
certain level of supply chain performance, such as taking an initiative to reduce the total
cycle time for processing an order, because many supply chain initiatives call for
collaborative efforts and close cooperation. Neither those inside the company nor those
outside it have complete control over this behavior. This is a significant obstacle for
many people trying to adopt the collaborative method.

d) Different Goals and Objectives

The objectives of the various partners may vary greatly simply because they deal with
various market and competitive conditions, various strategic and financial situations,
and various environments as determined by company size, ownership structure, culture,
and identity. The possibility of reaching consensus on a joint supply chain initiative is
low if the overall supply chain goals are not accepted by all parties.

e) Inadequate Information Systems

Most businesses lack the internal information systems needed to collect all the data
necessary to integrate the systems and operations of all supply chain partners. In truth,
a lot of businesses still have trouble collecting and understanding all the conventional
data they collect on their own performance. The present systems might not be able to
handle imposing an altogether new set of information needs that apply to every part of
the business. For any measure of supply chain collaboration to be successful, efforts to
create consensus around a set of data and performance measurements must be regularly
supported by the highest levels of management. To satisfy the increasing supply chain
information needs, businesses must also spend considerably in information systems.

f) Short-Term Focus on Outcomes

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Successful supply chain initiatives are greatly hampered by senior managers in large
public firms having to focus so much on their stock value and, consequently, short-term
performance. The reason for this is that the work required to support these projects often
takes a lot of time and resources. If top management is continually under pressure from
market watchers and stockholders, it may not have much time or energy to devote to
meaningful supply chain integration. The advantages of collaborative behavior and
linked supply chains are frequently extolled by the trade press. A management under
pressure, however, might not have the luxury of waiting for the advantages of integrated
behavior to materialize.

1.14 Logistics management practices in India.

Logistics as a sector may not be the most glamorous, but it is unquestionably one of
those in India primed for a period of rapid and sustained expansion. The massive
investments being made in industries like retail, where supply chain management is
essential for success, and the phenomenal development being seen in international trade
will serve as major power boosters for this industry. Along with this, the sector's good
perceptions will benefit from the ongoing liberalization of logistics and the significant
capital spending plans in many other economic sectors.

For instance, the Indian Planning Commission estimated that the country would spend
close to $500 billion on infrastructure during the 11th Plan, and our government has
also improved the environment for logistics companies by introducing tonnage tax and
value added tax as well as reforming customs and excise procedures.

1.15 Key Success Factors for Effective Logistics Practices

Efficient management is the key to success, especially in supply chain management.

Effective logistics management involves multiple elements. For instance, there is
always room to improve the process when automation and precise synchronization are
involved. If your company is expanding, you must identify strategies to improve output
by streamlining the logistical planning processes. Here are some procedures for better
logistics management.

Proper planning-

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 The key to effective logistics is planning. It includes acquiring the products, providing
storage space, and delivering the commodities to their destination. Planning is to
accomplish the most work in the shortest amount of time while also optimizing
revenues. Therefore, a smart logistics manager will ensure that there are no supply chain
delays by making sure to prepare far in advance. But one also needs to be ready for
unforeseen circumstances. These circumstances may be connected to:

• The products (sourcing, purchasing, and manufacture);

• The inaccessibility of the transportation;

• Any internal organizational issue

Adopting Automation-

In the era of automation, technology has a significant impact on an organization's ability to

operate more effectively. You may automate the logistics process in several ways, including
by tracking and observing each delivery.

Valuable software that can be deployed in the logistics process.

You can link business process management software, such as SAP or ERP, to offer
timely updates on the movement of commodities. The client and the operator will learn
information about:

• The products that are dispatched from the supplier;

• Procurement of the goods at the warehouse

• Delivery of the goods at the destination

Due to the removal of manual interference, this saves a significant amount of time.
Furthermore, precise tracking contributes to better process management overall.

Robots for Inbound and Outbound Logistics.

Robots carry out tasks as directed by an order fulfilment system. Robots in warehouses
are automatically alerted by the order procedure, which also starts the flow of processes.
Robotics Not only can technology help with outbound logistics in warehouses. They

31
 can be employed to coordinate strategy and inbound and outbound processes. Supply
chain organizations will have the tools and resources required to increase throughput
and shorten the product cycle from order to delivery thanks to trends in automation and
robots.

Warehouse Management System-

Without effective warehouse management, logistics management is ineffective. A software

program called a warehouse management system (WMS) is created to support and improve
distribution Centre administration and warehouse functionality.

A WMS makes use of a database that is set up to support warehouse operations and contains
several common warehouse components, including weight, dimensions, case packs, automatic
ID labels (bar codes), inventory by location, and manufacture dates for individual stock keeping
units (SKUs) that are handled and stored. Included are dock doors (e.g., individual numbers),
warehouse storage locations, and anticipated labor productivity rates by function or activity
(e.g., cases picked per man-hour).

The flow chart below shows the features of WMS.

32
Figure 6. warehouse management system (WMS)

33
 Efficient Transportation System-

The cost of transportation is a significant component of an organization's overall

logistics budget. Companies are continually looking for the most effective and
economical means to transport their goods from A to B. What elements and patterns
influence the most effective method of product delivery? What elements affect the
demand for freight?

The best delivery route, cost-effective packaging that ensures low investment and the
safety of the goods, as well as lead time to provide with different modal options, such
as rail or barge, which could be much more cost-effective, are some of the factors in a
company's decision-making process on transportation demand. Other elements that
affect delivery and product quality include the distance between customers and the
warehouse or the kinds of goods and services that are vital to logistics.

Performance Measurement-

Optimization of the logistics network cannot be complete without incorporating

performance monitoring, analysis, and feedback. When implementing new tactics in
the system, it's important to monitor the results because they can have an impact on
how well the supply chain functions. Software and measurement technologies that
quickly identify and categories the data as needed should be included. These metrics
include some of the following:

• Cycle time metrics (e.g., production cycle time and cash-to-cash cycle)

• Cost metrics (e.g., cost per shipment and cost per warehouse pick)

• Service/quality metrics (on-time shipments and defective products)

• Asset metrics (e.g., inventories)

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 1.16 Supply Chain Management Practices in India.

The definition of SCM practises is a technique used to manage supply, demand, and
relationships in order to fulfil customers in an efficient and lucrative manner (Wong, et.al.,
2005). SCM practises are a collection of actions made by an organisation to support efficient
supply chain management. The body of research on the aspects of SCM techniques from many
angles is extensive. Li et al. (2005) tried to create and evaluate an assessment tool for SCM
practises in a more recent study. Their tool included six dependable and empirically proven
characteristics, including delay, internal lean practises, information sharing, information
quality, and strategic supplier partnerships. The long-term relationship between the business
and suppliers is represented by a strategic supplier partnership. Customer relationship
encompasses procedures for addressing complaints, ensuring customer happiness, and
establishing long-term relationships. Information sharing is the act of communicating
information between partners, where the terms "accuracy," "sufficiency," and "timeliness"
refer to the information's quality. The elimination of waste, low inventory, small batch sizes,
and JIT delivery are examples of lean processes. The delayed differentiation of items in the
supply chain is known as postponement. In order to improve the long-term performance of the
individual enterprises and the supply chain, supply chain management (SCM) involves a
collection of methodologies and practises. This results in a cohesive and high-performing
business model (Chopra and Meindl, 2001). The Council of Supply Chain Management
Professionals (CSCMP) defines supply chain management as including the coordination and
management of all activities related to sourcing and procurement, conversion, and all logistics
management activities. Table 2.3 shows a list of SCM dimensions utilised in earlier literature
on SCM practises.

35
SCM practices Measures on SCM practices References

Product differentiation Physically efficient (MTO), Fisher (1997); Holmstro(1997); Li

physically responsive (MTS) and O‘Brien (2001); Wong et.al.,
and market responsive (ATO) (2004);Lo(2010);
for functional, intermediate, Hilletofth(2011); Uggla(2014)
and innovative products
respectively

Lead-time management Time-to-market, time-to-serve, Suri (1999); Christopher et.al.,

time-to-react (2004); Lo(2010);

Postponement and customization Logistics postponement, Pagh and Cooper (1998); Van
manufacturing postponement, Hoek (1998); Lampel and
standardization, customization Mintzberg (1996); Wadhwa
(2006); Buffington(2011);
Kamrani(2012)

Inventory and cost management Gross margin returns on Fernie (1995); Ketzenberg et.al.,
inventory (GMROI), obsolete (2000); Chain Store Age (2002) ;
inventory, markdowns, lost Nag(2014)
sales, etc

Bullwhip effects Demand variability, induced Lee et. al., (1997); Kurt Salmon
seasonality Associates (1993); El-Beheiry et.
al., (2004) ); Paiva(2014)

Distribution and logistics Direct delivery, cross-docking, Kakkainen et.al., (2003);

and merge-in-transit Chatterjee et.al., (2010);
Lacity(2013); GarcıaArca(2014);
Roehrich(2014)

SCM initiatives Electronic data interchange or Lee and Whang (1998); Vergin
point-of-sales (EDI/POS), and Barr (1999); McKenney and
continuous replenishment Clark (1995); Pearce (1996);
planning (CRP), efficient Waller et.al., (1994); Walker
consumer response (ECR), (1999); Husain et.al., (2002);
collaborative planning, Kakkainen (2003);
forecast, replenishment Ringsberg(2014);
(CPFR), vendor-managed
inventory (VMI), radio
frequency identification (RFID)

Supply chain Inventory turn ratio, gross Chain Store Age (2002);

36
Performance margin and profit, average in Beamon (1999); Estampe (2010);
stock inventory, ability to Ganga (2011); Shao et. al., (2012);
measure inventory, etc. Datta and Roy (2013); Kleemann
and Essig (2013); Selviaridis and
Norrman (2014)

1.17 Supply Chain Performance

Performance measurement is described by Petrovic-Lazarevic and Sohal (2002) as a method

for evaluating data related to processes and product results, allowing evaluation and
comparison in respect to objectives, trends, prior results, and comparison with other processes
and products. According to Hausman (2000), the extended supply chain's activities in meeting
end-customer requirements, including product availability, on-time delivery, and all required
inventory and capacity in the supply chain to deliver that performance in a responsive manner,
constitute supply chain performance. According to Beamon (1999), Holmberg (2000), and
Gunasekaran et al. (2004), the goals of performance measurement are to increase a supply
chain's efficiency and effectiveness, record the relevant aspects of company performance, and
give management the f3eedback and information required for decision-making and controls.

There are numerous justifications for measuring and reviewing supply chain performance.

• Support Better Decision Making: By making performance and results transparent,

measurement can promote better decision-making. Without knowing the areas where
performance is lacking, it is challenging to design plans for performance improvement.
Measurement gives a history of performance through time and directly aids
management's decision-making process.

37
 • Support Better Communication: Performance measurement can lead to improved
communication with upper management, throughout all departments, and throughout
the supply chain.

• Provide Performance Feedback: Measurement offers the chance for performance

feedback, which aids in the averting or resolving of during the performance
measurement procedure, issues were found.

• Motivate and Direct Behavior: Measuring behavior motivates and guides it toward
desired outcomes. This can be achieved by a measurement system in several ways.
First, the performance categories and objectives chosen by the organisation show which
tasks they see as essential. Second, management can affect behavior by associating
achieving performance goals with organizational benefits like salary increases.

1.18 The Role of Transportation in Supply chain management.

Supply Chain Management is the activity of arranging the safe flow of products and services.
This can differ from the product provided by the industry, depending on the industry. The
process considers the full transformation of raw materials into finished goods before they are
delivered to the final consumer.

The fascinating portion of this procedure is the management component. Managers are required
to reduce the time and resources needed to improve the supply chain's efficiency. SCM is all
about streamlining this process to achieve a competitive advantage and create satisfied
customers.

The development of information systems to keep track of everything is included in SCM, as is

the manufacturing of products. The chain comprises three key parts from beginning to end,
which helps to streamline the procedure. These elements include purchasing, manufacturing,
and transportation, which is crucial.

To expand your firm, you must have a concise and cost-effective transportation strategy. It
entails setting up an extensive network of organized transportation systems and distribution
schemes for both receiving and transporting goods. Nobody loves to get late orders, so a smooth
shipping process is what keeps your consumers coming back for more.

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1.18.1 Transport functionality.

Transportation is a prominent component of the supply chain. Customers are used to seeing
trucks and trains parked at commercial locations or delivering goods. Few consumers truly get
how crucial affordable and reliable transportation is to our economic system. Product
Movement and Product Storage are the two main services offered by transportation businesses.

Product Movement

Whether in the form of resources, components, work-in-process, or finished goods, the core
value supplied by transportation is to move inventories to the next stage of the business process.
Product transportation up and down the supply chain is the main transportation value
proposition. For manufacturing, market distribution, and procurement, transportation is
essential. Additionally, transportation is crucial to reverse logistics. The majority of business
activity would not be possible without dependable transportation. Resources like time, money,
and other things are used up in transportation. Because the product is typically inaccessible
during the moving process, it requires time resources. In-transit inventory is a term for product
that is captive to the transportation system. Naturally, managers aim to keep in-transit inventory
to a minimum when building supply chain systems. Financial resources are also used in
transportation. Labor costs for drivers, vehicle operation, capital expenditures for equipment,
and administration all contribute to transportation costs. Additionally, product loss and damage
result in costs. Environmental resources are used in transportation as well. The largest direct
consumers of fuel and oil are transportation companies. Congestion, air pollution, and noise
pollution are some of the indirect effects of traffic on the environment.

Product Storage

Product storage is a less obvious part of transportation. A product is being stored while it is in
a vehicle for transit. Although they are very expensive storage facilities, transport trucks can
also be utilised for product storage at the origin or destination of a shipment. A vehicle that has
been committed to storage is not otherwise available for transportation because movement is
the primary value proposition of transportation. Using a transportation vehicle vs temporarily
storing goods in a warehouse is a trade-off. The cost of unloading, warehousing, and reloading
the product may exceed the temporary cost of using the transportation vehicle for storage if the
inventory in question is slated to transfer within a few days to a new location. Diversion is

39
another another method of short-term product storage. Diversion happens when the destination
of a cargo is altered while the goods are being transported. Historically, telephones have been
used to implement detour plans, but satellite communication between an organization's
headquarters and its cars allows for more effective detour. While the main purpose of diversion
is to increase logistical responsiveness, it also influences transit storage. So, although costly,
product storage in transportation vehicles may be justified from a total cost or performance
perspective when loading or unloading costs, capacity constraints, and ability to extend lead
times are considered.

1.18.2 Transport Principles

There are two fundamental economic principles that impact transportation efficiency:
Economy of Scale and Economy of Distance.

Economies of scale.

As a shipment's size increases, the price per unit of weight decreases. For instance, full
truckload shipments, which use all the vehicle's capacity, are less expensive per pound than
smaller shipments, which only use a tiny percentage of the vehicle's capacity. Additionally, it
is generally true that greater capacity transportation methods, like rail and water, are less
expensive per pound of cargo than smaller methods, like trucks and planes. Transportation
economies of scale emerge because the greater weight allows for the allocation of the fixed
costs connected with moving a load. The cost of equipment, the time it takes to arrange vehicles
for loading or unloading, scheduling-related administration, and billing are all examples of
fixed expenses. These expenses are regarded as fixed because they are independent on
shipment volume.

Economies of Distance.

This refers to a decrease in transportation costs per unit of weight as distance increases. For
instance, it will be less expensive to perform a 1000-mile shipment than two 500 km shipments
of the same weight. The tapering principle is a term used frequently to describe the
transportation economics of distance. Like economies of scale, distance economies are
justified. Longer distances, specifically, enable fixed costs to be spread across a greater number
of miles, resulting in reduced per mile expenses. When analyzing transportation alternatives,
these scaling concepts are crucial. Maximizing the size of the load and the distance being

40
carried while still providing the level of customer service is the objective from a transportation
standpoint.

1.18.3 Working with Transportation in SCM

The supply chain is held together by the metal link of transportation. Since raw materials are
carried from dealers or the location where they are purchased, to the location where they are
manufactured, and then to the final consumer, every stage of the process is related by
transportation. Without a reliable and cost-effective shipping strategy in place, you risk losing
a lot of money, which could give you an unfair competitive advantage. Let us study the
significance of transportation in a supply chain in more detail.

Reduce costs

Already, running a business is expensive. A smart transportation system in place can help
someone save a lot of money with careful planning and plotting. There are numerous modes of
transportation (air, ocean, or land), fuel prices, and weight considerations. A comprehensive
freight audit is advised in order to minimize the expense of such logistics.

Better Customer Service

A company's priority should be its customers, who should be followed closely by the supply
chain. One strategy to guarantee that goods reach your customer on time and in good condition
is to tighten up your transportation lines. This very little element is considerably more crucial
in a large-scale process.

Priority-Based Shipment Segmentation

A company needs to be aware of the many levels of priority that shipments may have. It may
be more crucial to receive some packages sooner than others at a moderately regular time.
Because of this, segmenting shipments depending on variables like distinct customers, product
types, suppliers, etc. is crucial.

41
1.19 Customer service performance outcomes

The output of the supply chain is customer service, which comprises elements like order
completion, cycle time, consistency of performance, answers to errors and information
requests, special requests, and services (Ellram et. al., 1989). Enhanced effectiveness and
efficiency (cost reduction) are the performance result goals of SCM (improved service). In
order to provide value to consumers farther down the supply chain, customer service activities
should attempt to provide the same level of service at the lowest cost or an improved level of
service at the same cost.

Bowersox and closs (1996) suggest that there are four levels of customer service outcomes, all
of which are required to create differential advantage across firm within an SCM context i.e.,
efficiency, market access, market extension, market creation.

A successful supply chain operation in the customer operations depends on operational

performance, which includes order cycle time, consistency in performance, adaptability to meet
atypical demands, and the capability of responding and recovering from service faults. Reduced
cycle times and the ability to quickly adapt to changing consumer demands can lower inventory
needs, increase efficiency, and save costs. These factors can also help a company respond more
quickly to shifts in market demand, which will increase its ability to compete effectively.

Customer service performance outcomes exist in two domains, the supplier’s activity domain
and the customer’s response domain (Mentzer et. al., 1989). Although there may be a
substantial correlation between these two domains of performance outcomes, it is crucial to
understand that they are two separate realms. It is crucial for the supplier to track performance
outcomes in the realm of supplier activity if it wants to keep up or boost its customer service
performance.

Customer value and happiness are crucial components of any successful business recipe. Each
department needs to be connected to the company's value chain (Porter, 1985).

The marketing manager pays attention to understanding client wants, the firm's capacity to
provide them, and generating revenues to sustain future growth and profitability as every
department of the company engages in value-creating activities.

42
While the logistic management concentrated their time and efforts on the following three
essential company operations: transportation of materials and products, facility location and
design, and inventory policy and practice (Ballou, 1993).

Now the supply chain organization is shifting form single cost focus on inventories, facilities, and
transportation to a multi enterprise focus on cycle time compression, system wide cost reduction, and
improved value for end customers (Langley and Holcomb, 1992).

1.20 Customer satisfaction

Customer satisfaction is the art of making the customer happy by listening to them and
responding to their needs (Zhang et al., 2003). Customer satisfaction involves managing the
business with the prime intention of satisfying customer needs rather than the needs of
management (Herrmann, Huber and Braunstein, 2000). It is delivering to customers more than
they request and consistently exceeding their expectations (Matzler and Hinterhuber, 1998).
Customer satisfaction achieves for SMEs an increased level of customer loyalty, an increase in
cash flow and a decrease in operating costs (Gosling, Shang and Marlow, 2005). As a result,
customers will be willing to pay more for high quality products and services (Venter, 2006).
Effective strategic supply chain decisions have a profound impact on competitive position,
profitability, market share, as well as impact on the specific needs of the consumer (Song, Dong
and Xu, 2014). Examples of these needs are consumer trends, type of products, services,
quantities, qualities and time (Hugo, Babenhorst-weiss and Van Rooyen, 2002). As observed
by Saura et al. (2008), SCM is the connection between production and consumption, a cost-
reduction technique and a product differentiation strategy that brings greater customer
satisfaction.

43
1.21 The six key elements within a supply chain that affect customer
satisfaction

There are six vital factors in a supply chain that are critical to look at and influences customer
satisfaction:

1. Responsiveness refers to prompt communication with the customer, whether it be about

an issue or a successful delivery. A crucial component that is closely related to client
pleasure and experience is responsiveness.

2. In order to improve processes that have historically failed to operate properly,

innovation and digitalization seek to build barriers that prevent a firm from offering
timely, seamless delivery. Giving this factor top priority will lead to more efficient
internal processes and satisfied clients.

3. In the global supply chain, integrating different stakeholders like upstream and
downstream suppliers enables effective management of a client's expectations, resulting
in customer satisfaction.

4. Supply chain analytics helps pinpoint any past issues with delighting customers and
develop remedial actions to boost delivery in the future. Analytics also enables the
business to set high performance criteria to meet customers' expectations.

5. Companies can guarantee customer happiness by thoroughly understanding the needs

and expectations of the consumers by implementing a customer-centric culture as one
of the fundamental values and KPIs in employee performance.

6. End-to-end visibility is essential for increasing customer happiness because it allows

customers to monitor the progress of their shipments and confirm that the business is
sincere in its pursuit of great service and their satisfaction.

44
1.22 Statement of problem.

1. Supply chain management and logistics have gained prominence as a crucial area of
study that is now heavily prioritized. The international players have made significant
investments in India. The production line cannot deliver the necessary material on time
and in the necessary quantity.

2. In any corporate organization, the supply chain is the most integral part. A hole in the
supply chain networks will have an impact on the entire chain. The reasons why supply
chain operations fail is due to a lack of comprehension or knowledge regarding the
nature of demand.

3. Customer requirements serve as the focal point of supply chain management. Giving
the proper amount of a product of the right quality for the right price is
important. Maintaining this balance is a crucial factor.

4. Although procuring products and materials may be easy, there is a chance that they
won't always arrive on time, especially taking into account time zones and the range of
shipping options available. Delays like this are rather frequent when products are
obtained from distant nations.

5. It is exceedingly challenging to keep up with and adjust to the range of developments

in the industry because technology advancements are constantly changing our markets.

1.23 Need of study.

In recent years, effective logistics and supply chain management have been identified as major
potential for boosting company success and competitive performance. To understand the
logistics and supply chain management is crucial. According to some experts, narrowly defined
performance indicators are incapable of providing supply chain members with a precise picture
of overall supply chain performance or identifying possible problems.Possibilities for
enhancing company competitiveness, customer service, and value (Beamon, 1999; Lambert
and Pohlen, 2001). For effective supply chain management, a detailed picture of the
performance along the entire supply chain is necessary.

45
1.24 Rational of study

The intend of this study is to understand logistics and supply chain management as the success
of many businesses today is largely attributed to contemporary supply chain management
techniques. The costs associated with the storage and transit of goods can be reduced with the
use of effective logistical systems. SCM software can assist in monitoring the movement of
items and preserving an effective information flow at the points of interaction. Proper inventory
controls can reduce the likelihood of theft occurring within a business. The practice of supply
chain management has developed to include actions that benefit the environment as well as
economic maximization.

With the introduction of green logistics, businesses are now implementing approaches that
decrease the impact of technology on the natural environment. The future of supply chain
management is green logistics, which centres on lowering carbon emissions and finally
resolving the tension between a sustainable environment and economic growth.

46
 CHAPTER 2.

2. Research methodology

2.1 Research objectives.

1. To study how logistics and supply chain management support customer satisfaction.

2. To understand the relation between logistics management and supply chain management.

3. To study supply chain management practices.

2.2 hypothesis.

The broad objective of this study is to explore how logistics and supply chain management
maintains a sustainable process for transportation, uses technologies to reduce carbon emission,
and supports customer satisfaction. Based on the given objectives, following hypothesis are
explored-

H1- Customer satisfaction is positively related to an organization’s logistics and supply chain
management system.

H1- There is a significant relationship between logistics management with supply chain
management and vice versa.

H1- Supply chain management practices is positively related to supply chain performance.

2.3 Scope of study.

The scope of study for my research on “An overview of logistics and supply chain management
in India” is very immense. In 1969, Bowersox (1969) stated: “As with any emerging field,
physical distribution [logistics, SCM, eds.] currently suffers from a lack of standardized
definitions and vocabulary. The overall field would gain significantly from a clear definition
of subject matter and issues.” Despite attempts to stabilize the various aspects of logistics/SCM
reality into models and methods, it still seems to be an ever-moving target. Logistics and supply
chain management (SCM) have both received immense management attention during the last

47
decades as a means to improve company performance. In 2001, Mentzer et al. (2001) argued
that: “SCM has become such a “hot topic” that it is difficult to pick up a periodical on
manufacturing, distribution, marketing, customer management, or transportation without
seeing an article about SCM or SCM-related topics.”

Both logistics and SCM grasp a wide range of activities and processes both within a single
company and between different companies in chains and networks. Since the introduction of
SCM in 1982 by two consultants (Oliver & Webber, 1982),much has been written in the
logistics literature about its content, scope and implementation issues.

Over time, the concept has matured and has received acceptance in academic environments
and in practice; as a new name for logistics (re-labelers), as a widespanning umbrella that
includes logistics (unionists), a new attribute of logistics (traditionalists), or as integrating
aspects from other disciplines (intersectionists) (Larson & Halldórsson, 2004). Despite this, the
difference or similarity between the concepts appears often more as one of a semantic nature
rather than based on the substance itself. On one hand, it can be argued that SCM is a broader
concept than logistics because SCM deals with “integrating and managing key business
processes across the supply chain” (Cooper et al., 1997). According to Lambert et al. (1998)
the confusion between logistics and supply chain management probably is “due to the fact that
logistics is a functional silo within companies and is also a bigger concept that deals with the
management of material and information flow across the supply chain.” On the other hand, it
can be argued that differences between the concepts are difficult to outline, since both concepts
deal with the same content and scope (Persson, 1997; Arlbjørn, 1999, 2000; Halldórsson &
Larson, 2000). The scope of this paper is not to add further views to the academic discourse
concerning similarities and differences between logistics and SCM. Instead, the paper focuses
on research methodologies applied in SCM research.

2.4Limitation

As the topic for this paper is vast, covering all the topic was a challenge. The overview of
Logistic and supply chain management is not discussed in detail. The limited time given by
the college was less. The survey conducted in this research did not, for the most of the part,
yield statistical significant results.

48
2.5 Research Methodology

2.5.1 Introduction.

This chapter concentrates on the Research Methodology. The Research Design, Sampling
Design, Data Collection Method and Tools Applied for the study are all detailed.

1. The data is collected through primary source, which includes questionnaire and personal
interviews.

2. Secondary data has been collected from internet web page, books, journals.

2.5.2 Research Design

The Research Design is defined by Fouche (2002) as “The plan or Blue print of the study”.
This research is Quantitative research which follows a structured format with more respondents
than Qualitative methods.

The descriptive research design is employed in this research.

• Data source:

1. Primary data

2. Secondary data

• Research approach: survey research

• Research instrument: questionnaire

49
 CHAPTER 3
3. Review of literature.
3.1 Introduction.
A literature review is a search and assessment of the knowledge based on your selected topic
or issue. It provides the most recent information available on the issue or topic you are writing
about. Four main objectives of a literature review are as follows: It provides a review of the
literature in the field of study you have chosen.

• To broaden subject knowledge.

• Review previous research that have been done on the subject so that you may read up on it.

• To obtain thorough theoretical information.

• It must be based on secondary data (research papers) published during the previous five years.

• To find Variables of the study.

literature review has four main objectives:

• It surveys the literature in your chosen area of study.

• It compiles a summary of the information from that literature.

• It critically evaluates the information acquired by highlighting knowledge gaps, showing the
limitations of theories and points of view, formulating opportunities for more research, and
reviewing controversial topics.

• It presents the literature in an organized way.

A literature review shows your readers that you have an in-depth grasp of your subject; and
that

you understand where your own research fits into and adds to an existing body of agreed

knowledge.

Here is another way of describing those four main tasks. A literature review:

• demonstrates a familiarity with a body of knowledge and establishes the credibility of

your work;
• integrates and summarizes what is known about a subject;

• demonstrates that you have learnt from others and that your research is a starting point for
new ideas.

50
Literature Review
Sussams (1994) describes logistics as the science which integrates all the activities required to
move goods from the original sources of raw materials to the location of the ultimate consumer
of the finished product. The author agrees that is a holistic science. It does not look at the
individual parts of a system in isolation but looks at the ways in which the parts are connected
and suggests better connections. Sussams also writes that sizeable cost reductions can be
achieved through retailers and suppliers adopting collaborative logistical practices and that the
extent of the cost reductions is typically between 0.5 % and 2% of retail sales.

Gecowets (1979) defined logistics as the process whereby the right product, at the right place,
at

the right time, in the right condition, for the right cost is supplied to those customers consuming
the product.

David Simchi-Levi (2000) according to him, logistics system (network, chain) is a group of
applied approaches linking suppliers, producers, warehouses, shopping outlets in an effective
way for the purpose that goods and services are to be produced (delivered) and distributed in
right quantity, right place, at right time in order to minimize cost in the whole system in a
response to the needs of customers in terms of their expected level of service.

Martin Christopher (1998) logistics is a process of strategic management of purchasing,

transporting, storing materials, spare parts and semi-finished products, products and proper
information flow in a company and its distribution channels to optimize profit now and in the
future through carrying out all the orders at lowest cost and as fast as possible.

The term, “supply chain management,” has risen to eminence over the last ten years.
About13.55% of the concurrent session titles contained the words “supply chain” at the
1995Annual Conference of the Council of Logistics Management.

La Londe (1997) The number of sessions containing the term rose to 22.4% at the 1997
conference, just two years later. The term is commonly used to illustrate executive
responsibilities in corporations.

Handfield and Nichols (1990) According to him, relationship is more important for effective
supply chain management. Without effective supply chain any of the effort in business is
unsuccessful.

Ellram, (2004) According to him, the process of supply chain management exists in both

51
service and manufacturing organization. Although there may be managerial complexity in the
chain varies greatly from industries and different firms.

Chopra and Meindl (2003) According to Chopra and Meindl supply chain management is the
way to understand operational decision. The importance of understanding the order of
processes and flows in a supply chain is a strong prerequisite to clearly understand the
operational requirements and meet customer needs.

Figure 7. The basic supply chain (Chopra and Meindl)

Lambert and Cooper, (2000) Trust the identity of key chain members to link with, and the
processes that need to be linked are part of the implementation of the supply chain management,
whose goal is to create maximum value for the entire supply chain network.

Mentzer et al., (2001) According to him supply chain management is a managerial tool to
manage the flow of inventory form supplier to customer easily. It also builds the customer to
the time delivery of the product.

Tyndall et al., (1998) Some authors defined supply chain management in operational terms
involving the flow of materials and products, some viewed it as a management philosophy, and
some viewed it in terms of a management process.

Christopher (1994), According to him a supply chain is “a network of organizations that are
involved, through upstream and downstream linkages, in the different processes and activities
that produce value in the form of products and services in the hands of the ultimate customer.”

Stevens (1989) stated the objective of supply chain management was to synchronize the
customers’ requirements with materials flow to strike a balance among conflicting goals of
maximum customer service, minimum inventory management, and low unit costs
La Londe and Masters (1994) Supply chain strategy includes “two or more firms in a supply
chain entering into a long-term agreement; the development of mutual trust and commitment
to the relationship; the integration of logistics events involving the sharing of demand and
supply data; the potential for a change in the locus of control of the logistics process”

52
Carter and Ferrin (1995) supply chain management incorporate logistics into the strategic
decisions of the business.

Lockamy and Smith (2000) Customer demands and supply chain relationships are the key in
selecting the most appropriate method of target costing for supply chains. Activity-based,
process-based, value-based and cost management approaches may be fit for total quality
management in supply chain management.

Silvius, et al., (2012) proposed six “principles of sustainability” for integration across

projects and organizations. These principles state that sustainability is about balancing or
harmonizing social, environmental, and economic interests, it has both short term and long-
term orientation as well as local and global orientation, it encourages consuming income,
transparency and accountability and also supports personal values and ethics. The present trend
in logistics is the concept of 4PL (Fourth Party Logistics providers) which is based on

drawing the disparate 3PL’s together to provide a seamless solution to the client.

Agarwal and Shankar (2002) proposed an analytic network process (ANP)-based model for
analyzing the alternatives affecting supply chain performance. It also provides the decision
methodology to prioritize these alternatives, so that supply chain performance can be improved.
A process-based systematic perspective was employed to build an effective model to measure
the holistic performance of complex supply chains. Fuzzy set theory was introduced to address
the real situation in judgment and evaluation processes.

53
3.2 Review of Related Literature

In the highly competitive environment of today, a corporate organisation cannot continue to

exist and function alone (van Heck & Vervest, 2007; Tatarynowicz et al, 2015). No
organisation can be a closed system due to globalisation, and the logistical tasks that are part
of SCM require collaboration in order to ensure efficient supply chains. One of the fundamental
components of SCM is logistics, and a firm's level of performance may be impacted by how
effectively it functions (Bowersox etal, 2013). The scope of logistics broadens to the business
processes level rather than merely the functional level due to the complexity of delivering to
businesses and shipping out items in an increasingly worldwide supply chain. Logistics
professionals are aware that supply chain operations have a propensity to grow as well as
become more active.

Supply chain management has been becoming increasingly important in competitive business.
To compete at the supply chain level, firms must adopt an appropriate supply chain
management strategy. The strategy needs integrate and coordinate throughout the supply chain
to generate the performance of supply chain members (Green Jr. et al., 2008; Cohen and
Roussel, 2005; Wisner, 2003). Mason-Jones et al. (2000) and Lewicka (2011) argued that
supply chains need to adopt a strategy that suits both their particular product and marketplace.
Fisher (1997) suggested that the first step in developing the supply chain strategy is to consider
the nature of the demand for an organization’s product, proposing that these are either
functional or innovative.

Vonderembse et al. (2006) discussed three types of supply chains that are necessary to match
three types of products: standard, innovative, and hybrid. They demonstrate that standard
products, which tend to be simple products with limited amounts of differentiation, should be
produced by a lean supply chain. Lean supply chain employs continuous improvement efforts
and focus on eliminating wastes across the supply chain. On the other hand, innovative
products which may employ new and complex technology require an agile supply chain. Agile
supply chain responds to rapidly changing global markets by being dynamic and flexible across
organizations. Hybrid products, which are complex products, have many components and
participating companies in the supply chain; therefore, a variety of supplier relationships may
be needed, which they refer to hybrid supply chains. Hybrid supply chains combine the
capabilities of lean and agile supply chains to meet the needs of complex products.

Towill and Christopher (2002) suggest that there are three types of supply chain strategies:
agile supply chains; lean supply chains; and hybrid supply chains. In their study, a case study
was provided to show how a lean and agile supply chain can be successfully combined to have
a lean/agile supply chain strategy which they refer to as “hybrid” or “leagile” supply chain.

Naylor et al. (1999) uses the term “legality” as an integration of lean and agile paradigms with
the aid of a decoupling point in the supply chain. Thus, they provide a personal computer
company as a case study to demonstrate how agility and leanness can be combined successfully
within the supply chain to meet customers͉ requirements.

54
 The traditional domain of the information systems strategy is to improve the efficiency and
effectiveness of organizations (Bakos and Treacy, 1986 cited in Sufian, 2010).

Earl (1989; Sufian, 2010) argued that the information sharing strategy should originate from
the business strategy. This means that information technology should facilitate implementing
the business strategy (whatever that business strategy is) and help achieve its goals.

Supply chain management practices encompasses set of approaches and practices that
effectively integrate with suppliers, manufactures, distributors, and customers to improve the
long-term business performance and their supply chain (Chopra and Meindl, 2007; Tseng
2010).

In this study, supply chain management practices are defined as several of management
activities that purposed to improve the supply chain performance (Li et al., 2006; Wong et al.,
2005; Zhou and Benton, 2007; Koh et al., 2007; Sufian, 2010).

Strategic supplier partnerships need better coordination between the organization and its
suppliers; companies tend to have a long-term relationship with suppliers that create value. In
this study, a strategic supplier partnership is defined as the long term relationship between the
organization and its suppliers which influences the strategic and operational capabilities of
individual participating companies to help them achieve significant ongoing benefits (Li et al.,
2005; Li et al., 2006; Monczka et al., 1998).

A strategic supplier partnership include buying goods and services from suppliers and
impacting the suppliers system and operational capabilities, adding value and improving the
supply chain performance (Monczka et al., 1998’ Sufian, 2010).

Li et al., (2006) stated that customer relationship is the entire array of practices that are
employed for the purpose of managing customer complaints, building long-term relationships
with customers, and improving customer satisfaction.

Vickery et al. (2003) emphasize the importance of establishing a close customer relationship
as a major practice of supply chain integration to enable organizations to respond faster to
customers. Li et al. (2005) emphasizes the importance of information sharing to SCM practice.

The main principle of SCM is sharing of information within supply chains (Moberg et al.,
2002). By sharing information with members of the supply chain, an organization can respond
more quickly to the customer’s changing needs (Li and Lin, 2006).

Supply chain integration is degree of all the activities within an organization, suppliers, and
customers are integrated together (Stevens, 1990; Stock et al., 1998; Stock et al., 2000;
Narasimhan and Jayaram, 1998). Supply chain integration involves effective communication
among all supply chain members (Turner, 1993).

Customer responsiveness is directly connected to information, in which suitable use of

information is important to achieve customer responsiveness. To support this argument,

55
Daugherty et al. (1995) found that information availability and customer responsiveness are
positively related which resulted in improving firm performance.

The need for flexibility originates from customers; since customers ask for variety, quality,
competitive prices, and faster delivery. This has forced companies to make design changes
quickly and respond faster to customer needs in order to sustain the company’s competitive
advantage. As a result, companies need to be flexible enough to react to changes in customers͉
demands (Aggarwal, 1997).

Stevens (1989) observed that more successful companies will be the one who developed an
integrated supply chain strategy. Development of SCM can be traced from the definitions given
during the various periods since the 1980s.Research study of Caddy and Helou addresses the
question of whether the field of general systems theory could contribute towards a greater
understanding of supply chains. Where the first principle indicates that if organizations are to
have “agile” or “quick response” supply chains, simpler supply chains, in terms of their
topology, or type and nature of the product being exchanged, should be preferred to more
complex ones. The second principle indicates that organizations need to manage their supply
chains based on their activity, devoting more management resources to highly active ones as
compared to less active ones. The third principle allows organizations to better understand their
supply chains by decomposing these systems into smaller and more easily understood sub-
systems. The fourth principle indicates that organizations need to accept the fact that supply
chains are dynamic rather than static, and so need to focus the attention of managers at all levels
on the types of changes required, and the resource implications that these changes will have on
the operation of the supply chain. Regular review and change of management practice will also
be necessary in order to maintain supply chain effectiveness.

56
 CHAPTER 4

4.1 Data Analysis and interpretations.

1. Age group of the respondent.

Sr. No Particular No. of respondent percentage

1 15- 20 71 67%

2 21- 30 25 23.6%

3 31- 40 7 6.6%

4 41- 50 3 2.8%

5 Above 50 0 0

Total 106

Interpretations

The above pie chart indicates that 67% of the respondents belong to the age group 15-
20, 23.6% of the respondents belong to the age group 21- 30, 6.6% of the respondents
belong to the age group 31- 40, 2.8% of the respondents belong to the age group 41-50
and 0% of the respondents belong to the age group above 50.

57
 2. Occupation of the respondent.

Sr No. Particular No. of Respondents Percentage

1 Student 77 72.6%

2 Service 11 10.4%

3 Business 7 6.6%

4 Homemaker 5 4.7%

5 Other 6 5.7%

Total 106

Interpretations

The above pie chart indicates that 72.6% of the respondents are students, 10.4% of the
respondents belong to service sector, 6.6% of the respondents belong to business sector,
4.7% of the respondents are homemakers and 6% of the respondents belong to other
sectors.

58
 3.Is the respondent aware of the terminology logistics and supply chain management.

Sr No. Particular No. of Respondents Percentage

1 Yes 62 58.5%

2 No 19 17.9%

3 Maybe 25 23.6%

4 Total 106

Interpretations.

The above pie chart indicates that 58.5% of respondents are aware of the term logistics
and supply chain management, 17.9% of respondents are not aware of the term logistics
and supply chain management whereas 23.6% of respondent are somewhat aware of
this terminology.

59
4.How frequently does the respondent shops online.

Sr No. Particular No. of Respondents Percentage

1 Very frequently 54 50.9%

2 Frequently 37 34.9%

3 Rarely 15 14.2%

4 Total 106

Interpretation

The above pie chart indicates that 34.9% of respondents shop online very frequently,
34.9% of respondents shop online frequently whereas 14.2% of respondents shop
online rarely.

60
 5.Respondent’s experience with logistical companies.

Sr No. Particular No. of Respondents Percentage

1 Very satisfied 28 26.4%

2 Satisfied 51 48.1%

3 I do not agree or disagree 15 14.2%

4 Dissatisfied 9 8.5%

5 Very dissatisfied 3 2.8%

Total 106

Interpretations

The above pie chart indicates that 26.4% of respondents are very satisfied with their
experience with logistical companies, 48.1% of respondents are satisfied with their
experience with logistical companies, 14.2% of respondents are neither satisfied or
dissatisfied with their experience with logistical companies, 8.5% of respondents are
dissatisfied with their experience with logistical companies, 2.8% of respondents are
very dissatisfied with their experience with logistical companies.

61
 6.How often respondent receive their packages undamaged from logistics providers.

Sr No. Particular No. of Respondents Percentage

1 Very rarely 31 29.2%

2 rarely 16 15.1%

3 Moderate 34 32.1%

4 often 15 14.2%

5 Very often 10 9.4%

Total 106

Interpretation

The above graph indicates that 29.2% of respondents very rarely receive their packages
undamaged by logistics providers, 15.1% of respondents rarely receive their packages
undamaged by logistics providers, 32.1% of respondents moderately receive their
packages undamaged by logistics providers, 14.2% of respondents often receive their
packages undamaged by logistics providers, 9.4% of respondents very often receive
their packages undamaged by logistics providers.

62
 7.How would the respondent rate the general level of customer service provided by
Indian logistics companies.

Sr No. Particular No. of Respondents Percentage

1 Very poor 5 4.7%

2 Poor 17 16%

3 Moderate 34 32.1%

4 Good 35 33%

5 Very good 15 14.2%

Total 106

Interpretation

The above graph indicates that 4.7% of respondents rate the general level of customer
service provided by Indian logistics companies as very poor service, 16% of respondents
rate the general level of customer service provided by Indian logistics companies as poor
service, 32.1% of respondents rate the general level of customer service provided by
Indian logistics companies as moderate service, 33% of respondents rate the general level
of customer service provided by Indian logistics companies as good service, 14.2% of
respondents rate the general level of customer service provided by Indian logistics
companies as very good service.

63
8.Technology that enhances the sustainability of the supply chain the most.

Sr No. Particular No. of Respondents Percentage

1 Enterprise resource planning (ERP) system 37 34.9%

2 Digital freight-procurement platform 19 17.9%

3 Electric vehicles. 21 19.8%

4 On demand spot-freight platform 20 18.9%

5 Carbon- neutral container ships. 9 8.5%

Total 106

Interpretation

The above pie chart indicates that 34.9% of respondents think enterprise resource
planning (ERP) enhances the sustainability of the supply chain the most, 17.9% of
respondents think digital freight- procurement platform enhances the sustainability of
the supply chain the most, 19.8% of respondents think electric vehicles enhances the
sustainability of the supply chain the most, 18.9% of the respondents think on demand
spot- freight platform enhances the sustainability of the supply chain the most, 8.5% of
respondents think carbon- neutral container ships enhances the sustainability of the
supply chain the most.

64
 9.The most important success factor for efficient logistics techniques.

Sr No. Particular No. of Respondents Percentage

1 Warehouse management system 23 21.7%

2 Efficient transport system. 18 17%

3 Performance measurement. 30 28.3%

4 Valuable software that can be deployed 18 17%

in logistics process.

5 Total 106

Interpretation

The above pie chart indicates that 21.7% of respondents think warehouse management
system is the most important success factor for efficient logistics techniques, 33% of
respondents think efficient transport system is the most important success factor for
efficient logistics techniques, 28.3% of respondents think performance measurement is
the most important success factor for efficient logistics techniques, 17% of respondents
think valuable software that can be deployed in logistics process V is the most important
success factor for efficient logistics techniques.

65
10.The most crucial transportation function in the supply chain.

Sr No. Particular No. of Respondents Percentage

1 Cost reduction 25 23.6%

2 Enhancing customer service. 47 44.3%

3 Using transportation management system. 34 32.1%

4 Total 106

Interpretation

The above pie chart indicates that 23.6% of respondents think cost reduction is the most
crucial transportation function in the supply chain, 44.3% of respondents think
enhancing customer service is the most crucial transportation function in the supply
chain, 32.1% of respondents think using transportation management system is the most
crucial transportation function in the supply chain.

66
 11.Is the respodent aware of green logistics.

Sr No. Particular No. of Respondents Percentage

1 Yes 57 53.8%

2 No 23 21.7%

3 Maybe 26 24.5%

4 Total 106

Interpretation

The above pie chart indicates that 53.8% of respondents are aware of green logistics,
21.7% of respondents are not aware of green logistics and 26% of respondents are
somewhat aware of green logistics.

67
 12.Is green logistics effective in India

Sr No. Particular No. of Respondents Percentage

1 Yes 60 56.6%

2 No 12 11.3%

3 Maybe 34 32.1%

4 Total 106

Intepretation

The above pie chart indicates that 56.6% of respondents think green logistics is
effective in India, 11.3% of respondents think green logistics is not effective in India,
whereas 32l.1% of respondents think green logistics may be effective or ineffective in
India.

68
Presentation of the study.

The presentation of the study is done in five clear cut chapters.

Chapter 1 includes Introduction in terms of origin and history of logistics and supply chain
management, role of logistics in SCM, concept of logistics and SCM, types and insights of
Supply chain, Supply chain models, SCM problems in India, SCM practices, supply chain
performance, Statement of problem, Need of study, Rational of study.

Chapter 2 consists research methodology, objectives of research, hypothesis, scope of study,

Limitations.

Chapter 3 gives the introduction of review of literature, literature review.

Chapter 4 includes data analysis, interpretation, and presentation of study.

Chapter 5 gives the conclusion of the study and suggestions.

69
Conclusion
This paper is an attempt to study logistic management and supply chain management. Logistics
management encompasses several activities that assure the smooth transportation of
commodities, freight, parcels, raw materials, finished inventory, and packages from their point
of origin to their destination. Every firm needs supply chain management since it enhances
productivity, effectiveness, resource management, etc. Additionally, it forges strong ties with
all parties involved, including consumers, suppliers, etc. Depending on the digital maturity of
a company, these processes can be either automated or manual. Over the past decade, supply
chain management (SCM) has been the subject of much research across many application
sectors. Despite the popularity of SCM research and implementations, there is still a lot of
misunderstanding surrounding its definition. Researchers and practitioners have made various
attempts to properly define SCM. SCM has steadily gained acceptance as a tried-and-true
managerial strategy for producing sustainable profits and growth against intense competition
in all industries. This is done, in large part, by concentrating on the entire SCM process to
deliver the appropriate goods or services, in the right amount, to the right place, at the right
time, and with the greatest benefits. The development of logistics management, which has a
sophisticated relationship with supply chain management, is a result of the emergence and
rising significance of logistics. supply chain and logistics management has a direct influence
on the success of an organization.

At the conclusion of the study, we can state that supply chain management is a more expansive
notion than logistics. In terms of logistics, this mostly refers to a planning attitude and
framework that aims to establish a single path for the movement of goods and information
within a company. On this foundation, supply chain management constructs and aims to
establish connections and coordination between the operations of all businesses included in the
chain, such as suppliers and customers, as well as the firm itself.

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References

• Bhat K. Shridhara :(2005): Logistics Management: Himalaya Publishing House: Mumbai

• Martin Christopher :(2004)-. Logistics and Supply Chain Management, Strategies for Reducing
Cost and Improving Service: Pearson Education (Singapore) Pte. Ltd., Indian Branch

• Carter, J.R. and Ferrin, B.G.(1995). “The impact of transportation costs on supply chain
management”, Journal of Business Logistics, Vol.16 No.1, pp. 189-212

• Cooper, Martha C., Douglas M. Lambert, and Janus D. Pagh. (1997). “Supply Chain
Management: More Than a New Name for Logistics,” The International Journal
ofLogistics Management, Vol. 8 No. 1, pp. 1-14

• Christopher, M.(1994). Logistics and Supply Chain Management, Pitman Publishing,

NewYork, NY.

• Chopra, S. and Meindl, P. (2001). Supply Chain Management, Prentice Hall, NJ

• Anderson, Eugene, Claes Fornell, and Donald R. Lehmann (1994). “Customer Satisfaction,
Market Share, and Profitability: Findings from Sweden,” Journal of Marketing Research,
(July), 53-66.

• Harrison, Terry P., (2001). “Global supply chain design” Kalwer Academic Publishers, 667-665.

• La Londe, Bernard J., & Zinszer, Paul H. (1976). “Customer service: meaning and measurement”,
Chicago: National Council of Physical Distribution Management, 17(1), 53-62.

• Beamon, B.M. (1999). Measuring supply chain performance. International Journal of Operations
& Production Management, 19 93-40, p.275-292

• Bhagwat, R. and Sharma, M.K. (2007a). ―Performance measurement of supply chain

management: A balanced scorecard approach‖, Computers & Industrial Engineering, 53, p.43-62.

• Carter, Craig R., Rogers, Dale S. (2008). "A framework of sustainable supply chain management:
moving toward new theory", International Journal of Physical Distribution & Logistics
Management, 38(5), 360 -387.

• Greene, Alice H. (1991). ―Supply chain of customer satisfaction‖, Production and Inventory
Management Review and APICS News, 11(4), 24-25

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• Gunasekaran, A., Patel, C. and McGaughey, R.E. (2004). ―A framework for supply chain
performance measurement.‖ International Journal of Production Economics, 87 (3), p.333-347.

• Gunasekaran, A. and Kobu, B. (2007). ―Performance measures and metrics in logistics and supply
chain management: a review of recent literature (1995- 2004) for research and applications.‖
International Journal of Production Research, 45 (12), p.2819-2840

• Gunasekaran, A., Patel, C. and Tirtiroglu, E. (2001). ―Performance measures and metricsin a
supply chain environment.‖ International Journal of Operations & Production Management, 21 (1-
2), p.71-87.

• Hwang, Y.D., Lin, Y.C. and Lyu Jr., J (2008). ―The performance evaluation of SCOR sourcing
process – The case study of Taiwan‘s TFT-LCD industry.‖ International Journal of Production
Economics, 115, p.411-423.

• Mentzer, John T., DeWitt, Williams, Keeblers, James S., Min, Soonhong, W.Nix, Nancy & Smith,
D. Carlo (1995). ―Defining Supply Chain Management,‖ Journal of Logistic Management, Vol.22,
No.2, 2001

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 Annexure (questionnaire)

1. Name of the respondent.

2. Which Age group does the respondent belong?

15 - 20

21 - 30

31 - 40

41 - 50

above 50

3. What is the occupation of the respondent?

student

service

business

homemaker

other

4.Are you aware of the terminology logistics and supply chain management?

Yes

No

Maybe

5. How frequently do you shop online?

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Very frequently.

Frequently.

Rarely.

6. How would you rate your experience with logistical companies?

Very satisfied

satisfied

I don't agree or disagree.

dissatisfied

very dissatisfied

7. How often is it that logistics providers would deliver your packages to you undamaged?

very rarely

very often

8. How would you rate the general level of customer service provided by Indian logistics
companies?

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poor

excellent

9. According to you, Which of the following technologies enhances the sustainability of the
supply chain the most?

Enterprise resource planning (ERP) system.

Digital freight-procurement platform.

Electric vehicles.

On demand spot-freight platform.

Carbon- neutral container ships.

10. According to you, which of the following is the most important success factor for efficient
logistics techniques?

Warehouse management system.

Efficient transport system.

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Performance measurement.

Valuable software that can be deployed in logistics process.

11. According to you, which of the following transportation functions in the supply chain is
the most crucial?

cost reduction

enhancing customer service

using transportation management system.

12. Are you aware of green logistics?

Yes

No

Maybe

13. Do you think green logistics is effective in India?

Yes

No

Maybe

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 Abbreviations.
1. SCM- Supply Chain Management.

2. CLM- Council of Logistics Management.

3. LSC- Lean Supply Chain

4. ASC- Agile Supply Chain

5. HSC- Hybrid Supply Chain

6. SCMSF- Supply chain management system framework

7. SCOR- supply chain operation reference model

8. TPL- third party logistics

9. WMS- warehouse management system

10. SKU- stock keeping units

11. CRP- continuous replenishment planning

12. ECR- efficient customer response

13. CPFR- collaborative planning forecast replenishment.

14. VMI- vendor managed inventory

15. RFID- radio frequency identificarion

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