Chapter 1

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

It is a kind of process to monitor and relate production,distribution, and shipment of

products and services. This can be done by companies with a very good and tight
hold over internal inventories, production, distribution, internal production and sales.

Definition: Supply chain management is primarily concerned with the efficient

integration of suppliers, factories, warehouses and stores so that merchandise is
produce and distributed in the right quantities, to the right locations and at the right
time, and so as to minimize total system cost subject to satisfying customer service
requirements.

product

Supplier Manufacturer Distributor Retailer shopper

Information

Supplier Manufacturer Distributor Retailer Shopper

In the above figure, we can see the flow of goods, services and information from the
producer to the consumer. The picture depicts the movement of a product from the
producer to the manufacture, who forwards it to the distributor for shipment. The
distributor in run ships it to the wholesaler
Supply chain management basically merges the supply and demand management. It
uses different strategies and approaches to view the entire chain and work efficiently
at each and every step involved in the chain. Every unit that participates in the
process must aim to minimize the costs and help the companies to improve their
long term performance, while also creating value for its stakeholders and customers.
This process can also minimize the rates by eradicating the unnecessary expenses,
movements and handling.

Here we need to note that supply chain management and chain event management
are two different topics to consider. The supply chain event management considers
the factors that may interrupt the flow of an effective supply chain; possible
scenarios are considered and accordingly, solutions are devised for them.
FINANCIAL COMPONENTS ROLE IN SCM
In the current economic scenario when everything is touching life time highs and still
achieving greater heights, the investor is flooded with opportunities. The layman is
easily lured by the phenomenal returns the different financial instruments/
investment options are giving, not knowing that there is a flipside attached to it as
well this report is centered at understanding the different opportunities with the
investor. The following are the different financial instruments/ investment
opportunities under study for the project.

A comparative analysis has been done on the basis of factors like risk involved,
returns, volatility, tenure, liquidity, tax benefits etc. After making a comparison of
SCM with the other available investment

The FSCM is made up of three components: the procure-to-pay cycle, working

capital management, and the order-to-cash cycle. In addition to the focus on the
financial information flow in these processes, it also considers the needs and
behaviours of departments (and their employees) in the organization. For instance,
sales trends may be influenced by offering employee bonuses, changes in
department heads, unexpected resignations, and scheduling delays.

Procure-to-pay cycle:

The Procure-to-pay cycle is the trade cycle as seen from the point of view of the
company that’s buying materials, goods, or services. During this process, the
company chooses, receives, and pays for the items required to produce the goods or
services they supply to their customers.

Working Capital Management :

Working capital management is a strategic budgeting approach that a business

develops to manage current resources and liabilities for sustaining its financial
efficiency. It does so by ensuring that the company has enough working capital to
satisfy brief expenditures such as paying utility bills and employees any short-term
financial commitments. Working capital management reduces the time it takes to
transform assets and liabilities into money while also assisting in the improvement
of profits and, most crucially, profitability. Inventory management, as well as
accounts receivable and payments, are all part of working capital management.
Order-to-Cash cycle:

The Order-to-cash cycle is similar to the P2P process, but it is viewed through the
lens of the corporation delivering the supplies, commodities, or services. It begins
when the seller provides their customers with an estimate and finishes when the
payment is received, and the bill is reconciled. Trade receivables are an essential
part of this cycle from a financial standpoint. The accounting department must
generate revenue in the most effective and timely manner possible after the
invoices have been issued.
LITERATURE REVIEW

It is common knowledge that R.k. Oliver and M.D. weber, two consultants in the field
of logistics, introduced the concept of supply chain management (SCM) in literature
at the beginning of the 1980s. However, the research undergone in the field of
integration and coordination of different functional units began long before the term
SCM appeared. In literature, these research efforts could be identified in different
fields such as logistics, marketing, organizational theory, management and
operational research, through focused theoretical contributions, mentioned by Flora
and Clipa (2001) such as

Chopra and Meindl (2007): Believes that “a supply chain consists of all parties
involved, directly or indirectly, in fulfilling a customer respect. Within each
organization, such as manufacturer, the supply chain includes all functions involved
in receiving and filling a customer respect. These functions include, but are not
limited to, new product development, marketing operations, and distribution,
finance, and customer services”.

Chen and paulraj (2004): The author started that a typical supply chain is a network
of materials, information, and services processing links with the characteristics of
supply, transformation and demand, as you see in the figure below.

Internal supply chain

Purchasing Production Distribution Customers

Suppliers
Need

Fig: An illustration of a company’s supply chain source:

Chen and Paulraj,2004

Ayers(2001): The author suggests that a supply chain is “Life cycle comprising
physical, financial, and knowledge flows whose purpose is to satisfy end user
requirements with products and from multiple linked suppliers”. According to the
definition, the supply chain encompasses processes that cover a broad range of
activities including sourcing, manufacturing, transporting and selling physical
products and services. Life cycle refers to both the market life cycle and the usage life
cycle and these are not the same for durable goods and services. Therefore, product
support after the sale becomes an important supply chain components.

Ballou, Gilbert and Mukherjee (2000): The author suggests that to identify three
dimensions of SCM, as follows; intra-functional dimension (regarding the
management of activities and processes within logistics as a function of the
company), inter –functional coordination refers to the coordination of
activities(pertaining to certain functions) between the functional areas of the
company) and inter-organizational coordination(concerning the coordination of the
chain of activities taking place between legally distinctive companies, in compliance
with the product flow).
From the literature point of reviews several authors and publishers defines various
principles and strategies for effectiveness on supply chain management liked to
minimize the cost effective maximize the profits on ROI,Few are following review are
the most dominated and prominent in this segment.

Corporate financial reporting refers to any deliberate release of financial information

whether via informal or formal channels, voluntary or required, or in a qualitative or
numerical form. Firms provide financial information to external users via various
channels including websites, press releases, interim reports, conferences, and annual
reports. Financial disclosure is crucial for both businesses and stakeholders because it
is the main channel for management to communicate with outside investors and
market participants. The body of research on financial disclosure is vast and covers a
wide range of topics, including the factors influencing voluntary disclosure, how
regulatory changes affect the amount of disclosure, and the effects of disclosure on
the economy (Hassan & Marston, Citation2019).

In recent years, scholars have become more interested in understanding the

determinants of accounting disclosure owing to a variety of factors, including a
significant shift toward increased globalization, the relaxation of financial laws, the
development of technology, and the economic and financial crises that have forced
businesses to meet the high demand for information from external users by
disclosing information clearly and intelligibly in order to keep up with rapid
expansions and strong competition (Setiyawati & Doktoralina, Citation2019). Several
characteristics, such as the capacity for change, management changes, political and
bureaucratic support, professional and academic support, and communication have
reportedly been documented in the literature to significantly influence how
corporations disclose information (Mnif & Znazen, Citation2020).However, the past
literature’s conclusions on most of these characteristics remain equivocal. The
discrepancy between past research findings and current research necessitates a
thorough evaluation of the components of the accounting disclosure literature. The
authors of this study looked at the theoretical frameworks and financial reporting
components that had been covered in earlier research, particularly those on financial
institutions, in addition to the financial disclosure drivers.

Firms are increasingly devoted to social responsibilities, and they include the
implications of their actions on these issues in their operational management and
worldwide strategies (Rodrigues et al., Citation2021). In this setting, the financial
report has become too complicated, difficult, and lengthy for many users. It is seen as
a source of information overload for inexperienced users, and some fund managers
have reacted negatively to the sheer quantity and complexity of financial reporting.

Whilst many studies have investigated the financial disclosure by private sector
companies, others have looked at the public sector and not-for-profit organizations.
However, relatively limited research has been conducted on financial institutions,
including the banking, investment, and insurance industry (Attia et al., Citation2019;
Oberson, Citation2021). This study therefore reviewed the existing research
pertaining to financial reporting in this sector and provides some guidelines for
further research using systematic literature review.
 Chapter3
Title of the project
Financial components of supply chain management
3.2 Objective of the study
 To evaluate and implement new Strategy in the Financial Supply chain
management to decrease the capital Investment and increase the efficient
supply of goods, in LILAC INSIGHTS & LOGISTICS PVT.LTD
 To bring to the entire process in one platform to control and manage 100% of
an organisation purchasing and payments, and on time delivery.
 Implement new strategy in LILAC INSIGHTS & LOGISTICS PVT.LTD the End level
Employees for efficient and transparent between consumer to customer and
customer to Seller.
 Increase the reseller partnership programme from the LILAC INSIGHTS &
LOGISTICS PVT.LTD, to arrest the de growth of the sales, and profit and returns
based the market needs,
Scope of the study
This Strategic planning of this study will touch upon all segment of Logistics and chain
management drawbacks and concerns of The LILAC INSIGHTS & LOGISITIC PVT.LTD.

The plan of this study covers and indicates all the financial components role in single
point access.

This study further it covers beyond the concerns where the geographical and
territorial regulations are differ from the each other

It further also a key tool to maintain and run the under control inventory and meet
the demand of the particular need based the changes in the day to day scenario from
the competition of the specific business entity.

More over this study will help to understand the newly associated employees in
LILAC INSIGHTS & LOGISITIC PVT.LTD organisation without any time Taken to adopt
the process and also not required the relevant brief from the Management.

This study refers to the proper knowledge and skills of the particular department to
analyse and monitor in parallel mode of the entire Team of LILAC INSIGHTS &
LOGISITIC PVT.LTD.

It further also help to control the attrition ratio of the LILAC INSIGHTS & LOGISITIC
PVT.LTD. There by the long standing of the employee service will help to receive a
positive talk over the other organisation.
RESEARCH AND METHODOLOGY

n this study, empirical research is

used to document the practice of
Supply Chain Management
in Indian Electronics & Telecom
industries. Surveys are fairly
common in empirical research.
The term “empirical” (which
means knowledge based on real
world observations) is used here
to
describe field-based research,
which uses data gathered from
naturally occurring situations or
experiments. Empirical research
provides a powerful tool for
building or verifying the theory.
Survey involves the collection of
information from a large group of
population. It relies on self
reports of factual data, as well as
opinion. Survey research is
prominent as a methodology that
has been used to study
unstructured organizational
problem
n this study, empirical research is
used to document the practice of
Supply Chain Management
in Indian Electronics & Telecom
industries. Surveys are fairly
common in empirical research.
The term “empirical” (which
means knowledge based on real
world observations) is used here
to
describe field-based research,
which uses data gathered from
naturally occurring situations or
experiments. Empirical research
provides a powerful tool for
building or verifying the theory.
Survey involves the collection of
information from a large group of
population. It relies on self
reports of factual data, as well as
opinion. Survey research is
prominent as a methodology that
has been used to study
unstructured organizational
problem
INTRODUCTION

The research methodology is based on empirical data collected through a

questionnaire survey and personal interviews. The questionnaire-based survey
methodology is adopted to test the proposed hypotheses. Interview and
questionnaire are the main instruments of this study. Tacit knowledge collection
from consumer electronics industry is another approach. The respondents will be
requested to fill out a survey questionnaire from the perspective that best captured
the supply chain and logistics issues faced by their organization. The objective of the
questionnaire will be to identify the extent of deployment of supply chain strategies,
the structure of supply chains in various industry sectors, the problems encountered
in organizing supply chain systems and the path being taken by organizations in
strengthening supply chain management.

The objective is to examine the status of information sharing with customers,

investment in supply chain automation tools, Effective mode of communication in
supply chain, availability of supply, forecasting methods, supply chain management,
technology cooperation, supplier integration and partnerships.

In this study, empirical research is used to good practice in financial system in Supply
Chain Management in Surveys are fairly common in empirical research. The term
“empirical” (which means knowledge based on real world observations) is used here
to describe field-based research, which uses data gathered from naturally occurring
situations or experiments. Empirical research provides a powerful tool for building or
verifying the theory. Survey involves the collection of information from a large group
of population. It relies on self-reports of factual data, as well as opinion. Survey
research is prominent as a methodology that has been used to study unstructured
organizational problems.

Research design particularly describes the knowledge creation process and methods
applied in detail. It can also be understood as an action plan for the whole research
process. The research design of this study complies with the traditional action
research methods according to which the research process is understood as a cycle
that consists of a pre-step and three core step activities: planning, action and fact-
finding. The different steps in the research cycle of this study are labelled (1) pre-
understanding, (2) planning and action, (3) fact-finding and analysis and finally (4)
theory building. These phases are shown in the research process illustrated in below
flow chart.

These phases 1& 2 are described as follows:

Phase1: The Pre-understanding phase is primarily to increase the researcher’s

understanding of the researched phenomena in the business context. This research
phase starts with structuring the research problem and underlying research
questions. This is followed by a review of the literature based on which a tentative ‘a
priori’ specification of research constructs are derived. According to Eisenhardt this
type of specification is valuable because it permits researchers to measure constructs
more accurately, although it is not necessary in theory building research.

Phase2: The planning and action phase includes both the preparation and execution
of process changes per individual customer. In practice, there are a few process
implementation projects going on at the same time for the researcher. This research
phase starts with the revision of anorganisation existing supply chain solution based
on which a detailed project plan about process changes is made. Depending on the
organisation business situation, the composition of the project team can vary
between different case studies. This is also reflected in the scope of the process
implementation. In summary, the implementation of changes is carried out during
this phase. The research data is collected simultaneously from LILAC INISGHTS
&LOGISTIC PVT.LTD.

Data collection methods and Sources

Case studies typically combine and more authenticate data to collect the data
researchers as follows couple of methods such as Primary Data, Secondary Data.

In primary Data Collection method used to institute the qutionnaire for selected
departments and respondents to get the valid and authenticate data on inventory
and purchasing methods and overall observations from the organisation and stake
holders and business partners and franchise collected such as

 Archives.
 Interviews.
 Questionnaires.
 Observations.

The student and researchers are spent sufficient time to interact both with the
employees and employers to collect the information for relevant concepts and
concerns with the respective of their nature of work where the major concerns and
challenges in the process of supply chain management and logistic partners and
distributors and vendor’s flow of goods and their frame works to run the daily work
in the business. And also collect the related information on company values, and
vision, and the attitude of employers towards the employees. Also obtain the
information based on the circumstances and feedback from the employees who
working long standing, and recent joiners either employee oriented or business
oriented process which was implementing from the management level. These all data
captured and aside for the further evaluation and analysis part.

The secondary data source collection method such as

 Research material includes personal observations and notes.

 Interviews and presentations, standard documents.

(4) Key operational performance measures and

(5) archived records of customer’s business situation.

The list of research material is presented in Table

Table 1: Data collection methods and research material

S. Research data collection method Research material

No.

1 Observations and Notes (qualitative • Personal observations

data)
• E-mails

• Notes on calendar

• Meeting minutes

2 Interviews and Presentations • Customer proposals

 (qualitative data)

• Customer satisfaction survey

• Internal process audit interviews

• Audit reports

3 Standard documents (qualitative • Project plans

data)
• Process descriptions

• Final project reports

• Account analysis

4 Operational performance measures • Inventory composition

(quantitative data)
• Inventory rotation (days of supply)

• Delivery accuracy

• Delivery lead-time

• Demand plan error

5 Archived records from E&TC • E&TC penetration per country

databases (quantitative data)
• Market share

• ARPU (Average Revenue per User)

Importance of FSCM:
The cost of finance, insurance and transactions usually account for approximately 5%
of the unit price. Therefore, the organizations have to improve their managing of the
end-to-end financial supply chain.

There are two reasons that create receptive climate for FSCM in organization.
 The first reason is the improved network technology that leads to improved
visibility through the physical supply chain.
 The other reason is the deep understanding of the end-to-end processes and the
cooperation inside and outside the organization.

The real challenge for finance, treasury and banks is to convince businesses that
improvements in financial supply chain processes will result in a lower cost of goods
sold, higher productivity and better management information.

COMPANY PROFILE:

LILAC INSIGHTS & LOGISTICS PVT.LTD it was incorporated in the year 2011,

Lilac Insights was founded on September 2011 by three 1 st generation

Entrepreneurs - Rakesh Sharma , Subhamoy Dastidar  and Gulshan Bakhtiani  with
a vision to be a leader in providing a efficient logistic supply in PAN India.

The primary business of the LILAC INSIGHTS & LOGISTICS PVT.LTD. is service
industry especially into health care segment such as genetic laboratory services
and gradually developed into entered all NGS and high end genetic based
screening equipment’s supply to the INDIAN market from south Asian countries.

Due to an efficient service and standard working frames framed by the Team
from the organisation Lilac Insights expands its presence from only western
zone to pan India.

LILAC INSIGHTS & LOGISTICS PVT.LTD. It’s collaborate with various other NGS based
companies to supply the important medical equipment from turkey and China,Arab
Countries to India.