SUPPLY CHAIN MANAGEMENT & TQM

• COURSE TITLE: ENTREPRENEURSHIP DEVELOPMENT & BUSINESS COMMUNICATION

• COURSE CODE: AEXT 5311
• CREDIT HOUR: 2 (1+1)

SUBMITTED TO: SUBMITTED BY:

SONAM CHANDRAKAR |
Dr. D.K. Suryawanshi
MANVI MAHANT | NISHI RAJ
Dept. of ag. extension B.Sc. (A.g.) III year
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 SUPPLY CHAIN MANAGAMENT- INTRODUCTION

 Supply chain management consists of a total systems approach to managing the entire
flow of information, material and services from raw material suppliers through
manufacturing firms and warehouses to the end customers.

 Supply chain management enables competitors to gain an edge through their ability to
deliver the RIGHT STUFF IN RIGHT QUANTITY AT THE RIGHT TIME TO THE
RIGHT CUSTOMER.

 Supply Chain Management: The function of supply chain management (SCM) is to

plan, organize, and coordinate the activities along the supply chain. Today, the
concept of SCM refers to a total systems approach to managing the entire supply
chain.
 OBJECTIVES OF SCM
To maximize the overall value generated.
To achieve maximum supply chain profitability.
To reduce the supply-chain costs to the minimum possible level.
 ACTIVITIES INVOLVED IN SCM

PURCHASING
PURCHASING OUTSOURCING
CYCLE

VENDOR ANALYSIS
DISTRIBUTION &
& CENDOR
REQUIREMENTS
EVALUATION

SUPPLIER
WAREHOUSING
AUDITING

LOGISTICS SUPPLIER SUPPLIER

MANAGEMENT PARTNERSHIP CERIFICATE
THREE MAJOR COMPONENTS OF SCM

1. Upstream
2. Internal
3. Downstream

• The upstream supply chain: The upstream part of the supply chain includes the
activities of a company (a milk producer, in our case), with its first-tier suppliers and
their connection to their suppliers (referred to as second-tier and third-tier suppliers).
• The supplier relationship can be extended several tiers, all the way to the origin of the
material (e.g., mining ores, growing crops). In the upstream supply chain, the major
activity is procurement.
The internal supply chain: The internal part of the supply chain includes all of the in-
house processes used in transforming the inputs received from the suppliers into the
organization’s outputs.
• It extends from the time the inputs enter an organization to the time that the products
go to distribution outside of the organization.
• The internal supply chain is mainly concerned with production management,
manufacturing, and inventory control.

The downstream supply chain: The downstream part of the supply chain
includes all of the activities involved in delivering the products to the final
customers.
• The downstream supply chain is directed at distribution, warehousing,
 ADVANTAGES OF SCM
 Reduction of product losses in transportation and storage.

 Increasing of sales.

 Dissemination of technology, advanced techniques, capital & knowledge

among the chain partners.

 Better information about the flow of products, markets and technologies.

 Transparency of the supply chain.

 Tracking & tracing to the source.

 Better control of product safety and quality.

 Large investments and risks are shared among partners in the chain.
 INDIA’S AGRI SUPPLY CHAIN: Issues and Challenges

 Lack of Supply Chain Integration.

 Sidelining Arhathias (middleman) from the value chain.
 Difficulty in credit recovery and reluctance of farmer in approaching
banks.
 Low penetration of ‘one-stop-shops’(due to huge capital
requirements).
 Inefficient buy back system (purchase of farm output).
 OPPORTUNITIES

Government’s One-stop-shop New channel

impetus to can act as evolved can be
private facilitators of used by FMCG
extension microfinance. and consumer
services. durables.
 Total Quality Management (TQM): INTRODUCTION
The management approach to long-term success through customer satisfaction, based on
the participation of all members of an organization (suppliers and distributors included) in
improving processes, products, services and the working culture.
• TQM is a comprehensive management system which:
 Focuses on meeting customers’ needs by providing quality services at a cost that provides
value to the customers.
 Is driven by the quest for continuous improvement in all operations.
 Recognizes that everyone in the organization has owners/customers who are either internal
or external.
 Views an organization as an internal system with a common aim rather than as individual
departments acting to maximize their own performances.
 Focuses on the way tasks are accomplished rather than simply what tasks are accomplished
 Emphasizes teamwork and a high level of participation by all employees
CORE CONCEPTS FOR TQM
Customer satisfaction be customer focused.

Make it a good place to work, create a work culture, which

All work is process will lead to satisfied customers.

Measurement measure the work

People make quality – Do it right first time, quality is an

Teamwork
attitude, empowering.
Continuous
improvement cycle

Prevention
WHAT ARE THE BENEFITS OF TQM?

Reduce wastes
Integrates with ISO
Increase sales
Improve competitiveness
Improve human relations
Enhance customer satisfaction
Reduce Operational costs
Improve internal and external customer relation
 REFERENCES

 http://ecoursesonline.iasri.res.in/mod/page/view.php?id=29232

 http://ecoursesonline.iasri.res.in/mod/page/view.php?id=1031

 http://ecoursesonline.iasri.res.in/mod/page/view.php?id=726

 http://ecoursesonline.iasri.res.in/mod/page/view.php?id=5318
Thank You For Watching