SUPPLY CHAIN

MANAGEMENT

NITESH SHRIVASTAV, PRAVEEN MISHRA, SHARMA

PREPARED BY:
NITESH, TANYA SRIVASTAVA
AGENDA
1. Name the brand you like & sketch the supply chain for
it.
2. The cooking gas agent supplying cooking gas
cylinders to your house is worried about the
spiralling distribution cost and diminishing profits.
He cannot pass on the price fluctuations to the
customer as he has to distribute the cooking gas
cylinders at the government rates. Map his supply
chain and give five suggestions to improve its
efficiency at a reduced cost.
 SUPPLY CHAIN CONCEPT??

SUPPLIER MATERIAL FLOW CUSTOMER

MANAGEMENT INFORMATION FLOW MANAGEMENT

STOCK
SCHEDULE/ CONVERSION DEPLOYMEN DELIVERY
RESOURCES T
 MANUFACTURE
MANUFACTURE
R
R

PACKER
PACKER

CARRYING
CARRYING &
&
FORWARDING
FORWARDING
AGENT
AGENT

SELLING
PRIMARY

STOCKIST
STOCKIST
SELLING
SECONDARY

CHEMIST/
CHEMIST/
RETAILER
RETAILER
SELLING
TERTIARY
PATIENT
PHARMACEUTICAL SUPPLY CHAIN
TYPICAL PHARMA SC PROCESS
PFIZER’S SCM & LOGISTICS
Prevnar
 Prevnar 13®  Doctors give
this vaccine to children at 2, 4, 6,
and 12 through 15 months old.
Adults who need
this vaccine only get a single
dose. The vaccine helps protect
against the 13 types of
pneumococcal bacteria that most
commonly cause serious
infections in children and adults.
PREVNAR’S SUPPLY CHAIN
 Ensures the availability of products and physicians’ samples at optimize
level of inventory and cost.
 Utilizes strategies for scoring and ordering of materials or finished goods,
in-bound and out-bound transportations, maintaining the right amount
of inventory vis-`a-vis demand, warehousing and managing returned
goods.
 Zuellig Pharma- Exclusive distributor
SUPPLY CHAIN OF PREVNAR
SC DESIGN STRATEGY
 Forward Buying- Buying a year’s supply; stocking up
 Bullwhip Effect- Demand order variability in the supply chain is amplified
as they moved up the supply chain

Effects of Strategies-
 Lack of synchronization among supply chain members
 Inventory patterns do not match the demand
 Inventory accumulates at various stages
HOUSEHOLD LPG DISTRIBUTION NETWORK
PRODUCTION
PRODUCTION

UPSTREAM
UPSTREAM
TRANSPORTAT
TRANSPORTAT
ION
ION

REFINING
REFINING &
&
STORAGE
STORAGE

DOWNSTREAN
DOWNSTREAN
TRANSPORTAT
TRANSPORTAT
ION
ION

BOTTLING
BOTTLING &
&
STORAGE
STORAGE
SUPPLY CHAIN PROCESS

DISTRIBUTION
DISTRIBUTION
USERS
LPG END
SUPPLY CHAIN PROCESS
SEGMENTS OF INDIAN LPG INDUSTRY
DOMESTIC COOKING GAS
FUEL
• 14.2 & 5 kg cylinders home delivered
through distributors
COMMERCIAL USAGE
• 5kg, 19kg, 35kg, 47.5kg and 425kg
cylinders delivered through
distributors
INDUSTRIAL
• Delivered to customers through bulk
tank trucks
TRANSPORTATION (AUTO
LPG)
• Through retail outlets stand alone or
along with gasoline/diesel
TRANSPORTATION & LOGISTICS

ROAD

RAILWAYS

PIPELINE
LPG SECONDARY DISTRIBUTION
Packaged Cylinder- Domestic and Non-Domestic:
 Delivered through distributors appointed by OMCs
 LPG retailers for exclusive non-domestic cylinder
 Business associates
Bulk LPG to commercial and industrial customers:
 Directly by the OMCs or through business associates
Automotive LPG:
 Through existing retail outlets
CHALLENGES AND ISSUES
Distributors issue:
 High and volatile gas prices
 Population growth/challenges of building new
infrastructure to meet that growth
 Aging workforce and infrastructure
 Environmental need for more efficient use of
natural resources
 Limited research funding and almost no funding for
mid-long term research
Logistics and Infrastructure issue:
 Low penetration of gas-based equipment an
appliance3
 Manpower inadequacy
 Non availability of integrated clearance for pipeline
laying
Operational Challenges:
 New/upcoming regulations
 Interference with underground pipelines
 Locating underground pipes and leaks
 Excavation and site restoration
 Determining the integrity of mains/services
Corporate and Social interaction issue:
 Consumer preference- Person staying in
house/rented accommodation and they prefer to
use bottled gas, as their jobs are transferable in
nature
 Customer base- Companies have a hard time
convincing customers to switch from conventional
LPG cylinders to piped gas billing cycle
 Delay in Payment
SOLUTIONS
Proactively monitor
underground pipe
conditions, including
potential interference
and damage Improved pipe repair
Enable blending of
& replacement
methane from
technologies to safely
various alternative
and reliably extend
sources, with natural
the life of existing
gas
infrastructure

Help Distributors Enable greater direct

adapt to aging Technology use of natural gas by
workforce consumers
5 WAYS TO IMPROVE EFFICIENCY
 Make logistics planning an integral part of the production process
 Conduct an end-to-end supply chain analysis
 Link your back-end and front-end deliveries
 Pick the right transportation partners
 Increasing asset utilization