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DNA/ISCM/Module 1.Session 8, Sept. 2021
MODULE 1
Session 8
Supply Chain Strategies
DR. NEERAJ ANAND
PROFESSOR- LSCM
SOB, UPES
 Learning Outcomes 2

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DNA/ISCM/Module 1.Session 8, Sept. 2021
Students will be enable to:
 conceptualize three level strategies – Strategic, Tactical and Operational
 To comprehend rationalization and innovation Strategies and their applications
 SC Decisions: 3
 KPIs for procurement, manufacturing, warehousing, and distribution

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DNA/ISCM/Module 1.Session 8, Sept. 2021
and CRM.
 Network Optimization
 Revenue Maximization
 Delivery Performance
 Inventory Reduction
 Fulfillment Cycle Time
 Forecast Accuracy
 Overall Productivity
 Lower Supply-Chain Costs
 Fill Rates
 Improved Capacity Realization
 Carbon Emission
STRATEGIC LEVEL
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 Strategic Level (Corporate/OEM Level):
 Demand Planning: Short-term/Medium term/Log term

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DNA/ISCM/Module 1.Session 8, Sept. 2021
 Forecasting, CPFR (Product Sharing Contract for pipelines)
 Product Mix : Product lines/ Items
 Pricing/Revenue Management: Dynamic Pricing/MSP/MRP
 Technology Selection – AI, ML, Robotics, IoT, Blockchain
 Strategic Sourcing – Selection of Suppliers (Local/Global)
 Facility Location – Warehouse, Mega Food Park, Logistics Hub, Airport
 Layout Designing – Product/Process/Stationary
 Capacity Planning -
 Resource Planning - 5Ms
 IT Capability Management – Competent workforce
 Capacity Planning 5
 Production Capacity Planning: Product Mix/ Variants/SKUs

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DNA/ISCM/Module 1.Session 8, Sept. 2021
 Workforce Capacity Planning: Business/Resource level planning, talent
acquisition, Skill Set of various team members
 Tools Capacity Planning: Tools required for manufacturing, storage and
transportation – P &M/MHEs/Software – ERP/SAP Modules etc.
 Steps for Capacity Planning:
 Measure
 Analyze
 Formulate

https://optimoroute.com/capacity-planning/
 Capacity Planning: Strategies 6

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DNA/ISCM/Module 1.Session 8, Sept. 2021
 Lead Strategy: Suitable in case of sudden surge in the demand, to keep customers
satisfied and happy through meeting due dates, advanced planning, proactive
approach, excessive inventory.
 Lag Strategy: Conservative/ passive approach, Experience stockout situations
frequently, not meeting dead lines and may loose orders/
 Match Strategy: middle ground strategy, more flexible, frequent review of demand
projections and close eye on the market, data analytics and AI tools may be
appropriate.
 Tactical Level 7
 Tactical Level (Top/Middle Management)

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 Maintenance scheduling
 Budgeting
 Production Planning
 Order Fulfillment
 Sales Promotion
 Operational Level (Shop Floor Management)
 Packaging
 Dispatch
 Material Handling
 Stacking
 Inspection/Quality Control
 Loading/Unloading
 Stores Management
 Labeling
 Documentation (Invoicing)
 Safety/Security procedures
 Trace and track
 DNA/ISCM/Module 1.Session 8, Sept. 2021
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Stackers and Forklifts(MHEs)
 DNA/ISCM/Module 1.Session 8, Sept. 2021
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Automated Material Handling
 Tactical and Operational Strategies 10

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https://www.researchgate.net/publication/319607712_Designing_Efficient_Order_Picking_Systems_by_Combining_Planning_Problems_St
ate-of-the-art_Classification_and_Review/figures?lo=1
 Decision Levels: Total
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Airport Management

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Source: Eurocontrol
Rationalization Strategies
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Actions attempting to justify attitude or behavior with logical

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reasoning
Making a company more efficient by eliminating superfluous
manpower and resources.
 Optimizing the flight routes
 Optimizing Inventory of spare parts
 Optimizing Crew scheduling and maximizing flight operations time
 Minimizing fuel cost
 Minimizing carbon emission (Boeing 737, 777, 787)
 Minimizing maintenance cost
 Efficient distribution of cargo
 VMI (Automobile
 Innovation Strategies 13

Use of ML, AI, Big Data, Block chain

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
 Product Development: Scientific, NPD, Technological
 Converting passenger planes into freighers
 Rolls Royce went on developing new engine models
 Process Innovations: TQM, BPM, Disruptions – Digitalization using Blockchain, IoT and Robotics
• E-pass at Bangalore airport
• E- freight corridors
• Driver less trains, captain less ships
• Hybrid cars, Multi-fuel stove (Neelam patended by UPES)
• Direct long haul Flights from London to New Delhi
• Taxibot Operations
• Cathey Pacific- Pooling inventory of spare parts
• Baggage operations
• Maintenance Operations (aircraft in the air)
• E-payment gateways
• Drones delivering material and medicines
• High speed trains
• Tunneling Technology (Manali – Rohitang pass Tunnel)
 References 14
 https://

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DNA/ISCM/Module 1.Session 8, Sept. 2021
www.researchgate.net/publication/319607712_Designing_Efficient_Order_Picking_Systems_by_Com
bining_Planning_Problems_State-of-the-art_Classification_and_Review/figures?lo=1
 https://www.bloombergquint.com/business/reliance-said-to-offer-20-billion-stake-in-retail-arm-to-
amazon#:~:text=Ambani's%20Reliance%20to%20Offer%20%2420%20Billion%20Stake%20in
%20Retail%20Arm%20to%20Amazon,-Anto%20Antony&text=(Bloomberg)%20%2D%2D
%20Indian%20billionaire%20Mukesh,with%20knowledge%20of%20the%20matter
 https://
economictimes.indiatimes.com/industry/indl-goods/svs/construction/gvk-agrees-to-cede-control-of-air
port-business-to-adani-group/articleshow/77844759.cms?from=mdr
 https://amadeus.com/en/insights/blog/deep-dive-
 https://optimoroute.com/capacity-planning/