10 MINUTE SUPPLY CHAIN & LOGISTICS

STRATEGY
(V8)

RUBY(2140025)
SURAJIT MAJI(2140038)
SUBHAJIT HAZRA(2140032)

GROUP-8 KRIPA RANJAN SHARKAR(2140019)

UNDER GUIDANCE OF
KAUSHIK N GAEKWAD(2140018)

DR. JITESH THAKKAR

 INTRODUCTION
The goal of any formal logistics or supply chain strategy is to make sure you and your company are delivering to
your customers what they want. And delivering to them when they want it. And accomplish all of that by spending
as little money as possible.

Importance of Strategy
A lot of businesses are burning money in the supply chain without having a strategy. There was a study done years ago that
actually identified that glitches in the supply chain caused an average fall of 8.6% in shareholder value. If any business don’t
have a supply chain strategy that will have a huge impact in business performance. As a result in recent times in a survey

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 IMPORTANCE OF STRATEGY

Business houses are asked if their business have a

supply chain strategy and if they don’t, does they think
it impacts their business performance if we look at
these Only 39% of businesses actually have a
documented supply chain strategies and people
understand it and 65% business believe that it impacts
the performance of their business.

Share Holder Value.

• Avg 8.6% decline
• With out having strategy
• Study done last 20 years
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CRUX OF SUPPLY CHAIN MANAGEMENT MODEL

This is a Venn-diagram of supply chain management model. Here

we've got three interlocking circles and it's getting alignment between
the business strategy, the finance or financial strategy and the service
strategy and why is that so important, well where these circle interlock
we can see the strategic alignment and the financial alignment
then we get very happy shareholders, if we get the service and
financial alignment right we get very happy customers, and if we
get the strategic and service alignment right then we get a happy
team. In simple term I put three things against each of these elements
of the strategy. In terms of strategic alignment we got to have clarity
around, we need a developer and we’ve to constantly calibrate it and
circle back and make sure that it’s right. In terms of the financial
alignment from a supply chain perspective there are three big-ticket
items warehousing, transport and procurement and then on the service
alignment the three things to focus on having a customer service
policy, inventory policy, a good planning process, and making sure
that we have good inventory management practices. If we get those
right supply chain system of any business will be smoother.
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 Tips in creating objectives

There are three simple objectives for supply chain generally one around cost, one around
service, last one is quality and for mining or heavy industry there is a fourth and that is
safety. Now the trick here is to articulate these objectives in such a way that they're really
leading for Jim who's picking the product in the warehouse it shouldn't be something too
conceptual .
So, for a example let's think about cost for what could we have as a simple objective around
cost it might be “lowest total cost”, for service “never any back orders”. so think about that
for a ,moment what does that mean to people working in the supply chain never and
backorders if I'm working in inventory it means I have my immature accuracy right I've got to
get the cycle counting right if I'm working in procurements or inventory management I've got
to make sure that we've always got the right amount of stock if I'm picking in the warehouse
or dispatching I've got to make sure that the orders are always with you know a hundred
percent in fall. So coming up with these little sort of catch phrases around the objectives that
really articulate the purpose behind them is so important for people right you know up and
down the organization to fully understand so step one is to come up with those three
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objectives. BANK
 To be in Top 20% performers

From Top
view work
down wards

What’s Business Objective

What does the business expect of out

supply chain

When I’m helping clients put supply

chain strategies together

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 TACTICS AND MEASURES
• As per tactics is concern what sort of enablers or initiatives we have to focus on to make
sure that we're always in stock, first is inventory management, operations planning,
inventory accuracy. And there are also three things that we might focus on lowest prices
if we want the lowest prices to our customers then we have to buy well so when we're
buying product in or manufacturing it we've got to make sure that we get that price down
we have the movement through the supply chain as a low cost as possible.

• Once we develop the tactics we have to develop the measures. For that businesses don't
need hundreds of KPIs in supply chain, they probably need maybe three under each of
those objectives. let's have a think about stock and what might be the KPIs that we
measure- If you're a retailer then you will be measuring on shelf availability,
counting gaps on the retail shelves, monitoring availability in the warehouse,
supplier performance in delivery, so again it's all aligned. If we've got an objective of
“always being in stock” then we need to have some enabling processes and technologies
to make sure that we're doing that and we've got to measure the right things to ensure
that we're achieving that. So, it all about to put a supply chain strategy together.

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 In order
AFTER TACTICS  MEASURES to avoid
Perform too may
KPI[Ke
ance Ind y
icators]

If OBJECTIVE: Always being in stock

RETAILER
Shelf availability (or)
counting gaps on retail
shelves monitoring

TAKE Availability in
HELP: warehouse
PROCESS
&
TECHNOL
OGIES
Supplier Performance
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 WE NEED A NEW TRANSPORT MANAGEMENT SYSTEM
WE NEED A NEW WAREHOUSE MANAGEMENT SYSTEM

Cost
Vision Service
and Lowest total cost OBJECTIVE
Mission Inventory
Doesn’t
NEVER any back
always orders. Immediate
drive
accuracy

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 FOR Stock
CYCLE COUNTING

• Right Enablers (or) Initiatives

Procurement(or)Inventory
management amount
of stock

Warehouse (or)
• 100% 1. In Stock
2. Great inventory management
infall
Dispatching
3. Sales and operations

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 a

THANK YOU