Concepts and Cases

Narayan Rangaraj G Raghuram Mandyam M

Srinivasan

Developed By: Anubhuti Jain

 An Overview of Supply Chain Management

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 → What is supply chain?
→ A supply chain is a set of organisations engaged in the
delivery of a product or a service to the customer of the
end user.

→ What is supply chain management?

→ It is the management of all activities involved in
sourcing, procurement, conversion and logistics
management to deliver the right product or service to the
customer at the right time, in the proper quantity, and in
the most cost-effective manner.
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TMH Copyright © 2009 Supply Chain Management for Competitive Advantage
 Technology

Competitive Factors

Business and Social Environment

Policy and Regulation

Producer-centric to Consumer-centric move

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 → The rise of batch production

→ Management structures

→ The rise of cost accounting

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TMH Copyright © 2009 Supply Chain Management for Competitive Advantage
 → The advent of the customer-centric era took place
in the early 1960s.

→ Pull method of production

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 → Consumers have become the dominant component.

→ Price are determined by the competitive market forces

→ Cost accounting resulting in higher inventories and other inefficiencies

→ Factors such as reliability of deliveries, quality of products, speed with

which orders can be filled and variety of products offered are not
considered in the cost accounting model.

→ Direct labour costs was no longer the major cost component

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TMH Copyright © 2009 Supply Chain Management for Competitive Advantage
 Delivered to the
customer
Reaches a handoff
point-station

Tiffin boxes
kept in pallet

Food packed in
Tiffin box

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 Cash Flow Chart for NDDB

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 Milk (Product Flow) at NDDB

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 Flow of product from retailer to customer (Asian
Paints)

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Product Flow
of FMCGs
(HUL)

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 ABC Bicycle Company (Usage of Supply Chain Concepts)

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 Dell Computers (Mass Customisation)

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 Tata Motors Ltd. (Third Party Logistics Provider)

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 → Barilla introduced the JITD system to determine what products it
would ship to its distributors.

→ Under the JITD system, rather than simply filling orders specified
by the distributor, Barilla monitors the flow of its product through
the distributor’s warehouse, and then decides what to ship to the
distributor and when to ship it.

→ The JITD implementation allowed Barilla to better control its

supply chain, providing it with a significant competitive edge.

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 Benetton (Technology Development)

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 → As a result of better-managed inventories, reduced
obsolescence, and tight linkages between demand and
supply, Zara is well positioned to gain market share.

→ For instance, it acquires fabrics in only four colors and

delays committing these fabrics to the dyeing and
printing operations until the last stage of production.

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TMH Copyright © 2009 Supply Chain Management for Competitive Advantage
 Amazon (Value Addition)

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TMH Copyright © 2009 Supply Chain Management for Competitive Advantage
TMH Copyright © 2009 Supply Chain Management for Competitive Advantage
 → IT Hardware manufacturers are continuously
restructuring their distribution network to enable
a responsive supply chain for products, spare
parts, and repair and return.

→ Third party logistics service providers have

played a significant role here.

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