Operations & Supply Chain

Management
Prof. Kumar Biswas

Venue Unit III Schedule

Greater Noida, U.P. 18 & 25 Apr 2023
Push/Pull View of Supply Chain Processes
• Supply chain processes fall into one of two categories
depending on the timing of their execution relative to customer
demand
• Pull: Execution is initiated in response to a customer order
(reactive)
• Push: Execution is initiated in anticipation of customer orders
(speculative)
• Push/pull boundary separates push processes from pull
processes
Push/Pull View of Supply Chains
Push/Pull View – Example 1

Figure 1-6 Push/Pull Processes

Push/Pull View – Example 2

Figure 1-7 Push/Pull Processes

SUPPLY PUSH OF PETROLEUM INDUSTRY - PAST

Supply Planning

Crude
Crude Transportation Crude Refined Product
Purchase Refining
(Tanker/Pipeline) Storage Storage

Supply
SupplyPush
Push

Distribution Planning

Marketing Product Product Transportation

Retailing / & Distribution
Storage Locations
Consumer (Tanker/Pipeline/Rail/Road)
(Terminal/ Depot/ Port)
(Demand Centre)
 DEMAND PULL OF PETROLEUM INDUSTRY - PRESENT

Crude evaluation What crude What & Where

& Procurement ? to Feed ? To Make ?
Integrated Model Computer Model

Demand
DemandPull
Pull Overall
Overall
Optimization
Optimization

Demand Forecast Model Logistics Model

Demand Distribution
Forecast ? Planning ?
Supply Chain Macro Processes

Supply chain processes discussed in the two views can be

classified into
1. Customer Relationship Management (CRM):
– all processes at the interface between the firm and its
customers
2. Internal Supply Chain Management (ISCM):
– all processes that are internal to the firm
3. Supplier Relationship Management (SRM):
– all processes at the interface between the firm and its
suppliers
Supply Chain Macro Processes
 CRM
Customer Relationship Management (CRM)
is the process that
• Addresses all aspects of identifying
customers
• Creating customer knowledge
• Building customer relationships and
• Shaping their perceptions of the -
Organisation and
Products
 MARKET DRIVEN CRM
Market Driven Customer Relationship
Management (CRM) is shifting from
• From considering customer relationships as
solely the means to sell, deliver, and service
a product
• To learn about customers needs and wants
and how best to create, satisfy and sustain
them
 CRM: DEFINITION

– Systems and processes that a business

has in place to measure and to improve
how the company interacts with and
influences customers
 CRM: DEFINITION

– It creates a complete picture of the

customer experience, allowing business
owners and managers to make informed
decisions about how to improve that
experience and increase sales
 CRM: OBJECTIVES
– To gather adequate information about
customers
– Apply the information -
 To increase customer's positive relation with
the company
 To improve company's sales
 To earn profitability
 CRM: IMPORTANCE
– Creating a bond with the existing customers
– Bond with customers increases the chance of
making numerous purchases
– When customers feel welcome even after the
purchase, they too start feeling some loyalty
towards the company/product
– A strong bond helps customers to understand
that they are valued
– With nurtured good CRM, customers feel
obliged or happy to advocate the brand
 CRM: STEPS
– Customer data is collected
– Data is segmented and stored
– Data is available to access by authorized
persons
– Data helps to analyze customer behavior
– CRM software offers solutions after analyzing
data
– CRM ultimately helps to go extra mile to
impress the customers
 CRM: DATA GATHERING
– There should be data capture points at every
point where the company interacts with current
or potential customers
– There may be several touch points in the
business for collection of CRM data
– Data helps to understand whether business is
functioning effectively and whether it needs
course correction
 CRM: APPLICATIONS
– CRM data used for -
 To improve customer service
 To guide the customer's buying journey
 To drive product development
 To personalize advertising
 To find new customers
 To increase sales
Summary of Learning Objective 3
The cycle view divides processes into cycles, each
performed at the interface between two successive
stages of a supply chain
Each cycle starts with an order placed by one stage of
the supply chain and ends when the order is received
from the supplier stage
A push/pull view of a supply chain characterizes
processes based on their timing relative to that of a
customer order
Pull processes are performed in response to a customer
order, whereas push processes are performed in
anticipation of customer orders.
Summary of Learning Objective 3 – Contd.
All supply chain processes within a firm can be classified into three
macro processes: CRM, ISCM, and SRM
The CRM macro process consists of all processes at the interface
between the firm and the customer that work to generate, receive,
and track customer orders
The ISCM macro process consists of all supply chain processes that
are internal to the firm and work to plan for and fulfill customer
orders
Summary of Learning Objective 3 – Contd.
The SRM macro process consists of all supply chain processes at the
inter- face between the firm and its suppliers that work to evaluate
and select suppliers and then source goods and services from them
Integration among the three macro processes is crucial for successful
supply chain management.
Examples of Supply Chains
• Gateway and Apple
• Zara
• Toyota
• Amazon
• Macy’s etc.
•Do you have any question ?
Thank
You