1. RECENT ISSUES IN SUPPLY CHAIN
MANAGEMENT
AUTHOR
Neelam Yadav

2. Role of IT/Computer in SCM
Introduction
 A well managed supply chain links the
suppliers, manufacturers, distributers
and customers by a suitable information
system for controlling across boarder in
order to achieve optimum productivity,
overall satisfaction and joyful relation at
cheaper cost.

3.  Quick and effective information system
helps manager to understand the customer
response, their demands, inventory in the
stock, how much to be produced and where
to deliver and when? Here comes the role of
internet, which is considered as a cheapest
inter-organizational information system,
which helps in aligning the interdependent
strategies to achieve cooperative rather than
competitive role of SCM partners.

4. Need of IT
Information technology offers many
opportunities for companies to cut cost and
improve responsiveness to customer’s needs.
Some of the positive points of IT enabled
services are:
 IT is comparatively less capital intensive.
 It is environmental friendly and clean.
 It is not location specific and can be undertaken
from anywhere.
 It does not require expensive infrastructure
facilities.

5. Various IT solutions
I. Communications
II. Electronic mail (e-mail)
III. Electronic data interchange (EDI)
IV. Enterprise resource planning (ERP)

6. Results of IT solution
We have observed that the Indian automobile industry
is booming and internet is being utilized in
automobile industry in a big way. Internet trying to
interlink suppliers, manufacturers , wholesalers and
retailers to have :
 Better control on inventory at various levels of supply
chain.
 Better utilization of manpower.
 It keeping track of inventory.

7. Contind……
But it is fact that internet has influenced the
whole business strategy whether it is policy or
it is physical implementation. Some of the
areas where’s greater effect felt are given
below:
a) Communication
b) Selection of vendors or partners
c) Cost saving
d) Reduction of lead times
e) Improves product promotional activities

8. Contind………
a) Communication
 24 hours communication throughout the year all
over the world. because of internet communication
there are saving in manpower, stationary, postage
and journey fare.
 Quick exchange of ideas and expertise, customers’
feedback collection becomes easier
b) Selection of vendors or partners
 Suitable vendor selection from many vendors from
any part of the world
 Since whole world is connected through internet, it
becomes easier to select business partners for the
joint ventures

9. Contind….
c) Cost saving
 Reduce cost of preparing letters and sending letters, saves
postage cost
 Achieving order and placing order become less costly
d) Reduction of lead times
 Reduce lead time of material supply
 Reduce retrieval time of documented information
e) Improves product promotional activities
 Reduce the expenditure for market expansion and
also reduce market mediation
 Improve relation with customer and helps in
promotion of products in the form of advertisement

10. Limitation
There are also some limitation recorded:
 Lack of manager awareness with the system and
lack of management’s full commitments.
 Development of electronic data interchange is a
costly affair
 Problems of security and privacy
 Since no face to face contact is there hence, lack
of trust
 Customers also need awareness for effective
utilization of internet in the business

11. BENCHMARKING
Benchmarking is the practice of being humble
enough to admit that someone else is better at
something, and being wise enough to learn how
to match them and even surpass them at it.

12. Other definitions-
 Benchmarking is the process of comparing the
cost, cycle time, productivity or quality of specific
process or method to another that is widely
considered to be an industry standard or best
practice.
 It is the process for improving performance by
constantly identifying, understanding and
adapting best practices and processes followed
inside and outside the company and
implementing the results.

13. The core of the current interpretation of
benchmarking is:
Measurement Comparison
Learning Improvement

14. Contind….
1. Measurement- In the benchmarking, we
measure the performance level of own and the
benchmarking partner, both for comparison and
for registering improvements.
2. Comparison- We compare the performance
levels, processes, practices etc.
3. Learning- We can learn from the benchmarking
partners to introduce improvements in your own
organization.
4. Improvements- It is the ultimate objective of
any benchmarking study.

15. Benchmarking model
There are a number of models describing the
different steps that constitute a benchmarking
study.
One such model is the so-called benchmarking
wheel( Andersen, 1995)

16. 5.Adapt 1.Plan
Choose best practice adapt Critical factors select a
to the company’s condition process for
and implement changes benchmarking, document
the process and develop
performance measures
4. Analyze
Identify the gaps in 2. Search
performance and find the Find benchmarking
root causes for the partners
performance gap
3. Observe
Understand and document
the partners’ process, both
performance and practice

17. Why the benchmarking is required in the
business-
 Benchmarking helps in identifying the factors that
are critical for success.
 It also portrays the factors that are less important
and thus need a smaller share of resources.
 Since the business environment is changing
rapidly, there is a need for continuously setting
new benchmarks.
 The need for benchmarking arises when a company
wishes to improve its operations or supply chain
 wants to bring about organizational changes
 Enter into some mergers and acquisitions

18. Types of benchmarking
Industry
Internal
Competitive Generic

19. Contind….
1. Internal benchmarking- If one analyses the
existing process and practices within various
departments of an organization, it is known as
internal benchmarking.
 the benefit of this benchmarking is that it enables an
organization to focus on specific functions and
processes in order to learn from its own best
practices
 This is often called the first step in the
benchmarking process and is the easiest kind of
benchmarking to organize.

20. 2. Competitive benchmarking- If a company
analyses how its competitors are performing then
its known as competitive benchmarking.
 It is also done for comparing the processes.
 The benefit is that it helps organization in
strategic decision making by giving them a view
of the strengths and weaknesses of its
competitors.
.

21. 3. Industry benchmarking- if one analyses the
trends and best practices that are prevalent in the
industry and tries to imitate them in one’s
organization then it is called industry
benchmarking
4.Generic benchmarking- if one makes
comparison between processes and operations
with industries from other fields then it is called
generic benchmarking.

22. BENCHMARKING METHDOLOGY
Benchmarking involves the following steps:
 Scope and definition
 Choose benchmark partners
 Determine measurement method
 Data collection
 Analysis of discrepancies
 Presenting results, discussing improvement areas
and making improvement plans
 Monitoring progress and planning ongoing
benchmarking

23. Walters model (2003) of Benchmarking
1. Identify- process to benchmark
2. a) Find- a better performer
b) Collect- data on its operations
3. a) Compare- process
b) Find- performance gap
4. a) Reason- performance gap
b) look- ways to look overcome
5. a) Redesign- process
b) Establish- new performance goals
6. a)Implement- plans
b) Monitor- progress

24. Outsourcing in SCM
In order to understand the concept of outsourcing, there
is a good example of “Nike”
 It is a fact that Nike is a virtual corporation
 The actual manufacturing is done by Nike sub
contractors working out of Taiwan, Hong Kong.
 The actual manufacturing plants are located in
Indonesia, China and Vietnam.
 The logistics, which involves transportation and
storage, is handled by third party companies.
 And the stores that sell the final products are
franchisee outlets.

25. Contind….
 Nike is a virtual corporation that has outsourced
almost all activities, it has retained two processes
in-house “designing and brand management”.
 Amazon.com is an online bookstore, it delivered
and brokered bookstore services without a
physical retail store presence
 Flipcart.com

26. Concept
The decision of a firm to perform its activities
internally or get those activities done from an
independent firm is known as make vs. buy
decisions.
This involves the following key decisions:
a) What activities should be carried out by the firm
and what activities should be outsourced?
b) How to select the entities/ partners to carry out
outsourced activities and what should be the
nature of the relationship with those partners?
c) Should the relationship be transactional in nature
or should it be a long term partnership?

27. Decisions in Outsourcing
1. Make vs. Buy decisions
2. Identifying the core process
i) The business process route
ii) The product architecture route

28. What is CRM?
 CRM stands for Customer Relationship
Management. It is a strategy used to learn
more about customers' needs and behaviors in
order to develop stronger relationships with
them. Good customer relationships are at the
heart of business success.

29.  There are many technological components to
CRM, but thinking about CRM in primarily
technological terms is a mistake.
 The more useful way to think about CRM is as a
strategic process that will help you better
understand your customers’ needs and how you
can meet those needs and enhance your bottom
line at the same time.
 This strategy depends on bringing together lots of
pieces of information about customers and market
trends so you can sell and market your products
and services more effectively.

30. CRM (customer relationship management)
CRM is an information industry term for
methodologies, software, and usually Internet
capabilities that help an enterprise manage
customer relationships in an organized way.

31.  For example, an enterprise might build a database
about its customers that described relationships in
sufficient detail so that
management, salespeople, people providing
service, and perhaps the customer directly could
access information, match customer needs with
product plans and offerings, remind customers of
service requirements, know what other products a
customer had purchased

32. According to one industry view, CRM consists of:
 Helping an enterprise to enable its marketing
departments to identify and target their best
customers, manage marketing campaigns and
generate quality leads for the sales team.
 Assisting the organization to improve
telesales, account, and sales management by
optimizing information shared by multiple
employees, and streamlining existing processes
(for example, taking orders using mobile devices)

33.  Allowing the formation of individualized
relationships with customers, with the aim of
improving customer satisfaction and maximizing
profits; identifying the most profitable customers
and providing them the highest level of service.
 Providing employees with the information and
processes necessary to know their
customers, understand and identify customer needs
and effectively build relationships between the
company, its customer base, and distribution
partners.

34.  Many organizations turn to CRM software to help
them manage their customer relationships.
 CRM technology is offered on-premise, on-
demand or through Software as a Service.
 Recently, mobile CRM and the open source CRM
software model have also become more popular.

35. CRM vs. SCM
 SCM-CRM integration is getting closer to
becoming an everyday business imperative.
“The reason for this is simple: company survival”
 SCM has been around considerably longer than
CRM.
 As a result, the two disciplines have matured
independently.
 Examples- Dell company, Herman Miller a
furniture manufacture.

36. Conclusion
 CRM-SCM integration strives to satisfy and
promptly deliver products to customers, ensuring
availability of the product and maintaining
profitability of the manufacture.
 Ensure better customer service is offered
 Implement technology
 Extend the connection from the customer to the
supplier( build to build)

37. Value addition in SCM- Concept of
Demand management

38.  1. The Supply chain
 2. The Demand chain
 3.Demand and Supply chain process: The
value chain

39. THANKYOU