3. Definition
• A supply chain is a network of facilities and
distribution options that performs the
functions of procurement of materials
transformation of these materials into
intermediate and finished products, and the
distribution of these finished products to
customers
3
4. Question 1
Students are expected to choose any 2
Indian Organization and study their
supply chain in terms of drivers of the
Supply chain and submit a report
4
9. Logistics Process
• Logistics in collection
• The logistics process of Amul collects 6 million liters of
milk per day From about 10,600 separate village
cooperative societies. Approximately 2.8 million milk
producing member.
• Logistics in coordination
• The Logistics in Coordination of Amul consist of:
• Storing the milk.
• Processing the milk.
• Distributing the milk.
9
12. THE CHANNEL NETWORK
• Procurement channel- upstream flow
• Distribution channel- downstream flow
12
13. Reverse Logistics
MILK CHURN
From dairy to Village cooperative society
POUCH MILK TRAY
From retailer to dairy
BOTTLE
From retailer to dairy
DAMAGED PRODUCTS
From customer to retailer then to dairy
13
16. Dabbawalas Profile:
•
•
•
•
•
•
•
•
Firstly started in Mumbai in year 1890.
Started with 20 Dabbawala later extended to 100.
Initial Cost to client in rs.2 per month.
5000 recruits, 175000 clients.
75 kms of public transport.
Failure: once in two months, one in 16 million.
Rs. 380 million per annum.
Daily they deliver 200000 dabbas that means
400000 transactions per day.
16
17. Dabbawalas Unique Feature
•
•
•
•
No over-reliance on technology.
Create an integrated performance chain
Acute visibility
Keep it simple. Real simple
17
23. Third party logistic company
• 3PL firm is an external company carrying
out logistics activities on behalf of the
shipper. However, 3PL firms do not merely
replace shippers to provide logistics
solutions that are traditionally done inhouse.
23
24. Types of 3pl Providers
• Transportation Based
• Services extend beyond transportation to offer a comprehensive
set of logistics offerings.
• Leveraged 3PLs use assets of other firms.
• Non-leveraged 3PLs use assets belonging solely to the parent
firm.
• Examples: Ryder, Schneider Logistics, FedEx Logistics, UPS
Logistics
• Warehouse/Distribution Based
• Many have former warehouse and/or distribution experience.
• Examples: DSC Logistics, USCO, Excel, Caterpillar Logistics,
IBM
24
25. • Financial Based
• Provide freight payment and auditing, cost accounting and
control, and tools for monitoring, booking, tracking, tracing, and
managing inventory.
• Examples: Cass Information Systems, CTC, GE Information
Services, FleetBoston
• Information Based
• Significant growth and development in this category of Internetbased,
business-to-business,
electronic
markets
for
transportation and logistics services.
• Examples: Trans place, Nistevo
25
26. Categories of 3 pl Providers
• 1)Standard 3PL providers: this is the most basic form of a 3PL
provider. They would perform activities such as, pick and pack,
warehousing, and distribution (business) – the most basic functions of
logistics. For a majority of these firms, the 3PL function is not their
main activity.
• 2) Service developers: this type of 3PL provider will offer their
customers advanced value-added services such as: tracking and tracing,
cross-docking, specific packaging, or providing a unique security
system. A solid IT foundation and a focus on economies of scale and
scope will enable this type of 3PL provider to perform these types of
tasks.
26
27. • 3) The customer adapters: this type of 3PL provider comes in at the
request of the customer and essentially takes over complete control of
the company’s logistics activities. The 3PL provider improves the
logistics dramatically, but do not develop a new service. The customer
base for this kind of 3PL service is quite small.
• 4) The customer developers: this is the highest level that a 3PL
provider can attain with respect to its processes and activities. This
occurs when the 3PL provider integrates itself with the customer and
takes over their entire logistics function. These providers will have few
customers, but will perform extensive and detailed tasks for them.
27
29. Agarwal Movers Group comprises of such top
of the line companies like :
Transportation of Household Goods
Agarwal Packers and Movers rose from humble beginnings in 1987
with the establishment of "Agarwal Household Carrier". 'From tiny
acorns do mighty oaks grow', exemplifies the rapid rise and growth
of the group into one of India's largest.
29
30. LOGISTICS SERVICES
APM Logistics is built on the premise that the purpose of
supply chain solutions is to make business successful.
Agarwal Movers Group Logistics is the first organization to
introduce an Achievements Service in the India.
30
31. • APM INFRASTRUCTURE (Project/Infra)
APM Infrastructure Pvt. Ltd., a division of Agarwal Movers Group provides
roofing solutions for commercial, agriculture and industrial groups like
warehouses, godowns, large sheds for agri commodities, swimming pool,
garages, defense structures, and animal shelter.
31
32. • WAREHOUSING SERVICES
• A well maintained warehouse offers complete safety of your goods.
Hygienically maintained, our ware-house has large storing capacity. Well
segregated and secured, we have all the latest tools and equipment to
guarantee safety of your goods. Our all warehouses are on government
approved land.
32
33. • Agarwal Packers and Movers International Moving
• Doing business with international clients requires more than just
financial acumen. A lack of knowledge about a customer's
culture can lead to misunderstanding, frustration and potential
embarrassment.
33
35. Fourth Party Logistics
•A fourth party logistics provider is primarily
coordinator of other supply chain partners
through the ownership and maintenance of
information systems. This is differentiated
from third party logistics providers that
provide physical handling and or
transportation of goods.
35
39. Step1: You send your products to Amazon
You send your new or used products to Amazon’s fulfillment centers
Step2: Amazon stores your products
Amazon catalogs and stores your products in their ready-to-ship inventory
Step3: Customers order your products
Customers search for and purchase your products directly on Amazon.com,
or on other e-commerce channels such as your own site
Step4: Amazon picks and packs your products
Fulfillment by Amazon picks your products from inventory and packages them
Step5: Amazon ships your products and provides support
Amazon ships products to customers from their network of fulfillment centers
39
44. The objectives of IT in SCM are:
•1. Providing information availability and
visibility;
•2. Enabling a single point of contact for data;
•3. Allowing decisions based on total supply
chain information; and
•4. Enabling collaboration with partners
44
46. Electronic Data Interchange (EDI)
• EDI is defined as computer to computer
exchange of structured data for automatic
processing. EDI is used by supply chain
partners to exchange essential information
necessary for the effective running of their
businesses. These structural links are
usually set up between organizations that
have a long term trading relationship.
46
48. Bar coding and Scanner:
• Bar Codes are the representation of a
number or code in a form suitable for
reading by machines. Bar codes are widely
used throughout the supply chain to identify
and track goods at all stages in the process.
Bar codes are a series of different width
lines that may be presented in a horizontal
order, called ladder orientation, or a vertical
order, called picket fence orientation.
48
49. Enterprise Resource Planning (ERP) Systems
• Enterprise Resource Planning (ERP) Systems are
Enterprise-wide Information Systems used for
automating all activities and functions of a
business. These are transaction-based information
systems that are integrated across the whole
business. Basically, they allow for data capture for
the whole business into a single computer package
which’s give a single source for all the key
business information activities, such as customer
orders, inventory and financials.
49
50. Warehouse Management Systems:
• Warehouse management systems are
systems that control all the traditional
activities of warehouse operations. Areas
covered usually include receipt of goods,
allocation or recording of storage locations,
replenishment of picking locations,
production of picking instructions or lists,
order picking, order assembly and stock
rotation.
50
51. Transportation Management Systems:
• Transportation Management Systems provide
more visibility into shipments and orders.
Scheduling issues are also addressed on time.
Multiple transportation options can be explored as
a result of earlier visibility into the supply chain.
Timely communication and status reports can also
be obtained. By having control on its supply
chain, businesses can make efficient routing
decisions.
51
52. Emerging And New Information
Technology Solutions For Supply Chain
Management
52
53. Radio Frequency Identification (RFID)
•The bar code was intended to improve
efficiencies in the retail space, but the bar
code cannot uniquely identify the specific
object such as when items are produced, the
lot of the items was made and when will the
items expire. RFID was able to take care of
these issues.
53
54. Decision Support Systems (DSS)
Decision Support Systems (DSS) are a
specific class of computerized information
systems that supports business and
organizational decision-making activities. A
properly designed DSS is an interactive
software-based system intended to help
decision makers compile useful information
from raw data, documents, personal
knowledge, and/or business models to identify
54
and solve problems and make decisions.
55. Web Services
Web services are application interfaces accessible via Internet
standards that use XML and that employ at least one of the
following standards: Simple Object Access Protocol (SOAP),
Web Services Description Language (WSDL) or Universal
Description, Discovery and Integration (UDDI).
55
58. • E-tailing: using the Internet for selling
goods over the internet. The archetypal etailing application is that of a bookseller
such as Amazon. This company is
renowned for the fact that it only sells
books over the internet and doesn't even
take telephone orders.
58
59. • E- Procurement: The term procurement is
used to describe the purchase of goods and
services which are not directly used in the
main business of a company.
59
60. • E-Auctions: These are sites on the web which run
conventional auctions. There are two types of
auction:
• Real time Action: where participants log in to an
auction site using a browser at a specified time
and bid for an article until the highest price is
reached and no other bids are forthcoming.
• The other type of site – and the most common – is
where an item is offered for sale and a date
advertised after which no more bids are accepted.
60
61. Question
Students can identify any
product/service and study the type of
distribution system used and
understand the reason for using that
particular type.
61
65. Direct Seller:
• Dell started out as a direct seller, first using
a mail-order system, and then taking
advantage of the internet to develop an
online sales platform. Well before use of the
internet went mainstream, Dell had begun
integrating online order status updates and
technical support into their customer-facing
operations.
65
67. Component supplier
• The supplier of high-tech component, such
as microprocessors and software provided
by firms such as Intel and Microsoft,
• The low-tech, low-differentiation
component were supplied by small multiple
players
67
68. Original Equipment
manufacturer
• The OEM traditionally would receive all the
parts from their suppliers, assemble the
computers in their production lines and ship
them over the their distributors or corporate
resellers.
• Eg:
68
69. Distributors
• They generally supply to corporate resellers
and other distributors.
• They carry large qualities of different
products, to increase their leverage when
dealing with their customers.
• They also provided specific software,
peripherals, furniture, etc.
• Eg: Ingram Micro, Tech Data, Santech.
69
70. Corporate resellers/system
• The corporate resellers or systems
integrators generally buy systems directly
from manufacturers and install these
systems at their corporate clients.
70
