2. A supply chain is a network of facilities and
distribution
Performs the functions of procurement of
materials , transformation of materials into
intermediate and finished products and the
distribution of finished products to customers.
Exists in both services and manufacturing
organizations.
3. Maximize the overall value generated :- the
difference between what the final product is
worth to the customer and the cost incurred to
fill the customer’s request.
Profitability :- the difference between revenue
generated from the customer and the overall
cost across the supply chain.
8. Facilities are where a product is being stored,
assembled and fabricated. The better
management about the role, location, capacity
and flexibility of these facilities having a
positive affect towards supply chain
performance
For example, an auto parts distributor have
many warehousing facilities exist near to the
customers for providing them quick and better
access of products
9. The most fundamental role that inventory plays in
supply chains is that of facilitating the balancing of
demand and supply. To effectively manage the
forward and reverse flows in the supply chain, firms
have to deal with upstream supplier exchanges and
downstream customer demands. This puts an
organization in the position of trying to strike a
balance between fulfilling the demands of customers,
which is often difficult to forecast with precision or
accuracy, and maintaining adequate supply of
materials and goods. This balance is often achieved
through inventory.
10. A better transportation approach for
manufacturing firms is joint routs planning.
In manufacturing firm the performance of
transportation activity can be increased by a
model of smart transportation management
system. This model includes three components
that are smart freight, smart vehicle and smart
infrastructure
11. Information provides customer taste to
supplier that leads supplier’s responsiveness
and efficiency because supplier forecasts
customer demand and only supplies required
product.
Continuous conversation with customers plays
a vital role in strategy development that
resulting in creation a planning team for
company.
12. The decision of a firm to perform its activities
internally or get those activities done from an
independent firm is known as the make versus
buy decision.
A periodic review of the sourcing strategy
ensures achievement of desired results and
continued alignment with business objectives
13. It incorporates end-to-end supply chain cost,
including purchase, production, warehousing,
inventory and transportation.
If a transportation company charges high and
low costs for quick and late delivery
respectively than efficiency oriented customers
demand quick delivery and responsiveness
oriented customers demand late delivery
14. Helps in achieving success
Effective flow of goods and information
Reduces the level of inventory with the
manufacturer
Improved match between supply and
demand
Reason for company’s success
15. Proliferation in product lines
Shorter product life cycles
Higher level of outsourcing
Shift in power structure in the chain
Globalization of manufacturing
16. Demand management and planning
Warehouse management
Order management
Transportation management
Collaboration and integration
Supplier relationship management
Supply chain analytics
17. Businesses will seek to grow in increasingly
complex and volatile environments
against fierce competition
20. Product flow is nothing but starting from the
raw materials to the end product to the
customer.
Information flow is nothing but the sharing of
informations from the customer as well as
supplier . It is both directions.
Money flow is nothing but the funds flow
from the consumers to the manufacturer, from
manufacturer to supplier.
21. Expanding distribution systems transcending the national boundaries
and becoming global
Reduced inventory goals require flexible, high velocity manufacturing
strategies that can enable a quick response when unexpected changes in
demand occur
Many new SCM technologies like RFID are in the nascent stage and for
them ROI is not yet identified
Increased demand responsiveness requires a “demand driven supply
network” (transformation from push to pull operations) collaboration and
closed- loop planning environment requires clean synchronized n data
Information disintegration-disconnected demand, supply and financial
plan make it difficult to reconcile plans with reality and re-plan
accordingly
22. About – Big Bazaar
• Founded by Mr. Kishore
Biyani
• Headquartered in Mumbai
(Bombay)
• 2 million customers every
week
• Over 1 million loyalty card
members
• First set of Big Bazaar stores
opened in 2001 in Kolkata,
Hyderabad and Bangalore
24.
Challenges
a. Truck Unloading
b. Bar Code Missing
c. Price Fluctuation
d. Inventory Shrinkage
Opportunities
a. Behavioral pattern, preferences and expenditure capacity
of Indian consumers
b. Growing consumer power in tier 2 and tier 3 cities in India
c. IT trends in Indian retail industry and technological
expansion