Logistics & Supply Chain management

Organizations that make up the supply chain are “linked” together through physical flows and information flows.

Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain.

But just as important are information flows. Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and material up and down the supply chain.

When you drop by Walmart, you are witnessing one of history’s greatest logistical and operational triumphs.

According to Supply Chain Digest, this retail giant stocks products made in more than 70 countries and at any given time, operates more than 11,000 stores in 27 countries around the world, and manages an average of $32 billion in inventory.

According to Supply Chain Digest, this retail giant stocks products made in more than 70 countries and at any given time, operates more than 11,000 stores in 27 countries around the world, and manages an average of $32 billion in inventory.

Walmart’s truck fleet of non-unionized drivers continuously deliver goods to distribution centres (located an average 130 miles from the store), where they are stored, repackaged and distributed without sitting in inventory. Goods will cross from one loading dock to another, usually in 24 hours or less, and company trucks that would otherwise return empty “back haul” unsold merchandise.

Using cross docking, products are routed from suppliers to Walmart’s warehouses, where they are then shipped to stores without sitting for long periods of time in inventory. This strategy reduced Walmart’s costs significantly and they passed those savings on to their customers with highly competitive pricing.

TechnologyIn its relentless pursuit of low consumer

prices, Walmart embraced technology to become an innovator in the way stores track inventory and restock their shelves, thus allowing them to cut costs.

Technology plays a key role in Walmart’s supply chain, serving as the foundation of their supply chain.

Walmart implemented the first companywide use of Universal Product Code bar codes, in which store level information was immediately collected and analysed, and the company then devised Retail Link, a mammoth Bentonville database.

Through a global satellite system, Retail Link is connected to analysts who forecast supplier demands to the supplier network, which displays real-time sales data from cash registers and to Walmart’s distribution centres.

Walmart’s supply chain management strategy has provided the company with several sustainable competitive advantages, including lower product costs, reduced inventory carrying costs, improved in-store variety and selection, and highly competitive pricing for the consumer.

This strategy has helped Walmart become a dominant force in a competitive global market. As technology evolves, Walmart continues to focus on innovative processes and systems to improve its supply chain and achieve greater efficiency.

A close look at Walmart’s supply chain and inventory operations definitely provides valuable learning points that businesses can take and apply to their own operations.

Even Army Col. Vernon L. Beatty, who commanded the Defense Distribution Depot in Kuwait, spent a year with Wal-Mart as part of the military’s Training With Industry program.

“Supply chain management is moving the right items to the right customer at the right time by the most efficient means,” Beatty said in article about his experience. “No one does that better than Walmart.”

Maruti Suzuki India Limited has been in car manufacturing business for over 30 years and is

the largest car manufacturer in India with a nationwide dealer sales and service network.

Maruti Suzuki India Limited has been constantly implementing many innovations in supply chain and logistics management which have given them many positive results in terms of enhancement of

operational efficiencies, cost reductions and attaining customer Satisfaction.

Logistics & Supply Chain MgtLogistics Management Concept :

Logistics has its root from the military activities associated with moving troops into the battlefield. Later, the application has moved into business field.

The logistics involves planning, implementing and controlling efficient, effective flow and storage of goods and services from the beginning point of external origin to the company and from the company to the point of consumption for the purpose of conforming to customer requirements.

It is is generally viewed as within one company, although it manages flow between company and its suppliers and customers.

What is Supply Chain Management?

What is Supply Chain Management?The concept of Supply Chain Management is

based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain.

Executive Director of SCRC, Bank of America University Distinguished Professor of Supply Chain Management

The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chain.

Supply chain management, thens, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible.

Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.

SCMManagement of material and information flow

in a supply chain to provide the highest degree of customer satisfaction at the lowest possible cost.

Supply chain management requires the commitment of supply chain partners to work closely to coordinate order generation, order taking, and order fulfillment. They thereby create an extended enterprise spreading far beyond the producer's location.

Supply chain management involves coordinating and integrating these flows both within and among companies.

Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed).

As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Web-based application service providers (ASP) who promise to provide part or all of the SCM service for companies who rent their service.

Supply chain management flows can be divided into three main flows:

The product flowThe information flowThe finances flowSupply chain management includes logistics

flows, the customer order management and production processes and information flows necessary to monitor all activities at the supply chain nodes.

Global trends : Global business is becoming ever more

reliant on logistics and supply chain management in order to keep pace with the demands of an increasingly global economy.

This is why business leaders acknowledge that the supply chain can be a value creator and a source of competitive advantage.

SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.[4]

On the one hand, markets are increasing in both volatility and complexity, whilst, on the supply side, globalisation is leading to lengthening supply chains, often associated with greater vulnerability to interruptions and delays.

KEY BENEFITS OF EFFECTIVE SCM

New insights into aligning your supply chain to achieve competitive advantage .

An increased understanding of the impact of supply chain management on costs and financial performance .

Appreciation of approaches and frameworks that can be applied to different market segments .

Reviews of the latest thinking on supply chain strategy, planning and execution.

Competitive advantage can be achieved within dynamic market places

Orgn obtains an ability to address the management of supply chain risks

Recognition of the value of working across functions.