Scm

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Supply Chain ManagementSupply Chain Management

Group membersGroup members

• Naveen K R

• Moses A

• Namratha K A

• Manohar N

• Shravani

• Karthic A

• Nitesh B

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DefinitionDefinition

• 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

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Question 1Question 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

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SUPPLY CHAIN MANAGEMENT OF “AMUL”

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Amul Supply ChainAmul Supply Chain

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.

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• Supplier logistics

• The Supplier Logistics of Amul consist of:

• Weighing the milk.

• Determining of fat content.

• Calculation of the purchase price

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Distribution Process of Amul

THE CHANNEL NETWORK

• Procurement channel- upstream flow

• Distribution channel- downstream flow

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Reverse Logistics

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MILK CHURNFrom dairy to Village cooperative society

POUCH MILK TRAY From retailer to dairy

BOTTLEFrom retailer to dairy

DAMAGED PRODUCTS From customer to retailer then to dairy

•AMUL

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Dabbawalas

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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.

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Dabbawalas Unique Feature

• No over-reliance on technology.

• Create an integrated performance chain

• Acute visibility

• Keep it simple. Real simple

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Customer Profile of The Dabbawala

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Supply Chain Management Of Dabbawala

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How dabbawalas works do you know then watch this.

Dabbawalas 1

Dabbawalas 2

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Dabbawalas dabbas identification Dabbawalas dabbas identification

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QuestionQuestion

•Third Party And Fourth Party Logistic

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Third party logistic companyThird 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 in-house.

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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

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• 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 Internet-

based, business-to-business, electronic markets for transportation and logistics services.

• Examples: Trans place, Nistevo

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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.

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• 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.

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Agarwal Movers Group

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Agarwal Movers Group comprises of such top Agarwal Movers Group comprises of such top of the line companies like : 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.

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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.

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• 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.

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• 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.

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• 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.

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• Agarwal

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Fourth Party LogisticsFourth 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.

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Step1: You send your products to Amazon You send your new or used products to Amazon’s fulfillment centersStep2: Amazon stores your products Amazon catalogs and stores your products in their ready-to-ship inventoryStep3: 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 siteStep4: Amazon picks and packs your products Fulfillment by Amazon picks your products from inventory and packages themStep5: Amazon ships your products and provides support Amazon ships products to customers from their network of fulfillment centers

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During these steps, Amazon as a fourth-party provider provides value-added services including:

“Sell on Amazon” that let you sell your products on the Amazon Marketplace, “Amazon Payments” that let customers pay with their Amazon accounts“Build a Website” that let you build a full-featured E-Commerce web store“Advertise on Amazon” that let to advertise on Amazon’s website

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Question Question

Students can identify the various types of IT applications employed

by Indian Organizations in their Supply chain.

IT In Supply Chain Management

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IT initiatives include:IT initiatives include:

•Use of bar-coding in logistics systems•Use of EDI to communicate between branches•Use of Material Requirements Planning•Enterprise Solutions like ERP•Internet and Web Services for communication between partners

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The objectives of IT in SCM are: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

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Existing Information Technology Tools And Applications In Supply

Chain Management

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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.

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benefits of EDI are:

Quick process to information,

Better customer service,

reduced paper work,

Increased productivity,

Improved tracing and expediting,

Cost efficiency and improved billing.

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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.

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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.

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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.

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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.

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Emerging And New Information Technology

Solutions For Supply Chain Management

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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.

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Decision Support Systems (DSS)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 and solve problems and make decisions.

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Web Services

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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).

Electronic Commerce

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• E-tailing: using the Internet for selling goods over the internet. The archetypal e-tailing 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.

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• 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.

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• 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.

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Question Question

Students can identify any product/service and study

the type of distribution system used and

understand the reason for using that particular type.

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Dell ComputerDell Computer

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History of Dell:

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HistoryHistory

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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.

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Direct selling modelDirect selling model

• Started in 1996

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Component supplierComponent 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

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Original Equipment Original Equipment manufacturermanufacturer

• 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:

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DistributorsDistributors

• 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.

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Corporate resellers/systemCorporate resellers/system

• The corporate resellers or systems integrators generally buy systems directly from manufacturers and install these systems at their corporate clients.

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Dell direct selling modelDell direct selling model

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Dell SegmentDell Segment

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Benefits to company by such Benefits to company by such distributiondistribution

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Scm

Education

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