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Supply Chain Management – Definitions

Supply chain management is the management of a network of

interconnected businesses involved in the ultimate provision of

product and service packages required by end customers

(Harland, 1996).

Importance of Supply Chain Management

To compete in the global market and networked economy.

Inter-organizational supply network can be acknowledged as

a new form of organization.

The network structure fits neither "market" nor "hierarchy"

categories

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Introduction

• Evolution of Supply Chain Management Studies:

Six major movements can be observed in the evolution of supply

chain management studies:

1. Creation era

Supply chain management was first coined by a U.S. industry

consultant in the early 1980s.

Supply chain management include the need for large-scale

changes, re-engineering, downsizing driven by cost reduction

programs.

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2. Integration era

Development of Electronic Data Interchange (EDI) systems in

the 1960s and developed through the 1990s by the

introduction of Enterprise Resource Planning (ERP) systems.

3. Globalization era

The third movement of supply chain management

development, the globalization era, can be characterized by

the attention given to global systems of supplier relationships

and the expansion of supply chains over national boundaries

and into other continents.

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4. Specialization era

Phase I: Outsourced Manufacturing and Distribution

In the 1990s, industries began to focus on “core

competencies” and adopted a specialization model.

Companies abandoned vertical integration, sold off non-core

operations, and outsourced those functions to other

companies.

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5. Specialization Era

Phase II - Supply Chain Management as a service

Specialization within the supply chain began in the 1980s with

the inception of transportation brokerages, warehouse

management, and non-asset-based carriers and has matured

beyond transportation and logistics into aspects of supply

planning, collaboration, execution and performance

management

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Supply Chain Management Activities

1. Determine channel strategy and level of distribution

intensity

2. Manage relationships in the supply chain

3. Manage the logistical components of the supply chain

4. Balance the costs of the supply chain with the service level

demanded by customer

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Components of Supply Chain Management Integration

Planning and control

Work structure

Organization structure

Product flow facility structure

Information flow facility structure

Management methods

Power and leadership structure

Risk and reward structure

Culture and attitude

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Role of Supply Chain Management• Communicator of Customer demand from point of sale to

supplier• Physical flow process that engineers the movement of

goods

Supply Chain Management and its Benefits•  Reduction of product losses in transportation and storage.• Increasing of sales.• Dissemination of technology, advanced techniques, capital

and knowledge among the chain partners.

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Better information about the flow of products, markets and

technologies.

Transparency of the supply chain.

Tracking & tracing to the source.

Better control of product safety and quality.

Large investments and risks are shared among partners in the

chain.

 

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Contd……

Supply Chain Modeling Approaches Network Design Methods Rough Cut Methods Simulation methods

Critical drivers in a Supply Chain

 1.Inventory

2.Transportation

3. Facilities

4. Information

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Agricultural Supply Chain Management at global level Cross-border Supply Chain

INPUT SUPPPLIERINPUT SUPPPLIER FARMERFARMER

FOOD INDUSTRY

FOOD INDUSTRY

AGRI INDUSTRYAGRI INDUSTRY

RETAILERRETAILERCONSUMERCONSUMER

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Cycle for supply chain development

AWARENESS AND RISING ACTIVITIES

AWARENESS AND RISING ACTIVITIES

TOOL AND CASE DESCRIPTIONS

TOOL AND CASE DESCRIPTIONS INSTITUTION

BUILDINGINSTITUTION

BUILDING

CHAIN PILOT PROJECTSCHAIN PILOT PROJECTS

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Infra Structure For Horticultural Supply Chain Management

Cold Chain Facilities Industrial cold stores in the Production zones Refrigerated vehicles for long distance transport Refrigerated room in wholesale markets

Field Heat facilities Product temperature upon harvest Major fraction of the heat load to be removed Influences the rate of reactions during storage

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Pre-Cooling facilities

1.Necessary for removal of field heat

2.Slow down the temperature dependent metabolic processes

3.Ensures longer storage and better product quality

Refrigerated Cooling

Hydro Cooling

Vacuum Cooling

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Supply Chain Umbrella

i. Purchasing

ii. Quality control

iii. Demand and supply planning

iv. Material or inventory control

v. Order processing

vi. Production planning, scheduling and control

vii. Warehousing / distribution

viii. Customer service

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Previous

• India is going through a retail revolution. Food being perishable item, for the retailer to be successful the key is proper supply chain management.• Planning and control, Work structure, Organization structure, Product flow facility structure, Information flow facility structure Management methods, Power and leadership structure, Risk and reward structure Culture and attitude are the main components of supply chain management.• Awareness and rising activities, Institution building, Chain pilot projects, Tool and case descriptions are the main cycle for supply chain development.• Supply chain management help to effective utilization of inputs and improve distribution of output.

Let us sum Up