Wednesday, June 17, 2009

Supply Chain Blog

This is my first article on SCM in this blog. I’ll try to address the issues related to supply chain in lucid way to make novice to understand the concepts clear and grasp the essence.

What is Supply Chain ?

Here goes the story of Elephant and Five Blind men in comparison with Supply Chain.

Supply Chain consists of all functions involved directly (Sales, Production, Purchase, Inventory, Warehouse etc) or indirectly (HR, IT etc) in fulfilling customer request.

Supply chain Management consists of three major components :-

- Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores
- merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs
- satisfying (customer) service level requirements Let me explain the concept in a simple way.

Consider Domino’s marketing department advertising that they can supply quality pizzas to their customers within 30 minutes against the order receipt. The company has issued guidelines to all departments to reduce the cost to increase the bottom line growth. If Logistics department which is responsible for distribution adhere to this guideline, it will jeopardize the marketing objective of delivering the product within 30 minutes. This is where the supply chain personal plays crucial role to integrate different departments to work towards company objectives by aligning the department objective with company objective. Supply chain process can be classified into three macro processes.

Integration among the three macro processes is crucial for successful supply chain management.
There are certain functions in an organization considered as core and others are supportive from Supply Chain Management perspective. Effective integration of these main and supportive functions lead to successful supply chain management.

Generic Supply Chain view from FMCG Sector

I will explain these concepts in my subsequent articles .

SCM is the buzzword and emerging trend in the industry. Top Management team believes that
effective supply chain is panacea for most of their maladies. It is true to certain extent.
Success of Supply Chain depends upon the effective integration of various functions and to the
extent the support it gets from top and other management personals in its decision making.
Apart from this, there are other factors which are responsible for successful supply chain
management. These will be discussed in latter issue.

From Indian scenario, I feel we have not truly embraced the Supply chain concepts. Most of the
companies viewing SCM as a remedy to their critical functions, rather than integrating and aligning all core and supportive functions.

I would like to invite comments on this article.

In the next issue I would like to share my view on Forecast & Demand Planning.

13 comments:

  1. i would like to do a research on the 'impact of supply chain management system on a small organization'.Any comments on it.

    ReplyDelete
  2. Hi

    I would like to have more details about your project and its scope. I can guide you through necessary input. You can get in touch with me through my mail id krishbalajik50@googlemail.com

    ReplyDelete
  3. A very well-rounded explanation of the supply chain. In a nutshell, the supply chain consists of all processes involved in the movement of products from manufacturing plants or warehouses to consumers. Problems in the supply chain would be very detrimental to a business.

    ReplyDelete
  4. You have clearly explained about Supply Chain Management with example. These days, many organizations purchase supply chain software these days as it helps in improving inventory, order, warehouse management, cost-cutting opportunities and more.

    ReplyDelete
  5. The articles you have introduced in your blog are very informative and simple.. However I would like to know a little bit more about all aspects of SCM( Warehousing, Freight and Transport). Can you suggest some books, website which could help me in this..

    ReplyDelete
  6. Hello Sir,

    Thanks for sharing your experience. I got some valuable insights from this material.
    Could you please put some light on the following question:
    What KPIs of warehouse you can send to your CEO which could be helpful to him?

    Thanks
    Vivek Sankhyan

    ReplyDelete
  7. Great Blog !!!
    I like the way you written the post.
    Supply chain Integration refers to the complex network of relationships that organizations maintain with trading partners to procure manufacture and deliver products or services.
    Thanks for sharing such a nice post...

    ReplyDelete
  8. Wow!! i am very impressed with your lovely post.. i am so glad to left comment so interesting read, would love to read more here....
    Supply chain management services

    ReplyDelete
  9. This explains the Supply Chain and Logistics Management models. You can discuss more of it to further explain each part.

    ReplyDelete
  10. Thanks for sharing this great article! That is very interesting I love reading and I am always searching for informative information like this. Supply chain management services

    ReplyDelete
  11. Wow!! i am very impressed with your lovely post.. i am so glad to left comment so interesting read, would love to read more here....Supply chain management services

    ReplyDelete
  12. Very nice and helpful information has been given in this article. I like the way you explain the things. Keep posting. Thanks..Supply chain management services

    ReplyDelete