SUPPLY CHAIN MANAGEMENT

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SUPPLY CHAIN MANAGEMENT
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SUPPLY CHAIN MANAGEMENT
Introduction

• 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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SUPPLY CHAIN MANAGEMENT

• 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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SUPPLY CHAIN MANAGEMENT

• 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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SUPPLY CHAIN MANAGEMENT

• 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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SUPPLY CHAIN MANAGEMENT

• 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

• Supply Chain Management Activities
• Determine channel strategy and level of
  distribution intensity
• Manage relationships in the supply chain
• Manage the logistical components of the supply
  chain
• Balance the costs of the supply chain with the
  service level demanded by customer

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SUPPLY CHAIN MANAGEMENT

• 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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SUPPLY CHAIN MANAGEMENT

• 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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SUPPLY CHAIN MANAGEMENT
Contd

• 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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SUPPLY CHAIN MANAGEMENT

• 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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SUPPLY CHAIN MANAGEMENT

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

INPUT SUPPPLIER
FARMER
AGRI INDUSTRY
RETAILER
FOOD INDUSTRY
CONSUMER
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SUPPLY CHAIN MANAGEMENT

• Cycle for supply chain development

AWARENESS AND RISING ACTIVITIES
TOOL AND CASE DESCRIPTIONS
INSTITUTION BUILDING
CHAIN PILOT PROJECTS
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SUPPLY CHAIN MANAGEMENT

• 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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SUPPLY CHAIN MANAGEMENT

• 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 MANAGEMENT

• Supply Chain Umbrella
• Purchasing
• Quality control
• Demand and supply planning
• Material or inventory control
• Order processing
• Production planning, scheduling and control
• Warehousing / distribution
• Customer service

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Let us sum Up

• 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.

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