Supply Chain Management (SCM)

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SUPPLY CHAIN MANAGEMENT IN INDIA
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SUPPLY CHAIN MANAGEMENT
Supply chain management is a set of approaches
utilized to efficiently integrate suppliers,
manufacturers, warehouses, and stores, so that
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 while satisfying service level
requirements.
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SUPPLY CHAIN MANAGEMENT For an Individual Firm
Warehouse
Transportation
Transportation
Goods from Vendor
Customer
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SUPPLY CHAIN MANAGEMENT The Need
Greater Competitive Advantage Faster and smaller deliveries to intermediate customers
Greater Value to Customers
Introduces the concept of increased Shareholder value
Reduces Lead Time Gap
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SUPPLY CHAIN MANAGEMENT Objectives
BUSINESS GOALS (Co-ordination of Manufacturing and Business Processes) Rapid demand fulfillment Collaborative Supply chain planning and execution CUSTOMER GOALS (Responsiveness and accountability to Customers) Give the customer what they want, how they want and when they want at lowest price
Effective Distribution System
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SUPPLY CHAIN MANAGEMENT India

• ESTIMATES FOR INDIA
• Logistics Spend IN Rs. 2,40,000 crores
  (approx. US 50 Billion)
• Share of GDP . 12-13
• Major Elements are (
  Percentage of Total)
• Transportation 35
• Inventories 25
• Packaging 11
• Handling Warehousing ...... 9
• Others Losses 14

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