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Supply Chain Management
SUPPLY CHAIN
MANAGEMENT
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What is Supply Chain Management?
As supply chains Management become
challenging function for a company,
effectiveness of supply chain
department is not only a key
differentiator across industries, but also
broadly impact a company’s cost
structure, customer retention working
capital, profit and operational
Excellency. Despite having advanced
technological platforms developed in
past 2 decade and large amounts of big
data, most companies are challenged by
average performance of supply chain
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What is Order Management?
Your sales people have done a
great job and now is the time to
support them by fulfilling the
orders well in time. Technology is
a great help today as most of our
work is organized and put in a
predefined process flow. Your
basic information, if put correctly,
on order will help smooth
function and delivery of your
customer needs. Most of our
payments to vendors are delayed
due to discrepancy in Purchase
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What we do in Order
Management?
Let us get all the required
information from your
vendors and procurement
team while setup a Purchase
Order so that your inventory
is updated correctly and your
accounting team get the
updated PO when receiving
vendor invoices.
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What is Goods Receiving process?
Are your procurement staff
working hard getting the
inventory updated in your
accounting ERP? Does your
Accounts Payable team chase
your sales / procurement team for
Goods Receiving not showing on
the Purchase Orders? Most of our
payments are delayed majorly
due to delay in Goods Receiving.
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What we do in Goods
Receiving?
After the service completion
or the quality check of the
goods received our team can
update goods receiving in the
accounting ERP system
against the corresponding
Purchase Order.
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What is Stock Reconciliation?
Do you use POS? Are you managing your
inventories, sales information
electronically? Do you struggle reconciling
reports of sales and stock register? Let us
define simple ways to get reconciliation in
minutes.
What we do in Stock Reconciliation?
We take the reports in the required format,
design new formats if required and use
different technological tools to get a real
time / periodic reconciliation and make it
available for you for better decision
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India’s supply chain network – Growing regional integration, investor confidence
The supply chain industry has a cascading impact on almost all aspects of trade and retail.
As India opens its economy further, financing the improvement of this linkage sector is
vital for business growth.
A modernized and efficient supply chain improves the ease of doing business, scales down
the costs of manufacturing, and accelerates rural and urban consumption growth due to
better market access.
Until recently, infrastructural woes had a crippling effect on the supply chain network in
India. Suppliers, manufacturers, and retailers had to factor in delays in the movement of
goods between state borders due to complicated taxes and transport lines running over
capacity, increasing overall costs.
With the new reforms coming into play, a gradual resolution of these problems seems
imminent.
In the last three years, India’s supply chain sector has seen an influx of capital, both
foreign and domestic. Firms like Future Supply Solutions have raised almost US$2 billion
(Rs 130 billion) in investments from domestic and foreign channels.
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First movers to benefit from supply chain industry reforms
The time is right for first movers to benefit from the changing landscape of India’s
supply chain ecosystem.
With greater participation from the private sector and increased government spending,
opportunities for foreign investors in the country’s supply chain are on the up. This
includes the steady transformation of India’s digital infrastructure as well, with federal
campaigns like Digital India working to promote the growth of technology startups and
enterprises.
For SME’s, possibilities in third party logistics abound, whether in the transportation of
goods, new technology-based improvements to make operations lean, or in warehouse
management.
Multinational firms in construction and related industries can also take advantage of
investment opportunities in India’s ports, roads, and warehouse development.
Foreign firms with little knowledge of the Indian landscape can benefit from
partnerships with established Indian firms in the sector to make it easier to do business
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Key trends in supply chain management in
India
1. E-commerce:- Over the last 12-18 months, e-
commerce is driving the increasing popularity of
third-party logistics (3PL) and last-mile delivery
vendors. Such vendors provide heavily capital- and
labour-intensive services such as transportation,
warehousing, inventory management, freight
forwarding, cross-docking and packaging.
2. Operational efficiency:- Companies are
constantly facing pressure to manage their bottom
lines across the business. Sourcing and procurement
activities can be streamlined across different
regions with better integration. This, in turn, gives
companies increased negotiating power and better
economies of scale to drive operational efficiency.
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3. Emergence of 'Lean Supply Chain' concept
The concept of a “Lean Supply Chain” has
gained popularity in recent years. It’s no
longer about just customer management or
economies of scale but also how agile a
company’s supply chain is and its ability to
adapt to internal and external factors.
To develop a lean supply chain, companies are
looking at adapting technological
improvements across the entire organisation.
But the success of a lean supply chain is
heavily dependant on the ability of its human
capital to make quick decisions.
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Two Faces of Supply Chain ManagementSCM has two major faces to it.
The first can be called loosely as the back-end and comprises the
physical building blocks such as the supply facilities, production facilities,
warehouses, distributors, retailers, and logistics facilities. The back-end
essentially involves production, assembly, and physical movement. Major
decisions here include:
1. Procurement (supplier selection, optimal procurement policies,
etc.)
2. Manufacturing (plant location, product line selection, capacity
planning, production scheduling, etc.)
3. Distribution (warehouse location, customer allocation, demand
forecasting, inventory management, etc.)
4. Logistics (selection of logistics mode, selection of ports, direct
delivery, vehicle scheduling, etc.)
5. Global Decisions (product and process selection, planning under
uncertainty, real-time monitoring and control, integrated scheduling)
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Diverse Discipline
Like anything else, SCM didn’t show up fully
formed but was influenced by other
disciplines. It is made up of bits and pieces of
industrial engineering, systems engineering,
logistics management, operations
management, procurement, information
technology and marketing.
The field is anything but static, with
developments continuing to this day,
including taking into consideration issues of
sustainability, as well as other ethical
concerns, and incorporating risk
management. As markets globalize, supply
chain management grows in complexity and
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The Process of Supply Chain Management
To get the most out of SCM requires looking at the big picture in terms of an
organization’s management. While ideally there should be a continuous back
and forth of information, it is more realistic to think of this flow as a process.
That process includes the following:
1. Customer-Relations Management: There must be a managed approach to
interacting with the company’s current and potential customers in order to
understand what they want and expect.
2. Customer-Service Management: This differs from customer-relations
management in that it focuses on the interactions between the customer
and the company instead of a more strategic management process. It
helps facilitate a mutually satisfying goal for both customer and the
company, as well as eliciting customer feedback and maintaining
communications between the two parties, so there are positive feelings
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3. Demand-Management Style: A methodology to forecast, plan for and manage the demand
for products and services. This can address both macro-levels, as in global economics, but
also micro-levels within the company.
4. Order Fulfillment: The process that encompasses everything from point-of-sale interest to
delivery of that product or service to the customer. It is the way a company responds to
customer orders.
5. Manufacturing-Flow Management: Manufacturing is a process, and supplies feed that
process based on historic data surrounding how it has been done and what was needed
historically. But that process needs flexibility as quantities change. Therefore, one must
manage all activities related to planning, scheduling and managing the manufacturing
process.
6. Returns Management: There will always be returns and the better they’re managed, the
more productive and competitive the SCM process. Make sure information is visible to
capture early in the process. Then control the flow of product, including receipts and
reconciliation, noting if there are any quality issues.
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Why is Supply Chain Management Important?
Supply chain management is a hefty task with hefty rewards. We outline a
few ways that well-executed SCM can benefit your business or project.
Keeps Businesses Competitive - The simple answer to why SCM is important
to any business is that it helps them remain competitive. Markets change,
and as the marketplace becomes increasingly global, the need for better
efficiency is crucial. As management goals change, too, there is a move away
from the past traditional relationships to incorporate and organize all
business processes throughout a value chain of multiple companies.
Paces with Technology - Advances in information technology and the
increasing use of outsourcing has also added to the expansion of the supply
chain. This has created a need for a more collaborative network, so different
enterprises can work harmoniously together.
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THANK YOU
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