bs 2006~08 rm scm&w master with abc

8/14/2019 Bs 2006~08 Rm Scm&w Master With ABC

1/21

Supply ChainSupply ChainManagementManagementandand

WarehousingWarehousingM Campus 24 th September, 2007

odule 01 : Understanding Logistics and Supply Chaiodule 01 : Understanding Logistics and Supply Chai

Balaram Swamy


2/21

Major Chauncey B Baker That branch of the art of war pertaining tothe movement and supply of armies is called Logistics

Understanding Logistics andSupply Chain

eference

Logistics : from Greek word Logisticos The science of computing and calculating

2, Pg 6~8; 4, Pg 14~15 & 19~20,

1905

E v o l u t

i o n , C

o n f u s i o n s ,

J a r g o n a n d

E v o l u t

i o n , C

o n f u s i o n s ,

J a r g o n a n d

D e f

i n i t i o n s

D e f

i n i t i o n s

Agrawal and Rahul Atlekar, Web

Balaram Swamy


3/21

Supplier Customer

Material

Money

Information

Definition : Bi-directional flow of Material, Money andInformation


eference

D e f

i n i t i o n

t h a t w

e w

i l l u s e

D e f

i n i t i o n

t h a t w

e w

i l l u s e

Definitions are an answer to X th Why? Ref to B-school

learning to living the life

1, Pg 5~12

Stated otherwise, do not look at a definition in a context , itwill limit understandingFirst, understanding-and-feeling and then, knowing it, is -definingNext is, knowing it through its context(s) i.e. knowing it

more fully Following is the contexts in which we will understandLogistics and Supply ChainVarious Components and their role in the Strategic Thinking of the

CompanyDesigning the Network viz. Warehouse Location and Transport

Various Processes, Infrastructure, Manpower and Information Needs

Managing a Logistics and Supply Chain Infrastructure

Balaram Swamy


4/21

Situational ContextsWorkplace Logistics


eference

S i t u a t i o n a l

C o n

t e x t s

S i t u a t i o n a l C o n

t e x t s

1, Pg 6~8

within a single workstation, viz. stocking and replenishing thedisplay-rack stock or promo-zone stock in a store, ergonomicsin a assembly lineFacility Logisticsbetween workstations, viz. material handling inside a facilitye.g. warehouse to floor of store, floor of the store to cashcounter and to the exist, exit to the car parkCorporate Logisticsbetween the facilities of a company or that of the companyand its supplier(s) or customer(s) or that of supplierssuppliers or customers customersGlobal Logistics

same as Corporate Logistics but includes between countries;globalisation and increased use of web sites for buying andselling has increased the incidence of this complex activityviz. multiple handing-over, players, languages, documents,currencies, time zones and cultures of a international businessSupply Chain Logistics

Inter and intra workstation, facility and corporate logisticsBalaram Swamy


5/21


6/21

LSC Activities


eference

5 - P o i n t

A c t i v i t i e s

5 - P o i n t

A c t i v i t i e s

1, Pg 12~15

CRP

IP&M

SSPPDS

WMS

LogisticsLogisticsand Supplyand Supply

ChainChain

CustomerResponse Policy

Inventory Planningand Management

Supplier ServicePolicy

Physical

DistributionSystem

WarehouseManagement andSystems

5-Point Interdependent Activities5-Point Interdependent Activities

Balaram Swamy


7/21

LSC Activities : Framework


eference

5 - P o i n t

A c t i v i t i e s

5 - P o i n t

A c t i v i t i e s

1, Pg 16

OrganisationDevelopmentProcess Design

Goals, Measuresand Performance

Parametrs

InformationSystem

Requirements

Logistics andLogistics andSupply ChainSupply Chain

Common toCommon to

all 5-Pointall 5-PointActivitiesActivities

Customer Response

InventoryPlanning andManagemen

t

Supply Transportation Warehousing

5-Point Interdependent Activities5-Point Interdependent Activities

Balaram Swamy


8/21

LSC Activity : Analysis Framework


eference

S y s t e m a t i c

A n a

l y s i s o f 5 - P

o i n t

A c t

i v i t i e s

S y s t e m a t i c

A n a

l y s i s o f 5

- P o i n t

A c t

i v i t i e s

1, Pg 18~19

InvestigateInvestigate

ImplementImplementInnovateInnovate

InvestigateInvestigateProfileMeasureBenchmark

InnovateInnovateSimplifyOptimiseUse BestPractice

ImplementImplement

SystemizeAutomateHumanize

Each LSC Activity need be analysed using this tool

Balaram Swamy


9/21


eference

E x a m p

l e o f

G a p

A n a

l y s i s

E x a m p

l e o f

G a p

A n a

l y s i s

1, Pg 19

3.5

3.0

3.0

3.5

3.23.8

3.5

3.5

3.0

4.04.0

4.0

5.0

4.0

5.5

5.0

5.0

4.0

0

1

2

3

4

5

6Perf Para

Process

Info Sys

Org Dev

CSLIP&M

SSL

PDS

WMS

Actual Best Practices

4.05.05.05.54.05.04.04.04.0Best Practices

3.03.53.53.83.23.53.03.03.5Actual

WMSPDSSSLIP&MCSLOrgDev

InfoSysProces

Perf.Para

Balaram Swamy


10/21

1. Guidelines for using Case Studies in Supply Chain Management isgiven for classroom discussion and/or presented in the classroom

Assignment - 01

eference

S u p p

l y C h a i n

M a n a g e m e n

t a n

d

S u p p

l y C h a i n

M a n a g e m e n

t a n

d

W a r e h o u s

i n g

W a r e h o u s

i n g

Following Cases are given for presentation and discussion on24th September, 200724th September, 2007

1. In addition to participating in the above case, the followingstudents will present an additional case; New Global Links in AutoSupply Chain

Gateway : A direct Sales Manufacturer ThunderboltsZara : Apparel Manufacturing and Retail PinnacleW W Grainger and McMaster-Carr : MRO Suppliers Achievers

Toyota : A Global auto manufacturer Vikings

Amazon. COM : An e-business Saptarishi

Namita Bhuyan

DharmendraKumarXXXXXXXXX

TXXXXXXXXXXXXXXXX

XXXXXXXXXXX

Namita Bhuyan

DharmendraKumarXXXXXXXXX

TXXXXXXXXXXXXXXXX

XXXXXXXXXXX

PGPRM; 2006~08 Batch Balaram Swamy


11/21

1. Frazelle, Edward ; Supply Chain Strategy; 2004 edition; Tata McGraw-HillPub. Co. Ltd.

References

eference

S u p p

l y C h a i n

M a n a g e m e n

t a n

d

S u p p

l y C h a i n

M a n a g e m e n

t a n

d

W a r e h o u s

i n g

W a r e h o u s

i n g

PGPRM; 2006~08 Batch

1. Agrawal, D K; Textbook of Logistics and Supply Chain Management; 2003

edition; Macmillan India Ltd. Chopra Sunil and Meindl Peter; Supply Chain Management Strategy,Planning and Operation; 3 rd edition; Prentice Hall of India Pvt. Ltd.

1. Mohanty R P and Deshmukh S G; Supply Chain Management Theoriesand Practices; 2005 edition; Biztantra

1. Rahul Atlekar Mohanty R P and Deshmukh S G; Supply ChainManagement Theories and Practices; 2005 edition; Biztantra

1. Sople Rahul Atlekar Mohanty R P and Deshmukh S G; Supply ChainManagement Theories and Practices; 2005 edition; Biztantra

1. Kaminski Sople Rahul Atlekar Mohanty R P and Deshmukh S G; SupplyChain Management Theories and Practices; 2005 edition; Biztantra

Balaram Swamy


12/21

Prepared for Classroom Discussions by

eferencePGPRM; 2006~08 Batch

Prof. Balaram Swamy JB. Tech (IIT, Kharagpur) and PGDM (IIM Calcutta, Joka)

Asian School of BusinessManagementCity Office :

# 8, Sai Anandam Complex, Patia Square, Bhubaneswar: 751 024 Phone : 91 674 274 4881,4882, 3154 Fax : 91 674 274 4883

Campus : Shiksha Vihar, Baranga-Khurda Road,

Chandaka, Bhubaneswar : 754 005 Phone :

91 674 211 1204, 1207, 1208 Fax : 91 674 2111205, 1206

Website : www.a sbm.ac.ine-mail : [email protected] [email protected] Mobile : 91 99380 68979
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


13/21

Thank YouThank You

M Campus 24 th September, 2007 Balaram Swamy


14/21

Supply ChainSupply ChainManagementManagementandand

WarehousingWarehousingM Campus 24 th September, 2007

Module 02 : Customer ResponseModule 02 : Customer Response


15/21

agreement between logistics organisation and its ExternalExternal andInternal CustomerInternal Customer

Customer Response

eference

75% of the reasons that customers leave a company has nothingto do with the product

1, Pg 70~71, Fortune One World Distribution

98% of dissatisfied customers do not complain, they just leave

H i d d e n

C o s

t a n

d i t s

H i d d e n

C o s t a n

d i t s

I m p o r t a n c e

I m p o r t a n c e

85% of dissatisfied customers tell 9 people; 13% tell 20 people; asatisfied customer tell 5In the next 6 years, 80% of your customers will leave, 65% due tosomething you did

Therefore, Customer Response StrategyCustomer Response Strategy is very important ithelps in arriving at an

agreement on the Customer Service PolicyCustomer Service Policy at a Total LogisticsTotal LogisticsCostCost

Business

Strategy

Custo

merResponseStrategy

ExternalEnvironment

InternalAnalysis

ExternalCus tomer

InternalCustomer

CustomerResponsePolicy

Balaram Swamy


16/21

Understanding Customer Service

In Retail Strategy, we appreciated that the Customer Serviceis one of the major components which classifies the RetailBusiness in various Retail Formats

Customer Response

eference

A W i d e r

P e r s p e c

t i v e

A W i d e r

P e r s p e c

t i v e

x, Pg xx

Customer Service arising out of

Service-to-the-Customer (during and post-purchase),Merchandise (Inventory Management)

and, Inbound-OutboundLogistics (Porters Generic Value Chain Analysis for SCA)

are the subject of LSC Domain

Balaram Swamy

We appreciated that, the cost of Customer Service is a partof Value Pack Offering to the customer in the Retail Business

We also understood that, Merchandise both Variety and

Assortment, are integral part of the Value Pack andappreciated that, the cost is factored into the Price

Here, we will understanding Customer Service as givenbelow:Various Feature and Components of Customer Service

Customer Service Measures the Gap Analysis


17/21

Understanding to Defining Customer Service

A strategic process of Cost-Efficient, Value-Added Benefitprovided to External Customers so as to exploit this in Sales andMarketing Process

Customer Response

eference

D e f

i n i t i o n a n

d F e a t u r e s

D e f

i n i t i o n a n

d F e a t u r e s

2, Pg 83 : Pg 80, Ashok Leyland Caselet

Always ensures a Trade-off between Cost and Service

Balaram Swamy

A Strategic Process to provide Value-Added Services to theCustomers

Features of Customer Service

Keeps the Customer always, Happy and Loyal

Brings in Harmonious Relationships between Supply ChainMembersStarts, generally with Order Entry and ends with Delivery of Goods to the CustomerBrings in Competitive Advantage

Reflects Corporate Vision

More often, this has become a source of SustainedCompetitive Advantage for some of the successful

companies


18/21

A Mature Customer Service Policy - CSPCSP is stated, Quantified and Segmented by Customer and Item

Categories

Customer Response

eference

C u s

t o m

e r S e r v

i c e

P o l i c y

C u s

t o m

e r S e r v

i c e

P o l i c y

1, Pg 78~xx ; 2, Pg 87 Balaram Swamy

Refer to the Caselet : 2, Pg 99; The Financial Express, 2 nd August 1999J K Tyres Treads a New Measure for Winning Dealer

Loyalty The Company is sharing its Sales Policyfor 1999~2000 with its Dealers in writing

Statement of CSP

Sales Activity Profile - by Customer (SAP-C)

CSP is in measurable Quantified terms and are Segmented byCustomer-Item Cat

Sales Activity Profile - by Item (SAP-I)

Sales Activity Profile - by Customer-Item (SAP-CI)

Watch the use of Investigate-Innovate-

Implement framework in the following twoslides


InnovateInnovateSimplifyOptimiseUse BestPracticeImplementImplement



ImplemeImplementntInnovateInnovate


19/21

Sales Activity Profile by Customer (SAP-C)ABC Category of Customers by Sales or Profits

Customer Activity Profiling

eference

S A P - C S A P - C

1, Pg 73~76

Typically 5% of customers normally account for 80% of salesor profit; 15% of customers for 15% and, balance 80% of customers account for 5% of sales or profit This helps in making differentiated customer policy, eachserving to a segment of customers; hence, cost differentiationand justification is possible

Balaram Swamy


20/21

Sales Activity Profile by Item (SAP-I)ABC Category of Items by Sales or Profits

Customer Activity Profiling

eference

S A P - I a n d

S A P - C I

S A P - I a n d S

A P - C I

1, Pg 73~76

Typically 5% of items normally account for 80% of sales orprofit; 15% of items for 15% and, balance 80% of itemsaccount for 5% of sales or profit

This is similar to ABC-VED Matrix, in Inventory Managementwhere different Service Levels viz. 95% Service Level meansgoing o/f stock for 5% of times when it is needed

Balaram Swamy

Sales Activity Profile by Customer and Item (SAP-CI)

This system of analysis helps to make a DifferentiatedCustomer Policy and derive maximum cost-benefit

Refer to Fig 4.4, 1, Pg 76 : % Sales-Profit across Customer and ItemsCategories

On Item axis, further subdivision over SKUs and, on Customer axis,Store Location wise data from Data-Warehouse helps fix a CustomerService Standard which is optimal


21/21

We will begin with Investigate, Innovate and Implementroute

Customer Response

f

U s i n g

t h e

F r a m e w o r k s

U s i n g

t h e

F r a m e w o r k s

1 P 16 & 18


InnovateInnovateSimplifyOptimiseUse BestPracticeImplementImplement



ImplementImplementInnovateInnovate

and, plan Customer Response (CR) Activities as perLogistics Activity Framework

OrganisationDevelopmentProcess Design

Goals, Measuresand Performance

Parametrs

InformationSystem

Requirements

Logistics andLogistics andSupply ChainSupply Chain

Common toCommon toall 5-Pointall 5-PointActivitiesActivities

Balaram Swamy

bs 2006~08 rm scm&w master with abc

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