supply chain management - copy

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Supply ChainManagement

Group 4

Hatgine KishorKetan Singh

Sumit Dhiman

Arun Sharma


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Indian Retail- In a Nut Shell

Post 1991 period, the consumer awareness has increased.

Convenience in food shopping and consumption

(rising income levels)

Present Position-

USD 300 billion market

Organized retail accounts for merely 2% to 3%

Contributes 20% to Indias GDP

Expected to grow @ 25-30 % YOY


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Supply Chain Management

A supply chain is a network of facilities and distributionoptions that performs the functions of procurement ofmaterials, transformation of these materials into intermediate

and finished products, and the distribution of these finishedproducts to customers.

Helps Businesses to improve efficiency and reduce costs.


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Namdharis Fresh (NF)

Overview -

A unit of Namdhari's Seeds started in 2000 at Bangalore.

Market leader in Indian Vegetable Seed Industry and a

leading Exporter.

After the success in seed world, Namdhari's have diversifiedinto the production, distribution and export of fresh Fruits &

Vegetables(F&V) under the name "Namdhari's Fresh".

Turnover of Rs 65 cores in 2007

14 stores across Bangalore.

Central Ware/pack House in Bidadi.


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Functions of Supply Chain

Planning:

Ability to make accurate forecasts regarding theirdemands in near future

Sourcing:

Process that helps companies analyze how theypurchase products and services to lower costs & improve profits

Making:

Processes that transform a product into a finished statei.e. conversion of procured goods into usable form or saleableform.

Delivering & Returning:

Process of delivering right quantity at right place at righttime & returning the damaged goods back to warehouse fordumping


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SC under own production

Cleaning, Sorting, Grading, Packingand Labeling


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SC under contract farming

Cleaning, Sorting, Grading, Packingand Labeling


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Strategies for Supply ChainManagement

A supply chain is a network of facilities and distribution optionsthat performs the functions of procurement of materials,transformation of these materials into intermediate andfinished products.

There are four major decision areas in supply chain management

1) Location

The geographic placement of production facilities, stocking points,and sourcing points

Number, and location of these are determined, then other possiblepaths

2) Production

What products to produce, and which plants to produce them in,allocation of suppliers to plants

Decisions assume the existence of the facilities


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Strategiescontd.

3) Inventory

Control right quantity of the fruits and vegetables all the time inwarehouses as well as in the stores

High and low demand of the goods according the time frameand various seasons

Keep records of gain and lose

7) Transportation (distribution)

Minimize the transportation cost

Closely linked to the inventory decisions,

Geographic location play vital roles in such decisions


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Control systemsControl

The regulation of organizational activities so that sometargeted element of performance remains within acceptablelimits.

Provides organizations with indications of how well they areperforming in relation to their goals.

Provides a mechanism for adjusting performance to keep

organizations moving in the right direction.Areas of Control

Physical resources

- inventory management, quality control, and equipment control.

Human resources

- selection and placement, training and development, performance

appraisal and compensation.Information resources

- sales and marketing forecasts, environmental analysis, publicrelations, production scheduling.

Financial resources

- managing capital funds and cash flow, collection and payment ofdebts.


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Control Systems in SupplyChain Mana ement

Finance functions in supply chain management:

Forecast and keep tab on sales Re-examine your forecast Estimate transportation cost Sundry Expenses Communication expenses Allocation of funds Proper sales reports

The main areas of Financial control in Supply Chain

Management is the management of funds and cash flow.

It includes evaluating the financial performance andcomparing it with the budgeted figures. Deviations will befound out and measures will be taken to control thesedeviations.


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Human resource functions in Supply Chain Management :

Decide the work force requirement

Identify strength and weakness of each sub-ordinate

Divide them into teams

Create competitive atmosphere

Create team leader

Resolve conflicts

Motivate sub-ordinates Evaluate performance

Delegating work

Rewarding good performance

Communicating plans

Controlling the workforce will require activities such asmotivating the employees to increase their efficiency and helpthem achieve their targets. It will also include measuring theirperformance against the targets set for them and rewardingthem based on the same.


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Marketing functions in Supply Chain Management are:

Source producers

Negotiate with different suppliers to get the best deal

Keep changes in demand updated with the suppliers

Discounted offer at festive seasons

Special offer for regular customers

Promoting the products Put hoardings

Advertisements in Newspapers, Magazines and Television

Watch on competitors moves

Control over the marketing functions will include ensuringadequate advertising whenever required, for example toadvertise at the right time during the festive seasons.


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Control over Physical Resources

The main area of control over Physical resources includes theInventory management and quality control.

Regular audits will be done to keep a check on the qualitymaintenance in the warehouses and the store logistics.

These audits will measure the validity of the quality check

processes time to time with respect to the standards thathave been set.


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THANK YOU

supply chain management - copy

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