Amity School Of Business

WEEKLY PROGRESS REPORT - 1

24th January 2020
Enrollment Number : A3906418446
Program : BBA ( General )
Students Name :Riddhi Jain
Faculty Guide’s Name : DR. Hem Shweta Rathore
TITLE : Supply chain management of Indian pharmaceutical:- Cipla
What is supply chain management?
Supply chain management is the management of the flow of goods and services and includes
all processes that transform raw materials into final products. It involves the active
streamlining of a business's supply-side activities to maximize customer value and gain a
competitive advantage in the marketplace.

SCM represents an effort by suppliers to develop and implement supply chains that are as
efficient and economical as possible. Supply chains cover everything from production to
product development to the information systems needed to direct these undertakings.

How supply chain management works?

Typically, SCM attempts to centrally control or link the production, shipment, and
distribution of a product. By managing the supply chain, companies are able to cut excess
costs and deliver products to the consumer faster. This is done by keeping tighter control of
internal inventories, internal production, distribution, sales, and the inventories of company
vendors.

SCM is based on the idea that nearly every product that comes to market results from the
efforts of various organizations that make up a supply chain. Although supply chains have
existed for ages, most companies have only recently paid attention to them as a value-add to
their operations.

In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain
which consists of five parts:

The plan or strategy

The source (of raw materials or services)
Manufacturing (focused on productivity and efficiency)
Delivery and logistics
The return system (for defective or unwanted products)
The supply chain manager tries to minimize shortages and keep costs down. The job is not
only about logistics and purchasing inventory.

Importance of supply chain management :-

Organizations increasingly find that they must rely on effective supply chains, or networks, to
compete in the global market and networked economy. In Peter Drucker's (1998) new
management paradigms, this concept of business relationships extends beyond traditional
enterprise boundaries and seeks to organize entire business processes throughout a value
chain of multiple companies.
In recent decades, globalization, outsourcing, and information technology have enabled many
organizations, such as Dell and Hewlett Packard, to successfully operate collaborative supply
networks in which each specialized business partner focuses on only a few key strategic
activities. This inter-organisational supply network can be acknowledged as a new form of
organisation. However, with the complicated interactions among the players, the network
structure fits neither "market" nor "hierarchy" categories. It is not clear what kind of
performance impacts different supply-network structures could have on firms, and little is
known about the coordination conditions and trade-offs that may exist among the players.
From a systems perspective, a complex network structure can be decomposed into individual
component firms. Traditionally, companies in a supply network concentrate on the inputs and
outputs of the processes, with little concern for the internal management working of other
individual players. Therefore, the choice of an internal management control structure is
known to impact local firm performance.