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Explain what do you mean by Integrated Supply Chain? (10 marks) Ans. INTEGRATED SUPPLY CHAIN 1.

A chain reaches its extent as far as its link stays connected. 2. Its strength depends upon the strength of each link. 3. Similarly, suppliers, manufacturers, retailers and consumers rely on each other as they supply and consume goods and services. 4. The SCM can be defined as follows: The process of planning, organizing and controlling the flow of materials and services from supplier to the end user or customer. This integrated approach incorporated suppliers, supply management, integrated logistics and operations 5. When we manage a supply chain we co-ordinate supply chain management operations and integrated logistics into a seamless pipeline to maintain the continuous flow of products and services. 6. The supply chain management and its components merge into a service function. 7. The comprehensive model integrates many corporate functions i.e. finance and accounting, human resource management, economics and a system into a structure that depends on marketing operations, integrated logistics and supply management. 8. Marketing links the customer, the departmental functions and supply management. 9. Marketing analyses the changing trends, potential market volume, competition prices. 10.Marketing department also sends the information to the other departments that can determine how and when to meet the customer requirements.

11.The departments including supply chain mgmt operations and integrated logistics work to:i. Co-ordinate the outsourcing of materials. ii. Manage bottlenecks and reduce their impact on customers. iii. Co-ordinate the smooth and continuous flow of products and services into, through and out of the firm.
CUSTOMERS

MARKETING

OPERATIONS

FINANCE ACOUNTING ECONOMICS SUPPLY

HUMAN RESOURCE SYSTEM MANAGEMENT

INTEGRATED LOGISTICS

TIER 1

GOODS

SERVICES

CARRIERS

TIER 2

GOODS

SERVICES

CARRIERS

SUPPLY CHAIN MANAGEMENT MODEL

Write a short note on: Value Chain Concept (5M) Ans. VALUE CHAIN: 1. The value chain a term how commonly used internationally encompasses every effort involved in producing and delivery of final product or services from the suppliers, supplies to the customers. 2. Importance of Supply Chain i. In years past, manufacturers were the drivers of the SCmanaging the place at which products were manufactured and distributed. ii. Today customers are calling the shot and manufacturers are scrambling to meet the customer demands for options, styles, features, quick order fulfillment and fast delivery.

SEEDING

GROWN BY GARDENER

YOUNG TREE

PLANTED BY FORESTER

MATURE TREE

FELLED BY LOGS

RAW PAPER
PROCESSED

WOOD PULP

CHIPPED

LOC

PROCESSED
TRANSPOR T

LARGE ROLL OF PAPER

FINISHED

SMALL ROLL OF FINISHED PAPER

CUTTING

SHEETS OF PAPER

TRANSPOR T

RETAILER

TRANSPORT

WHOLESALE

TRANSPORT

PACKER

FINAL CUSTOMERS

3. The upstream activities are divided into tree of suppliers i. A supplier that sends material directly to the operations is first tier supplier. ii. One that sends materials to a first tier supplier is second tier supplier. iii. One that sends materials to the second tier supplier is the third tier supplier. 4. Customers are also divided into trees. i. One that gets o product directly from the operations is a first tier customer. ii. One that gets a product from a first tier customer is a second tier customer. iii. One that gets a product from a second tier customer is a third tier customer.

THIRD TIER SECOND SUPPLIER TIER SUPPLIER

FIRST TIER SUPPLIER

FIRST TIER SECOND TIERTHIRD TIER CUSTOMER CUSTOMER CUSTOMER

ORGANISATION

Figure: Activities In A SC

5. SC has a single product moving through a series of organisations, each of which adds value to the product.

The activities which are related with moving the material inwards in an organisation are called upstream activities and host activities which are related with moving material outwards is called downstream activities.

THIRD SECOND TIER TIER SUPPLIER SUPPLIER

FIRST TIER SUPPLIER

FIRST SECOND TIER TIER CUSTOMER CUSTOMER

THIRD TIER CUSTOMER

MATERIAL SUPPLY COMPONENT MAKERS RETAILERS WHOLE SALES

END USERS

SUB ASSEMBLY PROVIDER

MANUFACTURING