BOOK REVIEW ON STRATEGIC SUPPLY CHAIN MANAGEMENT BY- SABYASACHI CHATTERJEE

Presented By: Anurag Mishra 113 (B)

CONTENTS
Section 1 an introduction to SCM.

Section 2 cases and experiences.

SECTION 1 CHAPTER 1 SCM STRATEGIC PERSPECTIVES.

Definition of supply chain management As per definition SCM is the management of a network of all business processes and activities involving procurement of raw materials, manufacturing and distribution management of Finished Goods. SCM is also called the art of management of providing the Right Product, At the Right Time, Right Place and at the Right Cost to the Customer. Main objective is to gain competitive advantage over competitors.

 Strategic aspects of SCM include bullwhip effect, SRM, electronic partnering and CRM. Companies like Asian Paints, Maruti, L&T etc use this strategy to be ahead of competitors. Bullwhip Effect The bullwhip effect can be explained as an occurrence detected by the supply chain where orders sent to the manufacturer and supplier create larger variance then the sales to the end customer. This variance can interrupt the smoothness of the supply chain process as each link in the supply chain will over or underestimate the product demand resulting in exaggerated fluctuations.

 Electronic Partnering - author says that electronic partnerships are IT enabled inter organisational (B2B) relationship for pursuing mutually beneficial business interests. It extends from transactional support to collaboration & coordination between the supply chain partners. Metaljunction is a joint venture between Tata steel and SAIL electronic partnering concept is used.

 Supplier Relationship Management is a systematic approach to strategic sourcing. Advantages are It helps to reduce cost of production. It helps in quick launch of new products. It provides proper synchronization between manufacturer and supplier.

 Customer Retention Management is aimed at retaining the customer. The entire process is aimed at identifying the customer needs, segment them according to the needs and finally satisfying those needs through market offerings. CRM points out the mismatch between supply-demand so that corrective measures can be taken.

CHAPTER 2
A survey was conducted in 1999-2003 to figure out the advantage of using SCM strategy in different organisation to understand how implementing it differs from following the other company who implemented SCM. 307 companies have participated in the survey. Companies from North America, Europe, Asia Pacific, and Latin America have participated.

The respondents represent process, service and manufacturing sectors.

CHAPTER 3 ACHIEVING COMPETITIVE ADVANTAGE THROUGH LOGISTICS

CHAPTER 4 COST EFFECTIVE SUPPLY CHAINS

Due to industrial revolution, manufacturers face complex challenges such as fluctuating market conditions, aggressive competition etc. They must continue to bring new, improved and differentiated products cost effectively and within time frames. So most companies focus on Standardization example John Deere standardizing steel. Commonality example Mercedes Integrated design tools IBM

CHAPTER 5 LISTEN TO SUPPLIERS

when companies talk, their suppliers listen.

Working together pays off

By engaging top suppliers you can learn how your peers approach the supply market, do they involve supplier in decision making process etc. Reduce time to market for new products Toyota company When suppliers take over lower value activities like order processing, forecast distribution, companies can focus on strategic issues.

CHAPTER 6 ROLE OF ERP IN IMPROVING SCM

Enterprise Resource Planning - systems integrate internal and external management of information across an entire organizationembracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. It facilities availability of information in right format, at right time to the right person fast and in easy way. Example like Bharat Petroleum, M&M etc.

CHAPTER 7 SUPPLY CHAIN INVENTORY PLANNING THROUGH SIMULATION

Simulation is a technique to mimic the operations of various kinds of real world facilities or processes. A fundamental problem in SMC is performance evaluation and ways to evaluate are Analytical model - The use of analytical methods is generally impractical because mathematical models for realistic cases are usually too complex to be solved. Obviously physical experimentation suffers from technical- and cost-related limitations. Simulation facilitates the design of the supply chain and, as well, evaluation of its management prior to implementation.

 Steps of simulation process are Definition of the problem. Formulation of the model. Validation of the model. Generation of results. Analysis of results. Decision making based on analysis.

Commercial simulation system used is Arena 5.0. It includes graphical tools for building models.

CHAPTER 8 HOW EFFICIENT IS YOUR REVERSE SUPPLY CHAIN

Reserve supply chain process of planning, implementing and controlling the efficient, cost effective flow of raw materials, in process inventory, finished goods and related information from point of consumption to the point of origin for the purpose of recapturing value.

In simple terms it refers to series of activities required to retrieve a used product from customer and either dispose it or reuse it.
Waste are treated in following order Reuse Recycling Remanufacturing disposal

CHAPTER 10 E-SUPPLY CHAIN

Electronic Supply Chain is an optimization of business processes and business value in every corner of the companyright from suppliers to customers. It uses e-business concepts and Web-technology to manage both upstream and downstream function. This strategic approach unites all the steps in the business cycle, from initial product design and procurement of raw materials, through shipping, distribution, and warehousing. right up to the point when the finished product is delivered to the customer. Internet has brought companies to a virtual marketplace called as digital economy. The use of internet in business to business transaction is called as B2B e-commerce.

 It refers to flow to information among the company and its supply chain partners.

IT in general and e-business in particular has helped businesses capture, process and deliver relevant information at the right time, in right form and right place.
E-business aims at linking the customers and suppliers throughout the world while they exchange the relevant information almost instantly. Ford motor implemented e-steel supply network.

SECTION 2 CASE 1
FedEx the cutting edge Case illustrates strategic approach which FedEx adopted in order to enhance their supply chain efficiency. It has transformed both customer and business with higher speed, reliability, application of information technology and streamline logistics networks.

Company introduced Bar coding tracking services.

Developed simple website so that customer can easily access it. It deployed the concepts of just in time and build to order.

CASE 2 IMPROVING BUSINESS PERFORMANCE THROUGH SCM

This case on Berri Ltd. which is a largest fruit juice manufacturer in Australia. It has market in 20 countries and supplies juices all around the world.
It faced problem in supply of its raw material and finished goods in and across the country due to poor communication and which resulted in poor logistics management. It implemented IT in his company and got through the problem of poor communication and supply chain management.

CASE 3 STUDY ON AGRIBUSINESS SUPPLY CHAINS AND INTERVENTION OF E-COMMERCE IN INDIAN AGRIBUSINESS
Concept of SCM was introduced in Europe and the USA.

Then this concept was used by the developing countries like India, China etc.
Problems in agribusiness are

Large number of buyers and sellers which forms small and scattered market.
It leads to increase in cost.

Improper flow of information.

Farmers are at risk.

 E-choupal is a way to deliver real time information and customized knowledge in the local language to the farmers and small landlords to improve their decision making ability.
Benefits of E-choupal are Real time information about prices. Information regarding weather, agriculture related news.

Knowledge about crops, fertilizers.

M.P, A.P, karnataka use this concept.

KRAFT FOODS: MANAGING LOGISTICS CHALLENGES IN CHINA

Kraft foods inc. Entered china in mid 1980 with just 2 stores.

Till 1990 it grew its network by opening many small stores around the corner in the country.
It saw rapid build-up of customer base but couldn't sustain it.

The problem was

Improper logistics function. Increase in cost.

Wastage of raw materials and finished products.

So it hired small sized logistics and used IT in SCM to be ahead of competitors.

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