Supply Chain

Management

Group 4
Hatgine Kishor
Ketan Singh
Sumit Dhiman
Arun Sharma
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 India’s GDP
• Expected to grow @ 25-30 % YOY

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Supply Chain Management

• A supply chain is a network of facilities and distribution

options that performs the functions of procurement of
materials, transformation of these materials into intermediate
and finished products, and the distribution of these finished
products to customers.

• Helps Businesses to improve efficiency and reduce costs.

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Namdhari’s 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 diversified
into 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 their
demands in near future

• Sourcing:
Process that helps companies analyze how they
purchase products and services to lower costs & improve profits

• Making:
Processes that transform a product into a finished state
i.e. conversion of procured goods into usable form or saleable
form.

• Delivering & Returning:

Process of delivering right quantity at right place at right
time & returning the damaged goods back to warehouse for
dumping

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SC under own production

Cleaning, Sorting, Grading, Packing

and Labeling

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SC under contract farming

Cleaning, Sorting, Grading, Packing

and Labeling

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Strategies for Supply Chain
Management
A supply chain is a network of facilities and distribution options
that performs the functions of procurement of materials,
transformation of these materials into intermediate and
finished 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 possible
paths

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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Strategies… contd.

3) Inventory

• Control right quantity of the fruits and vegetables all the time in
warehouses as well as in the stores
• High and low demand of the goods according the time frame
and 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 systems
Control
The regulation of organizational activities so that some
targeted element of performance remains within acceptable
limits.
Provides organizations with indications of how well they are
performing 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, public
relations, production scheduling.
Financial resources
- managing capital funds and cash flow, collection and payment of
debts.

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Control Systems in Supply
Chain Management
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 and

comparing it with the budgeted figures. Deviations will be
found out and measures will be taken to control these
deviations.

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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 as

motivating the employees to increase their efficiency and help
them achieve their targets. It will also include measuring their
performance against the targets set for them and rewarding
them 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 ensuring

adequate advertising whenever required, for example to
advertise 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 the

Inventory management and quality control.

Regular audits will be done to keep a check on the quality

maintenance 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 that
have been set.

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THANK YOU

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