Information is a key factor in supply chain driver It serves as a glue that allows other supply chain drivers to work

together with the goal of creating an integrated supply chain. Supply chain process executes transactions and managers make decisions. Managers must understand how information is gathered and analysed

IT comes into play IT consists of hardware, software and people throughout a supply chain that gather, analyse and execute upon information IT serves as a eye and ear of supply chain management

Characteristics to be useful when making supply chain decisions. Information must be accurate Information must be accessible in a timely manner Information must be of right kind. Information must be shared.

Information is used when making a wide variety of decisions about each of the supply chain drivers Facility-location ,capacity, schedule of facility required, demand, exchange rate, tax Inventory- cost of carrying inventory, cost of stock out, cost of ordering Transportation- Network, routing, modes, shipment Sourcing- product margin,prices,quality,leadtimes Pricing and revenue mgmt- pricing policies, willingness to pay, supply issue, lead times, availability

Supplier Relationship Management(SRM)

Internal Supply Chain Management(ISCM)

Customer Relationship Management (CRM)

Transaction Management Foundation(TMF) It includes basic ERP systems, and other software

SRM
Design collaboration Source Negotiate Buy Supply collaboration

ICSM
Strategic planning Demand planning Supply planning Fulfillment Field service

CRM
Market Sell Call centre Order management

Transaction Management Foundation(TMF)

Strategic planning- focuses on network designing Demand planning- demand forecasting,dd mgmt tool Supply planning- Factory planning and inventory planning capabilities are typically provided by supply planning software Fulfillment- execution through transportation Field service-focus on setting inventory level for spare parts as well as scheduling service calls

CRM takes place between between an enterprise and its customers downstream. Generate customer demand and facilitate transmission and tracking of orders

Marketing Sell Order management-ERP Call/service centre

CRM process must be integrated with internal operations to optimize performance

Conventional approach to CRM

Customer contact by telephone/mail/inperson Personal selling After sales services Complaint handling Account management Customer care Customer satisfaction Integration with technology

Web-enabled and integration approach

Customer database Customer information system Electronic point of sale Sales force automation Call centres Systems integration Lifetime value of customer

Web and internet

Understanding and differentiating the customers Development and Customization Interaction and delivery

Understanding needs Differentiate based on customers characteristics ,needs and behaviour

Develop products, services and channels to meet customers need Customize by customer segment
Interact with customers and prospective customers Deliver increased value to customers Acquire customers and prospective customers Retain valuable customers

Acquisition and retention

Benchmarking would refer to quantification of operational performance in supply chains of similar companies Establish internal targets with management process Practices improvement so as to deliver bestin-class results The identification of the right metrics and its measurement is very critical when it is desired to do performance benchmarking

Cost and time efficient Form of faster and defect free deliveries New product configuration Taking lesser time Giving higher service level Price which gives best value to the customer

The supply chain council suggested integrated supply chain metrics namely: A) Cycle time metrics B) Cost metrics C) Service quality metrics D) Asset metrics

Procurement Days elapsed from the time Cycle manufacturer places an order to his vendor to when he receives it
Production Cycle time Receipt an order from the customer and the completion of the product ready for shipment

India Avg 19 days

Best end class value 1-3 days

10 days

1-3 days

Delivery time
Total cycle time

Shipment leaves the manufacturers facility, to the time it arrives at customers location
Time an order receipt by the company and time it reaches the customers location

5 Days

1-3 days
>7 days 0, some paid advance

35 days

Cash to cash Number of days between for raw time materials and getting paid for products

33 days

Total supply chain cost is around 6.5% of the sales but the global benchmarking is 1-2% of sales.
Metric Total supply chain cost(TSCC)(% of sales) Inbound transportation(% of TSCC) Outbound transportation(% of TSCC) Warehousing cost(% of TSCC) Inventory carrying cost(% of TSCC) Cost of transit losses Cost of damages Other cost Best in class Value(%) 1-2 11-20 21-30 6-10 1-3 1-3 1-3

These metrics refer to shipment delivery in terms of time, quantity and quality
Percent on time delivery % times of goods are delivered to Global the customer in promised time, Standard in right quality and quality 100% Indian industry avg-97-99% %supplies of the value of quantity ordered that are delivered as per schedule(98-99%) 98-99 , 1-2% lots are rejected 100%

Percent supplies delivered as per scheduled quantity Percent supplied delivered with right quality

100%

Average inventory holding period

India Avg
Raw material WIP Finished goods Velocity of goods( speed of replenishment) Larger no time indicates better WC resulting in increase in prifitability or ROI 15-30 days 3-6 days 4-30 days(Avg 17)

Global Std
1-3 days

Inventory Turnver

18 times(consumer goods industry)

30 times