Supply chain management (SCM) – Definition & Concepts

Supply chain management (SCM) – Definition & Concepts. SCM is the management of the relationships and flows between the various activities of operations and processes that produce value in the form of products and services for the consumer.

Supply chain management requires intricate planning and coordination to efficiently move products and services from manufacturing to the hands of customers while minimizing costs, risk, and environmental impact.

• Towards what performance objective is the supply chain driven towards? (Cost/ Speed / Quality / Flexibility / Dependability).
• What factors enhance the company’s competitive advantage? (Order Winners / Order Qualifiers)

Upstream supply chain

The stage of the production process involves searching for and extracting raw materials.

• What input resources or raw materials are needed to produce by the case organisation?
• Who are the Suppliers (country of origin)?
• Procurement & Sourcing strategy – Centralised vs decentralised sourcing?
• What Supplier relationships are facilitated with the suppliers: long term, contractual, transactional
• Are their instances of Outsourcing or Vertical Integration or Offshoring
• What company is responsible for the Inbound Logistics? case organisation’s relationship with the company?
• Upstream supply chain performance objective (Speed, Quality, Cost, Dependability, or Flexibility?

Downstream Supply Chain Management

The stage in the production process involves processing the materials collected during the upstream stage into a finished product. The downstream stage further includes the actual sale and distribution of that product to other businesses or private individuals.

• Retailers and relationship with case organisation
• Wholesalers and relationship with case organisation
• Which company is responsible for outbound logistics and its relationship with case study company?
• Are there any instances of Franchising?
• Are there any instances of Vertical Integration?
• Upstream supply chain performance objective (Speed, Quality, Cost, Dependability, or Flexibility?)

Academic Questions on SCM

Assignment question / case study, management (BBA / MBA) question  on supply chain.

Assignment Question:

Case study write-up:

Read this report “Do you have the full picture of supply chain resilience? How different types of visibility can help build resilient supply chains” and then develop a comprehensive case study based on a company of their choice covering the questions noted below.

The following questions need to be answered through your research (primary and secondary) on the company and should reflect supply chain management topics/discussions:

• 1. Based on your research of the company, critically discuss how the company’s core product was affected during the pandemic or a recent significant event (e.g., war and conflict)? Include 3 reasons with examples. (N.B. You are to select one core product of the company).
• 2. Next, critically discuss the actions (at least 3) immediate and short-medium term that were undertaken by the company to keep the company afloat during this difficult period?
• 3. The report by Accenture highlights the importance of supply chain visibility (structural and dynamic) as a ‘new capability’ for performance and building resilience. To the best of your ability, critically analyse/illustrate the ‘supply chain visibility’ (structural and dynamic) of the selected company and discuss how this has shaped/transformed/ing the company’s performance (post-pandemic).
• 4. Finally, offer two recommendations suited to the company and its context on how the company can continue to hone on this ‘new capability’.

This group assignment is to be written as a concise case study with evidence to support the various events and actions taken as they unfolded. When writing the case, where appropriate apply the theories, frameworks, concepts learnt in lectures.

Question:

Evaluate the effectiveness of the theory or model in managing a risk.

Follow these steps to do critically analyse a model:

• Evaluate the effectiveness of the theory or model in managing a risk. For example: Sustainability. Find an article on importance of sustainability for fast fashion supply chain management. E.g., Doe, J., (2020) Economic impact of sustainability actions in Fast fashion SCM.
• Select specific sub-issue (relevant of a company or industry)Industry: Fast fashion; Specific sub-issue: Demand forecast accuracy
• Select relevant SCM theoretical or practice model commonly used in the industry (if possible find a more specific model for managing the sub-issue related areas). Identify the relevant SCM steps/process and value creation mechanisms/stages etc. in this model For example Agile supply chain management (ISCM model). Identify the relevant SCM steps/process and value creation mechanisms/stages etc. – Value chain & supply chain mapping to show value creation
• Identify sub-issue related risks in the process step or stage.Excess demand implies merchandise get unsold, which means wastage
• Evaluate the effectiveness of the theory or model in managing a risk within the process step. E.g., How effective is the mechanism proposed by model/theory in managing risk? Find evidence to support or reject the mechanism from literature.How is demand forecasting mechanism & error mitigation tactics used in agile SCM.

For each stage of this model you can find a supporting evidence source (journal, articles, reports etc.) to strengthen your argument/logic.

For doing evaluation: Decide on a position you want to take. The options in this case are: the theory is effective or it is not effective in managing Supply Chain issue. Assuming, the theory is effective, then

Find supporting pieces of evidence from good sources that supports the idea that the management theory is effective. Find one piece of evidence which does not support the idea that the theory is effective. Conclude based on the evidence provided your position.

Question: Discuss potential issues with the operations and supply chain of the case organisation. Identify an issue in any of the following in the supply chain and detail it: Procurement, Logistics, Distribution network, Process, Layouts, Inventory management, Planning and controlling of operations, Capacity management, Push and Pull philosophies, Quality Management, Lean Management, Sustainability of supply chain.

Question: Map End-to-end Supply chain of your organization. Identify the business strategy of your business division. How does your functional strategy, operational strategy & Supply chain strategy support the business strategy?

Q) What are the three decision phases of Supply Chain Management? What are the key decisions made in each phase. Please give 3 examples of decisions in each phase and comment how each phase is connected?

Q) Malkan Pharmaceutical Industries Ltd. is operating in the pharmaceutical industry with a number of drug formulations in the form of tablets, capsules, powder and syrup. These drugs are available to the patients through chemists or online pharmacies on prescriptions of registered practitioners only. Besides, the company has some over-the-counter products that are available to any person without prescriptions. The company markets its products through a network of wholesalers, who in turn have their retailer network. The company is finding it difficult to maintain the inventory of the stocks that it has at its disposal, warehousing processes and associated transactions including shipping, receiving, put-away and picking. In order to streamline its operations to achieve efficiency, the company is planning to invest in a SCM software. How would this help the company in achieving its objectives? What are the risks in implementing the same?

Q) SCM plays a pivotal role in an organisation’s success by enhancing its operational efficiency and maximising customer satisfaction. In the earlier days of supply chain management there were four enablers, namely, Infrastructure, Technology, Alliances and Human Resources which influenced the supply chain performance. Today in
your opinion, apart from these enablers, what other effective methods can an organization adopt for competitive supply chain management? Give examples wherever possible.

Q) An old Indian company is in the field of animal nutrition for the past 25 years and is wanting to grow its business in line with the global sector growth and business opportunities. It is exploring the international opportunities and had want to enter in Kazakhstan and Russia the Eurasian countries due to high potential for the nutrition business. Derive a strategic plan for logistics, supply chain and a business plan to succeed and establishing a strong foreign brand.

Q) SG electronics is a German manufacturing and marketing company is into white goods mainly washing machines, refrigerators and sophisticated kitchen ware. What is the approach strategy that the company would employ for the successful launch of its
products in the INDIAN market? Formulate a strategic logistics and SCM plan which makes the company a top brand in the Indian market which is crowded with international branks like LG, KENSTAR, BOSCH and SAMSUNG.

Q) A beverage company named Gold spot drinks is in the Indian market for the past 15 years with is soft drink brand GOLD SPOT. It is a family owned strong brand with unstructured professional set up in place. Due to new government policy a foreign company ABC want to enter India by investing in the company and capitalise on the Gold spot brand and bring in its own brands into India.
a. What elements of importance ABC company should consider while doing so in the business approach, and the SCM strategies?
b. What kind of professional approach it need to locational planning, production planning and distribution set up to gain market entry PAN India and introduce its products along with the Gold spot?

Q) Information Technology (IT) has become an integral part of the modern supply chains. Explain the concept of Supply Chain and with the help of an example from the retail sector, discuss how Information Systems are helping the organization in improving its supply chain performance. Mention any two future IT trends in supply chain.

Q) Tally Electronics Pvt. Ltd. is one of the leading player in manufacturing electronics products in India. The company has been traditionally managed till date. The new Chief Operating Officer wants to introduce IT in Supply Chain Management. He believes that as the company is planning to expand its operations overseas it is important to have automated supply chain. However, the CEO does not agree. Which of the two views is more justifiable in the given scenario?

Q) Book supply chains have been transformed with the advent of online sales and the launching of Amazon.co.in in India. Since its launch in India, Amazon has added many categories to its product offerings, including music, toys, electronics, software and home improvement equipment. With the popularity of e-books the magnitude of sale of physical goods has grown. Elaborate on the impact of cost on the drivers of the supply chain. In your opinion what will be the impact of online sales on performance at Amazon.

Q) At least two-dozen regional aerated drinks makers, including Gujarat’s Hajoori & Sons, Alwar-based Jayanti Beverages, Delhi’s City Cola, Boss Beverages from Bareilly and Shri Brahm Shakti Prince Beverages of Delhi, are quietly stealing the thunder from the two multinational giants – Coca Cola and PepsiCo by selling quality products at least 20 per cent cheaper, mostly in small towns and rural areas. This has encouraged Ramesh, a faculty of marketing in a leading management school to start his own non -alcoholic beverage brand called Chill &Cool.
a) Mr. Ramesh has appointed you as the Chief Operating Officer of the start up. Your first assignment is to help him with the design phase of the supply chain of the project.
b) As the COO how would you implement the plan stage of the supply chain?

Q)All Automobile manufacturers have a strategic alliance with their suppliers. What do you think are the many important factors their relationship depended on? Discuss with examples.

Q) A group of NMIMS alumni have started a new e-commerce company and they are expecting to serve only 5 cities- Delhi, Mumbai, Bangalore, Kolkata and Hyderabad. Each parcel they ship to their customers in these cities weighs between 200 grams and 400 grams. They negotiated with a courier company for shipping their parcels and the best rates they got for all parcels up to 0.5 kg are given in below table:

Destination City (Delhi, Mumbai, Bangalore, Kolkata, Hyderabad)
Rates per parcel up to 0.5 kg from Source City:
Delhi (25, 40, 60, 60, 55)
Mumbai (40, 25, 35, 65, 40)
Bangalore (60, 35, 25, 55, 35)
Kolkata (60, 65, 55, 25, 50)
Hyderabad (55, 40, 35, 50, 25)

The number of orders they are getting from each city per month are given in below table:

Orders from each city per month (Delhi 5000, Mumbai 6000, Bangalore 4500, Kolkata 3000, Hyderabad 3500)

For processing their orders and storing the inventory, they need a 10000 sq ft warehouse. The rental cost in Mumbai is Rs. 20 per sqft. whereas the rent in Delhi is Rs. 8.5 per sqft. All other costs of operating the warehouse is same for both the cities. The group has to decide if they should have a warehouse in Delhi or in Mumbai to keep their costs to minimum.

Academic questions on Logistics Management.

Q) Case One – Planet Money

The idea: Make a t-shirt then follow that shirt around the world as it gets made.

Simple product. Very few inputs. Well known product. How does it move around the world?

Watch the Planet Money Video

Consider parties involved in and the route of the production of the t-shirt

What are the impacts of LOGISTICS on international trade?

Apply your knowledge of logistics and critically analyse the environmental impact of your logistics choices.

1. In your opinion, why Logistics Management is useful and interesting area to study?
2. What kind of theoretical knowledge and practical skills you expect to receive from studying on this module?
3. How you believe your lecturer can help you to reach your learning objectives?
4. How you can contribute to your lecturer to deliver classes to your expectations?
5. In which ways you can contribute to your own and the entire class’s learning?

Q) In case of logistic design and administration an organization must simultaneously achieve different operational objectives. Discuss the six objectives which are the primary determinations of logistical performance. Give industry examples.

Academic questions on transportation:

Q) “Multimodal transport might be an interesting approach to solve part of the mobility problems. Combining private and public transport in a multimodal transport system offers opportunities to capitalise on the strengths of the various systems while avoiding their weaknesses”. Explain with examples, why you will agree with this statement.

Q) As Supply Chain Head, it is your job to develop and implement an effective
transportation strategy. The business unit head, asks you to use the intermodal
strategy to lower overall transportation cost. Explain the steps you will follow. (Give
industry best practices examples wherever possible).

Q: Critically analyse the toilet paper shortage in the US during the Covid pandemic and what lessons it offers in supply chain?

Question: Supply Chain Management.

Prepare a report. Introduce the product and justify why you have chosen the product. Describe the operation/ processes involved in producing the product. Using a diagram, illustrate and explain the supply chain for your product clearly identifying the upstream and downstream organisations. Provide an explanation of the different organisations involved in the supply chain, whether they are based in the UK or overseas and how they communicate with each other. Critically evaluate the product’s operations management using relevant concepts, theories and frameworks to describe how they are used to meet customer’s need. Identify what is effective and ineffective in the product’s operations processes and highlight the relevance, pros, and cons of lean management. Provide recommendations for improvement siting practical examples for the management of the supply chain (in practice and in academic literature) of the product. References/ Bibliography. Appendices.

In addressing the questions, please use appropriate Operations and Supply Management theories, concepts and frameworks. Well-referenced photographs and diagrams can be used to provide evidence of the layouts and the supply chain diagram. Choose a product or a service with which you are familiar (avoid Ikea, Toyota, KFC, Starbucks, Cocacola, McDonalds etc.).

Question: Describe warehouse activities & quality assurance. Explain replenishment of materials in detail Who should do stock taking? Explain planning & processing in stock taking. What are the different types of discrepancies observed? Give reasons for the same? Discuss surplus materials & scrap materials. Explain storage of belt splicing materials? Explain computer assisted materials management? Describe warehouse activities & quality assurance? Discuss warehouse security safety & maintenance?

Question: Warehouse manager of Integrated Parts, an electronic manufacturing company, has an objective of preventing a stock-out situation at any time for one of its vital components. The annual demand for the component is 60,000 units and the usage is uniform. The quantity ordered from supplier each time is 600 units and it is delivered after 7 days from ordering date. The company policy is to maintain a safety stock of 20% of its average inventory. The company works for 300 days in a
year.

a) What should be the re-ordering point?
b) Briefly discuss the steps the warehouse manager should take in determining optimal inventory level

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