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Supply Chain Management

Book Description

Supply Chain Management is essential for creating value for both customers and stakeholders. Effective supply chains help organizations to compete in both global and domestic markets. Supply Chain Management: Text and Cases addresses these issues in seven parts, which deal with the basics of the supply chain, sub-systems of the supply chain, tactical and operational decisions, strategic approach to the supply chain, measurements, controls and sustainability practices.

Table of Contents

  1. Cover
  2. Title Page
  3. Brief Contents
  4. Contents
  5. About the Author
  6. Dedication
  7. Preface
  8. Part-I Supply Chain Basics
    1. 1. Understanding Supply Chain
      1. In Practice - Kitchen Supply Chain
      2. Introduction
      3. Evolution of Supply Chain Concept
      4. Defining SCM
      5. Extended Supply Chain
      6. Box 1.1: Extended Supply Chain—A Cost Burden on Berry Interlining
      7. Supply Chain Integration
      8. Supply Chain Linkages
      9. Decisions in Supply Chain
      10. Prevailing Practices
      11. Summary
      12. Review Questions
      13. Internet Exercises
      14. Video Links
      15. Project Assignments
    2. 2. Role of Logistics in Supply Chain
      1. In Practice–Logistics for ‘Works of Art
      2. Introduction
      3. Defining Logistics
      4. Goals of Logistics
      5. Functions of Logistics
      6. Box 2.1: Adding Value to Airport Logistics—Baggage Handling System
      7. Business Processes Impacted by Logistics
      8. Logistics Decision Hierarchy
      9. Logistics in the Indian Context
      10. Summary
      11. Review Questions
      12. Internet Exercises
      13. Video Links
      14. Project Assignments
    3. 3. Supply Chain vs. Demand Chain
      1. In Practice–Supply Chain Innovation
      2. Introduction
      3. Value Chain
      4. Demand Chain
      5. Supply Chain
      6. Supplier–Customer Connect
      7. Summary
      8. Review Questions
      9. Internet Exercises
      10. Video Links
      11. Project Assignments
    4. 4. Value Creation Through Supply Chain
      1. In Practice–Lijjat Papad—Creating Value Without Technology Support
      2. Introduction
      3. Customer Value
      4. Box 4.1: DECATHLON: A Global Supply Chain Creating Customer Value in Sports Goods
      5. Box 4.2: Telematics: Adding Value by Capturing ‘Customer-Life-Cycle’ and ‘Vehicle-Life-Cycle’
      6. Customer Service for Competitiveness
      7. Service Attributes
      8. Customer Service Dimensions
      9. Supply Chain Value Delivery
      10. Value-added Services in Supply Chain
      11. Summary
      12. Review Questions
      13. Internet Exercises
      14. Video Links
      15. Project Assignments
  9. Part-II Supply Chain Sub-Systems
    1. 5. Supply Chain Planning
      1. In Practice–Gillette: Demand Planning to Improve SCHealth
      2. Introduction
      3. Why Supply Chain Planning?
      4. Supply Chain Planning Matrix
      5. Collaborative Planning
      6. Role of Technology in Planning
      7. Box 5.1: Dairy Farm Supply Chain—Technology Planning
      8. Summary
      9. Review Questions
      10. Internet Exercises
      11. Video Links
      12. Project Assignment
    2. 6. Procurement Methods
      1. In Practice–Vendor-Managed Inventory at ZICO Ltd
      2. Introduction
      3. Procurement
      4. Economic Order Quantity (EOQ)
      5. Box 6.1: EOQ Example
      6. Just-in-Time Procurement (JIT)
      7. Vendor-Managed Inventory (VMI)
      8. Box 6.2: VMI’ System in Retail Industry
      9. Box 6.3: Marico Industries, P&G and Wal-Mart
      10. Online Procurement
      11. Purchasing Cards
      12. Summary
      13. Review Questions
      14. Internet Exercises
      15. Video Links
      16. Project Assignments
    3. 7. E-Procurement
      1. In Practice–Tata Motors Benefiting Through E-Procurement
      2. Introduction
      3. E-Procurement
      4. Reverse Auction (RA)
      5. Benefits of E-Procurement
      6. Box 7.1: Reverse Auction at Blue Star&
      7. Constraints of E-Procurement
      8. E-Procurement Types and Models
      9. Open Trading Environment
      10. Government Initiatives
      11. Summary
      12. Review Questions
      13. Internet Exercises
      14. Video Links
      15. Project Assignments
    4. 8. Strategic Sourcing
      1. In Practice–Strategic Sourcing at Speed Auto
      2. Introduction
      3. Box 8.1: Dell-Leveraging Supplier Expertise for Green Packaging Solution
      4. Purchasing Orientations
      5. Strategic Sourcing
      6. Key Factors Leading to Success
      7. Major Trends in Procurement
      8. Summary
      9. Review Questions
      10. Internet Exercises
      11. Video Links
      12. Project Assignment
    5. 9. Lean Manufacturing
      1. In Practice–Lean Manufacturing at Arya Motors
      2. Introduction
      3. Manufacturing Transformation
      4. Principles of Lean Manufacturing
      5. Gaining Competitiveness
      6. Value Stream Analysis
      7. Essentials of Lean Supply Chain
      8. Success Factors for Leanness
      9. Lean—Roadmap to Success
      10. Summary
      11. Review Questions
      12. Internet Exercises
      13. Video Links
      14. Project Assignment
    6. 10. Distribution Decisions
      1. In Practice–Skylak: Moulded Luggage Distribution Strategy
      2. Introduction
      3. Distribution: Channels and Logistics
      4. Box 10.1: HUL's Focus on Rural Distribution Network
      5. Flows in Distribution Channel
      6. Channel Strategy
      7. Box 10.2: Eureka Forbes Distribution Strategy
      8. Channel Members
      9. Distribution Centres
      10. Box 10.3: Polaroid-Shift to Centralized Distribution
      11. Distibution Centre Site Selection
      12. Logistics: The Distribution Imperative
      13. Box 10.4: Channel Integration to Achieve Logistics Objective at HUL
      14. Summary
      15. Review Questions
      16. Internet Exercises
      17. Video Links
      18. Project Assignments
  10. Part-III Tactical and Operational Decisions
    1. 11. Transportation and Freight Management
      1. In Practice–Cargo Movement by Sea-Air Mode—A New Concept
      2. Introduction
      3. Transportation Infrastructure
      4. Freight Management
      5. Factors Influencing Freight Cost
      6. Transportation-Related Problems in SC
      7. Transportation Networks
      8. Milk-Run
      9. Route Planning
      10. Containerization
      11. Summary
      12. Review Questions
      13. Internet Exercises
      14. Video Links
      15. Project Assignment
    2. 12. Inventory Management
      1. In Practice–Priya Cosmetics: Seeking a Solution to Reduce Inventory
      2. Introduction
      3. Inventory Functions
      4. Box 12.1: Supply Chain of Bhel-Puriwala
      5. Inventory as Buffer
      6. Reasons for Carrying Inventory
      7. Inventory-Related Costs
      8. Inventory and Customer Service
      9. Approaches to Managing Inventory
      10. Box 12.2: Dell's Lean Supply Chain
      11. Risk Pooling in Inventory Management
      12. Box 12.3: RPL—Tracking Hidden Cost of Inventory
      13. Selective Control Techniques
      14. Bullwhip Effect
      15. Modern Inventory Control Tools
      16. Summary
      17. Review Questions
      18. Internet Exercises
      19. Video Links
      20. Project Assignment
    3. 13. Network Designing
      1. In Practice–Camy Petroleum Ltd: Network Design
      2. Introduction
      3. Role of Network Design
      4. Strategic Factors in Network Decision
      5. Operational and Tactical Factors
      6. Box 13.1: Ambuja Cements: Lowest Logistics Cost
      7. Steps in Network Design Process
      8. Facility Location and Capacity Allocation
      9. Network Design Decision Issues
      10. Distribution Network Design
      11. Box 13.2: Adani: Networking in End-to-End Agricultural Supply Chain
      12. Supply Chain Merger
      13. Summary
      14. Review Questions
      15. Internet Exercise
      16. Video Links
      17. Project Assignment
    4. 14. Information System and IT Enablement
      1. In Practice–Ambuja Cement—IT Initiatives
      2. Introduction
      3. Box 14.1: Developing a Bottling Hub that Increased Efficiency by 75 per cent
      4. Designing Information System
      5. Decision-Making Levels
      6. Decision Support System
      7. Role of IT in Managing Supply Chain
      8. Technology—Role in Information System
      9. Box 14.2: RFID-Enhancing Productivity in the Laundry Industry
      10. Summary
      11. Review Questions
      12. Internet Exercises
      13. Video Links
      14. Project Assignment
  11. Part-IV Strategic Approach
    1. 15. Alliances and Outsourcing
      1. In Practice–Boeing 787—Global Suppliers Alliance Issues
      2. Introduction
      3. Strategic Alliance
      4. Box 15.1: LEVI's: Closing Outlets and Collaborating with Wal-Mart
      5. Third-Party Logistics
      6. Fourth-Party Logistics
      7. Retailer-Supplier Partnership
      8. Distributor Integration
      9. Legal Contract
      10. Issues in Strategic Alliance
      11. Summary
      12. Review Questions
      13. Internet Exercises
      14. Project Assignment
      15. Video Links
    2. 16. Agile Supply Chain
      1. In Practice–Re-engineering a Responsive Supply Chain
      2. Introduction
      3. Why Agility?
      4. Barriers to Agility
      5. Creating an Agile Supply Chain
      6. Box 16.1: Tesco: Supply Chain Agility for Achieving Global Competiveness
      7. Box 16.2: Addressing the Uncertainty
      8. Summary
      9. Review Questions
      10. Internet Exercises
      11. Video Links
      12. Project Assignment
    3. 17. Global Supply Chain
      1. In Practice–R-Toys: Global Supply Chain Freight Consolidation
      2. Introduction
      3. Domestic vs. Global Supply Chain
      4. Box 17.1: International Trade—Port Operations
      5. Strategic Issues
      6. Role of IT Supply Chain
      7. Cross-Border Logistics
      8. Risk Associated
      9. Operational Factors
      10. Box 17.2: Global Logistics Hubs
      11. Box 17.3: Business Process in Exports Trade
      12. Documentation
      13. Free Trade Zone
      14. Summary
      15. Review Questions
      16. Internet Exercises
      17. Video Links
      18. Project Assignment
    4. 18. Reverse Supply Chain
      1. In Practice–Reverse Logistics Process Improvements
      2. Introduction
      3. Why Reverse Supply Chain?
      4. Reverse Supply Chain
      5. Scope of Reverse Supply Chain
      6. Box 18.1: Reverse Supply Chain in Beer Industry
      7. Box 18.2: ‘Green Dot’ on Wrapper for Recycling
      8. Reverse Supply Chain Design
      9. Subsystems in Reverse Supply Chain
      10. Reverse Supply Chain Challenges
      11. Trends in Managing Reverse Supply Chain
      12. Summary
      13. Review Questions
      14. Internet Exercises
      15. Video Links
      16. Project Assignment
    5. 19. Supply Chain Optimization
      1. In Practice–SC Optimization at Lombard Pvt. Ltd (LPL)
      2. Introduction
      3. Optimization
      4. Areas of Optimization
      5. Optimization Methods
      6. Problems in Optimization
      7. Benefits of Optimization
      8. Value Enhancement
      9. Optimization Strategy
      10. Optimization and Simulation
      11. Summary
      12. Review Questions
      13. Internet Exercises
      14. Video Links
      15. Project Assignment
    6. 20. Re-engineering SC to Differential Strategies
      1. In Practice–Streamline.com: Differential Supply Chain Strategy
      2. Introduction
      3. Marketing Needs
      4. Supply Chain Constraints
      5. Supply Chain Differentials
      6. Box 20.1: Asian Paints: Manufacturing as Differentiator
      7. Manufacturing Strategy
      8. Strategy to Market Requirements
      9. Materials Planning
      10. Supply Chain Visibility
      11. Differentiation Through Postponement
      12. Summary
      13. Review Questions
      14. Internet Exercises
      15. Video Links
      16. Project Assignement
    7. 21. Supply Chain Integration Strategies
      1. In Practice–Nita Paints: Information Visibility to Integrate Distribution Process
      2. Introduction
      3. Role of Information in SC Integration
      4. Push Strategy
      5. Pull Strategy
      6. Push–Pull Strategy
      7. Box 21.1: Pull Strategy at Asian Paints
      8. Strategy Implementation
      9. Internet and SC Integration
      10. E-Business SC Integration
      11. Collaborative Planning, Forecasting and Replenishment
      12. Summary
      13. Review Questions
      14. Internet Exercises
      15. Video Links
      16. Project Assignment
    8. 22. Cold Chain Networking
      1. In Practice–Snowman Frozen Foods: Providing Cold Chain Solution
      2. Introduction
      3. Drivers to Cold Chain
      4. Cold Supply Chain
      5. Box 22.1: Cold Supply Chain for Ice Cream
      6. Summary
      7. Review Questions
      8. Internet Exercise
      9. Video Links
      10. Project Assignment
  12. Part-V Measurements and Controls
    1. 23. Quantitative Techniques in Supply Chain
      1. In Practice–Linear Programming in Octagon Petroleum
      2. Introduction
      3. Forecasting
      4. Qualitative Forecasting
      5. Quantitative Forecasting Methods
      6. Linear Programming
      7. Route Planning
      8. Queuing Theory
      9. Simulation
      10. Game Theory
      11. Modelling
      12. Limitations of Mathematical Models
      13. Summary
      14. Review Questions
      15. Internet Exercises
      16. Video Links
      17. Project Assignment
    2. 24. Supply Chain Risk Management
      1. In Practice–Ashwini Healthcare: Reducing SC Risk Using Technology
      2. Introduction
      3. Supply Chain Vulnerability
      4. Meaning of Risk
      5. Categories of Risks
      6. Supply Chain Risk Management
      7. Models of Supply Chain Risk Management
      8. Role of IT in Managing Risk
      9. Success Factors in Risk Management Process
      10. Business Continuity Planning
      11. Approach to Mitigate Risks
      12. Box 24.1: Supply Chain Risk Assessment
      13. Box 24.2: Hewlett Packard-Approach to Supply Chain Risk
      14. Summary
      15. Review Questions
      16. Internet Exercises
      17. Video Links
      18. Project Assignment
    3. 25. Pricing, Costing and Financial Decisions
      1. In Practice–ITC Managing Cash Flow with No Credits to Customers
      2. Introduction
      3. Pricing Decisions in Supply Chain
      4. Costing Decision in Supply Chain
      5. Types of Supply Chain Costs
      6. Box 25.1: NANO: New Approach to Supply Chain Costing
      7. Supply Chain and Finance
      8. Box 25.2: ABD Bank—Financing the Supply Chain Operations
      9. Financial—SCM
      10. Financial Metrics
      11. Strategic Allignment
      12. Economic Value Added (EVA)
      13. SCM and SCOR Model
      14. Summary
      15. Review Questions
      16. Internet Exercises
      17. Video Links
      18. Project Assignment
    4. 26. Performance Measurement and Controls
      1. In Practice–C-Auto Tyres: Performance Measures for Supply Chain Health
      2. Introduction
      3. Performance Measurement System
      4. Why Benchmarking?
      5. Benchmarking Process
      6. Steps in Supply Chain Benchmarking
      7. Performance Dimensions and Measures
      8. Supply Chain Operations Reference (SCOR) Model
      9. Performance Measurement and Controls
      10. Inventory Turnover
      11. Summary
      12. Review Questions
      13. Internet Exercises
      14. Video Links
      15. Project Assignment
  13. Part-VI Sustainability Processes and Practices
    1. 27. Sustainability Practices and ‘Greening’ of SC
      1. In Practice–Hindustan Pencils Ltd—Journey Towards Sustainability
      2. Introduction
      3. Corporate Social Responsibility
      4. Box 27.1: IBM Suppliers to Meet Environmental Goals
      5. Supply Chain Responsibility
      6. Box 27.2: GUCCI's CSR Initiative Across Its Supply Chain
      7. Box 27.3: BERGER Paints India's Green Supply Chain Initiative
      8. Green Supply Chain Management
      9. Competitive Sustainability
      10. Box 27.4: Herman Miller—Competitive Advantage through Sustainable Practices
      11. Box 27.5: Starbucks—Sustainable Practices in Supply Chain
      12. Box 27.6: Procurement Policies Towards Sustainability
      13. Green Manufacturing: A Strategic Priority
      14. Green Marketing
      15. Summary
      16. Review Questions
      17. Internet Exercise
      18. Project Assignments
      19. Video Links
    2. 28. Regulatory Compliance
      1. In Practice–ABL-Transfer Pricing
      2. Introducton
      3. Multimodal Transport of Goods Act, 1993
      4. Free Trade and Warehousing Zones Act 2005
      5. Goods and Services Tax (GST)
      6. VAT and CENVAT
      7. Warehousing (Development and Regulation) Act, 2007
      8. Transfer Pricing
      9. IATA Guidelines for Cargo Movements
      10. Box 28.1: Air India—Cargo Regulation
      11. ‘TIR Carnet’ for Trans-Border Logistics
      12. Certified Cargo Screening Programme
      13. Incoterms
      14. Shipping Trade Practices Bill
      15. Summary
      16. Review Questions
      17. Internet Exercises
      18. Video Links
      19. Project Assignments
    3. 29. Ethical Orientation
      1. In Practice–Mattel Toys: Lapses in Quality Checks
      2. Introduction
      3. Procurement—Ethical Practices
      4. Manufacturing—Ethical Practices
      5. Box 29.1: Recall of ‘A-Star’ by Maruti—Ethical Practice
      6. Marketing—Ethical Practices
      7. Designing and Implementing Ethical Code
      8. Ethical Issues in the Supply Chain
      9. Supplier Ethics Management (Sem)
      10. Summary
      11. Review Questions
      12. Internet Exercises
      13. Video Links
      14. Project Assignments
  14. Part-VII Cases
    1. Case 1 Palas Acqua
      1. Review Questions
    2. Case 2 Arihant Consumer Products (ACP)
      1. Review Questions
    3. Case 3 Rem Chemicals
      1. Review Questions
    4. Case 4 Mask Packaging
      1. Review Questions
    5. Case 5 Zapak Ltd
      1. Review Questions
    6. Case 6 Indian Paints
      1. Review Questions
    7. Case 7 Mann Diesel Sales and Services
      1. Review Questions
    8. Case 8 Padmini Motors Ltd
      1. Review Questions
    9. Case 9 Digital Storage (India) Ltd
      1. Review Questions
    10. Case 10 Zara
      1. Review Questions
    11. Case 11 Econ Industry
      1. Review Questions
    12. Case 12 Afcon Watches
      1. Review Questions
    13. Case 13 Zico
      1. Review Questions
    14. Case 14 La Vogue
      1. Review Questions
    15. Case 15 Trika Exports
      1. Review Questions
  15. Notes
  16. Bibliography
  17. Annexure A Glossary
  18. Annexure B Supply Chain-Related Information Sources
  19. Copyright