1. INTRODUTION OF SUPPLY CHAIN MANAGEMENT:
1.1 Supply chain-
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. As the supply chain starts and ends with the customer a simple supply chain is made up of several elements that are linked by movement of product along it.
Fig. Supply Chain Block Dia.
Such elements are-
1.Customer:The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts to the retailer.
2.Manufacturers: Manufacturer manufacture the product as per the customer requirement. Company purchase the raw material as per the requirement of the product from the vendors that are placed in local market.
3.Purchase:Components of the product are purchase from market by asking the tenders from venders. And by this process venders are decided.
4.Wholesalers /Distributors: Distributors are fixed by the manufacturer to distribute the product to retailers.
5.Transportation: Transportation is the key factor of the supply chain it transports the material and product from company to distributor to retailer and also brings the marerial to
manufacturing unit from suppliers and vendors.
6. Retailers: Retailer is only factor that is connected with directly with customer. That¶s why retailers role is much more important in supply chain.
Fig. Elements of Supply Chain
Consider a customer walking into a Big Bazaar store to purchase noodles. The supply chain begins with a customer and his need for noodles. The next stage of the supply chain is the big bazaar retail store that the customer visits. Big Bazaar stocks its shelves using inventory that may have been supplied from finished goods warehouse or a distributor using trucks supplied by third party. The distributor in turn is stocked by manufacturer (say nestle, India). The nestle India plant receives raw material from a variety of suppliers, who may have been supplied by lower tier suppliers. This suppliers receives grains from farmers. Then the company manufacturer decide to make the noodles by customers requirement to satisfy his needs.
1.2. Food Supply Chains in India
In India, about 60 percent of food quality is lost in the supply chain from the farm to the final consumer. Consumers actually end up paying approximately about 35 percent more than what they could be paying if the supply chain was improved, because of wastage as well as multiple margins in the current supply structure. The farmer in India gets around 30 percent of what the consumer pays at the retail store. Compare this with the situation obtaining in the USA, where farmers can receive up to 70 percent of the final retail price and wastage levels are as low as 4 to 6 percent. One can easily understand the benefits that...