Supply Chain Management

Topics: Supply chain management, Supply chain, Logistics Pages: 17 (5919 words) Published: April 8, 2010
Supply Chain Management

Arun Biswal*
Supply Chain Management (SCM) is backbone of any organizations. It is the combination of art and science that goes into improving the way a company finds the raw components it needs to make a product or service and deliver it to customers. Supply chains are difficult to put together but once they are in place, it looks just right. The depth of supply chain increases as organizations explore various dimensions of business. There are many options available for companies to integrate supply chain as a competitive weapon which has emerged as a strategic business tool for deriving competitive advantage at the global business environment supply chain and is finally finding place as a strategic imperative for an organization. A supply chain manager should use the changes that occur in economic trends as opportunities. Most resources used in the process of delivering a product or services add value but some do not. Such resources should be eliminated. The purpose of this paper is to promote an understanding of SCM, Impact of Globalization on SCM, Challenges and Scope and Implementation of ERP at Retail SCM with brief review of its major benefits and implementation at Reliance Retail.

Key words: Supply Chain Management; Globalization; SCM Retail.

*=Students of Institute Of Management and Computer Studies (IMCOST), Masters of Management Studies.

1. Introduction
Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers The concept of supply chain management is of great use as it enables you see how you can manage the supply chain to optimize revenues, cash flow, and customer satisfaction. Companies need better SCM for reducing costs, improving their cash flow, and making sure materials and products are in stock when needed to meet customer demand. Whether it is a big company or a small company it needs to focus on the SCM as it tells them what inventory to keep and information about reorder level and the lead time. It saves time and money and proper resource utilization.

Objectives of this paper are:
1. To give overview on SCM
2. To show importance of ERP in SCM
3. To show impact of globalization on SCM
1.1 Supply Chain Decisions
There are four major decision areas in supply chain management: 1) Location
2) Production
3) Inventory
4) Transportation (distribution), and there are both strategic and operational elements in each of these decision areas.

1.2 Supply chain best practices
1.Retain only core work (products, services & solutions)
2. Improve Supplier Selection process
3. Reduce the number of suppliers
4. Improve demand forecast accuracy
5. Increase inventory turns (velocity)
6. Decrease outsourcing costs per/unit by leveraging major suppliers for lower prices 7. Increase standardization of products, as much as possible and appropriate 8. Increase global sourcing, especially in geographic areas of lower labor costs 9. Maximize economies of scale

10. Seek global demand for products & services
11. Increase automation and database integration between business partners using Enterprise Resource Planning (ERP) software tools and web-based trade exchanges. 12. Use technology tools to increase speed to market, reduce costs, and obtain real-time accurate information.

1.3 Supply chain management and the competitive advantage:
Unless the product or the service we offer can be distinguished in some way from the competitors, there is a likelihood that market will view it as a “commodity “ and so the sale will tend to go the cheapest supplier. This explains the importance of additional values to our offering to mark it out from the competition. SCM provides both cost productivity advantage and value advantage. SCM plays an important role in determining nature of overall corporate...

References: [1] BMA review July 2005 Edition.
[2] Economic Times, dated 15th September 2008.
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