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04 SCM Study Notes


  1. What is Supply Chain Management Process?

  2. What are the elements of SCM?

  3. Role of Technology in Supply Chain Management

  4. What is supply chain technology?

  5. What is Techniques of SCM?

  6. What is Benefits of SCM?

  7. The number of companies realizing the benefits

  8. Success stories in use of Technology in SCM

  9. Scenario Discussion.

What is Supply Chain Management Process?

Strategic Planning Process. Strategic Planning Process involves the strategic supply chain design and strategic sourcing. ...

  1. Demand Planning Process. ...

  2. Supply Planning Process. ...

  3. Procurement Process. ...

  4. Manufacturing Process. ...

  5. Warehousing Process. ...

  6. Order Fulfillment Process. ...

  7. Transportation Process.

What are the elements of SCM?

What are the components of your supply chain you should be focusing on right now?

INTEGRATION. Integration starts at your strategic planning phase and is critical throughout your communications and information sharing and data analysis and storage. ...




Role of Technology in Supply Chain Management

The way new age purchasing has opened up options through eCommerce and mCommerce has made supply chain management a an important aspect in many businesses. It is particularly critical for manufacturing companies as they depend upon their SCM Partners for their product delivery in this aspect need for an integrated supply management has become increasingly important. The new age customer wants information on every stage of the SCM and insists upon the speed and safety of the delivery. Data Sharing is becoming key in the success of SCM. Internally the system requires scientific way of reduction of overheads and time/costs by using JIT, Inventory management, reducing carry cost and increasing manufacturing efficiency.

  1. Reduction in operational costs

  2. Improved efficiency through reduction of errors

  3. Greater customer satisfaction on the other end.

Value of Information Technology in Supply Chain Management

What is supply chain technology?

Use of information technology in supply chain management provides improved visibility and accountability. ... It allows the manufacturing companies to have better control over product flow and information flow across the supply chain.


Use of information technology in supply chain management

- provides improved visibility and accountability.-

- clear sight into the current stage of in-production products,

-foresee any potential problems or delays they might face

- be able to align production schedules accordingly.

-Bring transparency into the production and SCM process.

- better control over product flow and information flow across the supply chain.


-Maintaining optimal levels of inventory is a challenge faced by all manufacturers

-adaptable business processes that provide flexibility to handle varied demand situations.

-The analytics will help achieve financial goals with predictable success by managing your inventory and sales orders effectively.


-collaboration with their key partners.

-track activities through the whole supply chain, with

-visibility into supplier end and distributor processes.

-more informed decisions and better forecast future demand.

- lower costs through more effective decisions in procurement and contract management.


- on time and reliable delivery Higher customer satisfaction levels lead to higher customer retention and repeat business. - increasing speed of delivery

-keeping the customer informed about the product delivery schedule.

- increasing a customer’s sense of self-sufficiency and control


1. ERP/MRP - Software to Plan/control SCM

2. Radio Tags

3. Advanced Weight measurement techniques

4. Use of Data Analytics


  1. Better collaboration. ...

  2. Improved quality control. ...

  3. Higher efficiency rate. ...

  4. Keeping up with demand. ...

  5. Shipping optimization. ...

  6. Reduced overhead costs. ...

  7. Improved risk mitigation. ...

  8. Improved cash flow.

The number of companies realizing the benefits of supply chain management technology increases, several multinational organizations continue to stand out as trendsetters and leaders in the arena. Among them:

1. The John Deere Company’s use of SmartOps logistics management software has helped the equipment supplier increase its on-time shipments to dealers from 63% to 92%, while reducing its inventory by nearly $1 billion.

2. Working with DHL Supply Chain, athletics footwear and apparel giant Nike implemented radio-based product monitoring for warehousing and distribution purposes and also introduced real-time delivery notification. The supply chain improvements have been credited with reducing costs and boosting efficiency.

3. Long renowned for its supply chain management processes, Walmart incorporates state-of-the-art technology and network systems to predict demand, track inventory levels and plan efficient transportation routes.

4. With dozens of distribution centers worldwide handling millions of products, must frequently fine-tune its supply chain. In 2012, for example, the online retailer announced it would buy Kiva Systems Inc., a manufacturer of robots and other automated technology for distribution centers.


What is the difference between SCM and CRM?

In a nutshell, the difference between CRM and SCM is that Customer Relationship Management (CRM) tracks clients and prospects, while Supply Chain Management (SCM) tracks products and information relating to internal company processes.

Scenario Discussion

Aarushi Mahila Seva Kendra has approached you a Consultant with a unique information that the products which they are making and selling are purchased by Customers who are urban and upmarket. However they do not have direct access to these market. The products are purchased by middlemen and after heavy markup have been selling to Posh and upscale malls and décor makers sold to the final customer. the customers are typical successful professionals, nuclear family and owners/live in apartments. the products are Traditional and are very rare and exclusive which needs very good expertise by the Tribal Women. However, AMSK does not have the money power to reach out to these final customers. Government has helped by way of providing trade support but AMSK feel that logistics and last mile delivery of their products need to be more aggressive. The Tribal products have special packaging that does not require additional packing and can be directly shipped. What will be your first steps towards achieving success for this effort.

Awareness about digital marketing n their separate app for selling thier product

Suggest to develop their own shopping app or shopping website so that they can reach more customers

Students Responses

  1. I would ask them to step up and directly sell their products in the market by erasing the middleman they can achieve more profit and margin to their work

  2. Creating a website on the name of AMSk and advertising the website is to be done through social media.

  3. The packaging quality must be good and the delivery of the product at a time because your service makes a road towards success of your product..

  4. Making better supply chain and better quality towards customer and provide sufficient value for product..

  5. I will try to adopt a good communication for having direct access to the market. And managing the orders properly

  6. I will first try to make good communication for having direct access to the market and planning the orders correctly

  7. Face to face discussion with customers or dealers

  8. Through creating website and advertising

  9. The availability of products and requirements of customers should be digitalized, it helps to Avoid the middle man. proper transportation with bulk of products it helps direct selling to consumers. A particular date should be fix on that day only selling of these products should be allowed it helps bulk can sold in a single day and can consumers also known that reduces the daily transport charges and middle man too.

  10. Any marketing strategy should take care of the 4 A's- AWARENESS, ACCEPTABILITY, AFFORDABILITY, AND AVAILABILITY.

  11. "They connect with NGOS.

  12. Advertisement about the tribal products

  13. developing a perfect marketing structure in that areas

  14. The step towards our effort must be first given priority to better delivery and product service to the customer

  15. To create separate online shopping app and give advertisement to the product.

  16. To take financial support by government and also NGO and to take proper guidance for supply chain management approach to the tribals.

  17. Advertisement of product as well sell under new brand

  18. Without any middle man involvement will purchase the product directly to customers

  19. Social media advertisement

  20. By advertising

  21. They should have their authorized official website or app and advertise in social media or digital media with some well known face that common people will get to know about their products.

Lakshminarasimman V Rao | SCM | Technology in SCM| Corporate Neeti Consulting | Mysuru

All data above is a combination of data from Internet, purpose of this doc is for research and education only and responses received from Class students and interaction.

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