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AF18 SCM - Designing Efficient Supply Chain

AF18 AFMI -SCM -BL01M11-Day13-08Jan21 AF18

AF18 AFMI -SCM -BL01M11-Day13-08Jan21 AF18

Day13 08-Jan-21 2pm to 3 pm SCM BL01M11 "

Unit 4: Designing of efficient supply chain policies - Bottlenecks and remedies, Integration

of supply chain with corporate strategy - Cost efficiency across supply chain


What is an efficient supply chain?

An efficient supply chain makes the best use of its resources — financial, human, technological or physical. By doing so minimizes costs for materials and packaging and reduces time wastage.

5 tips to improve supply chain efficiency

  1. Increase your supply chain's visibility - Transparent, and across the orgnisation understands how the SCM works.

  2. Automate where it counts — and keep all necessary parts well-managed.

  3. Engage your IT department - Enquire possible ways of using IT to upgrade the SCM

  4. Assess your training programs. - continuous and periodical training to all SCM members, understand the SCM cases and misses. How was it resolved, understand Risk and take measures for mitigation.

  5. Implement a good project plan.

Why supply chains should be involved in product design?

Involving supply chain and other cross-functional teams during the design process helps answer design and materials questions that solve problems long before they happen and ultimately improve timeline efficiency

Supply Chain Metrics & KPIs You Need For A Successful Business

  1. Cash-to-cash Time Cycle. ...

  2. Freight Bill Accuracy. ...

  3. Perfect Order Rate. ...

  4. Days Sales Outstanding (DSO) ...

  5. Inventory Turnover. ...

  6. Gross Margin Return On Investment (GMROI) ...

  7. On-time Shipping. ...

  8. Return Reason..

What is supply chain strategy?

What is Supply Chain Management Strategy? ... SCM involves the flow of information and products between and among supply chain stages to maximize profitability. The major functions involved in SCM are the procurement of raw materials, product development, marketing, operations, distribution, finance, and customer services.

External Supply Chain Risks

As their name implies, these global supply chain risks come from outside of your organization. Unfortunately, that means that they are harder to predict and typically require more resources to overcome. Some of the top external supply chain risks include:

External Risks

Demand Risks: Demand risks occur when you miscalculate product demand and are often the product of a lack of insight into year-over-year purchasing trends or unpredictable demand.

Supply Risks: Supply risks occur when the raw materials your business relies on aren’t delivered on time or at all, thereby causing disruption to the flow of product, material, and/or parts.

Environmental Risks: Environmental risk in the supply chain is the direct result of social-economic, political, governmental, or environmental issues that affect the timing of any aspect of the supply chain.

Business Risks: Business risks occur whenever unexpected changes take place with one of the entities you depend on to keep your supply chain running smoothly — for example, the purchase or sale of a supplier company.

Internal Risks

Manufacturing Risks: Manufacturing risks refer to the possibility that a key component or step of your workflow could be disrupted, causing operations to go off schedule.

Business Risks: Business risks are a product of disruptions to standard personnel, management, reporting, and other essential business processes.

Planning and Control Risks: Planning and control risks are caused by inaccurate forecasting and assessments and poorly planned production and management.

Mitigation and Contingency Risks: Mitigation and contingency risks can occur if your business doesn’t have a contingency plan for supply chain disruptions.

Four Supply Chain Strategies To Drive Digital Transformation

  1. Customer-centricity: Plan and deliver for the segment of one. ...

  2. Predictive business: Design, make, and maintain the product of one. ...

  3. Smart automation: Manufacture the lot size of one. ...

  4. Total visibility: Analyze and manage the supply chain of one.

Leverage the PPRR risk management model. The PPRR risk management model is a popular global supply chain risk management strategy and is used by retailers around the world. The “PPRR” stands for:

  1. Prevention: Take precautionary measures for supply chain risk mitigation.

  2. Preparedness: Develop and implement a contingency plan in case of an emergency.

  3. Response: Execute on your contingency plan in order to reduce the impact of the disruptive event.

  4. Recovery: Resume operations and get things running at normal capacity as quickly as possible.


Write in short (in 50 words) how Covid Situation has changed the Essential Services and Food delivery in the country

Single day delivery, next day delivery system gain importance, essential and food delivery apps are ruling presently

  1. This covid situation has made very difficult for delivery of food and essential services

  2. Due to pandemic new technology innovation have taken place like for the essential services like grocery some company like amazon have started same day delivery system which provides essential to door steps with contactless delivery and for food service existing company have taken more precautionary measures to avoid virus spread and maintain safety.

  3. All the essential services right from the medical and others has became very crucial and important this it has given a new scope to the sector

  4. Covid situation has become drastic and pandemic to the health.

  5. The main impact in the process of food preparing and delivering the strict rules are being followed yo maintain the hygiene and less contact or contactless delivery this has helped lot in avoiding bacterias reaching customers homes

  6. During this pandemic people realize the importance of food and the essential and hygienic conditions , but that time to suffer lot of problems in online services also like food products order during the lockdown

  7. Every thing has come abruptly to a halt, essential services like health care sector has seen its loopholes, as transportation has stopped every sector faced some problem but corOna has given very less time to upgrade ourselves to what we conventionally do.

  8. Local initiatives such as box schemes and online farmers’ markets diversify both what we eat and how we get it. This strengthens the resilience of the food system by reducing our dependence on one particular retailer – the supermarket

  9. In covid situation many people avoid to go in the market for shopping and they prefer online shopping because of more safety precautions and today people like to buy online.

  10. Covid has changed the changed the routine of buying the grocery and essential items from a nearby shop to online shopping .The small stores got hugely affected in contrast to jiomart .

  11. Essential services have became mostly online and out side food is totally avoided ..mostly essentials are ordered through online stores

  12. The biggest risk for food security is not with food availability but with consumers€™ access to food: safety nets are essential to avoid an increase in hunger and food insecurity.

  13. The made us all to re-examine how we get our groceries and where they come from.

  14. Covid changes the demand on poultry business and high value commodities of fruits and vegetables ...covid changes the value of food properties

  15. many farmers were left with tonnes of produce at risk of going bad because of restaurant closures

  16. Increased food safety measures and health conscious

  17. First of all covid change people's mindset . It explains the actual meaning of hygiene and health, now everyone want neat clean diseases free and healthy foods. product should be covered, wrapped. Packing should be clear and hygienic.

  18. Due to pandemic huge challenge to get food from field to doorstep.

  19. This situation increased the more online platforms like big basket, swiggy etc and it increased huge demand for this

  20. The covid changes a lot of things in services and food delivery , now everything is getting online and everyone getting safety standards towards our health to not get attach with covid, The food delivery is also more safer than before ..

  21. The demand for food supplies has increased tremendously. People started buying essential supplies in large quantities at a time. People started caring about the packaging of food.

  22. In this situation everyone wants to stay healthy so they are choosing online marketing

  23. The crisis made us all re-examine how we get our groceries and where they come from. And to sanitize those things

Lakshminarasimman V Rao | SCM| Class notes | Study Material | AFMI | 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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