Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
A. K. Dey
Dr. A. K. Dey
Design decisions
Which activities should be carried by nodal firm and which should be outsourced? How to select entities/partners to perform outsourced activities and what should be the nature of relationship? Decisions pertaining the capacity and locations of various facilities.
Dr. A. K. Dey
Operations
decisions
Demand forecasting Procurement planning & control Production planning & control Distribution planning & control Inventory management Transportation management Customer order processing Relationship management
Dr. A. K. Dey
Demanding
customers Intensive competition Higher level of product proliferation Shorter PLCs Higher disposable income Declining brand loyalty Cross category competition Crossover behaviour of consumers: splurgers and Bargain hunters
Dr. A. K. Dey
Five major trends have made SCM a critical success factor in most industries: Proliferation in product lines: More variety & More SKUs Shorter PLCs High level of outsourcing Shift in power structure in the chain Globalization of manufacturing
Dr. A. K. Dey
More
varieties and more SKUs Large number of substitute products Forecasting becomes challenge Supply chain starts with better forecasting!
Dr. A. K. Dey
Products
getting outdated fast Competition driving down the useful life of a product Window of opportunity to recoup investments is shortening Efficient firms like Dell with just seven days of inventory as compared to industry average of 35 days need to worry about product obsolescence Competitors of Dell with higher level; of inventory will end up writing off huge amount of inventory as obsolete
Dr. A. K. Dey 7
Firms
increasingly focus on core activities and outsource the rest This trend is irreversible Higher level of outsourcing make Supply Chain vulnerable Forcing firms to develop different types of capabilities within the organization
Dr. A. K. Dey
Same
space in retail has not increased at the same pace as product variety Retailers are asking manufacturers to be more responsive to their demands Discount retailers like Wal*Mart have been asking manufacturers to replenish the stock on daily basis depending on the actual sales data from their point of sales system
Dr. A. K. Dey 9
Supply
chains have become very long Goods & services have to travel through different
Lands Using different modes of transport Complying with various rules and regulations
Managing
complex
Dr. A. K. Dey
10
Common issues
Taxation structure drives location decisions Poor state of logistics infrastructure
Customer service issues should drive this decision Pharma firms located at Baddi, HP: reason tax benefits Air conditioning and diesel power generating firms at Silvassa Special Economic Zones attract many firms To avoid multiple tax, firms keep stocks in each state Various taxes: delivery by road gets unusually delayed VAT & GST may bring relief
Dr. A. K. Dey
12
Both
transportation & warehousing dominated by unorganized sector Over 90% trucks in the country belong to owners who have less than 5 trucks each Unorganized trucking industry results in unreliable lead time and high transit damages
Dr. A. K. Dey
13
Innovative
Complex distribution structure Large number of customers at the bottom of pyramid Poor infrastructure Complex tax structure
Innovative
SCM implemented by
AMUL Mother Diary ITC Shakti Project of HUL Dabbawalah (Tiffin Carriers) of MUMBAI
Dr. A. K. Dey 14
Managing
Small
pack sizes
Large Rural population & Economically weaker section Problem: Increased per unit transportation & packing cost Companies have to find innovative ways to balance market penetration & logistics costs
Dr. A. K. Dey
15
Entry
Have to establish decentralized network of manufacturing plants fixed cost may rise
Dealing
Dealing
More popular brand; more counterfeits Rules are not strictly implemented Detection is costly Legal expenses
Opportunistic
channel
Try to grab significant portion of promotion budget Divert goods from one market to another violating the norms set by company- poaching
Dr. A. K. Dey
17
Dr. A. K. Dey
18
Reservation
Many items are reserved for the small scale sector Big FMCG firms have to source material/products from small scale sector Risk of Quality & uncertain delivery Making the sourcing process complex.
Dr. A. K. Dey
19
Thanks
Dr. A. K. Dey Professor Supply Chain & Operations Management Birla Institute of Management Technology India
Dr. A. K. Dey
20