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Handwritten Notes, Paper 1, , Paper 2, (Management), , Soft Copy, , ₹ 100, , ₹ 300, , Hard Copy, , ₹ 150, , ₹ 450, , Call or Whatsapp for Notes : 7627096162, Note : Paper 1 includes 7 units except Comprehensions, Numerical Reasoning, and Data Interpretation because these units are practice based and theoretical, part of these units is covered in notes., For hard copies postal/courier charges are separate.

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Supply Chain Management, Physical distribution has now been expanded into the broader concept of supply chain management, (SCM). Supply chain management starts before physical distribution and means strategically, procuring the right inputs (raw materials, components, and capital equipment), converting them, efficiently into finished products, and dispatching them to the final destinations. An even broader, perspective looks at how the company’s suppliers themselves obtain their inputs., ‘Supply Chain Management’ can be defined as the active management of supply chain, activities to maximize customer value and achieve a sustainable competitive advantage. It, represents a conscious effort by the supply chain firms to develop and run supply chains in the most, effective and efficient ways possible., The definition of a basic supply chain is : a set of three or more companies directly linked by one or, more of the upstream or downstream flows of products, services, finances and information from a, source to a customer.

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Market Logistics, Market logistics includes planning the infrastructure to meet demand, then implementing and, controlling the physical flows of materials and final goods from points of origin to points of use, to, meet customer requirements at a profit. Market logistics planning has four steps :,  Deciding on the company’s value proposition to its customers. (What on-time delivery standard, should we offer? What levels should we attain in ordering and billing accuracy?),  Selecting the best channel design and network strategy for reaching the customers. (Should the, company serve customers directly or through intermediaries? What products should we source, from which manufacturing facilities? How many warehouses should we maintain and where, should we locate them?),  Developing operational excellence in sales forecasting, warehouse management, transportation, management, and materials management,  Implementing the solution with the best information systems, equipment, policies, and, procedures

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Logistics Activities, Logistics is that part of the supply chain process that plans, implements and controls the effective, forward and reverse flow and storage of goods, services, and related information between the point, of origin and the point of consumption, in order to meet the customer’s requirements. Logistics, Activities : 1. Customers service 2. Demand forecasting 3. Distribution communication 4. Inventory, control 5. Material handling 6. Order processing 7. Part and service support 8. Plant and warehouse, side selection 9. Procurement 10. Packaging 11. Return goods handling 12. Salvage and scrap, disposal 13. Traffic and transportation 14. Warehousing and storage

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Logistics Operations, Logistics is viewed as the competency that links an enterprise with its customers and suppliers. The, process is viewed in terms of two interrelated efforts, inventory flow and information flow :,  Inventory Flow : The operational management of logistics is concerned with movement and, , storage of materials and finished products. Logistical operations start with the initial shipment of, a material or component part from a supplier and are finalized when a manufactured or processed, product is delivered to a customer.,  Physical Distribution : The area of physical distribution concerns movement of a finished, , product to customers. In physical distribution, the customer is the final destination of a marketing, channel. The availability of the product is a vital part of each channel participant’s marketing, effort.,  Manufacturing Support : The area of manufacturing support concentrates on managing work-, , in-process inventory as it flows between stages of manufacturing. The primary logistical, responsibility in manufacturing is to participate in formulating a master production schedule and, to arrange for timely availability of materials, component parts, and work-in-process inventory.

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Logistics Operations,  Procurement : Procurement is concerned with purchasing and arranging inbound movement of, , materials, parts, and/or finished inventory from suppliers to manufacturing or assembly plants,, warehouses, or retail stores. Depending on the situation, the acquisition process is commonly, identified by different names such as purchasing, acquisition, inbound logistics.,  Information Flow : Information flow identifies specific locations within a logistical system that, , have requirements. Information also integrates the three operating areas. The primary objective, of information sharing is to reconcile these differentials. In the discussion that follows it is, important to stress that information requirements parallel the actual work performed in physical, distribution, manufacturing support, and procurement.,  Planning and Coordination Flows : Coordination is the backbone of overall information system, , architecture among value chain participants. Coordination results in plans specifying (1) strategic, objectives, (2) capacity constraints, (3) logistical requirements, (4) inventory deployment, (5), manufacturing requirements, (6) procurement requirements, and (7) forecasting.

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Supply Chain Drivers, The five drivers provide a useful framework for thinking about supply chain capabilities. Decisions, made about how each driver operates will determine the blend of responsiveness and efficiency a, supply chain is capable of achieving.

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Supply Chain Drivers,  PRODUCTION – This driver can be made very responsive by building factories that have a lot, of excess capacity and use flexible manufacturing techniques to produce a wide range of, items. To be even more responsive, a company could do their production in many smaller plants, that are close to major groups of customers so delivery times would be shorter.,  INVENTORY – Responsiveness can be had by stocking high levels of inventory for a wide, range of products. Additional responsiveness can be gained by stocking products at many, locations so as to have the inventory close to customers and available to them, immediately. Efficiency in inventory management would call for reducing inventory levels of all, items and especially of items that do not sell as frequently.,  LOCATION – A location decision that emphasizes responsiveness would be one where a, company establishes many locations that are close to its customer base. For example, fast-food, chains use location to be very responsive to their customers by opening up lots of stores in high, volume markets. Efficiency can be achieved by operating from only a few locations and, centralizing activities in common locations.

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Supply Chain Drivers,  TRANSPORTATION – Responsiveness can be achieved by a transportation mode that is fast, and flexible such as trucks and airplanes. Many companies that sell products through catalogs or, on the Internet are able to provide high levels of responsiveness by using transportation to deliver, their products often within 48 hours or less. Efficiency can be emphasized by transporting, products in larger batches and doing it less often. The use of transportation modes such as ship,, railroad, and pipelines can be very efficient. Transportation can also be made more efficient if it, is originated out of a central hub facility or distribution center (DC) instead of from many, separate branch locations.,  INFORMATION – The power of this driver grows stronger every year as the technology for, collecting and sharing information becomes more wide spread, easier to use, and less, expensive. Information, much like money, is a very useful commodity because it can be applied, directly to enhance the performance of the other four supply chain drivers. High levels of, responsiveness can be achieved when companies collect and share accurate and timely data, generated by the operations of the other four drivers. An example of this is the supply chains that, serve the electronics market; they are some of the most responsive in the world.

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Value Creation through SCM, The supply chain management contributes in following terms for value creation in an organization.,  Profitable Growth,  Procurement,  Inventory management,  Transportation,  Networking,  Speed and Productivity

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Supply Chain Design, Customer requirements are diverse for different types of products and range enormously from one, market sector to another. It is therefore not possible to service everybody with everything via a, single all embracing supply chain strategy. Most companies require some level of mix of the two, approaches in designing the supply chain., The major constraint in the design of a supply chain that has the best strategic fit and all the benefits, of good strategic fit that include cost reduction, improved efficiencies, better responsiveness, and the, transfer of knowledge and skills may not be achieved. One way to handle this issue is that the, process and model for designing supply chain should be cross functional., In general too, the design process and supply chain model requires inputs (estimates, real values and, empirical values based on experience) from marketing, engineering, finance, manufacturing and, supply chain teams so that reasonable estimates of the supply chain performance can be obtained.

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