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Case Study Analysis of Supply Chain Management
Case Study Analysis of Supply Chain Management
ABSTRACT: In the present day scenario supply chain costs are determined by
online shopping was increasing rapidly. location of facilities and the flow of
Respectively competition among the product between the facilities. Companies
online retailers was along being rapidly have been led to modify their basic supply
increased. To overcome this competition chain, investing in the tools and resources
and to sustain in the market they have to to develop an improved SCN design.
follow effective network design. In this Designing a SCN involves creating a
study we had considered Amazon one of network that incorporates all the facilities,
the leading online shopping store and means of production, products, and
studied some of the problems regarding transportation assets owned by the
it’s present system and suggested organisation or those not owned by the
possible solutions which improves its organisation but which immediately
network design. We had observed the support the supply chain operations and
present fulfilment centres across India product flow. The design should also
and proposed a better location for include details of the number and location
installing a new fulfilment center. By the of facilities: plants, warehouses, and
end of this project we have successfully supplier base. Therefore, it can be said that
proposed a location for a new fulfilment a SCN design is the combination of nodes
center and cost variation of the product with capability and capacity, connected by
by the proposed system. lanes to help products move between
facilities.
INTRODUCTION
LITERATURE REVIEW
A supply chain network can be
strategically designed in such a way as to Herbert Kotzab, explained briefly about
reduce the cost of the supply chain; it has what is supply chain, how important it is to
been suggested by experts that 80% of the organization, what are the problems
involved in it, key factors responsible for important to observe delivery time taken to
its successful utilization [1]. As the study deliver different products to different
involves calculation of shipping costs and locations based on which optimization
as we had selected railways as transport process need to be carried [6].
medium shipping costs according to
METHODOLOGY
weight of the luggage by Indian railways
was taken into consideration [2].
Establishing a new fulfilment center for an
online store is not an easy task. Several
factors will be included in it, like political
factors, economic factors, number of
orders and type of orders placed near to the
center, type of products placed by the
customer, delivery time, transport charges
etc. By taking into consideration of all
these factors and to establish a new
fulfilment center we need to think about
not only the regular products but some
major or expensive products ordered by
the customer (which may not be available
and have to be shipped from distant areas) It was identified from the present
scenario that across the east coast
effective Transport Management System there are only two Amazon
will be required [3]. By studying TMS and fulfillment centers.
considering the locations for establishment Problems raised with the current
of new fulfilment center is not sufficient strategy:
but we need to optimize the process so that The delivery time taken for
particular products will be high
customer requirements like delivery time
across the east coastal region.
and shipping costs will be reduced [4]. Therefore responsiveness of the
supply chain is being affected.
There are 4 modes of transport to deliver
items from one destination to the other. As High risk is involved in logistics to
carry specific products such as
we need to optimize the system i.e., reduce fragile materials, electronic goods
delay in delivery time and shipping costs etc.
involved in it the most economic way to Accordingly shipping cost incurred
will also be high.
transport the goods is by railways [5]. It is
Some products are limited to some major parts i.e., for which there will be
locations only which makes delay less availability and some even might be
in delivery and incurs high
shipping cost as well and makes had to shipped from another country and
inventory management a tough
such products were not shipped directly to
task.
the customer but will be sent to the nearest
Due to the above mentioned problems
fulfillment center and then to either
establishment of new fulfilment center is
customer or another nearest warehouse and
required and Visakhapatnam was
then to the cutomer. Due to this delivery is
identified as best source.
delayed and cost incurred will be high.
PROPOSED SOLUTION