NishiL Shah <nishilshah1017@gmail.

com>

SUPPLY CHAIN
Mayur Dutta <mayurdutta97@gmail.com> Wed, Nov 30, 2022 at 9:33 PM
To: nishilshah1017@gmail.com

SUPPLY CHAIN

2PL: Second Party Logistics 

A 2nd party logistics involves transport of goods from a particular transport area of the supply chain like rail, road,
sea or air. They are the asset-based carriers and includes like transport using ships of own lease and airlines that
they are contracted with. They are mainly used for international transportation of heavy and wholesale goods and for
trading purpose as well.

3PL: 3rd Party Logistics

A 3rd party logistics is a supply chain that primarily concerns the transportation and delivery of different products but
also includes various types of additional services as well. The functions of 3PL include warehousing, terminal
operations, customs brokerage, supply chain management and many more. It also includes logistics IT software
products and analysis services, for tracking and tracing the delivery status of different products. These 3rd party
logistics delivers all the above-mentioned services and also manages various obstacles that come in the way. They
specialize in domestic and offshore warehousing and also takes care of your other supply chain management
systems.

4PL: 4th Party Logistics

Among the 1PL 2PL 3Pl 4PL and 5PL, the 4th party logistics is a new concept which is coming into the market, and it
involves employing an overseer for managing an entire supply chain of a company. These logistics are often called
Lead Logistics provider and they are often treated as a consulting company for many supply chains. They act as a
head administrator and takes care of every aspect of these supply chain companies.

They are frequently contracted with many 3rd party logistics and for maintaining neutral management and for
providing feedback regarding various 3pl logistics services. With increased efficiency 4pl is becoming the next big
thing in the logistics sector. They provide a single invoice solution and streamlines logistic work like no other.

Gartner predicts that by 2023, at least 50% of large global companies will be using AI, advanced analytics and IoT in
supply chain operations. IoT devices have completely transformed Supply Chain Management both in terms of its
operational efficiencies and revenue opportunities by making it more transparent. Modern supply chains not only enable you
to keep track of your products but also allow you to gain an edge over your competitors. Leveraging IoT in supply chain
management makes it much easier to locate your goods, track their movement, identify where and when they are delayed in
transit and plan alternative routes, monitor their storage conditions (temperature, humidity etc.), and estimate when they will
arrive at a specific location.
Applications of IoT in Supply Chain Management
Asset Tracking and Tracking
Traditionally, asset-intensive sectors like manufacturing, energy and utilities have been facing challenges with delayed product
deliveries, inventory theft and loss and damaged goods. IoT devices and sensors replace traditional asset tracking methods
like tracking numbers and bar codes, providing the ability to track and manage goods throughout the supply chain. IoT
devices can identify where and when goods are delayed in transit allowing for contingency planning and alternative routes to
speed up the supply chain. Businesses can also use these sensors to gain granular data like the temperature at which a
product was stored, how long it spent in transit, and when it was sold. This type of data gained from IoT technology can help
companies focus on quality control, on-time deliveries, and improve forecasting. Monitor transactions and movement of assets
or goods across trading partners and organizations. With IoT asset tracking and blockchain-enabled tracing, you can create a
digital trail of each step and securely record business transactions across your supply chain.

Forecasting and Inventory Planning

Many manufacturers and distributors are using outdated forecasting methods to develop business strategies. IoT sensors
collect data on usage and buying patterns, giving product manufacturers the ability to evolve from traditional forecasting to
planning based on actual consumption. Information is readily available for key decision making as you can track your
inventory including existing supplies, at the click of a button. All this data which acts as inputs to advanced analytics can be
used to discover trends and patterns to make manufacturing schedules more efficient, and making sure that brands sell as
much as possible without oversaturating the market.

Real-time Visibility
End-to-end visibility across supply chains is becoming increasingly complex due to the number of parties involved in global
supply chains. In order to respond effectively to supply chain disruptions, companies should be able to validate and analyze
data across the supply chain before they can respond. IoT devices can track the status of goods as they move through the
supply chain and ensure that all parties in the supply chain are able to access the data in real time, track the status, prepare
for shipping and execute transactions.  All of this can be done via a combination of IoT and blockchain technology. This
information can also be combined with third-party data sources, allowing companies to react quickly to unexpected supply
chain events such as supply disruption or a sudden dip in customer demand.

Global Supply Chain Finance

Global supply chains typically include cross-border transactions, causing delays, because they involve multiple parties,
international payments, local banking regulations, and heavy paperwork. Any discrepancies, such as duplicate invoices, can
cause significant delays in clearing the payments. IoT and blockchain together could speed up the movement of goods across
borders, resulting in secure, efficient, and cheaper transactions that prevent fraud through a distributed ledger that cannot be
manipulated. With blockchain-powered smart contracts, companies can eliminate the need to reconcile documents across
multiple parties. They can monitor the shipment status and execute the payment terms of the contract upon delivery.

Connected Fleets
While IoT can optimize the management of fixed assets such as machinery and equipment, it also improves the management
of assets that are in motion – such as cars, trucks, ships, and autonomous vehicles. Ensuring that the entire fleet, be it
shipping containers, suppliers’ delivery trucks, or your delivery vans are connected, allows you to gain better visibility into the
supply chain, lowering transportation costs, increasing fleet efficiency, and improving customer service by ensuring on-time
delivery.

Predictive Maintenance
Preventive maintenance seeks to decrease the likelihood of a machine’s failure by ensuring regular maintenance whereas
IoT-enabled predictive maintenance leverages sensor data to determine the likelihood of equipment failure or breakdown
before it occurs. With the ability to process large amounts of data and run sophisticated algorithms, IoT-enabled predictive
maintenance allows companies to identify and predict potential failures before they occur and increase the productivity of
critical assets. Companies can use IoT sensors in their high-value equipment and machinery to ensure timely preventive
and predictive maintenance, avoiding unplanned downtime that increases costs.

Regulatory Compliance
In highly regulated industries such as food and pharmaceuticals, products need to be transported under strictly controlled
temperature ranges and within specific time windows. Manufacturers and distributors need to be able to provide proof of
compliance and failing to do so can cause high-value shipments to be delayed or seized by the authorities for investigation.
An IoT and blockchain based framework can guarantee the reliability and security of information and provide evidence of
regulatory compliance. Combining IoT and blockchain also enables suppliers to specify compliance conditions in a smart
contract, ensuring the flow of reliable information across the supply chain.

Vendor Relationships
Supply chain management requires cooperation and collaboration between you and your vendors. IoT data allows companies
to change business strategies quickly by modifying their own production schedules, and identifying underperforming vendors
that are costing them money. You can analyze how your vendors are handling your supplies, and how they’re handling your
product once it’s manufactured. Higher quality goods mean better relationships with customers and better customer retention
overall.

Customer Support

IoT devices and sensors can be integrated with your applications, generating enough data to fundamentally change the
nature of field service, customer support and end-user training. For example, rather than forcing a field worker to call a help
desk when a piece of equipment fails, you can deploy IoT applications and solutions that enable the field worker to identify the
issue and resolve it – in many cases without help desk intervention. That can reduce downtime and customer support costs
while increasing user productivity. At the same time, companies can gather real-time data about the performance and
reliability of their assets, which can be used to improve their design.

FMCG Supply Chain Challenges

1. Inadequate infrastructure

Sound infrastructure is required for a successful FMCG supply chain system. Lack of a solid infrastructure results in
outrageous increases in overall logistics costs, which have a significant influence on delivery and operational efficiency. Poor
roads, an unbalanced transportation system, and a lack of technical help all offer significant challenges to the FMCG industry.
It must be considered and addressed in advance.

2. Availability across all channels of distribution

The FMCG supply chain must ensure that items are available on store shelves 24 hours a day, seven days a week, using a
variety of distribution channels. However, it is easier said than done because businesses must collaborate with a variety of
stakeholders, including many warehouse chains, numerous retailers, and a plethora of customers. When they seek to
optimize logistical costs while addressing availability issues, the problems get even worse. Although large packing saves
shipping and packaging costs, it puts enterprises on the verge of losing market share. Smaller packs, on the other hand,
cause these twin prices to soar, ensuring improved availability practically all of the time. As a result, FMCG companies are
experimenting with new and inventive approaches to find a delicate balance between market penetration and
logistic expenses.

3. The FMCG industry is dealing with tax issues

Another challenge in the FMCG supply chain is that tax rationalization is urgently needed since high taxes not
only burden traders and increase logistics expenses, but also incentivize traders to smuggle commodities in and
out of several states and across the country. This leads to different illegal activities such as human trafficking
and tax evasion, resulting in low tax revenue for the government. India, on the other hand, is on the right route
with the implementation of GST and the elimination of numerous unnecessary taxes.

4. Close collaboration and accountability

Real-time data improves visibility and aids FMCG supply chain partners and FMCG companies in making quick
decisions and coming up with unique solutions to problems. Companies can keep a continual eye on shipments
and receipts at all times thanks to these game-changing insights. It also enables them to adjust their planning
and effectively utilize resources to meet the fluctuating demands. Close coordination between various FMCG
supply chain sectors, such as suppliers, shippers, transporters, warehouses, and customers, is critical for
smooth operations and greatly increases traceability.

5. Modern retailing’s ascension

Large departmental or discount chains in the West have amassed significant market share and have clout with
FMCG businesses. They can demand large discounts from FMCG businesses due to their bargaining strength.
Modern retailers in India, like those in developed economies, have been attempting to squeeze bigger margins
from FMCG corporations to provide better offers to their customers. In India, unlike in the West, distribution
margins are historically quite low. As a result, the FMCG sector in India finds it difficult to provide the kind of
substantial discounts that modern merchants have demanded. 

On the one hand, FMCG businesses will have to work around their existing stockists and distributors, which
could lead to channel conflict. On the other hand, they must consider the whole distribution system’s impact of
bigger discounts in modern commerce. Private label brands are anticipated to be introduced by more modern
retail chains and pose a significant threat to incumbent producers.

6. Counterfeit goods are a threat

Due to its ever-increasing population, India has one of the world’s largest consumer pools. In today’s world of
strong competition, cost, rather than quality, is a primary factor in attracting clients. Counterfeit product
manufacturers have taken full advantage of this by flooding the market with a plethora of look-alikes that are
merely pale imitations of their genuine and branded counterparts. Counterfeit products are harmful to
businesses because they drain profits due to low sales and permanently damage their image. Furthermore,
clients end up getting a raw deal because, even after paying money, they receive low-cost products that are rife
with health and safety risks.

7. Entry of third-party logistics

Consumer goods companies now have a competitive advantage thanks to third-party logistics partners, who
allow them to strategize and focus on their core operations rather than worrying about whether their products
are reaching their intended customers. Companies can reorganize resources, allocate time, and streamline
operations that require immediate attention in this way.

The Indian consumer goods sector, on the other hand, has a very erratic and unreliable sales pattern, which
puts increasing pressure on these third-party solution providers. Despite these obstacles, 3PL partners appear
to have established a thorough understanding of the Indian market and appear to have devised solutions to
solve these concerns.

What is Forecasting in Supply Chain Management?

In supply chain management, forecasting is the act of predicting demand, supply, and pricing within an industry.
Forecasting involves investigating the competition, collecting supplier data, and analyzing past patterns in order to
predict the future of an industry. Forecasting is an important skill for a supply chain manager to have, and it
encompasses multiple skills that one should acquire as they grow in their career.

1. Planning Processes
The scheduling and planning process is vastly improved through forecasting. Paying attention to the past and present
demand for products allows a supply chain to stay on top of the game.

2. Seasonal Variations in Demand

Among the many reasons that forecasting is needed in supply chain management is being able to predict and plan for
seasonal variations in demand. In a similar vein, planning for promotional activity and product launches are just as
important and benefit greatly from demand forecasting. With data to back up predictions, there is less guesswork to fret
over.

3. Predict Product Demand

In a broader sense of the term, demand forecasting allows for the prediction of product demand in even the most
specific of situations. While no company can predict the future with complete accuracy, relying on patterns and making
informed decisions based on past and present data will get a company as close as possible.

4. Customer Satisfaction
Understanding customer needs is essential in product-focused industries. Being able to predict customer demand will
result in fulfilling orders with short lead times on time. This will also have the effect of increasing trust between customer
and supplier.

5. Reduce Safety Stock

By definition, safety stock is the excess stock that is kept around as a safety net in case demand for a product
increases. With forecasting, however, this extra measure is not needed. This frees up storage space and saves time
and worry.

6. Reduce Inventory Stockouts

When it comes to JIT (Just In Time) systems and buying from long lead time suppliers, forecasting demand is essential.
When it comes to JIT systems, demand forecasting allows for products to sit in storage for less time, thus less money is
wasted than if items were to take up space in the warehouse for an extended period of time. For long lead time
suppliers, forecasting demand is needed in order for suppliers to get your products to you in a timely manner.

7. Improve Shipping
Supply and demand affect every aspect of the supply chain process. For example, being able to predict the demand for
a certain product will allow supply chain managers time to ensure that enough workers are present to ship a certain
amount of product. Not having enough workers results in orders not getting to customers on time. Likewise, having too
many workers on the clock results in high labor costs.

8. Improve Pricing
Price forecasting puts the power back into the hands of a company. The impact price changes have on a particular area
of a supply chain can be predicted and handled accordingly.

Framework and importance of Supply Chain Management

Supply chain management (SCM) is an important factor in managing the product of a business and recognizing the
needs of the customer. In the supply chain, crucial information for a business is contained in order to decide how a
commodity is sold in order to change prices and value for the consumers. Companies who manage their supply
chains will increase their profitability and satisfy their customers' requirements better.

What is supply chain management?

Supply chain management(SCM) is managing the complete production flow of goods or services to improve
quality, delivery, customer experience and cost-efficiency. In other words, SCM begins with designing the raw
materials to distributing the final product to the customers.
How does supply chain management work?

The supply chain management process includes a wide variety of functions, from receiving an order till
delivery of products and after-sales services. Some of SCM's core activities are as follows:

Constant provision of intermediary or raw goods and services will maintain business continuity.
Tracking and monitoring of goods status, business activities, etc.
Identify strategic locations to achieve beneficial outcomes.
Streamlining of redundancy reduction processes and operational cost reduction.
Conducting a business with a market situation and overall condition relevant and competitive.
Mounting, testing, packing and delivery of any production activities.
The logistics are organized to deliver and distribute the products in a timely manner.
After-sales support management and returns for processing.
The timely delivery of high quality products will enhance customer satisfaction.
Plan production and distribution through consumer demand forecasting.
Efficient inventory management increases the level of unprecedented demand.

Vendor Managed Inventory (VMI) Vendor Managed Inventory (VMI) is a collaboration strategy where sales data and inventory level information are
usually shared by the customer with the supplier. In a typical VMI agreement between a supplier (e.g. manufacturer) and a customer (e.g. retailer), the
supplier is given the authority and responsibility to make inventory replenishment decisions for their customer. The customer is responsible to share
accurate and timely sales data and inventory level information and the supplier is responsible to utilize this shared information to make efficient
inventory replenishment decisions for their customer. 6 The idea of VMI did not originate from the academic research, but was developed by a
partnership between two companies. One of the earliest VMI agreements was pioneered by Wal-Mart (retailer) with Procter & Gamble (manufacturer)
in the late 1980s (Cooke 1998). This agreement, originally known as Continuous Replenishment Program (CRP) was established to allow Procter &
Gamble to make appropriate inventory replenishment decisions for Wal-Mart. Based on the agreement, Wal-Mart shared sales data and inventory level
information on a regular basis and Procter & Gamble used this information to make efficient inventory replenishment decisions for Wal-Mart. This
agreement between Wal-Mart and Procter & Gamble helped to improve service levels for the trading partners and also reduce the overall cost of
inventory management in the supply chain.

Collaborative Planning, Forecasting and Replenishment (CPFR) Collaborative Planning, Forecasting and Replenishment (CPFR) is considered to be the
latest strategy in the evolution of supply chain collaboration. Some of the earlier collaboration strategies like CRP and VMI focused more on
replenishment planning activities and had gaps that did not give much consideration to the aspects of demand forecasting and production planning. In
CRP and VMI agreements, the customer typically is not involved in decision making activities and this made it difficult for the supplier to make
accurate demand forecasting, production planning and replenishment planning decisions in a variable demand environment. However, CPFR is a
comprehensive collaboration strategy that provides an excellent opportunity for both the customer and the supplier to collaborate and jointly develop
demand forecast and replenishment planning activities

What Is Reverse Logistics?

Reverse logistics is a type of supply chain management that moves goods from customers back to
the sellers or manufacturers. Once a customer receives a product, processes such as returns or
recycling require reverse logistics.

Reverse logistics start at the end consumer, moving backward through the supply chain to the
distributor or from the distributor to the manufacturer. Reverse logistics can also include processes
where the end consumer is responsible for the final disposal of the product, including recycling,
refurbishing or resale.

The Benefits of an Efficient Reverse Logistics Systems

While many companies consider the return process to be a necessary evil that shouldn’t be
noticed, companies that implement an effective reverse logistics workflow can reap several
benefits.
Some of these benefits are:
 Reduced costs. By planning ahead for returns and making the return order right, you can
reduce related costs (administration, shipping, transportation, tech support, QA, etc.)
Faster service. This refers to the original shipping of goods and the return / reimbursement of
goods. Quickly refunding or replacing goods can help restore a customer’s faith in a brand.
Customer retention. Dealing with errors is just as important as making sales. If a customer
had a bad experience with your product, you have to make it right. Fulfillment blunders can
create educational opportunities. Learn how to keep your customers happy and engaged with
your company - even after you’ve made a mistake.
Reduced losses and unplanned profits. Recover the loss of investment in your failed
product by fixing and restocking the unit, scrapping it for parts, or repurposing it in a secondary
market. With a good reverse logistics program in place, you don’t have to leave money on the
table. Take a product that would otherwise just cost your company money and turn it into an
unforeseen asset.

Differentiating characteristics between the lean

and agile strategy

Characteristics Lean Agile

Respond quickly to changes in demand in

Meet the foreseeable demand in the most order to reduce the shortage of supply,
Superior objective
efficient and therefore the cheapest way price reductions and obsolescence of
goods

Market success factors Quality total delivery time availability Quality cost total delivery time

The most important element of competitive

Cost Availability
advantage

To shorten the cycle of the fulfillment of the

Boldly invest in methods to reduce the
Strategy in the orders’ area orders and if it is possible, without
cycle of the fulfillment of the orders
increasing costs

The superior criteria for selection should The superior criteria for selection should
Suppliers’ selection strategy
be: the price and quality be: speed, flexibility and quality

To shorten the cycle of the inventory To allocate the important buffer stock of
Stocks keeping strategy
rotation and to minimize the stock levels semi- and final products

To design products regarding the cost To use the modular designing to postpone
Strategy in the area of product designing reduction and increasing of production the phase of the diversification of the
productivity product

To keep the surplus of buffer production

To keep high level of production capacity
Production strategy capacity
utilization
The most essential logistics key performance indicators

1) Order accuracy

Monitors the degree of incidents from the placement of the order to the delivery of a shipment. Ideal for any freight forwarder looking to

identify patterns and continuously correct errors in order to make transportation safer.

2) On Time In Full

This logistics key performance indicator, also known as OTIF, measures the percentage of orders delivered within the stipulated time,

without any problems or documentation issues. It is ideal for any freight forwarder committed to providing punctual and safe deliveries.

3) Lead time

Lead Time is a KPI that tracks how long your company’s processes/operations last, from start to finish. Ideal for freight forwarders to

know the amount of time spent in each stage of the supply chain and identify strategies to optimize this time.

4) Stock rotation

KPI that does an average between a company’s outflows with its stock balance at the warehouse. Ideal for forwarders that offer

warehousing services as part of their logistics solutions.

5) Warehousing Costs

Also ideal for the freight forwarders that offer warehousing services, this KPI monitors the expenses involved in the management of your

logistics company’s warehouse facilities.

6) Truck Turning
This KPI measures the truck’s turntable, that is, the average time spent between the exit for collect/delivery and the return of the vehicle

to your company. Ideal for companies that offer road transportation.

7) Capacity utilization

Performance indicator that measures the utilization of the load capacity of a vehicle during road transport or a container during sea

freight. Ideal for freight forwarders that offer these services.

8) Productivity

This logistics key performance measures your company employees’ production rate (workforce/labor hours/productivity). Ideal for

forwarders to have a better overall idea of their business’ performance.

9) Transportation Costs

Measures all costs related to each logistics operation developed by your company, from order placement to final delivery. This KPI can

be helpful for forwarders to know the average spent in each shipment and send accurate quotations to their customers/partners.

10) Number of shipments

Evaluates the average of cargoes handled by your company at a stipulated period of time (weekly/monthly/yearly). Ideal for any freight

forwarder looking to make constant financial balances and analyze their profit margins between incomes and outcomes.

Supply Chain Management – what is it? why is supply chain management important?

Simply put, the supply chain comprises a wide range of chain of events from ─ design, planning,
procurement of raw material, inventory, execution, manufacturing, to the final supply of the
finished good to the consumer. Supply Chain Management (SCM) encompasses optimal
execution of all these events through a sustainable, cost-effective, and low carbon footprint
catering to the consumers’ demands satisfactorily.
Whether operating locally or globally in a ruthlessly competitive market, no organization in the supply chain landscape can successfully
survive over the long-term without SCM in place.

Why is Supply Chain Management necessary? The importance of supply chain management for your business.

The 6 most important reasons for supply chain management are:

Interconnected Supply Chain –

All the stakeholders from the producer, manufacturer, stockist, supplier, to the consumer are the main actors in the supply chain
landscape. They are interconnected and constantly ought to be in communication with each other for a product to go through various
hands before reaching its final destination. Considerable issues pertaining to the growth of corporations, partnerships, global brand
expansion, and outsourcing is dealt with by Supply Chain Management.

Integrated & Co-operative Logistics –

Supply chain management (SCM) is the lifeline of all critical supplies for the existence of all societies. Effective supply chain meets the
needs of both producers and consumers and takes an integrated & holistic approach towards management. If operations across different
geographies are cooperating and communicating in synergy, this only makes supply chains all the more efficient. This facilitates the
logistics to easily manage every part of an integrated supply chain in supplying the inventory backed by more than one entity.

Better Supply Chain for Better Business and why supply chain management is important –

Having an enhanced supply enhances your business prospects & sustainability. Delivering correct product & correct quantity in a timely
manner fulfills both producer’s and distributors’ requirements. Likewise, consumers too want to obtain the goods that they want to be
delivered to their doorsteps. Since the consumer is the king, having an effective supply chain management provides direct improvement
to consumer service. This ultimately leads to better business growth.

Seamless Movement –

A key reason for not being able to effectively deal with potential problems within their business operations leads to a dearth of risk
management capability for many businesses. Supply Chain Management streamlines the flow of everything from goods to any
unexpected natural disaster. Globally, every organization’s logistics are managed by supply chain managers. With effective supply chain
management, supply chain managers can easily diagnose problems/disruptions for seamless movement of goods.

Reduced overall operating costs –

Not just investing in the right areas of your business, but also minimizing extraneous expenditure wherever you can, will help
you maximize your ROI. In other words, improving key areas of your supply chain will help you reduce your overall operating costs.
This will allow you to minimize purchasing expenses by expediting the delivery of the right amount of inventory at right time to your
warehouse and thereby avoid high inventory costs. More so, for a manufacturer, optimizing the supply chain ensures the suppliers deliver
crucial parts to the assembly line when required. This helps avoid material shortages, which otherwise can hinder production and waste
precious financial resources. Consequently, an efficient supply chain helps minimize delays, which is crucial for maintaining financial
efficiency and efficacy. It directly improves your bottom line by expediting product delivery and minimizing the cost involved per
consumer and adds to your competitive advantage.

Vitalized quality of life within the warehouse –

Having a good work culture & quality of life within your own business is critical, irrespective of your role as a supplier, a warehouse
manager, a manufacturer, or a retailer across the supply chain. Implementing automation and integrating the best practices in your
industry will improve your supply chain. This will optimize handling, storing, and picking times for all goods, and will significantly
minimize the risk of error in the warehouse, and beyond. Thereby, it will effectively vitalize the overall quality of life of the workforce
within the warehouse and in turn, improve the bottom line of your business significantly.

Improved visibility for Supply Chain Operation –

One cannot run a business blindly. Visibility across the Supply Chain has a far-reaching impact on the success of a business. Lack of
synchronization in workflow often ensues when the workforce in an organization cannot comprehend the ongoing activities a level below
or above their own position in the supply chain. With SCM in place, visibility & transparency across every stage of the supply chain is
increased. It helps create opportunities for the workforce across various departments to collaborate and make informed decisions.

What is a supply chain manager?

Supply chain managers develop and monitor a company’s supply chain strategy.
Their goal is to improve productivity and efficiency and reduce costs while securing
high quality material for their company.
What does a supply manager do?
Supply chain managers keep track of logistics and update the company’s inventory.
They analyze operational performance and resolve issues. They also collaborate
with vendors and suppliers to ensure all operations (e.g. shipping, delivery) meet
quality and safety standards.  

Supply chain manager responsibilities

include:
Analyzing supply chain data and performance
Maintaining inventory 
Supervising and training employees

What skills do you need to be a

supply chain manager?
Supply chain managers usually have a degree in Supply Chain Management,
Logistics, Business or similar field. They have an excellent understanding of supply
chain processes and good knowledge of relevant software and ERP systems.
Overall, supply chain manager duties require great project management and
problem-solving skills. Make sure to include these as requirements when crafting
your own supply chain manager job description. 

Job brief
We are looking for an experienced supply chain manager to  ensure our supply chain
and logistics operations function properly. 

In this role, you’ll collaborate with other departments, such as Operations and
Finance, to create effective business plans, so teamwork skills are important. You
should also have experience in project management, as well as great leadership and
communication ability.

If you meet these criteria and also possess a strategic, analytical mind, we’d like to
hear from you.

Responsibilities
Create the company’s supply chain strategy
Analyze data from shipping and delivering processes to find bottlenecks and other
 issues 
Evaluate and report on KPIs 
Monitor logistics to make sure they run smoothly 
Maintain supply chain inventory and records
Train and guide employees
Find cost-effective solutions for supply chain processes
Resolve issues that come up (e.g. delays in delivery, accidents)
Collaborate with other departments to create coordinated plans for business
growth
Develop and implement safety guidelines in all aspects of the supply chain (e.g.
use of trucks, forklifts)
Ensure supply chain processes meet legal requirements and standards
Communicate and negotiate with suppliers and vendors to land more profitable
deals

This uncertainty is forcing business leaders to ask tough questions like how to prioritize “must have”
investments and how to accelerate time-to-value when implementing new capabilities. To effectively address
these questions, supply chain leaders should find a seat at the table alongside top leadership and be prepared to
address the following challenges:

Supply chain networks are transforming to support e-commerce growth

Delivering products at the promised time and at the desired cost while simultaneously providing your
customers with the product and packaging quality they’ve come to expect is the textbook definition of “e-
commerce nirvana.” Both online and traditional retailers, along with a growing number of direct-to-consumer
manufacturers, are facing increased pressure to achieve this goal without exception. Added to this complexity
is the growing wealth of India’s middle class and subsequent demand upticks in Tier 2 and Tier 3 cities.
Meeting this demand is going to require investment in a scaleable distribution network and last mile
operations—one which provides reliable order and tracking visibility. Some organisations may also want to
consider consumer pick-up points to eliminate last mile delivery roadblocks.

Labor and technology investments must be balanced

Double digit growth in e-commerce and the increasing maturity of the logistics and warehousing industry is
continuing to shift and evolve talent requirements. On the one hand, the implementation of automated systems
and robots along with other technology-enabled tools are increasing the level of competition among employers
to attract highly skilled workers. Most experts agree that improving technology will not replace human
workers, but rather require them to have new and advanced skills. On the other hand, there is a growing deficit
of low skill labor available to operate these same logistics facilities. Organisations must carefully consider this
trade-off between labor and technology to ensure long-term success and profitability.

Find ways to leverage favorable transport policy changes

Logistics costs make up more than 13 percent of India’s GDP, and the government has introduced several
policy changes in an effort to reduce it to less than 8 percent. The implementation of GST has already led to an
estimated 20 percent reduction in turnaround time for trucks crossing state borders. These faster transit times
are expected to lead to warehouse consolidation which will further reduce primary transportation costs. Unit
costs will also be lowered by the 20 to 25 percent allowable increase in payload capacity.
Dedicated Freight Corridors (DFC) will provide electrified rail corridors—to eliminate switching from electric
to diesel locomotives—and allow longer freight trains, double-stacked containers, and an 80%+ increase in
average speeds from 35-40 kilometers per hour to 65-75 kilometers per hour. The recent push to develop
an extensive network of inland and coastal waterways should also help in expediting intermodal options.
All together, these policies are creating new opportunities to optimize your transport strategy and generate cost
savings.

Inventory and assets need to be optimized

Industries and market segments which are tied more loosely to consumers are experiencing softening demand.
As a result, these businesses are being forced to seek innovative ways to extract value out of their existing tools
and infrastructure. Heavy investment in this area over the past decade should pay off as data from advanced
planning software can be used to improve planning performance and capture operational efficiencies. Those
facing pressure to improve service levels should focus on inventory deployment and asset optimization. (This
holds true for both B2B and B2C supply chains.)

Supply chains will grow greener

Supply chain operations are front and center when it comes to reducing environmental impact. And nations like
India will become an even bigger international focal point for improving sustainability. Expect 2020 to see
innovations in recycling and product packaging as the topic of sustainability gains traction among corporate
leadership.

How do AI and Blockchain enhance supply chain management?

From the time of product pickup to the time it reaches the end-user — all of it can be tracked end-to-end through AI and
Blockchain. The latter, in fact, also has a permanently saved digital ledger, which is error-free and safe for holding
transactions. Organizations can digitize physical assets and create a decentralized transactional record for greater visibility.
SCM can thus eliminate shipping delays, a reduction in fraud and errors, and improved management. Now let us understand
their benefits in detail.

1. Smarter scalability across geographies

AI and Blockchain applications offer scalability based on which large databases can be accessed from multiple locations
worldwide. This is particularly helpful in handling high-value commodities such as pharmaceutical drugs and diamonds,
leading to fraud or counterfeits.When less time is spent on validating data, more can be invested in delivering those goods
safely and securely. The technologies also advance the inventory management system, reduce courier costs and build
consumer trust faster — all through increased scalability.

2. Data interoperability for gleaning more supply value

One of the significant challenges in SCM is the lack of visibility about the shipment’s lifecycle and ownership. Sure, delays
are not uncommon, but it affects the organization’s bottom line and customer experience when they happen
frequently.Blockchain and AI products allow data to be interoperable to get easily shared among all stakeholders such as
manufacturer, wholesaler, retailer, and logistics service provider. In addition, transparency in data sharing helps reduce
delays and internal conflicts. It also prevents goods from getting stuck in the supply chain because they can be tracked in
real-time — thus making misplacements are.

3. Greater automation resulting in little human error

Simply put, AI and Blockchain reduce paperwork and bureaucracy. Up to 10%of freight invoices comprise inaccurate data
that results in disputes and other process inefficiencies in the supply chains. This can be avoided.

Instead of managing a lengthy paper trail, the two technologies ensure an automated process that stores all the information
in a digital format and track a commodity’s pick up-and-delivery timeline, providing a more direct relationship between each
stakeholder, i.e., wholesaler, logistics service provider, and consumer. When supply chain automation is ensured, it leaves
little room for mistakes and makes everyone accountable for their actions in the supply chain.

4. Increased connectivity across supply chains

An average logistics process is not free from cumbersome manual processes and extensive paperwork. Moreover, there is a
significant value in logistics that organizations cannot tap into due to the fragmented and competitive nature of the industry.
That is due to low transparency in transportation, logistical data silos, many technological options to choose from, and
unstandardized processes. AI and Blockchain can instigate data visibility among various stakeholders. When trust is
established between all parties and information flows seamlessly, there is better connectivity across supply chains. Goods
can be picked up and dropped faster and without any delays or errors.

5. Improved transparency and traceability in supply chains

Organizations that leverage AI and Blockchain in supply chain management can gather and analyze data regarding how
goods are made or sourced from, what raw materials they comprise, how they are managed, and so on. Every information
about a commodity can be stored in a Blockchain-based system, thus becoming easily accessible by the concerned
stakeholders. More importantly, this gives logistics partners the power to track and trace the goods better than ever. Plus,
they can prove legitimacy, especially in high-value goods like gold jewelry and medicinal equipment. The information can
also trickle down to the end-user to know more about the products (e.g., authenticity).

6. Better technical knowledge and expertise

When new technologies enter the picture, it becomes crucial for partners and individual contributors to pull up their socks to
learn them. Like every industry, the supply chain also evolves, requiring organizations to keep up with the market changes.
Without a doubt — AI and Blockchain present a dramatic way of doing business. But they also push the organizations to
give the stakeholders the tools and resources they need to master these technologies and create better supply chain
processes. In conclusion, AI and Blockchain fasten the learning process — which otherwise gets slowed down or delayed
due to manual and tedious supply chain networks.

7. Enhanced culture of collaboration

The word “chain” in SCM instantly presents a picture of connectivity, collaboration, and alliance. Any successful process is
resultant of a strong partnership between different stakeholders. This collaboration is necessary to create logistical value.
When an organization deploys AI and Blockchain technologies in its SCM, it signs up for an extensively associated
endeavor. The technologies can facilitate collaboration between multiple stakeholders, both in-house and external, leading
to more efficiency and greater transparency across supply chains.

Supply chain integration defined

Supply chain integration essentially means that the information and communication systems of all
stakeholders are able to seamlessly exchange information through all planning, execution and
completion of transport and logistics operations throughout a product’s life time.

Supply chain integration is recognized as an important factor to attain superior supply chain
performance, as it offers a host of competitive advantages – including complete transparency all the
way from supplier to customer. This can easily be done with the MIXMOVE cloud platform. By adding
our solution on top of your existing solutions, you can get all the information you need to make the
right decisions without changing without interfering with your existing IT landscape.

WHAT IS CARBON-NEUTRAL SUPPLY CHAIN?

Carbon Neutral or Net Zero Carbon supply chain is a term used to describe a supply chain enterprise that has made
conscious and committed efforts towards eliminating its carbon footprint. While supply chains are predominantly
dependent on transportation and fuel in some form or another, carbon-neutral companies strive to balance out the
carbon emissions caused by them with an equivalent amount of carbon savings elsewhere.

Business activities have a direct impact on all aspects of climate change. Supply chain enterprises nowadays are
therefore becoming more environmentally conscious and adopting green logistics systems in order to reduce the
negative impact of transportation, shipping, packaging, and distribution activities on the environment.

How to build a carbon-neutral supply chain?

Set carbon neutrality and carbon management strategies in your enterprise

Calculate, track and audit your carbon footprint on a regular basis
Implementing cost-effective carbon reduction practices such as green logistics, green packaging, etc.
Follow ethical and sustainable sourcing practices in your supply chain

Spread awareness among your employees, business groups, and customers about your commitment towards a
carbon-neutral supply chain

What are the advantages of supply chain management?

Important benefits of supply chain management

Better collaboration with suppliers.

Better quality control.
Shipping optimisation.
Reduced inventory and overhead costs.
Improved risk mitigation.
Stronger cash flow.
A more agile business.
Better visibility and data analytics.

What are the barriers of supply chain integration?

five barriers to SCI: these are; insufficient knowledge of the other function; lack of communication;
poor working relationship; conflicting goals; and lack of direction from senior management.

Business Model Canvas Definition

 
A business model canvas is a visual representation of a business model, highlighting all key strategic

factors. In other words, it is a general, holistic and complete overview of the company’s workings,

customers, revenue streams and more.

 
The actual business model canvas definition was first proposed by Alexander Osterwalder, a Swiss

entrepreneur, and consultant, but has gone to be used around the world.
 

What’s the Purpose of a Business Model Canvas?

 
Other than providing a general overview of the business model, these canvases enable companies to

visualize and analyze their strategy. This includes updating the model as the company evolves, such as
changes in the market, new streams or expansions.

 
The business model canvas provides the central, common source of knowledge through which each

department can add their unique input from their respective domains.
 
It is a template that defines the business - specifically, how each section interacts with the others. For

example, understanding the value proposition, the target customer and the channels through which they are

engaged all need to be analyzed together, not just in individual vacuums.