TRUBA INSTITUTE OF SCIENCE AND

COMMERCE

SESSION:2022-2023

SUPPLY CHAIN AND

RETAIL MANAGEMENT

SUBMITTED BY: HEMANT SEJWAR

2nd YEAR

UNDER THE GUIDANCE OF- Dr. RICHA JAIN

 ACKNOWLEDGEMENT

I wish to express my heartfelt gratitude to “TRUBA

COLLEGE OF SCIENCE AND COMMERCE”, Dr. G.S.
Lodhi and specially Dr. RICHA JAIN who gave me the golden
opportunity to do this wonderful project and played a crucial
role in the research for thisproject of PRINCIPLE OF
MANAGEMENT, I am really thankful to all my faculty
members, without their time and support this project would
not have been possible.

Secondly I would like to thank my friends for helping me in

completing my project with utmost cooperation.

HEMANT SEJWAR

B.B.A. 2nd YEAR

 INDEX

 LOGISTICAL IN SUPPLY CHAIN


WAREHOUSING MANAGEMENT
LOGISTICAL
OPERATION
SYSTEM
SYSTEM
 TRANSPORTATION
SYSTEM
 WORLD TRADE AND GLOBAL
LOGISTICS
 E-FINANCAL SUPPLY CHAIN
MANAGEMENT
QUESTION 1- Discuss the function of logistics in supply chain
operations.

ANSWER- Logistics management is that part of supply chain

management that plans, implements, and controls the efficient, effective
forward and reverses flow and storage of goods, servicesand related
information between the point of origin and the point ofconsumption in
order to meet customers' requirements.

The supply chain management (SCM) profession has continued tochange

and evolve to fit the needs of the growing global supply chain. With the
supply chain covering a broad range of disciplines,the definition of what is
a supply chain can be unclear. Often timesSCM can be confused with the
term logistics management.

CSCMP and the board of directors, comprised of industry experts,created

official definitions for the following terms.

CSCMP’s Definition of Supply Chain Management

Supply chain management encompasses the planning and management of all
activities involved in sourcing and procurement,conversion, and all logistics
management activities. Importantly, it also includes coordination and
collaboration with channel partners,which can be suppliers, intermediaries,
third party service providers,and customers. In essence, supply chain
management integrates supply and demand management within and across
companies.
 Supply Chain Management –
Boundaries and Relationships Supply chain management is an integrating
function with primaryresponsibility for linking major business functions
and business processes within and across companies into a cohesive and
high-performing business model. It includes all of the logisticsmanagement
activities noted above, as well as manufacturing operations, and it drives
coordination of processes and activitieswith and across marketing, sales,
product design, finance, and information technology.

CSCMP’s Definition of Logistics Management

Logistics management is that part of supply chain management that plans,
implements, and controls the efficient, effective forwardand reverses flow
and storage of goods, services and related information between the point
of origin and the point of consumption in order to meet customers'
requirements.

Logistics Management –
Boundaries and Relationships Logistics management activities typically
include inbound andoutbound transportation management, fleet
management, warehousing, materials handling, order fulfillment,
logistics network design, inventory management, supply/demand
planning,and management of third party logistics services providers. To
varying degrees, the logistics function also includes sourcing and
procurement, production planning and scheduling, packaging and
assembly, and customer service. It is involved in all levels of planning
and execution--strategic, operational and tactical.
Logistics management is an integrating function, which coordinates and
optimizes all logistics activities, as well asintegrates logistics activities
with other functions includingmarketing, sales manufacturing, finance,
and information technology.

Operations and Supply Chain Management (OSCM) includes a

broad area that covers both manufacturing and service industries,involving
the functions of sourcing, materials management, operations planning,
distribution, logistics, retail, demand forecasting, order fulfillment, and
more.
QUESTION 2-What are the functions of Warehousing management
system?

ANSWER- A warehouse management system (WMS) is a software

application that is used to monitor and control warehouse operations. It
handles inventory from the time it enters the warehouse, throughout its
storage, and until it gets delivered to theend customer.

A WMS avoids manual errors and also manages stock control byensuring
the transparency of inventory data. A WMS application enables users to
access a centralized system in which various warehouse management
duties are controlled through a uniforminterface, ensuring warehouse
operations are both simple to use and efficient. Following are the key
functions of the warehouse management system.

1. Tracking Inventory
One of the key responsibilities of warehouse management systems is to
keep track of the inventory inflows in the warehouse.It provides warehouse
managers with unparalleled visibility into stock availability and
replenishment requirements. A WMS enableswarehouse operators to
monitor the demand and supply of their commodities to procure the
products in the appropriate amount and at the proper time. Additionally, it
is critical for warehouse space optimization. A WMS ensures that
inventories are allocated evenly to guarantee efficient warehouse
management.

2. Layout Planning-
It is critical for a warehouse to maintain a well-organized layout design. A
warehouse management system assists you in perfectly designing the
layout of your warehouse. A logical framework incorporated into its
system allows effective placement of your inventory within the specified
warehouse. Accessibility, demand, and weight are the variables that
influence the development of thissystematic pattern design
 3. Labour Management-
Having real-time data on each employee’s efficiency and performance is
critical for monitoring and ensuring that warehouseoperations are
adequately processed. A WMS can examine and monitor numerous
performance indicators displayed by warehousestaff. This could be a
crucial performance measure, and its implementation could be beneficial
for labour management. Additionally, warehouse management adds to
staffmanagement by assisting logistics companies in developing incentive
systems that emphasize employee productivity
and effectively minimize workforce burnout.

4. Order Processing-
Another critical function of WMS is to oversee the order processinginside
the warehouse. A WMS helps fulfilling products accurately and ensure
timely delivery of products. There is a minimal expense associated with
incorrect stocking of orders and shipment to mismatched clients, hence
reducing the overall cost of warehousing.

5. Analytics-
A business’s strategic decision-making process is based on data-driven and
executable insights. A WMS provides extensiveand accurate insights into
warehouse activities, assists in efficiently tracking inventory in and out, and
the warehouse management team can plan their future course of action
successfully. Warehouse managers gain the leverage to significantly
enhance the business by using the informationobtained in real-time from
the WMS.
6. Paperless Documentation
A WMS provides a centralized view of the complete
warehouse processes. With its anytime accessibility, WMS provide
warehouse workers with the necessary data and information to perform
their jobs efficiently. Automated warehouse management solutions
eliminate the need for paper-based paperwork.

7. Reliable Customer Service

Businesses’ primary focus has always been customer satisfaction.As a
result, organizations strive to optimize their processes to provide seamless,
customized, and personalized experiences to their customers. A warehouse
management system enables the delivery of authentic products to the
correct consumers at the righttime. WMS are essential in guaranteeing
customer satisfaction for existing customers and acquiring and converting
new prospects.

8. Increases Productivity
A good WMS maintains an audit trail that connects transactions to specific
employees. This increases accountability and creates an opportunity for
coaching based on individual performance goals. AWMS establishes a
logical structure that is simple to follow and significantly improves the
working lives of your team. It establishesexplicit KPIs and performance
requirements for the warehouse team, which promotes efficiency and
accuracy.
QUESTION 3- Discuss fundamental concept of logistics system.

ANSWER- The Order Management System

The OMS is the first point of logistics system contact with
customers by managing order receiving and placement. It is the front-end
system of the LIS. The OMS are closely related to WMS for checking
product availability. The customer-ordered items may be available from
inventories or may be seen in the production schedules. This provides
information about the location of the product in the supply network,
quantity available, and possibly the estimated time for delivery. After
checking product availability and accepting the delivery time by the
customers, the next step is creditchecking. In this step, the OMS
communicate with the financial information system to check a customer’s
credit status. Once the order is accepted, the OMS will allocate the
product to the customer order, assign it to a production location,
decrement inventory, and prepare an invoice when shipping has been
confirmed.

The OMS dose not stand in isolation from the firm’s other
information systems. If the customer is to be served effectively,then
information must be shared.
It should be noted that although the discussion has focused on theorders
being received by a firm, there is a similar OMS for the purchase orders
placed by the company (sometimes called the SMS). Whereas in a
customer-based OMS a firm’s customer data are important, in a purchase-
based OMS the focus is on
the company’s vendors’ data such as their delivery-performanceratings,
costs and terms of sale, capabilities, availabilities, and financial strength .
The ways customer orders can be placed vary from completely manual to
automatic when a customer’s computer directly connects to the seller’s
system without human involvement. There are clear trade-offs in each
situation between cost and information quality. In automatic order
placement, the speed and accuracy of the process increases. However,
initial costs are more than manualorders because of the need for system
facilities.

Automating the order-processing function has many advantagesfor

companies. The first one is improving customer services through increases
in speed and accuracy.

For example, by increasing the speed of the order-placement process,

theorder-cycle time can be reduced, which means that customers do not
need to hold so much safety stock. In this case, when a customer order is
received, the system is able to inform customers immediately about the
order status, including item availability, shipping dates, and credit
availability. If the order is allocated from inventory, the inventory levels
are updated automatically; if the itemis not in stock, then, according to
production planning, the estimated delivery date is provided to customers.

Another benefit to a firm is avoiding human interference in order-handling

functionsbecause these activities are now largely computerized.
Automationalso has financial benefits such as generating customer
invoices on the same day as shipments, which accelerates cash flow.
Finally, there are fewer billing errors and clerical mistakes.
QUESTION 4- Explain modes and characteristics of transportation
system.

ANSWER- A transportation system is a way of moving people or products

from place to place. Transportation systems have inputs, processes, outputs,
and feedback. For example, inputs to a city bussystem include bus drivers
and fuel. Processes include driving the bus and loading passengers. The
output is arrival at scheduled stops. Feedback includes comments from
satisfied customers.

Transportation systems are interrelated. Each system depends onthe other

systems. Buses and cars, for example, take passengers to airports and ship
docks. Transportation systems are part of thelarger technological, social,
and environmental systems in our world. Characteristics of
Transportation Services

Transportation is necessary for more people from one place toanother. In

doing so, however, transportation provides a service,which has some
unique characteristics. The principal characteristics of service may be
summarized as intangibility, inseparability and perishability variability:

1. Intangibility
2. Inseparability
3. Perishability
4. Variability
5. Seasonality and Demand Fluctuations
6. Interdependence of Tourism Products
7. Dominance of External Environment
8. Highly Capital Intensive and Economies of Scale
9. Impact of National and International Regulations
10. Intangibility

Unlike physical products, services cannot be seen, tasted, felt, heard or

smelled before they are purchased. Prior to boarding anaircraft, airline
passengers have nothing but an airline ticket and the promise of safe
delivery to their destination.

To reduce service intangibility, buyers look for tangible evidence,

information and confidence about the service for which prospective
customers uses various informational tools, such asthe internet,
advertisements, global distribution systems.

Inseparability
In transportation service, inseparability means that the act of production
and consumption must be simultaneous. The performance of the service
requires the active participation of theproducer and the consumer together.

Moreover, production and consumption also take place on the premises or

in the equipment. e. aircraft or coaches and not in the consumer’s home
environment.

It means that most staff involvedin providing services or operations have

some consumer contact and are seen by customers to be an inseparable
aspect of the service. The inseparability of production and consumption is
thus avital concept in services.
QUESTIN 5- Write major trends you see in world trade and
significance of global logistics.

ANSWER- The unwritten rule across any industry is that disruptive forces
are constantly at play, reshaping the way organizations thinkabout
technology, conduct business, and look to the future. This is of course true
for the logistics industry where market trends are impacting the sector to a
great degree.

From new technologies to explore and take advantage of, to shifting

regulations that require new strategies and tactics to ensure compliance,
there is a lot to consider.

Logistics companies must stay plugged into relevant and emerging trends to
stay at the bleeding edge and remain competitive. Companies that
succeed are the ones that accept the latest logistics industry trends and
challenges and utilize technology in a way that enables them to capitalize.

Today’s logistics industry looks entirely different than it did 10 years ago.
So, what will it look like in another 10 years? Here’s a look into the crystal
ball.

Logistics industry trends, such as those outlined above, are going to

continue to impact the industry well into the future. However, thesuccess
of trend-shaping nascent technologies requires that they are integrated with
existing solutions and infrastructure.

Logistics operations must be capable of enabling processes like ingesting

EDI load tenders, along with determining how future technology can be
leveraged to increase margins.
Businesses canthen create a next-generation stack that leverages their
previous technology investments while incubating big data, IoT, and
omnichannel solutions, thus positioning them for the future.

Companies that succeed in this environment and beyond will

embrace a combination of the top logistics industry trends, becoming
better equipped and resilient to supply chain shocks. Asyour company
navigates through 2023, consider how the current emerging trends in
logistics may impact your business.
QUESTION 6- Explain the bankers perspective on e-financial supply
chain management.

ANSWER- Financial market players - be it financial institutions (banks,

insurance companies, asset managers, brokers) and/or prudential authorities -
could learn a lot from how the corporate world is coping with the risk
management of disruptive events (yes,we have operational risk management
but that only covers part of the problem).
In the corporate world, they call this Supply Chain (Risk) Management,
and while there is a somewhat similar concept labelled as financial supply
chain management within the banking world, the latter merely revolves
around the payments side of trade,from the moment a purchase order is cut,
to the time of settlement and everything in between.
In the corporate world - from a definition perspective - Supply Chain
Management (SCM) is described as the management of the flow of goods
and services that includes the movement and storage of raw materials,
work-in-process inventory, and finished goods from point of origin to point
of consumption. In essence, SCM draws heavily from the areas of
operations management, logistics, procurement, and information
technology, and strives for an integrated approach.
Interestingly enough, within the financial services industry, nothing
comparable exists because when you think about it, the granting ofa loan is
the essence of a banking activity as it is through these lending activities that
banks generate revenues (yes, nowadays, banks also generate massive
revenues from non-lending activities)
as the primary root of banking is transforming money, namelycollecting
deposits and lending them to the economy (be it households, firms, and
governments).
But, banks do not have an integrated approach in managing the different
phases to deliver an end-product/service to a customer and where they view,
for example, the lending process as a supply chain. Yes, they have a B2B
paperless computer driven lending process in the case of a mortgage loan
where the consumer is ableto purchase or refinance a home without ever
signing or handling apiece of paper.
However, they do not have a streamlined fully integrated chain ofsupply
of services that involves back office, middle office, risk management,
business developers, finance, and IT. All these departments work in silo
with, yes, bridges between themselves, but without really thinking about
their service as being part of an integrated chain.
In other words, what is missing is the risk management of a front-to-
back processing for all banking activities. Granted, some
banking areas have adopted this train of thought such as Treasuryor Trade
Finance, but traditional activities such as corporate banking, retail
banking and/or institutional banking still operate in silo architectures and
lack an integrity of operations.
In an ideal world, the work flow of the sales desk should be integrated
with the middle office, risk management, back office (inrelation to
settlement and confirmation), accounting, reporting andenquiries. A simple
proof of this segregation is the mere existenceof difference IT
architectures and softwares for each of those activities lacking efficient
bridges among these areas of operations.
Going back to the corporate world, traditional methods for managing
supply chain risk rely on knowing the likelihood of occurrence and the
magnitude of impact for every potential event that could materially disrupt
a firm’s operations. For common supply-chain disruptions—poor supplier
performance, forecast errors, transportation breakdowns, and so on—those
methods workvery well, using historical data to quantify the level of risk.
But it’s a different story for low-probability, high-impact events—
megadisasters like Hurricane Katrina in 2005, viral epidemics like the
2003 SARS outbreak, or major outages due to unforeseen events such as
factory fires and political upheavals. Because historical data on these rare
events are limited or nonexistent, theirrisk is hard to quantify using
traditional models. As a result, many companies do not adequately prepare
for them. That can have calamitous consequences when catastrophes do
strike and can force even operationally savvy companies to scramble
after the fact—think of Toyota following the 2011 Fukushima
earthquake and tsunami.
To address this challenge, instead of developing a financial modelthat
focuses on determining the probability that any specific risk will occur, it
is more appropriate to center on the description of thesupply chain that
puts the emphasis on the impact of potential failures at points along the
supply chain (such as the shuttering of a supplier’s factory or a flood at a
distribution center), rather than again the cause of the disruption. This type
of analysis obviates the need to determine the probability that any
specific risk will occur—a valid approach since the mitigation strategies
for a disruption are equally effective regardless of what caused it.