UNIT -V SUPPLY CHAIN AND INFORMATION TECHNOLOGY oe oe IT in supply chain- The Supply Chain IT Frame Work - Customer Relationship Management - Internal Supply Chain Management - Supplier Relationship Management - Future of IT in Supply Chain — E-Business in Supply Chain. 5.1. THE ROLE IT IN SUPPLY CHAIN + IT consists of t iG Information is a key supply chain driver because it serves as the glue that allows the other supply chain drivers to work together with the yoal of creating an integrated, coordinated supply chain. Information is crucial to supply chain performance because it provides the foundation on which supply chain processes execute transactions and make decisions. Without information. a manager cannot know managers ry is in stock, and when more what customers want, how much inventor products should be produced or shipped. a manager can only make decisions blindly. 0 a manager. With the supply chain's In short, without information, Therefore, information makes the supply chain visible t this visibility, @ manager can make decisions to improve e. Given the rol mation in @ supply chain's success, le of info derstand ho’ and analyzed. This performance! : w information 1s gathered lay. managers must un is where IT comes into p cols used for the purpose of: Gathering of InformationSupply Chain Managemen, 2. Analysis of Information 3. Execute upon information to increase the performance of SC © IT consists of the hardware, software, and people throughout a supply chain that gather, analyze, and execute upon information. © IT serves as the eyes and ears (and sometimes a portion of the brain) of management in a supply chain, capturing and analyzing the information necessary to make a good decision. When we talk about information access for the supply chain, retailers have an essential designation. 4 They emerge to the position of prominence with the help of technologies. The advancement of inter organizational information system for the supply chain has three distinct benefits. These are: © Cost reduction: The advancement of technology has further led to ready availability of all the products with different offers and discounts. This leads toreduction of costs of products. © Productivity: The growth of information technology has improved productivity because of inventions of new tools and software. That makes productivity mucheasier and less time consuming. ¢ Improvement and product/market strategies: Recent years have seen a huge growth in not only the technologies but the market itself New strategies are made to allure customers and new ideas are being experimented for improving the product. It would be appropriate to say that information technology is a vital orga of supply chain management. With the advancement of technologies, new products are being introduced within fraction of seconds increasing their demand in the market Information is the key to the success of a supply chain because it enable® management to make decisions over a broad scope that crosses ie functions and companies.swply Chain and Information Technology ° ° (53) To obtain a . . global scope of the Supply chain, a manager needs accurate and timely informat ton on all company fu : y functions supply chain. tions and organizations in the the woes termine Production schedules, it is not enough Aree ‘, jurer mentioned earlier to know how much © company. The manager also needs to know the downstream demand and even the upstream supplier lead times and variability. With this broader scope, the company is able to set production schedules and inventory levels that maximize profitability. Information must have the following characteristics to be useful when making supply chain decisions: 1. Information must be accurate: Without information that gives a true picture of the state of the supply chain, it is very difficult to make good decisions. That is not tosay that all information must be 100 percent correct, but rather that the data available paint a picture that is at least directionally correct. ccessible in a timely manner: Often, 2. Information must be # but by the time it is available, it is either accurate information exists, out of date or, if it is current, it is not in an accessible form. To make good decisions, a manager needs to have up-to- date information that is easily accessible. of the right kind: Decision makers need 3. Information must be an use. Often companies have large amounts information that they ¢ np. of data that is not helpful in making a decision. Information is used when making @ wide variety of decisions about each of the supply chain drivers, aS discussed here: 1. Facility: De! facility requires information demand, exchange rat termining the location, capacity, and schedules of a ‘on the trade~ es, taxes, and so on offs among efficiency and flexibility,Supply Chain Managemen, peveutory: 5 ing optimal inventory policies requires information te . A that includes demand patterns, cost of carrying inventory, costs of stocking out, and costs of ordering 3. Transportation: Deciding on transportation networks, routings, modes, shipments, and vendors requires information including costs, customer locations, and shipment sizes to make good decisions 4. Sourcing: Information on product margins, prices, quality, delivery lead times, andso on, are all important in making sourcing decisions, 5. Pricing and revenue management: To set pricing policies, one needs information on demand, both its volume and various customer segment's willingness to pay, as well as many supply issues such as the product margin, lead time, and availability. Using this information, firms can make intelligent pricing decisions to improve their supply chain profitability. 5.2. THE SUPPLY CHAIN IT FRAME WORK ¢ Given the wide realm of information we have discussed, it is important to develop a framework that helps a manager understand how this information is utilized by the various segments of IT within the supply chain. It is important to note that the use of information in the supply chain has increasingly been enabled by enterprise software. Enterprise software collects transaction data, analyzes these data (0 make decisions, and executes on these decisions both within an enterprise across a supply chain. as hardwar- Certainly other parts of IT beyond enterprise software, such . making | implementation services, and support, are all crucial to effective. In many ways, software shapes the entire industry of enterprise rr as the other components follow the software lead. It is for this reason that *° weChain and Information Technol logy 5.5 enterprise software and i d its evolution ae as the pri an . and its impact on the supply chain, primary guide in analyzing IT The evolution of enterpri te . future of IT, but also he software provides insights not only into the ; what the key supply chain processes are. The enterprise software landscape became increasi a ae ame increasingly overpopulated The growth of the aa the as of software companies, the emergence of new and the expansion of software product lines combined to create an Gla software landscape that was not only much more crowded than in the past, but also much more dynamic. It was an environment grown for significant evolutionary change. The three of the main drivers of the evolution taking place in enterprise software are the three major groups of supply chain processes, which we call supply chain macro processes. 4 The successful categories of software will be those that focus on the macro processes. 53. THE SUPPLY CHAIN MACRO PROCESSES The emergence of supply chain management has broadened the scope across which companies make decisions. From an enterprise's perspective, all processes within its supply chain can be categorized into three main areas: processes focused downstream, and processes focused upstream. processes focused internally, © We use this classification to define the three macro supply chain processes as follows: e Customer relationship management (CRM). Processes that focus on downstream interactions between the re st i tomers. enterprise and its cus' 1 supply chain management (ISCM). env ions within the enterprise. Processes that focus on internal operatSupply Chain Managemen, ° Supplier relationship management (SRM). Processes that focus on upstream interactions between the enterprise and its suppliers. USTO |AGEMENT (CRM) 5.4, CUSTOMER RELATIONSHIP MAN: a ‘The CRM macro process consists of processes that take Place between an enterprise and its customers downstream in the supply chain. > The goal of the CRM macro process is to generate customer demand and facilitate transmission and tracking of orders. Weakness in this process results in demand being lost and a poor customer experience because orders are not processed and executed effectively. The key processes under CRM are as follows: Marketing Marketing processes involve decisions regarding which customers to target, how to target customers, what products to offer, how to price products, and how to manage the actual campaigns targeting customers. Successful software vendors in the marketing area within CRM provide analytics that improve the marketing decisions on pricing, product profitability, and customer Profitability, among other functions. Sell The sell process focuses on making an actual sale to a customer. The sell process includes providing the sales force the information it needs to make a sale and thet execute the actual sale. Successful software Providers have targeted sales force automation, configuration, and Personalization to improve the sell process. Order management the process of managing customer orders as they flow through an enterprist important for the customer to track his order and for the enterprise to plan execute order fulfillment. This process ties together demand from the customet Wil supply from the enterprise. Order management sofiware has traditionally been # P2" of an ERP system. Recently, new order management systems have emerged ous . ders across the often num order management systems that exist within a company, additional functionality that enables visibility of o‘ pply Chain and 4 Information Technology call/service center (5.7) A call/service center j hi mj } S ofter ri int of we one a 1 the primary point of contact between a company and its customers. A call/servic °! € center helps customers place orders, suggests products, solves problems, and ‘ - ee Prowides information on order status. Successful software . in : . pr improve call/service center operations by facilitating and reducing work done cr by customer service representatives, often by allowing customers to do the work themselves. 5.5. INTERNAL SUPPLY CHAIN MANAGEMENT - SUPPLIER RELATIONSHIPMANAGEMENT (ISCM) “ ISCM is focused on operations internal to the enterprise. * ISCM includes all processes involved in planning for and fulfilling a customer order. The various processes included in ISCM are as follows: Strategic planning This process focuses on the network design of the supply chain. Demand planning Demand planning consists of forecasting demand and analyzing the impact on demandof demand management tools such as pricing and promotions. Supply planning The supply planning process takes as an input the demand forecasts produced by demand planning and the resources made available by strategic planning, and then Produces an optimal plan to meet this demand. Factory planning and inventory planning capabilities are typically provided by supply planning software. Fulfillment to supply the demand, it must be executed. The fulfillment Once a plan is in place Process links each order to @ SPEC! typically fic supply source and means of transportation, The fall into the fulfillment segment are Software ications that applications » applications: ansportation and warehous!ne applicatt5.8 Supply Chain Management Field service Finally, after the product has been delivered to the customer, it eventually must be serviced. Service processes focus on setting inventory levels for spare parts as well as scheduling service calls. 5.6. SUPPLIER RELATIONSHIP MANAGEMENT (SRM) ° ° SRM includes tho. processes focused on the interaction between the enterprise and suppliers that are upstream in the supply chain. There is a very natural fit between SRM processes and the ISCM processes, as integrating supplier constraints is crucial when creating internal plans. These processes are the design collaboration, sourcing, negotiation, buy, and supply collaboration processes. Significant improvement in supply chain performance can be achieved if SRM processes are well integrated with appropriate CRM and ISCM processes. For instance, when designing a product, incorporating input from customers is a natural way to improve the design. ‘Supplier Internal Customer Relationship | Supply Chain | Relationship Management Management Management (SRM) (SCM) (CRM) ‘Transaction Management Foundation (TFM) Fig. 5.1. Macro Processes in Supply Chain This requires inputs from processes within CRM. Sourcing, negotiating, buying, and collaborating tie primarily into ISCM, as the supplier inputs are needed to produce and execute an optimal plan. However, even these segments need to interface with CRM processes such as order management.- ppl Chain and Information Technology 5.9 Again, the them ; 7 improved s ¢ of integrating the three macro processes is cruci Taare processes is crucial for «& The future SRM |, landscape is likely t i Resource Planning (ERP) company, 10 be dominated by these Enterprise 5,7. ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS © Enterprise Ry 5 ae — aii (ERP) Systems are Enterprise-wide — used for automating all activities and functions ofa “ Basically th i E ly these are transaction - based information systems that are integrated across the whole business. Financial 6 Manager % Management ‘ 22001 3333. 2333 Business Analytics é Inventory cae Fig. 5.2. ERP System OUNDATION woe |ON MANAGEMENT F dation is the historical home of the 5.7.1, THE TRANSACT! it foun saction managemen' largest enterprise software players: © In the early 19905. when much of the thinking in supply chain management was just getting off the ground and ERP systems were rapidly gaining popularity, there was little focus on the three macro processes.Supply Chain Management little emphasis on software applications focused on was ——_—— © In fact, there improving. decisions. was on building transaction management and that time , Instead, the focus at that proved to be the foundation for future * process automation systems decision support applications. These systems excelled at the automation of simple transactions and as well as the creation of an integrated way to store and view processes ° ; data across the division (and sometimes the enterprise). The huge demand for these systems during the 1990s drove the ERP players to become the largest enterprise software companies. ‘+ SAP continued as the market leader, but other powerful ERP players included Oracle, and Peoplesoft +> Eventually, however, ERP sales slowed, and today, of the former big five, only SAP and Oracle exist as independent entities. The real value of the transaction management foundation can only be extracted if decision making within the supply chain is improved. Thus, most recent growth in enterprise software has come from companies focused ycimproving decision making in the three macro processes. ERP players that focus on integrating across the macro processes along with developiag-goou functionality in one or more macro process will continue to occupy a position of strength, 5.8. THE FUTURE OF IT IN THE SUPPLY CHAIN PEUINTHESUPPLYCHAIN, At the highest level, we believe that the three SCM macro processes will Continue to drive the evolution of enterprize software. % To this end, we expect to see software focused on the macro processes become a larger and larger sh a are of the total enterprise software landscape son the macro proc ore esses to be much mi Successful than those that focus elsewhere and software firms that focu:e ° e 5 sepiy Chain and Information 7 echnology Software ; and IT decisions should then support the goal of improving performance along these oe Successful enterprise sofiware companies, given the lead in functionality integration, and ecosystems that existing firms already have We see start-ups adding value to enterprise software, although it is a very difficult path to take given the advantages the ERP players hold today Supply chain management is constantly evolving in response to and in anticipation of new developments. The future of the supply chain and which supply chain trends are most important to take advantage of in order to operate more effectively. Some of the future trends are: 58.1. SUPPLY CHAIN 4.0 % Supply Chain 4.0 is the application of Industry 4.0 technologies to the supply chain, such as the internet of things, advanced robotics, and big data. % The future of the supply chain, Supply Chain 4.0 will be faster and more efficient, flexible, granular, and accurate. . % As such, Supply Chain 4.0 will help companies reach a new level 0 * As such, operational effectiveness. 5 “ee otics will be especially helpful in automating and % Supply chain 10! icking and packing processes for both single pieces and streamlining pick!" entire cases.Supply Chain Managemen, nomen 5.8.3. BLOCKCHAIN TECHNOLOGY / © Secure all information within the blockchain. © Provide up-to-date, accurate information in real time. > Provide visibility into information and data for stakeholders. 5.8.4, DIGITAL SUPPLY CHAIN Technology stored and deployed in the cloud makes it easier for all parties attached to the supply chain and logistics method to be able to see information. Real time traffic data that could affect shipping and receiving of components of parts for product manufacturing or end user receipt of products. © Internet of Things capability and tracking software that makes it easier to understand the transit and handling of products and materials. Smart road” technology that can build off traffic and weather data and plan new routes or automatically alert key personnel of delays Share shipping information with customers. As an example of digital supply chain in action, Amazon an organization that uses its digital logistics technology to communicate with its customers 5.8.5. BAR CODING AND SCANNER Bar Codes are the representation of a number or code in a form suitable for reading by machines. % Bar codes are widely used throughout the supply chain to identify and track goods at all stages in the Process. % Bar codes are a series of different width lines that may be presented in 4 horizontal order, called ladder orientation, or a vertical order, called picket fence orientation. 5.8.6. RADIO FREQUENCY IDENTIFICATION (RFID) % Both RFID and Bar codes are indeed, quite similar, both being auto- 1D technologies, which are intended to provide item identification.- agnir chain and Information Technology 7 513 The primary diffe i 7 fa ins devine on is the reading data from the items. In bar coding, ree can care vain label with optical laser or imaging , i i uency signals ¢ reading device scans a tag by using radio | RFID transponder | Reader ———e- | antenna | ———— | . & | = RFID reader | % Teg | Passive Tag Fig. 5.3. Radio Frequency Identification (RFID) process 587. ELECTRONIC DATA INTERCHANGE @ Electronic Data Interchange (EDI) involves the swapping of business documents in a standard format from computer-to-computer. % It presents the capability as well as the practice of exchanging information between two companies electronically rather than the traditional form of. mail, courier, & fax. es of EDI are as follows: The major advantag' ssing of information Instant proce: Improvised customer service Limited paper work High productivity Advanced tracinB and expediting Cost efficiency itive benefit oe eo oe oo CompetitSupply Chain Managemen, (S14) 5.9. E-BUSINESS IN SUPPLY CHAIN me oe ae vr ere Plays a significant role in many supply chains ang companies are using the internet to conduct a wide variety of Supply Chain transactions. ; A firm can be successful with e-business only if it can integrate the internet with existing channels of distribution in way that uses the strengths of each appropriately. % The Value of e-business will allow business to create significant value in the future. % The value however will depend upon the industry and the stage in the supply chain a firm occupies, % E-business is the execution of business transactions via the internet: © Providing product information. ©. Placing orders with Suppliers. © Allowing customers to place orders. © Allowing customers to track orders, Filling and delivering orders to customers, © Receiving payment from Customers. 82B vs B2C Business to Business (B2B) Business to Consumer (B2C) Business to business commerce when one business sells to another business rather than to an end user Transactions between a company and a consumer The E-business Framework Stow and protect revenue), Impact on efficiency. (Which Primarily affects 4 company’s cost).only Chain and Information Te Analogy S18 poet of E-Business on Responsiveness @ Enables a company to gain new Tevenues or to protect existing revenues © Direct Sales to ¢ ‘ustomers, © = 24 Hour access frorr y location * Wider Product portfolio and Information Aggregation © Personalization/Customization © — Faster time to Market * Flexible pricing, product portfolio, and promotions © — Price and Service discrimination ¢ — Efficient funds Transfer * Lower stock out levels. © — Convenience/automated processes {business In practice % Integrate the Internet with the existing physical network. % Devise shipment pricing strategies that reflect costs. % Optimize e-business logistics to handle packages not pallets. % Design the e-business supply chain to efficiently handle returns, Keep Customers informed throughout the order fulfillment Cycle ° % * ° * TWO MARK QUESTIONS AND ANSWERS istic ment. Explain the role of IT in logistics and supply chain manage Better communication Competitive advantage Ease of operations Quick decision making Accurate data— Supply Chain Managemen, 5.16 ——————__ 2. Write in detail on types of logistical information system. XM a Types of Logistical Information System @ Extemal Internal Explain the global issues and challenges of supply chain management. Increasing fluctuation in customer demand Increased complexity in supply chain-political and legal difference Cultural differences. Currency unit differences. ¢eo¢eo% Language difference > High cost of transportation What is Electronic Data Interchange (EDI)? Electronic Data Interchange (EDI) is fastest, easiest and most Productive way toconduct business with the transportation, warehousing and logistics industry EDI is the exchange of information within or outside using electronic measure Bring out the challenges of supply chain. Globalization. Market Growth. Customer Preference. Access to latest technology. Supplier base consolidation Safety and quality products eo ee oe What is Enterprise Resource Planning (ERP)? Enterprise resource planning (ERP) is process used by companies © manage and integrate the important parts of their businesses. Many eR? software applications are important. to companies because they help implement resource planning by integrating all of the processes needed ‘heircompanies with a single system. An ERP software system ean also ites planning, purchasing ‘inventory, sales, Ww marketing, finang sources. more. 8, finance, human resosupply Chain and Information Technology say 1, What Is Material Requirements Planning (MRP)? sneveerent “saurements imnoe (MRP) is a computer-based inventory ee ign iO improve Productivity for businesses. " requirements-planning systems to estimate quantities of raw materials and schedule their deliveries. 8. What is the difference between ERP and MRP? ~The biggest difference between MRP and ERP lies in the fact that MRP is more of solo software, while ERP is integrated. This means that ERP can easily connect to other software systems and modules. “ On the other hand, MRP systeins are standalone and function by themselves with only manufacturing related tools 9. What is the role of ERP in supply chain? © ¢ An ERP system meant for supply chain management can automatically create demand when orders are received. ERP streamlines supply chain management ky, creating effective job scheduling. ¢ ERP ensures that production policies are consistent with demand, replenishment is done at the right time, and inventory is lean. 10. What is decision tree analysis? Decision tree analysis involves making a tree-shaped diagram to chart out a course of acfion or a statistical probability analysis. It is used to break down complex problems or branches. Each branch of the decision tree could be a possible outcome. » 11. What is risk pooling in supply chaii Risk Pooling involves using centralized inventory instead of decentralized inventory to take advantage of the fact that if demand is higher than averageat some retailers, it is likely to be lower than average at others 12. What is an agile supply chain? hn il ae chain is a system of product distribution concerned with agile si doing things quickly, saving costs, being responsive to market demands, oun , ; pane Sane flexibility, and keeping productivity high.ee Oe 13. State any two application of IT in supply chain network. 4 The technology has not only reduced supply chain timelines, but increaseg its reliance on system and application capabilities to manage critical processes. 4 Warehouse Management System, Warranty Management System and many more core business enterprise systems drive business processes in Supply Chain network. 14. How does e-business affect customer experience in a supply chain? ¢ Data sharing can decrease volatility for all nodes in the supply chain, % Data from your e-commerce store can further inform customer service at the point-of-sale online. In tur, with supply chain management software, you're able to see where manufacturing, warehousing, and shipping are in the fulfillment process. 15. Define B2B practices. Business-to-business (B2B), also called B-to-B, is a form of transaction between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business-to-business refers to business that is conducted between companies, rather than between a company and individual consumer. 16. What are the characteristics of e-SCM? The characteristics of E-SCM are as follows: Supply Chain Replenishment. E-Procurement. ... Supply Chain Monitoring and Control Using RFID. Inventory Management Using Wireless Devices. % E-Logistics. 17. How do you measure the value of information? ‘+ Validity: The percent of records with correct values. % Scarcity: An estimate of the percent of other organizations that don't have this data. % Coverage: The number of records in the dataset as a percentage of the total universe of potential records.Supply Chain and Information Technology 18. List out various supply chain in it practices. Transaction Cost Analysis. Channel Coordination. % Network Perspective. Materials Logistics Management. Customer Relationship Management. 19. List down the impact of IT on supply chain performance. * Supply chain management involves several activities such as material sourcing, production scheduling and physical distribution system, all of which are today continuously supported by information systems Companies today have to adapt their supply chain and business model to the changing environment and increase cooperation and information sharing REVIEW QUESTIONS Explain the concept of Supply Chain IT frame work in detail. What is Supply Chain Macro Processes? Explain the role of IT in Supply Chain. Elucidate the Future of IT in Supply Chain? What do you understand by the concept supply chain IT frame work Customer Relationship Management? What do you mean by internal supply chain management? What do you mean by supplier relationship management? Explain E-Business in supply chain. How information technology is playing im physical distribution? 10. Explain the following: i) Safety stock ii) Material Handling system iii) MRP system Qa Yeene portant role in warehousing and oe DSM _ — ODEL QUESTION PAPERS MODEL QUESTION PAPER - 1 B.E., | B.TECH., DEGREE EXAMINATION OME7S2 - SUPPLY CHAIN MANAGEMENT (REGULATIONS 2017) ; Three hours Time Maximum: 100 marks Answer ALL Questions Part A- (10 x 2=20 Marks) 1, What is Supply Chain Management (SCM)? 4. Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. Write any three importance of SCM. « Improves customer satisfaction as well as service. © Reduces inventory costs. Increases cash flow. © Provides better medium for information sharing between partners. . Define supply chain strategy. s the cost- benefit iterative process that evaluate: ness strategy involves leveraging the Supply chain strategy is an il ents. Busit gh-level goal or trade-offs of operational compon' core competencies of the organization to achieve a defined hi objective. What is the need for integrated Y End-to-end collaboration of dynamic s f materials supply, flow, ction networks. supply chain? supply networks. Transparency ©! nd inventories. v Y The nimble orchestration of produ v product information. Real time communication aboutMQ2 Supply Chain Managemen, What is Logistics? Logistics is used more broad! 5. moving resources — people, matt ly to refer to the process of coordinating ang erials, inventory, and equipment — from ~ location to storage at the desired destination. The term logistics originated in the military, reterring to the movement of equipment and supplies to troops inthe field. Distinguish between: supply chain management and logistics management, LOGIS(t'! 7S. SCM Narrow concept Broad concept Conducted mainly within the orgn. Functions outside the organization Originated from military logistics Originated from Business logistics 2 flows-product and information 3 flows-product, information and finance Objective is to minimize cost Objective is to maximize profitability 7. What is SCM outsourcing? Y Outsourcing can reply entire purchasing, information systems, marketing. finance and operation department. v Applicable to firm through the world ¥ Making the right decision may be different between success and failure. 8. Define Supply Chain Integration. Supply chain integration essentially means that the information and communication systems of all stakeholders are able to seamlessly exchane® information through all planning, execution and completion of transport logistics operations throughout a product's life time. 9. Explain the role of IT in logistics and supply chain. ¢ Better communication Competitive advantage Ease of operationsModel Question Papers ——— TT (MQ3) * Quick decision making + Accurate data Explain th 10. Explain the global issues and challenges of supply chain. v_— Increasi i asing fluctuation in customer demand Increased com foe Plexity in supply chain-politi . Cultural differences y chain-political and legal difference Currency unit differences Language difference High cost of transportation ZK Part B - (£ x 13= 65 Marks) 11, (a) Discuss the goal of supply chain and explain the impact of supply chain decisions on the success of a firm. Ans. Refer Section 1.2, Page No. 1.4 [oR] (b) How would you describe the various drivers in supply chain? Ans. Refer Section 1.8, Page No. 1.15 12, (a) Explain the Role of Distribution in the supply chain. Ans. Refer Section 2.1, Page No. 2.1 [OR] (b) Explain the factors influencing Distribution network design. Page No. 2.2 Ans. Refer Section 2.2, 13, (a) Explain the Design option for transportation network Ans. Refer Section 3.3, Page No. 3.8 [OR] (b) What do you mean by Tailored Transportation? Explain in detail. No. 3.12 Ans. Refer Section 3.4, Page 0. g in Supply Chain 14, (a) Explain the Role of sourcin a . Refer Section 4.1, vs nt whip Effect. in the impact of Bullwhip fect i ip Effect? And explain t! (6) What is Bullwhip net of Bal Ans. Refer Section 4-5, rm‘Supply Chain Management [Mo] 15, (a) Explain the concept of Su Ans. Refer Section 5.2, pply Chain IT frame work in detail Page No. 5.4 {OR} (6) What is Supply Chain Macro Processes? Ans. Refer Section 5.3, Page No. 5.5 Part C- (1x 15=15 Marks) 16. Choose a successful Indian company which has got a phenomenal reach in rural markets and explain its supply chain management and outbound logistics operation in a detailed manner. Supply Chain Management of Hindustan Unilever Limited (HUL) India’s largest FMCG company with Revenue of US$ 4.46 Billion and profits of US$ ~514 Million. Presence in Detergent, Toilet soaps, Deodorant, Shampoos, Ice- creams, Oral care products, Tea, Coffee, Salt & Atta, and Disinfectants. 15000+ direct employees of which around 1300 are managers. Indirect employment number up to 50000+. Sixteen of HUL’s brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). Touching Lives of 2 out of 3 Indian. Distribution system of HUL ¥ Easy Access to the products Product Availability. Brand Communication High Level of Brand Experience Distribution network is its strength HUL sources Raw materials from 2000+ suppliers. Ttalso outsources entire production to its vendors. HUL owns 100+ manufacturing plants across the country. HUL provide Tailor-made services to each of its channef Partners RELA| Model Question Papers ———_lvW——TT—___ = HUL Supply chain and Distribution Network a : FACTORY WAREHOUSE / C&F SUPER STOCKIST STOCKIST CO.OP STORES (DIRECT) (DIRECT) (DIRECT) WHOLESALER] [RETAILER [wHovesater] [ RETALER | | [consumer = Distribution at the Villages In rural India, the network directly covers about 50,000 villages, reaching 250 million consumers, through 6000 sub-stockiest. The team focuses on building superior availability of products. The team comprises an redistribution stockiest. RURAL STOCKIST (INDIRECT) exclusive sales force + and _—exclusive The Company Supplies directly to 35 Carry and Forwarding Agents (CF&A). These CF&As regularly feeds the Re-Distribution stockiest (RS) who are nextin the hierarchy, Product distributed through a Network of 7000+ Re-Distribution Stockiest (RS) Covering more that 1Millions retail outlets. Entire Urban Population is directly covered by this Distribution network The Carry and Forwarding Agent (CREA) is Supplied by The Company’s production facility. Either Rail or Road transport is e time factor for delivery and transportation cost. Genera area From the Carry Used depending upon th ally the factory location is such that it covers a large geographical and Forward agent (C&FA) the goods are supplied to Redi these steps trucks are used. The Redistribution stocki supplie: Whotesaler supplies to the retailer, here theloval popular and cheap "00S" is generally used the retailer makes the product available to the customer. ribution stockiest. In s the wholesaler. The ode of transportSupply Chain Management MQ.6 HUL approached rural market by two criteria: Y Accessibility and ¥ Viability. The company has brought all markets with populations of below 50,000 under one rural sales organization, The team comprises an exclusive sales force and Exclusive re distribution stockist who is responsible business in particular town, The team focuses on building superior availability of products in the 25% of the accessible markets with low business potential, HUL assigned a sub-stockist who was responsible to access all the villages at least once in a fortnight and send stocks to those markets. This sub- stockist distributes the company's products to outlets in adjacent smaller villages using transportation suitable to interconnecting roads, like cycles, scooters or the age-old bullock cart, In rural India, the network directly covers about 50,000 villages, reaching more than 250 million rural consumers, through 6000 sub-stockists, Lately in 2000 they launched Project Shakti Self-Help Groups of rural women extended to about 12 states, AP, UP, MP, TN, WB, Rajasthan, Maharashtra, Punjab. With the help of Women Self-help group (SHG). In cluster of small BPL villages with Population of 1000-2000. Wor entrepreneur, — they distributor Tespectively. men are chosen as Shakti Feceive training and goods from HUL and rural - They sell products directly to c Villages, Each Shakti entrepreneur serves and carry basis “. ‘onsumers and retailers in 6-10 villages. They receive goods on “cash - This is a major step from HUL for women empowerment. aaModel Question Papers ! (MQ.7| MODEL QUESTION PAPER - 2 / _ B.E., / B.TECH., DEGREE EXAMINATION _ OME752 - SUPPLY CHAIN MANAGEMENT (REGULATIONS 2017) Time: Three hours Maximum: 100 marks Answer ALL Questions Part A - (10 2 =20 Marks) 1, What are the key elements of supply chain management? Supply chain management also covers coordination and collaboration with channel partners, such as customers, suppliers, distributors and service providers. e Demand Management © =Communication e Integration © Collaboration 2. Bring out the role of supply chain manager. Supply chain management (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in- process inventory, and of finished goods from point of origin to point of consumption. Marketing channels play an important role in supply chain management. 3. What is meant by facility Decisions? Facility location decisions play a crucial in management. In real-life settings. the optimization of ion of the | role in the logistics activities involved in supply chai location and allocation decisions is often preceded by an evaluat existing distribution network system. 4. What is network planning in supply chain? Supply Chain Network Design (SNDC) also known as ‘strategic supply chain js the process for and modelling the supply chain to d time to bring goods t within an planning’ building understand the costs an able resources. and services (0 market organizations avail:Supply Chain Managemen, 5, Elucidate logistics Management. «Delivering to the customer t he desired level of service and quality at the lowest affordable cost. ; ; © Having the right item in the right place, right quantity at the right price, 6 What are materials handling? Material handling means providing the right amount of material, in the right condition, at the right place, and at the right time. It involves movement, protection, and storage and control of materials. 7. Define risk management in SCM. Risk management is the coordinated efforts of an organization to help identify, monitor, detect and mitigate threats to supply chain continuity and profitability. Automate processes involved in supplier risk management (SRM) to collect, analyze and manage supplier information. 8. What is Agro Supply Chain? ¥ Agro supply chains are economic systems which distribute benefits and assign risks among participants. Supply Chains enforce internal mechanisms and develop chain. Wide incentives for assuring the timely performance of production and delivery. What is Electronic Data Interchange (EDI)? Electronic Data Interchange (EDI) is fastest, easiest and most productive way to conduct business with the transportation, warehousing and logistics industry: EDI is the exchange of information within or outside using electronic measure. What is Enterprise Resource Planning (ERP). Enterprise resource planning (ERP) is a process used by companies to mans and integrate the important parts of their businesses. Many ERP softwa applications are important to companies because they help them implemét ‘source planning by integrating all of the processes needed to run the” “ompanies with a single system. An ERP software system can also intee™™™ lannin, ing i Planning, Purchasing inventory, sales, marketing, finance, human resources. more. °Model Question Papers MQ9 Part B- (5x 13 = 65 Marks) 11. (a) State the importance of Supply Chain Management. Ans. Refer Section 1.3, Page No. 1.6 [oR] (b) Elucidate the Evolution of Supply Chain Management in detail. Ans. Refer Section 1.5, Page No. 1.9 12. (a) Explain various design options available for a Distribution Network. Ans. Refer Section 2.3, Page No. 2.6 [OR] (6) Elucidate the frame work for network design decisions. Ans. Refer Section 2.7, Page No. 2.18 13. (a) State the role of transportation in supply chain. Ans. Refer Section 3.1, Page No. 3.1 [OR] (b) Explain the concept of Routing and Scheduling in Transportation in detail. Ans. Refer Section 3.5, Page No. 3.15 14, (a) Explain the process of Supplier selection and Assessment. Ans. Refer Section 4.2, Page No. 4.3 [OR] (b) What do you mean by 3PL and 4PL? Explain in detail. Ans. Refer Section 4.4, Page No. 4.8 15. (a) Explain the role of IT in Supply Chain. Ans. Refer Section 5.1, Page No. 5.1 [OR] (b) Elucidate the Future of IT in Supply Chain? Ans. Refer Section 5.8, Page No. 5.10 Part C- (1x 15=15 Marks) 16. Critically review the current trends in retail logistics with live industry example from Indian companies.