Post-Graduate Diploma in Business Management (Year 2009)

Supply Chain Management

Dr. V K Gupta

Institute of Management Technology Ghaziabad 2

Supply Chain Management

Course Background and Objectives:

Business the world over is struggling to sustain competitiveness in a rapidly globalizing economy. The boundaries of traditional trade partners are getting dissolved and emerging markets will present future opportunities as well as new rivals. In todays environment of shortening product life cycle, complex corporate joint ventures, and stiffening requirements for customer service, it has become necessary to consider the complete scope of supply chain management, ranging from supply of raw materials, through factories and warehouses, to meeting the demand in sales outlets. The function of supply chain management is to design and manage the processes, assets, and flows of material and information required to satisfy customers demands. Supply logistics related costs account for 20-25% of typical firms total costs. On the revenue side the supply chain decisions have a direct impact on the market penetration and customer service. The strategic and technological innovations in supply chain will impact how organisations buy and sell in future. If this is what the future holds, then you need to anticipate these trends to stay ahead. Globalization of economy and e-business has heightened the strategic importance of supply chain management and created new opportunities for using supply chain strategy and planning as a competitive tool. e-Business has not only created new distribution channels for consumers but also revolutionized the industrial marketplace by facilitating inter-firm communication and by creating efficient markets through trading communities. Moreover combination of enterprise information infrastructure and internet has paved the way for a variety of supply chain optimization technologies. The course on Supply Chain Management will focus on critical issues of design and management of supply chain, and what you should be doing to ensure that your organisation will lead the future. This will provide you with the essential update on the future of supply chain, ensuring that you are one step ahead of the game. Therefore, the objectives of this course are: i. To develop and understanding of individual components of supply chains (such as order management, transportation, network design, distribution channel management, after-sales service, and customer service strategy) and their inter-relationships with other functions of the company such as marketing, manufacturing and finance. To impart analytical and problem solving skills necessary to develop solutions for a variety of supply chain management and design problems and develop an understanding for use of information technology in supply chain optimization. To develop the ability to design logistics systems and formulate integrated supply chain strategy, so that all components are not only internally synchronized but also tuned to fit corporate strategy, competitive realities and market needs. To highlight how supply chain can make significant contribution to business results and how to cope up with uncertainties in supply chains. To understand the complexity of inter-firm and intra-firm coordination in implementing programs such as quick response, jointly managed inventories and strategic alliances.

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Pedagogy
The pedagogy will be a mix of lectures, experience sharing, case discussions, assignments and industry/research based projects. The course is focused on strategic issues with cases as the primary vehicle for learning. In addition to the reading materials, additional readings and cases will be distributed in the class from time to time. Students are also expected to prepare and analyze all the cases as class participation is very important.
Supply Chain Management

Course Requirements

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Since much of the course material requires class discussion, it is important that students are prepared for the class and present and defend your ideas. Preparation for class includes having read the assigned material. A number of cases will be used in this course. Cases are a great educational experience but they absolutely require that you be ready for the class. When cases are assigned, you should come to class ready to discuss the issues of the case. For each case, you should: a) identify the major problem, b) give your recommendation to resolve this problem (both short and long term), and when appropriate d) provide supporting analysis (both qualitative and quantitative) for your recommendations. Answering the questions provided for each case should help in this effort. The class will be divided into a number of groups and each group will have 4 students. For all cases, each group will submit case analysis report and power point presentation one day before scheduled class. There will be several home assignments assigned throughout the Term along with a number of unannounced quizzes. Late homework will not be accepted and there will be no make-up quizzes. Each group is expected to take up a live problem related to supply chain management. You are expected to solve the problem based on tools and techniques discussed in the class and submit your report. Each group will be required to give a presentation. Evaluation for this assignment will be done based on individual as well as group performance. Class participation will be based on the value you add to the class through your questions, statement, and comments. It is the quality of these that is more important than the quantity.

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Evaluation
Four Quizzes : 20% Mid Term Exam : 20% End Term Exam : 30% Group Project : 20% Assignments, Cases and Class presentations:

10%

Group Project
The group project will be one of the most important learning tools of the course. Each group will comprise of a maximum of six students students. Project guideline is given on Page No 8.

Assignments

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Case Report: Class presentation report running into not more than 15 PPT slides has to be electronically transmitted to the teacher on his email at least one day before the scheduled class discussion. Additional assignments may be given during the course.

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Text Book
Supply Chain Management

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Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies by: David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi . Third Edition 2008, Tata Mc GrawHill Publishing Co. Ltd., New Delhi

Reference Books
2. Fundamentals of Logistics Management D.M. Lambert, J.R. Stock and L.M. Ellram, 1998 McGraw-Hill International Editions Purchasing in Supply Chain Management Robert Monczka, Robert Trent and Robert Handfield, 1998 South-Western College Publishing Supply Chain Management: Strategy, Planning and Operation Sunil Chopra and Peter Meindl, 2001 Pearson Publications Supply Chain Management for Global Competitiveness, 2e B.S. Sahay, 2004, Macmillan. Emerging Issues in Supply Chain Management B.S. Sahay, 2004, Macmillan. Supply Chain Management in Twenty-first Century B.S. Sahay, 2002, Macmillan. Strategic Supply Chain Alignment J.L. Gattorna, 1998, Gower. Business Logistics Management, 4e Ballou R.H., 1999, Prentice-Hall International, 1999 Logistics and Supply Chain Management Martin Christopher, 1994, Pitman Publishing. Modeling the Supply Chain Jeremy F. Shapiro, 2001 Duxbury, Thomson Learning

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Journals
International of Physical Distribution and Logistics Management Supply Chain Management: An International Journal Supply Chain Management Review Journal of Supply Chain Management Journal of Enterprise Information Management Purchasing and Supply Management Decision Science International Journal of Production and Operations Management Journal of Production and Inventory Management

In addition to above mentioned journals, please keep track of other journals, websites, published articles and papers on Logistics and Supply Chain Management.

Websites
Supply Chain Management

Useful websites to be visited for the course Articles on supply chain, collaboration and e-business at www.ascet.com B2B and B2C Supply Chain Optimization Software companies: www.manugistics.com www.Logility.com www.i2.com www.Webplan.com www.Syncra.com www.Numetrics.com www.Extricity.com www.SAP.com www.Oracle.com www.capslogistics.com B2B Purchasing Optimization software: www.supplybase.com www.Clarus.com www.Ariba.com CRM software companies with some supply chain management: www.Vantive.com www.Clarify.com Retail Optimization: www.Richter.com www.Retek.com www.Nonstop.com Software companies hosting (or trying to host) trading communities: www.Tradematrix.com (i2) www.mySAP.com

Course Outline: Module/Session/Topic/Reading Materials/Cases

Session 1: Supply Chain Management: Issues & Challenges Readings: Text Book., Introduction to Supply Chain Management, pp. 1-19. Sahay, B.S. and Mohan, R., Supply Chain Management Practices in India, International Journal of Physical Distribution and Logistics Management, Vol. 33, No.7, pp. 582-606, 2003. Session 2 : Supply Chain Management: Bull whip effect, Readings: Text Book, The Value of Information, pp 159-177 Case 1: Meredith Surgical, pp 19-26 Session 3: The Value of Information: Demand Uncertainty in Supply Chain Readings: Text Book., The Value of Information, , pp.147-157.; 177-183
Supply Chain Management

Case 2 : Barilla SpA : Session 4: Right Supply Chain Readings: Harvard Business Review ,What is the Right Supply Chain for Your Produc,t March- April, 1997, pp. 105116.( to be distributed) Presentation 3 : Group presentation of the HBR paper Session 5: Logistics Network Configuration and Supply Contracts Readings: Text Book, Network Planning, pp79-125, 126-146 Case 3: The Bis Corporation Session 6: Risk Pooling in Supply Chains Readings: Text Book , Inventory Management and Risk Pooling, pp27-78. Case 4: Sport Obermeyer. Session 7: Supply Chain Integration Readings: Text Book, Supply Chain Integration, pp185-214. Case5 : The Great Inventory Correction Session 8: Practices in Industry

Session 9: Distribution Strategies Readings: Text Book, Distribution Strategies, pp215-249 Case 6 : Amazing Story of Mumbai Dabawalahs pp473-478. Session 10: Strategic Alliances Readings: Text Book., Strategic Alliances, pp251-273. Kopczak, L.R., Trends in Third-Party Logistics, Achieving Supply Chain Excellence Through Technology, 1999, pp. 268-272. Gattorna J., Fourth-Party Logistics: En Route to Breakthrough Performance in the Supply Chain, Strategic Supply Chain Management, Gattorna, J., Gower, 1998, pp. 425-445. Jones Theresa, Reverse Logistics: Bringing the product back: taking it into the future, Strategic Supply Chain Management, Gattorna, J., Gower, 1998, pp. 619-632. Case 7 : Laura Ashley
Supply Chain Management

Session 11: Procurement and Outsourcing Strategies Readings: Text Book; Procurement and Outsourcing Strategies, pp277-321 Case 8: Zara pp277-291 Session 12: Practices in Industry

Session 13: Coordinated Product and Supply Chain Design Readings: Text Book, Coordinated Product and Supply Chain Design,pp 343-370. Case 9: Hewlett-Packard Company: Network Printer Design for Universality Session 14: Customer Value and Smart Pricing Readings: Text Book, Customer Value, pp 377-398 and Smart Pricing, pp399-417. Case 10: The Great Rebate Turnaround, pp414-417 Session 15 : Information Technology for Supply Chain Management Readings: Text Book, Information Technology and Business Processes pp419-449. B.S. Sahay and A. Gupta, Development of Software Selection Criteria for Supply Chain Solutions, Industrial Management and Data Systems: International Journal, Vol. 103, No.2, pp. 97-110, 2002. Websites of supply chain optimization vendors.

Session 16: IT Infrastructure, SOA, RFID Readings: Text Book Technology Standards, pp451-464. Session 17: Measuring Supply Chain Performance Readings: Christopher, M., Benchmarking the Supply Chain, Logistics and Supply Chain Management, 2e, Financial Times-Pitman Publishing, 1998, pp.101-124. Session 18: Global Logistics Readings: Text Book, Global Logistics and Risk Management, pp321-341. Session 19, 20: Project Presentations

Supply Chain Management

Group Project
The group project will be one of the most important learning tools of the course. Each group will comprise of 4 students. This is a highly interactive real life project, which requires a high degree of analysis and tangible recommendations. Your group is required to identify a company as well as project. Some projects are identified at the end of this note. The deliverables of the project include: 1. 2. 3. 4. 5. Project proposal Interim Report Final Report A Case Study Presentation

Project Proposal Format

Your proposal should include following: Introduction/Background of the project Rational for taking the project Objective of the study Scope of the study Methodology (provide flow diagram) Expected outcome Project schedule

Interim Report Format

Interim report is like progress report and should be about 10 pages (maximum). following: Introduction/Background of the study Objective of the study Scope of the study Methodology (provide flow diagram) Existing System Data collection Data analysis It should include

Final Report Format

The final report has to be prepared and submitted in the format encompassing the areas mentioned here under the heading of Contents. Executive Summary Acknowledgements List of Abbreviations List of Tables List of Figures 1. Introduction/Background of the study
Supply Chain Management

2. 3. 4. 5. 6. 7. 8. 9.

Objective of the study Scope of the study Methodology (provide flow diagram) Existing System Data collection Data analysis Proposed System Recommendations References Appendix

Ground Rules
The entire report must be in the range of 30-40 pages. The Final Report format as mentioned in the heading Contents is not sacrosanct. It is subject to change depending on the sector specific requirements that need to be incorporated and highlighted so as to improve the understanding of supply chain management. Please use Summer Project Guidelines as Style Manual for writing the report. Grading of the report will be done on the strength of the analysis and explanation therein. No graphs, which is basically a reproduction of the data provided, are to be included as part of the report. Please incorporate diagrams wherever possible. Please follow the guidelines of the summer project in terms of report submission.

Case Study
This shall consist of a 4-5 page (A4 size, Times New Roman, 11 font, single spacing) case on one or more issues related to supply chain management practices of anyone Indian player in the Sector under study. Typical area(s) on which the case should focus on include supply chain strategy formulation, inventory management, order fulfillment, logistics solution implementation, inbound logistics, outbound logistics, supplier-customer involvement, global sourcing, reverse logistics, reverse auction to mention a few. The case should clearly highlight the imperatives driving the supply chain initiatives, benefits envisaged and methodology followed.

Presentation
The presentation should cover both the analysis of primary and secondary data. Each presentation will be of 20 minutes with 12 minutes given to the group to highlight the key findings and 8 minutes for open discussion with the students.

Supply Chain Management

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