Chapter 1 SUPPLY CHAIN MANAGEMENT: AN INTRODUCTION Learning Objectives After reading this chapter, you will be able to understand: The conceptual framework of supply chain management, its historical perspective leading to their development and growth @ Scope of supply chain and various flows of supply chain Different functions, types and factors affecting the SCM @ Various drivers of Supply Chain Management and its trends and challenges Supply chain management is a growing field that is becoming important as businesses adopt a global approach to sourcing and management. Now-a-days, numerous brands of cars, two-wheelers, and consumer goods are available. But a few years back, consumers were left with very few brands for their choice. Over the past years, the traditional purchasing and logistics functions have evolved into a wider strategic approach to materials and distribution management known as Supply Chain Management. During the 1980s and 1990s, firms deal with increased demands for better, faster, cheaper logistical services. As a result, many manufacturers outsourced logistic activities and their focus transferred to core competencies. Therefore, many manufacturer went more for a relationship oriented approach with their supplier and customer. During the past two decades the rapid technological changes and development of speedy telecommunication network have given a boost to organisations in restructuring their business operations and developing a smoother flow of information, goods, services, money, etc. Introduction of Enterprise Resource Planning (ERP) gave a boost to the evolution of SCM and buyer-suppler relationship. ERP systems were mainly concerned with intra-organisational integration. The evolution continues in the 21st century with the development of more sophisticated IT systems, As industry is growing globally, business houses are increasing their product portfolio with a focus on quick information, prominent display, ready and intact delivery and so on.Supply Chain Managemen, This is done in order to satisfy their customers with a difference. To attain all these goals, companies have to present best quality product at a reasonably least price as and when required Development of supply chain management involves developing a set of management practices that will ensure that the material, information and cash flows are smooth. = History of Supply Chain Management q@) (2) (3) (4) The Early Years: In the 1940s and 1950s, the focus of logistics research was on how to use mechanisation to improve the labour intensive processes of material handling and how to take better advantage of space and better warehouse design and layout, In the mid 1950s this concept was extended to transportation management with the development of intermodal containers together with ships, trains, and trucks to handle these containers. Buy the 1960s a clear trend had developed in shifting more time-dependent freight transportation to truck rather than rail. This led to need of joint consideration of warehousing, material handling and freight transportation which emerged under the label of physical distribution. Prior to 1960s, virtually all transactions and record keeping were done manually. The computerisation of this data opened the door to a huge opportunity for innovations in logistics planning, from randomised storage in warehouses to optionisation of inventory and truck routing. Logistics Comes of Age: The 1980s marked the beginning of a sea-change in logistics in the history of supply chain management. The emergence of personal computers in early 1980s provided tremendously better computer access to planners and a new graphical environment for planning. Perhaps the most important trend for logistics in the 1980s was that it had begun to get tremendous recognition in industy as being very expensive, important and very complex. A discipline was evolving that included the integration of inbound, outbound and reverse flow of goods, services and related information. The Technology Revolution: The logistics boom was fueled further in the 1990s by the emergent of Enterprise Resource Planning (ERP) systems. These systems were motivated in part by Material Requirement Planning Systems developed, in patt bY the desire to integrate the multiple databases that existed in almost all companies and seldom talked to each other and in part by concern that existing systems have failures. The result of this change to ERP systems was a tremendous improvement in data availability and accuracy. Globalisation and Supply Chains: This era can be characterised by the attention given to global systems of supplier relationships and the expansion of supply chains over national boundaries and into other continents. The organisations acted with the goal of increasing their competitive advantage, value adding and heer through global sourcing. ge, ing reducingSupply Chain Management: An Introduction 5 Now a distinction was made that “Logistics is that part of the supply chain process that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and point of consumption in order to meet customers’ requirements” while “Supply Chain Management is the systematic, strategic co-ordination of the traditional business functions and the tactics across these business functions within a particular company and across business within the supply chain for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole. In this era, the attention is given to the supplier relationships in the global system so that these could be effective in the expansion of supply chain. Supply Chain Management 2.0 (SCM 2.0): SCM 2.0 could be described as the evaluation of the processes and the changes with the supply chain with the time, however with the time, there were changes, which were considered as a tool to manage the new era of a supply chain. It could name as worldwide web that has increased the productivity, collaboration and sharing among the users. There are specific tools, methodologies and the processes to speed up supply chain. g = Meaning of Supply, Supply Chain and Supply Chain Management AAupply chain management is a set of approaches that integrates supplier and manufacturers so as to distribute the right quantity of goods and at right location with the objective of reducing the system wise cost. It consists of three words: ~6upply: Itis the total amount of a product (good or service) available for purchase at any specified price. Or we can say itis the total quantity of goods offered at a particular period of time to the particular type of market in a particular marketing environment by a specific producer. Aupply Chain: It is the sequence of processes involved in the production and distribution of a commodity Itis a network between a company and its suppliers to produce and distribute a specific product to the final buyer. This network includes different activities, people, entities, information and resources. It also represents the steps it takes to get the product or service form its original state to the consumer. Supply Chain Management: Supply chain involves all those activities associated with the flow and transportation of goods from the yaw-material stage, through to the end-user, as well as the associated information flows. Materials and information flow both up and down the supply chain. Supply chain is a network of concerned and interdependent organisations mutually and co-operatively working together to control, manage and improve the flow of Materials and information from suppliers to end users. vids, \ Row peter dle6 Supply Chain Managemen Supply chain managementis the blend of act and science that goes into improving the way your company finds the raw components required to make a product or service and delivering , to customers. So, the supply chain includes not only the upstream suppliers of an item and the organisations that make the components used to create that item, but also the downstream retailers or distributors for the item. © Definitions of Supply Chain Management 1. Harland defines “Supply Chain Management is the management of a network of interconnected business involved in the ultimate provision of product and service packages required by end customers.” 27 Cooper defines it as “An integrative philosophy to manage the total flow of distribution channel from supplier to ultimate user.” 3. According to Sweeney (2007) “Supply Chain Management is the systematic; strategic co-ordination of the traditional business function and tactics across these business functions within a particular company and across business within the supply chain, for the purpose of improving the long-term performance of the individual companies and the supply chain as a whole.” 4. According to Bozarth and Handfield (2008) “Supply Chain Management is the active management of supply chain activities and relationships in order to maximise customer value and achieve a sustainable competitive advantage.” 5. According to Wisner, Tan and Leong (2012) “Supply Chain Management is the integration of trading partners’ key business processes from initial raw material extraction to the final or end consumer, including all intermediate. Processing, transportation and storage activities and final sale to the end product consumer.” 6. According to Lambert, “Supply Chain Management is the integration of key business processes from end users through original suppliers that provides products, services and information that add value for customers and stakeholders.” 7. According to Council of Supply Chain Management Professionals (CSCMP), “Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities.” So, we can say that A supply chain is a network of facilities and distribution options that the functions of procurement of materials, transformation of these materials into performs es jtermediate and finished products and this distribution to customers. It not only inclue manufacturer and suppliers but also transporters, warehouses, retailers and “customers themselves. themselves: fa RBI elSupply Chain Management: An Introduction 7 = Some Examples for clear Understanding of Supply Chain Ifa customer makes an online purchase from Amazon, the supply chain includes, among others, the customer, Amazon's Website, the Amazon warehouse, the carrier who delivers package to customers, and all of Amazon's suppliers and their suppliers. Suppliers -| Amazon's Amazon's ivetstie) “to Supplier ‘Suppliers Warehouses arcs customers Supplier 1 | | Le Electronics — fess} L I | [a Supplier 1 Fashion A} Mutipie a al i ducts M ‘Supplier 2 ee i yx [I NX > WA PJ Tack /—| Appliances Supplier 2 [ceria | Tier 1 Suppliers | Assembly Piant| | Dealers | | Customers shass Supplier | | Supplier? }-—s]_ camera ‘Supplier 3 Tier 2 Suppliers ‘Supplier 1 } Factory ‘Supplier ‘An Automotive Supply Chain8 _x Characteristics of Supply Chain Management The definitions of SCM, suggest number of significant factors and related characteristics which are key to successful implementation. These characteristics are as ee 1. Inventory: The very focus of SCM is managing the flow and level of inventory. The level of inventory must be sufficient to provide acceptable customer service but low enough to minimise supply chain cost. An inventory means the ready list of ters, raw materials and other essentials required for the product or service. This list has to be regularly updated to demarcate available stock and required stock. Inventory management is critical to the function of SCM, because without proper inventory management the production, as well as sale of the product is not possible. Businesses now pay more attention to this component due to its impact on the supply chain, 2. Cost: Any SCM aims at higher level of efficiency on lowering the cost. Here cost means “costat the end of supply chain.” This means that the companies that are part of asupply chain are to be aware of what impact their approach and activities have upon their vendors or customers or both. In present day environment of globalisation, the companies have to coordinate their supply chain activities by sharing information and using joint planning to attain the cost objective. 3. Information: Management of the flow of information is a_key factor for both efficiency and effectivenessin the supply chain. Certainly the information flow should be directional flow to really maximise the potential of SCM. A key feature is sharing information up and down the supply chain. 4. Effective Supply Chain Planning and Network Design: Another characteristic of an effective supply chain is effective supply chain planning and network design. Network design is defined as a company being able to meet the long term objective of the company. A supply chain network can be used to highlight interactions between ‘companies. Companies actively design valuable networks in order to manage demand and supply variability. A companies network is not just used to create effective supply chain it is also used to ensure customer satisfaction. _yScopelComponents of Supply Chain Management Companies across the world are looking forward to signify innovation as the strategic logic for high growth. Today it would be difficult to find an organisation either small or large, which does not understand the importance of supply chain management. Companies are aware that successful implementation of these principles can have a positive impact on the overall success of the organisation. The following are the basic components of supply chain management. StSupply Chain Management: An Introduction 9 Physical Distribution Procurement and Components if cturing Support of Supply Chain Product Development| and Customer Service Management in Commercialization Components of Supply Chain Z. Planning: This is the important stage. Before the beginning of the entire supply chain, it is essential to finalise the strategies and put them into place. Itis important to check the demand for the product or service, checking the viability, costing, profit and manpower, etc. It is difficult to achieve effective and long term benefits without a proper plan or strategy. Source: Here we have to select the suppliers who will deliver the goods and services so that final production may be done. This involves developing a set of pricing, delivery and payment processes with suppliers. Moreover, it involves_mutual processes for managing the inventory of goods and services that you receive from suppliers. It also includes receiving shipments, verifying them, transferring them to your manufacturing facilities and authorising supplier payments. _ Production: Production is one among the most important aspects of this system. It is only possible if all other components of the SCM are in tandem with other. This involves making schedule for the activities necessary for_production, testing, packaging and delivery. This is the most important part of supply chain as it requires measurement of quality levels, production output and productivity of labour. Location: Any business needs a suitable location profitable to the business to be able to survive as well as flourish. Hence a suitable location, well connected and very close to the source of essential resources for production is vital to business prosperity. The requirement and availability of manpower must also be considered while setting up a business unit. - Transportation: It involves co-ordination of the receipt of orders from customers, developing a network of warehouses, transporting products through carriers to customers and setting up an invoice system to receive payments. Any business which pays attention to this component and takes good care of it, will benefit from the10 Supply Chain Managemen, production and transportation of its goods on time. We must ensure zero damage and minimal loss in transit. _& Return of goods: is component refers to the reverse flow of goods from customer back to producer. It involves creating a network for receiving defective and excess products back from customers and supporting custom who have problems with ,d by consumer complaints, a Felivered products. In case of any lapses, followed 9 business must recall the products and issue an apology. This not only creates a good customer bonding but also maintains goodwill in the long run. e Other Components Customer Service Management: management, customer redressal committe: ) order fulfillment, order delivery, collection of m« + Product development and Commercialisation: It includes components such as Product Data Management, Productline development, productlaunch, productsupply, market share, customer satisfaction, profit margins and returns to stakeholders. Manufacturing Support and Procurement: It includes Resource Planning (ERP), warehouse management, human resource management and soon. It includes the customer relationship es, customer feedback forms, order taking, oney and so on. + Physical distribution, components such as Enterprise material management, manufacturing planning, _rVarious Flows in Supply Chain Management The purpose to design a supply chain is to structure main three flows namely— (1) Product/Services Flow (2) Information Flow and (3) Finance Flow in a way that customer requirements can be met in a cost effective manner. MM) Product/Services Flow: The flow of goods or services are always in a forward direction, ensuring better customer service, superior value, greater market coverage, and increased market share. 7 cei —< Raw material > —> Supplier/Vendors > —> Manufacturer © Work in Progress/Semi-finished goods + Between various Production sub-systems _ Finished goods > > from production > — to final consumers/distribution centres Smooth flow of goods prevents stock-out situation for items of inventory.Supply Chain Management: An Introduction u Information Flow: The second important flow of supply chain managements flow of information without which supply chain cannot work in an effective manner. Flow | ways-forward and backward flow. [Forward flow lof information includes availability of goods, transportation and distribution advice, invoice information, etc| Backward Information flowlincludes feedback from customers, timing and place of delivery of goods, changes required in product, etc. — Any delay or lapse in flow of information may increase cost of production and creates balance in supply chain. ance Flow: Another important flow in supply chain is flow of cash which is an important element for the survival of any business Finance/Cash flow is in backward direction-from customer to manufacturer, from retailer to wholeseller or from wholeseller to manufacturer. | ==> or (=> Customer Producer ~ Morwtactun = Cuter = Supply Chain Management Wholelltn €— Retailer Honutactuncn <— ulhol esell er Supply Chain Management is the integration of key business processes of a focal organisation with downstream players (customer and customer's Customer) on one side and upstream players (supplier and supplier's supplier) on the other side. ¢ Functions of Supply Chain Management Supply Chain Management is a cross-function approach including managing the movement of raw materials into an organisation, internal processing of materials to convert them into finished products, and movement of finished goods out of the organisation and toward the end-consumer. As organisation stained to focus on core competencies and becoming more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other entities that can perform the activities better or more cost effectively. The effect is to increase the number of organisations involved in satisfying customer demand, while reducing management control of daily logistic Operations. Less control and more supply chain partners led to the creation of supply chain Management concepts.12 Supply Chain Monagemeg = Supply chain functions can be categorised into three level: e |. Strategic Functions « Strategic network optimisation, including the number of location, size of warehousing distribution centres and facilities + Strategic Partnerships with suppliers, distributors and customers, Creating communication channels for critical information and operational improvernents such a, Cross Docking, Direct Shipping, and third party logistics. Product Life Cycle Management, so that new and existing products can be optimally integrated into supply chain and capacity management activities. * * Information Technology Chain Operations. + Aligning overall organisational strategy with supply strategy. e Il. Tactical Function + Sourcing Contracts and other purchasing decisions + Production Decisions, like contracting, scheduling and planning process. + Inventory Decisions, including quantity, location and Quality of inventory. 7 + Transport Strategy, including frequency, routes and contracting. + Focus on Customer Demand. e Ill. Operational Functions - L Daily Production and Distribution Planning, including all nodes in the supply ~ chain. + Production Scheduling for each manufacturing facility in the supply chain. Demand Planning and Forecasting, co-ordinating the demand forecast of all customers and sharing the forecast with all suppliers, * ° Sourcing Planning, including current inventory, and forecast demand in collaboration with all suppliers. ° Inbound Operations, including transportation from suppliers and receiving inventory. + Outbound Operation, including all fulfillment activities, warehousing and transportation to customers, As we have discussed the important functions of Supply Chain Management, we perform different types of activities under Supply Chain Management so we can say that SCM is the combination and blend of different managements like (a) Inventory Management (b) Distribution Management °Supply Chain Management: An Introduction, (c) Channel Management (d) Payment Management (e) (f) Supplier Management (g) Transport Management (h) Customer Service Management (i) Material and Store Management Finance Management Functions of Supply Chain Management ———_— strategic Tactical | Operational Functions Functions Functions aAhpes of Supply Chain AC Raw Supply Chain: In Raw Supply Chain, the steps include moving and transforming raw materials into finished products, transporting those products and en distributing them to the end user. The entities involved in supply chain include ye producers, vendors, warehouses, transportation companies, distribution centres and retailers. — , ~2¢ Ripe Supply Chain: This supply chain is more advanced than previous one, more organised and creates better relations with supplier. Food supply chains are complex networks consisting of small and medium sized enterprises. This type of supply chain exists in food sector. Food Supply Chains are confronted with increased consumer demands for food quality and sustainability. ~3@Extended Supply Chain: This type of chain is internally optimised, and extend well beyond the company boundaries, but the problem is that this type only concentrate on partial integration. This type of supply chain is very common in Automotive Sector. Today companies cannot develop products without understanding customer sentiments and usage patterns. customers expect personal product and manufacturers must produce and deliver these individual products while operating at mass production cost efficiency. —A‘Internal Supply Chain: It refers to the chain of activities within a company, specifically, purchasing, production, sales and distribution. The internal supply chain has a significant impact on a company’s success; operations need to run smoothly in order to create a harmonised working environment and an efficient workflow.“RS “4 Supply Chain Hn _5 External Supply Chain: It refers to the network of activities outside of a comp such as transportation and the environmental factors, which can have a dingy” indirect effect on operations e.g. supplier failure, changes in laws and Dat, disasters. These activities are usually have a greater impact on supply chain, ~ §< Self Monitored Supply Chain: Monitoring means to review ona continuous, the degree to which the supply chain activity is completed and if targets are being ne This allows corrective actions to be taken. Factors Affecting Supply Chain Management There are several factors which need to be considered while developing an efficient SCY Following are the main factors: 1. Location and Transportation Decisions: Geographic location of Productio, Plants, warehouses and Distribution centers are the most important factors it determining the supply chain. These factors also impact the revenue, cost and levg of service. Customer locations also play a vital role in such decisions. Determining the appropriate mode of transport is also an important area in supply chain management. Air shipments are fast but at the same time costly too, while shipping by sea or rail is cheaper but large amounts of inventory need to be transported which definitely affects the cost. 2. Product Type: Type of product is one of the most important factors and whol supply chain management depends on it. Supply Chain Management for solid Products will be different from liquid products, For example: Milk, Milk Products, le Cream, Medicines require sub zero temperature throughout the wh Process and hygiene can be the most important ctiteri medicines. ‘ole supply chain ia for some foods and 3. Production Decisions: Production decisions which includ produced and the plants where those products will be Production, etc. play an important role in determining the py le type of products to be Produced, scheduling roduction decisions, 4. Inventory Control: Inventories are the most important part of Supply Chain and exist as raw materials, semi-finished goods or finished goods, Proper inventory ent management and contol is very crucial as it determines the cost of proc i hence will affect the profitability. ction and 5. Distribution Strategies: Distribution strategy is one of the most important f behind the plans of SCM. The distribution strategy deals with the telationshj factors connection between the suppliers and the warehouse managers, = and the Management focuses on improving the distribution strategies to optimise th. Chain supply chain process. overallSupply Chain Management: An Introduction 15 6. Supply Chain Integration: Supply Chain Management needs to integrate all the information available in one system to effectively and efficiently track the progress. That’s why we need ERP’s which integrate all the suppliers, procurement managers and inventories into one system to control the overall supply chain system for a particular organisation. = The Drivers of Supply Chain Management Supply Chain Management has five main drivers, which can be managed and developed to improve responsiveness or efficiency. 1. Information: It is the most important and basic driver of the Supply Chain Management. To formulate a strategy in this competitive era, a company needs to collect the data and analyse the information accordingly. To get an idea of future market of the products these information help to understand the trends. For the collection of data, technology plays an important role and it is less expensive as well, we can get data from anywhere at any place of any company or country through internet. So, technology is most important way to get information to maximise the overall profitability of the company. Accurate information can enable very efficient operating decisions and better forecasts but the cost of building and installing systems to deliver this information can be very high. Information Flow is important to connect the various stages of the supply chain. This driver affects the performance of the other drivers. Even a customer can get data through this driver. Production: Production, this driver helps in determining the number of production require according to the demand and how these demand will be met effectively and customers get the product according to his choice and taste without delay. The fundamental decision that managers face while making production decision is how to resolve the trade off between responsiveness and efficiency. If factories and warehouses are built with a lot of excess capacity, they can be very flexible and respond quickly to wide saving in the product. Inventory: Inventory plays a key role in supply chain as demand and supply often tend to mismatch. There are many reasons for this mismatch. It could be because of inappropriate production demanding a certain size, which would be over and above immediate demand, may be due to seasonality, or may be due to randomness of estimates, so inventory in supply chain is required. Unless inventory is well managed, supply chain would be inefficient in this cost-efficient in this cost-efficiency driven supply chain, especially for a standardised product category. Inventory plays a significant role in the competitive strategy also. Responsiveness can be enhanced by stocking high level of inventory for a wide range of products. Additional responsiveness can be gained by stocking products at many locations so as to have‘Supply Chain Managemen” the inventory close to customers and make them available as they demand. Benefi of cost reduction and economies of scale can be got by stocking the inventory in only a few central locations i.e. Distribution centres. There are three basic decisions tg make regarding the inventory. (i) Cycle Inventory: This is the the product in the period between purch; produce and purchase the goods in bu economies of scale, but buying of goods in bulk results in increase in carrying costs. Then cost to store and insurance all come in the way. So, managers have to trade off between the reduced cost of the order and better prices offered by purchasing company in large quantities. (ii) Safety Inventory: As future is uncertain, so a company has to keep inventory in large lots. Companies do forecasting and planning based on their past experiences but still every forecasting has some degree of uncertainty. So, in order to deal with this situation, inventory is held in large quantity in case demand is suddenly greater than ‘anticipated. The trade off here is to weight the cost of carrying extra inventory against the costs oflosing sales due to insufficient inventory. (iii) Seasonal Inventory: predictable increase in 4. Transportation: Transportation pl nodal organisation as the moveme: important value creating activity. This driver helps in understandin, means of transport used to deliver the product on time. If there is an increase in the time taken to deliver the products, the customers will dissatisfied them. Transportation costs can be very high as compared to other operating costs of the Supply Chain Management, so decisions related to transport are highly importantt be taken carefully. Modes of transports are: (a) Ship: Very cost efficient, but slow hence so much of time is required. amount of inventory needed to satisfy demand fo, ases of the product. Usually companies Ik in order to have the benefit of This is inventory that is built up in anticipation of demand that occur at certain times of the year. lays a key role in Supply Chain Management ofa mnt of goods to the ultimate customer is an g_ the various (b) Rail: It is also cost effective, but slow and it is also restricted to the places which are connected by railway lines. (c) Pipelines: Efficient mode of transportation but restricted to liquids and 925 i.e. oil, water, natural gas, etc. (a) Tones: It is quick and flexible mode of transportation. Cost of this mode ! peter fluctuates with the fluctuation in the prices of free and the condition © roads also play an important role in this mode of transport. oFsupply Chain Management: An Introduction 17 (e) Airplanes: Very fast mode of transport and very responsive. It is also expensive mode and restricted by the quantity, nature of the products and the airport facilities. (f) Electronic: This is the most cost efficient, flexible and fastest mode of transport, but this can be used only to transport particular type of products such as : Data, information, music, picture and text, etc. 5. Location: The most important driver is the place where the products are stocked up. This is the location where the distribution of products is initiated. The location of warehouse is equally important as it helps in delivering the product to the customer is ashort period of time; so warehouses are located in the centre of the city or a district. = Supply Chain Trends — Challenges and Opportunities Effcien Responsiveness oe Supply Chain Structure : Information ‘Transportation Location Inventory Production Drivers of Supply Chain As supply chain management is fast growing business all over the globe but it has some challenges and opportunities ahead: (a (b) (c) (d) (e ( (9) (h) Supply Chain must be designed to serve the “Base of the Pyramid”. Service Chains will become more important than other chains. Micro segmentation will be key to success. Technology to support SCM will primarily be “OnTap”. Artificial Intelligence will be embedded in mainstream supply chain activities. Supply Chain Organisations will need to be truly integrated and empowered. Robotic Process Automation will be used to purchase and sales orders. Crowding in Urban centres,8 Supply Chain Manag = Summary Supply Chain Management is growing field, during the pi technological changes and development of speedy telecommunication network have given, boost to organisations in restructuring their business operations and developing a smoother. fly of information, goods, money and services, etc. Supply Chain Management is the Activ, , management of supply chain activities and relationships in order to maximise customer valy and achieve a sustainable competitive advantage. Supply Chain has inventory, coy information, planning and network design. Supply Chain consists of planning, sour production, location, transportation and return of goods, etc. Supply Chain has three main floy, like material, finance and information. Flow of production is always forward, flow of finance; backward and flow of information is both ways. There are different types of supply chain ang various factors which affect the supply chain management. Location transportation, inventor, distribution strategies are main factors that affect supply chain management. ast two decades the Tp Questieng a |. Short Answer Type Questions 1. What do you understand by “Supply Chain” and “Supply Chain Management”? Elaborate the basic concept of Supply Chain Management. . Explain the history and evolution of the concept of Supply Chain Management. |. What are different components of the Supply Chain Management? . What are the various functions of Supply Chain Management, . What are the various flows in Supply Chain Management. . Explain the different drivers in Supply Chain Management. 8, What are the trends and the challenges faced by Supply Chain Management, Nag RwWHND Il. Long Answer Type Questions 1. What is Supply Chain Management? Discuss its main features, 2. Write a note on functions of Supply Chain Management and its different drive ; ; rs, 3. Explain the components and various flows in the Supply Chain Management S. Qua