RESEARCH REPORT ON
“SUPPLY CHAIN MANAGEMENT IN DETAIL”
FOR THE DEGREE OF ,
BACHELOR OF BUSINESS ADMINISTRATION
By
Name:- RUSHIKESH RAMESHWAR KANDE
PRN NO:-190102011140
Sub:- Supply Chain Management
UNDER GUIDANCE OF-
PROFF.MAHESH DANDEKAR
SCHOOL OF COMMERCE AND MANAGEMENT STUDIES
SANDIP UNIVERSITY
TRIMBAK ROAD, MAHIRAVNI,
NASHIK,MAHARASHTRA:422213
CERTIFICATE
This is certify that, Akshay vidhate has completed the reserch
report
Work on‘‘SUPPLY CHAIN MANAGEMENT IN DETAIL’’ under my
guidance of PROF. MAHESH DANDEKAR. Fulfillment of BBA
degree in SUPPLY CHAIN MANAGEMENT for the academic year
2021-2022 at department of management, sandip university,
Nashik-422213
PROF. MAHESH DANDEKAR
ASSISTANT PROFESSOR
DEPARTMENT OF MANAGEMNT
SCHOOL OF COMMERCE AND MANAGEMENT
Sandip University
Nashik
ACKNOWLDGEMENT
A moment comes which comes but rarely in student life, when
with outmost Pleasure and satisfaction. ‘‘Akshay Vidhate’’ ,
submit my project report on‘‘SUPPLY CHAIN MANAGEMENT IN
DETAIL’’ would first like to thank my advisor PROF. MAHESH
DANDEKAR
of the school of Commerce and management studies at Sandip
university.
I would thankful to , head of school of commerce and
management Study, Sandip University, Nashik , Maharashtra,
for extending all available facility for My work.
Finally, I must express my very profound gratitude my parents
and to my friends for Providing me with unfalling support and
continuous encouragement throughout my Years of study and
through the process researching and writingthis thesis.this are
Accomplishment would not have been possible without them.
Thank You,
Akshay vidhate
ABSTRACT:
Supply Chain Management is a network of facilities that
produce raw materials, transform them into intermediate
goods and then final products, and deliver the products to
customers through a distribution system. The management of
the supply chain and the roles of various actors involved differ
from industry to industry and company to company. As a result
Supply Chain Management (SCM) has become a vital issue for
manufacturers, professionals and researchers. It is felt that to
manage the supply chain effectively entire structure of supply
chain must be understood properly. This paper attempts to
provide the reader a complete picture of supply chain
management through a systematic literature review. It presents
main activities of supply chain and the step-by-step approach
for understanding a complete picture of supply chain.
Supply chain management steps
Each major phase of a product's movement through the
supply chain, from materials to production and distribution
(see Figure 1), has its own distinct business processes
and disciplines. Most of the processes, which began as
paper-based methods, are now usually handled in
specialized supply chain management software
Here is a step-by-step description of what goes into supply
chain management.
1. Demand planning
The SCM process starts with figuring out what products
customers want. This phase involves the early stages
of supply chain planning, traditionally considered one of
the two overarching categories of SCM along with supply
chain execution.
Supply chain planning starts with demand planning, a
process for gathering historical data, such as past sales,
and applying analytics and statistical modeling to create a
forecast or demand plan that the sales department and
operational departments -- for example, manufacturing
and marketing -- can agree on. The forecast determines
the types and quantities of products to be manufactured.
Getting the forecast right is critical for avoiding costly
problems such as the bullwhip effect, in which small
fluctuations in retail demand are magnified further up the
supply chain, leading to severe shortages or surpluses of
inventory.
Some companies perform demand planning as part of a
formalized process called sales and operations
planning (S&OP), which encompasses an iterative
process of data gathering, discussion, reconciling of
demand plans with production plans, and management
approval. Some companies include S&OP in a broader
process called integrated business planning (IBP) that
incorporates other departments' plans in a single
companywide plan.
2. Production planning
In the next major step, production planning, the
company nails down the specifics of where and how the
products called for in the demand plan will be
manufactured. (Production planning is also used in other
industries, such as agriculture and oil and gas.) A more
fine-tuned variation called advanced planning and
scheduling (APS; alternatively, APO
for optimization) seeks to optimize the resources that go
into production and make them more responsive to
changes in demand. It is typically automated in specialized
software.
3. Material requirements planning (MRP)
MRP is a process dating back to the 1960s that most
manufacturers use to ensure sufficient materials and
components, such as subassemblies, are available for use
in the manufacturing process by taking inventory of what's
on hand, identifying gaps, and buying or making the
remaining items. The central document in both MRP and
production planning is the bill of materials (BOM), a
complete list of the items needed to make a product.
MRP is sometimes done as part of manufacturing
resource planning (MRP II), which broadens the MRP
concept to other departments such as HR and finance.
MRP and MRP II were the predecessors of enterprise
resource planning (ERP), which is designed to integrate
the major business processes of companies in any
industry. As you'll see, ERP software has become integral
to SCM.
4. Inventory management
Inventory management consists of various techniques
and formulas for ensuring adequate supply -- from raw
materials in a manufacturing plant, perhaps managed in
an MRP system, to packaged goods in a retail store -- for
the least expenditure of time and resources.
Manufacturers are faced with a variety of inventory
management issues, many of which involve coordinating
demand planning with inventory at both ends of the
production process. For example, sometimes MRP leads
to more inventory -- especially when the system is first
implemented -- and the manufacturer must work to
synchronize MRP parameters with the inventory already
on hand.
5. Procurement
Sometimes called sourcing, procurement is the process
of finding suppliers for goods, managing those
relationships and acquiring the goods economically --
along with all the communication, such as sending out
requests for bids, and paperwork, including purchase
orders and invoices. It is a major area of supply chain
management, given how much is bought and sold at all
points along the chain. Most players in the supply chain --
suppliers, manufacturers, distributors and retailers -- have
dedicated procurement staff.
Strategic sourcing is an elevated and more sophisticated
type of procurement that aims to optimize a company's
sourcing process by taking advantage of its consolidated
purchasing power and aligning it with business goals.
Supplier relationship management (SRM), in contrast,
addresses sourcing issues by focusing on the suppliers
the company deems most critical to success and
systematically strengthening relationships with them while
fostering optimal performance. Figure 2 shows the SRM
process in brief.
6. Logistics
Logistics covers the transporting and storing of goods,
from the delivery of parts and raw materials to
manufacturers or processors to the delivery of finished
products to stores or direct to consumers, and even
beyond for product servicing, return and recycling -- a
process called reverse logistics. Inventory management is
threaded throughout the logistics process.
Importance of supply chain management
Effective SCM -- or lack thereof -- can have a significant
impact on companies, individuals and society.
SCM typically improves customer service and ensures
customer satisfaction by making certain the right products
are available on time at the right locations. By increasing
customer satisfaction, companies can build loyalty, which
usually leads to more sales over the long term.
SCM can also reduce company operating costs by cutting
expenses on purchasing, production and the entire supply
chain. Lower costs improve a company's financial position
by increasing profit and cash flow. Furthermore, following
supply chain management best practices can minimize
overuse of large fixed assets -- such as warehouses and
vehicles -- by, for example, allowing supply chain
experts to redesign their networks to maintain customer
service levels while operating fewer warehouses.
SCM's impact extends well beyond a company's bottom
line. It can help ensure human survival by improving
healthcare and protecting people from climate extremes.
People rely on supply chains to deliver necessities such
as food and water as well as medicines. The supply chain
is also vital to the delivery of electricity to homes and
businesses, providing the energy needed for light, heat, air
conditioning and refrigeration.
SCM can improve the quality of life by fostering job
creation, providing a foundation for economic growth and
improving standards of living. It provides a multitude of job
opportunities, since supply chain professionals design and
control all of the supply chains in a society and manage
the labor-intensive functions of inventory control,
warehousing, packaging and logistics.
Furthermore, a common feature of most poor nations is
their lack of developed supply chains. Societies with
strong, developed supply chain infrastructures -- such as
large railroad networks, interstate highway systems and
an array of airports and seaports -- can efficiently
exchange goods at lower cost, allowing consumers to buy
more products, thus fostering economic growth and
increasing the standard of living.
Levels of supply chain management
Some experts find it helpful to divide SCM into three broad
levels that categorize its functions and help ensure that it
serves business goals: strategic, tactical and operational.
Strategic SCM takes in the entire scope of a company's
supply chain network and processes. It addresses the
major long-term elements in a comprehensive strategy,
including the type and number of facilities, technologies
and suppliers.
The tactical level nails down the specific means of
executing the strategy, be they production schedules,
logistics processes, contracts or software applications.
Time horizons are shorter than in strategic SCM. Here's
where standards and best practices are identified for key
deliverables such as customer service, efficiency and cost.
The operational level encompasses the daily operations of
SCM. Forecasting, production scheduling, shipping and
invoicing are typical operational tasks.
Interestingly, some observers say the globalization of
manufacturing has turned SCM into a mostly strategic
function as longer, more complex supply chains present
challenges and opportunities that require much more
planning and analysis. In this view, the tactical and
operational levels mostly focus on logistics.
The three levels influence each other. A strategy is just an
idea if it isn't translated into tactics and operations.
Conversely, operational decisions and tasks can be
wasteful, ineffective or risky if they conflict with the
organizing principles of the tactical level and the larger
goals and mechanisms in the strategy.
This three-level SCM approach is critical in building supply
chain resilience for handling disruptions such as the
COVID-19 pandemic. To cite a prominent example, the
unavailability of supplies that would normally ship from
virus hotspots and lockdown areas required manufacturers
and retailers to drop their longstanding preference for the
cost savings gained from using just-in-time inventory
models, and instead give priority to storing safety stock
closer to customers -- with less regard to the cost.
Availability of supply became paramount.
Goals of SCM
As supply chain management has matured and the
technology that powers it advances, its importance to
businesses operations keeps growing. The goals
companies hope to achieve by using supply chain
management to optimize the flow of goods and materials
include the following:
● cost savings from acquiring goods and services as
cheaply as possible and minimizing expenses on
capital goods, such as inventory, facilities and
equipment;
● efficiency that comes from avoiding waste and
duplication;
● revenue increases from meeting higher levels of
demand with sufficient supply;
● profit from lower costs and higher revenue;
● customer satisfaction from balancing supply and
demand, and delivering the products consumers
want;
● quality improvements from sourcing better
materials, avoiding production errors and gathering
customer feedback; and
● stability from effective risk management, visibility
and collaboration.
Advantages
Besides helping companies reach the usual goals of SCM,
the improved efficiency, coordination and quality that
come from mastering the planning, control and execution
of supply chain processes can produce secondary
advantages, including the following:
● better relationships with suppliers, distributors and
retailers;
● improved brand image;
● environmental sustainability;
● improved cash flow;
● safer products and services;
● lower overhead;
● improved accountability and compliance; and
● more innovation.
Challenges
Because SCM is inherently complex, it is difficult to
execute at a consistently high level. Thus, complexity itself
is the biggest challenge facing practitioners, who are also
challenged by not having enough information, technology,
labor, skills, time and resources to stay on top of every
area of supply chain management.
A survey of 50 companies by Michigan State University
and APICS, a prominent supply chain association,
identified six challenges that keep executives up at night:
1. Capacity and resource availability. Executives
worried they wouldn't have enough people,
facilities, IT capabilities and other resources to
support growth.
2. Talent. Hiring or retaining industrial engineers and
other supply chain professionals was a major
concern.
3. Complexity. New products and expanded product
options create pressure to find new suppliers. The
growth in omnichannel commerce, especially direct-
to-consumer channels, called for deploying new
systems and threatened longstanding success in
traditional channels such as wholesale.
4. Threats. Respondents cited risks from natural
disasters, the failure of key suppliers, rogue
employees who cause or call attention to supply
chain disasters, product recalls and inadequate
planning for business continuity.
5. Compliance. Fast-changing product regulations,
international trade rules and inconsistent customs
enforcement made compliance demands too
numerous and complex to manage.
6. Cost and pricing issues. Downward price
pressure in industries such as healthcare,
pharmaceuticals and raw commodities put pressure
on suppliers to minimize their costs.
Volatility is another common challenge, as sharp changes
in supply or demand -- or both at the same time -- can
strain supply chains and create new challenges such as
shortages, delays, surpluses, spoilage and price gouging,
to name only a few.
REFERENCES
1. cf. Andreas Wieland, Carl Marcus Wallenburg
(2011): Supply-Chain-Management in stürmischen Zeiten.
Berlin.
2. ^ For SCM related to services, see for example Association
of Employment and Learning Providers, Supply Chain
Management Guide, published 2013, accessed 31 March
2015]
3. ^ Harland, C.M. (1996) Supply Chain Management,
Purchasing and Supply Management, Logistics, Vertical
Integration, Materials Management and Supply Chain
Dynamics. In: Slack, N (ed.) Blackwell Encyclopedic
Dictionary of Operations Management. UK: Blackwell.
4. ^ Cornell Engineering, Supply Chain, School of Operations
Research and Information Engineering, accessed 27 March
2021
5. ^ "Supply chain management (SCM)". APICS Dictionary.
Retrieved 2016-07-19. supply chain management[:] The
design, planning, execution, control, and monitoring of
supply chain activities with the objective of creating net
value, building a competitive infrastructure, leveraging
worldwide logistics, synchronizing supply with demand,
and measuring performance globally.
6. ^ a b c Kozlenkova, Irina V.; Hult, G. Tomas M.; Lund,
Donald J.; Mena, Jeannette A.; Kekec, Pinar (2015-05-
12). "The Role of Marketing Channels in Supply Chain
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609. doi:10.1016/j.jretai.2015.03.003. ISSN 0022-4359.
7. ^ Sanders, Nada R.; Wagner, Stephan M. (2011-12-
01). "Multidisciplinary and Multimethod Research for
Addressing Contemporary Supply Chain Challenges:
Multidisciplinary and Multimethod Research". Journal of
Business Logistics. 32 (4): 317–323. doi:10.1111/j.0000-
0000.2011.01027.x.
8. ^ Lam, Hugo K.S. (2018-08-03). "Doing good across
organizational boundaries: Sustainable supply chain
practices and firms' financial risk". International Journal
of Operations & Production Management. 38 (12): 2389–
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9. ^ Wieland, Andreas; Handfield, Robert B.; Durach,
Christian F. (2016-08-04). "Mapping the Landscape of
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