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bstract
orldwide, interest in supply chain management has increased
steadily since the 1980s when companies began to see theenefits of
collaborative relationships. The supply chain concept is still
nascent in India. However the need for the same, at thisage, is
more than ever before because of the challenges unleashed on the
competitiveness of the Indian industry byeregulation and
globalization. An essential first step in the process is to assess
the current supply chain capability. The article issed on a
recently concluded extensive research carried out jointly by
Management Development Institute. Gurgaon anf KPMG
dia, the first of its kind in the country, to gauge the current
state of supply chain management in the Indian industry. Thesearch
concludes that a beginning has been made and large number of Indian
organizations today are realizing the importancedeveloping and
implementing a comprehensive supply chain strategy - and then
linking that strategy to deliver bottom line
sults. Key Words: Supply Chain Management, Competitiveness.
Order Fulfillment. Manufacturing Strategy, Inventoryanagement,
Information Technology.
ntroduction
ver the past three decades, customer expectations have risen by
leaps and bounds (Nebel et. al., 2000). Customers continuebecome
more sophisticated and interested in innovative products and
customized services. They are becoming more
npredictable in their wants and needs. At the same time, they
continue to expect and demand more value from brands. Ineir bid to
satisfy the customers fancy, businesses are vying with one another
to service the customers with their product andrvice offerings.
Heightened competition has given customers tremendous freedom of
choice - a freedom they have beencreasingly willing to exercise.
Thus, to achieve sustainable advantage in this competitive
scenario, it is imperative forusinesses to service the needs of
their customers excellently across any and all loucli points.
ndias Competitiveness:
s per the year 1999 reports by both Geneva-based World Economic
Forums (WEF). Global Competitiveness Report (GCR) and
e Laussan. Switzerland-based International Institute for
Management Development (IMD), World Competitiveness YearbookWCY).
India still continues to remain firmly stuck near the bottom of the
list in the company of virtually unknown and failingonomies. India
has been ranked 52 by the GCR out of 59 countries and 39 by WCY out
of a universe of 47 countries. Thisviable image is despite the fact
that India, the fifth largest country in terms of Gross National
Product (GNP) and Purchasing
ower Parity (PPP) (World Bank, 1999), constitutes one of the
fastest growing market in the world and is also counted amonge
richest in regard to cheap skilled labor, scientific and
technological resources, and entrepreneurial talents.
xhibit 1: International Comparison of Customer Orientation
ara Meters Product Quality Product Design One-time Delivery
After Sales Service Managing Distribution
dia 41.08 34.05 30.27 41.08 52.43razil 52.39 56.62 36.34 39.15
51.83
hiland 63.00 58.50 57.00 54.00 66.50
outh Korea 60.71 4S.57 59.29 47.14 57.14
anada 68.13 5S.06 62.19 62.50 66.45
SA 59.67 69.84 62.62 57.70 74.43
pan 92.68 81.46 93.17 89.76 72.20
armany 92.50 71.39 88.06 78.61 75.83
ance 55.94 66.96 44.64 45.56 66.09
etherlands 72.89 63.1* 69.78 68.44 74.76
8/8/2019 SCM in ndia
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ll reserved Indian Institute of Materials Management Design
& developed by D\\ Home \ Enterprise Solutions \ SUPPLY CHAIN
MANAGEMENT
Icreon provides solutions that enable organizations to
effectively manage their supply chain network resultingin reduced
cost and inventories and increased profitability. Through our
solutions, all supply chain data andinformation such as customer
orders, inventory levels, forecasts etc is stored in a centralized
database from
where it can be accessed by all concerned parties i.e.
manufacturers, suppliers thereby ensuring dataconsistency across
the network. At Icreon, our supply chain management consultants
help clients incustomizing and tailoring supply chain solutions to
suit the individual business requirements.
BENEFITSThe supply chain management solutions implemented by
Icreon provide the following benefits to organizations:
Enables organizations to make better and informed decisions,
such as forecasting demand and supply, througha better
understanding of the supply chain processes.
Streamlines business processes leading to increased productivity
and improved performance.
Provides for faster response time thereby enhancing customer
satisfaction.
Global supply chain management systems enable real-time exchange
of data and information betweenconcerned parties in the supply
chain network.
Enables organizations to efficiently monitor status of
inventories ensuring that orders for the right quantities
areplaced.
The movement of goods can be tracked at all times ensuring on
time and safe delivery of products.
A supply chain management solution helps in increasing inventory
turnover resulting in reduced costs ofproducts.
Offers mechanisms for better and effective communication between
supply chain partners.
Reduces paper work and administration costs as orders are placed
and accessed electronically.
Reduces errors arising from the manual way for recording and
tracking data and processes.
COMPONENTSThe core components of a typical supply chain
management solution include:
Customer Service: Customer details, their requirements, demands
and feedback on products and services canbe stored and tracked.
This information is available across the supply chain network and
can be analyzed toforecast demand, understand requirements etc.
Planning: Organizations can analyze and study customer data and
feedback to plan and take production
decisions, inventory decisions that include quantity, quality of
goods etc. They can also plan their dailyproduction and
distribution schedules, decide on the supplier, and take
transportation, storage and warehousingdecisions. Organizations can
generate comprehensive analysis and trend reports
Vendor Management: Enables organizations to store details of
suppliers and vendors. The performance of
individual suppliers can be measured and monitored.
Order Management: Manages the order fulfillment process for
organizations. This includes recording andtracking of orders from
the time of order placement to fulfillment. Orders from multiple
channels can be capturedand the time taken to process each order
can be monitored.
Transportation: Organizations can store details of
transportation modes, select the transportation mode best
suited to their needs, store transport details such as cost,
start date, date of expected delivery, transport routeetc. Goods in
transit can be tracked through the system.
Warehousing: Includes storing details of warehouses such as
location, capacity, type of inventory etc. The
SCM enables the tracking of inventory stored in the warehouse
and place orders in time. Enables organizationsto control all
warehousing activities.
MODES OF DEVELOPMENTDepending on individual requirements and the
complexity of the solution, Icreon offers the following modes
ofdevelopment:
Off-the-shelf products: Supply Chain Management software
packages offering a wide array of functionalities
