8/11/2019 www.gbv.de_dms_zbw_585303606

1/7

Supply Chain

Management

T E X T A N D C S E S

< '

V

> 0

> , - . _ ,

Janat Shah

ndian nstitute ofManagement angalore

PEARSON.

8/11/2019 www.gbv.de_dms_zbw_585303606

2/7

CONTENTS

v

. _

art I: Introduction and a Strategic View of Supply Chains 1

The Role of Supply Chain Management in

Economy and Organ ization 3

Introduction 4

W hat Is Supply Ch ain M anagem ent? 4

Evolution of Supply Chain Management

5

Key Con cepts in Supply Ch ain M anag em ent 7

Decisions in a Supply Chain

8

The Importance of the Supply Ch ain 10

Enablers of Supply Ch ain Performa nce 12

Improvem ent in Com mu nication and IT 12

En try of Third-p arty Logistics Providers - 13

Enhanced Inter-firm Coordination Capabilities

13

Supply Ch ain Performa nce in India 14

Challenges in M aintaining a Supply Cha in in India 15

Supply Chain Challenges for the Indian FM CG Sector 16

Supply Chain Strategy and Performance

Measures 23

Introduction 24

Customer Service and Co st Trade offs 24

Order Delivery Lead Time 26

Supply Ch ain Responsiveness 29

Delivery Reliability 31

Prod uct V ariety

32

Supply Cha in Performance M easures 33

Benchmarking Supply Chain Performance Using Financial Data 35

Linking Supply Ch ain and Business Performance 37

8/11/2019 www.gbv.de_dms_zbw_585303606

3/7

Contents

Enhancing Supply Chain Performance

Supply Chain Optimization

Supply Chain Integration

Supply Chain Restructuring

3 Outsourcing: Make Versus Buy

o /

Introduction

Make Versus Buy: The Strategic A pproach

Identifying Core Processes

The Business Process Route

The Produ ct Architecture Route

Market Versus Hierarchy

EconomiesofScale

Agency Cost

Transaction C ost

Incomplete Contracts

Integrative FrameworkofMarket Versus Hierarchy

The Make-Versus-Buy Continuum

Tapered Integration

Collaborative Relationship

Sourcing S trategy: Portfolio Approach

Reconfigurationofthe Supply Base

Impact

of

the Internet

on

Sourcing S trategy

37

39

39

39

43

44

44

45

46

47

48

49

50

51

51

54

55

56

56

57

59

61

Part II: Managing Material Flow in Supply Chains 67

i _____

Inventory Management 69

Introduction 70

TypesofInventory 71

Cycle Inventory . 72

Safety Stock

72

Decoupling Stocks

72

Anticipation Inventory ' 72

Pipeline Inventory ' ' , ' 73

D e a d s t o c k

73

Inventory related Costs

74

Ordering Costs

74

Inventory-carrying Costs 74

Stockout Costs 75

Com puting Inventory-related Costs. 75

Managing Cycle Stock

77

Cycle Stock Inventory Model

: 77

Managing Safety Stock 79

Capturing Uncertainty 81

Impact

of

Service Level

on

Safety S tock 82

Managing Seasonal Stock

86

PlanningforSeasonal De ma nd 87

8/11/2019 www.gbv.de_dms_zbw_585303606

4/7

l l

Contents

Supply Side Cost D ata

Strategic Role of Units in the Network

,

Strategic Role Fram ework

Role Evolution Within a Network

Locat ion of Service Systems

Locating Retail O utlets

Locating Public Service Systems

Designing Aftermarket Service System N etwo rk

Incorpora ting Uncertain ty in Netw ork De s ign

145

146

146

147

148

149

150

150

15 1

Part III: Managing Information Flow in Supply Chains

8

Demand Forecasting

Introduct ion

The Role of Forecast ing

Characteristics of Forecasts

Time Horizon for Forecasting

Qualitat ive Forecast ing Methods

The Delphi Approach

Market R esearch,

Life Cycle Analogy

Informed Judgement

Quantitat ive Methods

Time-series Method

Causal Models .

Forecast Error

Time series Forecast ing Models

Case 1: Forecasting Level Form

Case 2: Forecasting the Trend Form

Case 3: Forecasting Seasonality

Case 4: Forecasting Combination of Seasonality and Trend

Data Preparation for Building Time-series Models

Behavioural Issues in Forecast ing

Information Technology in Supply Chain

Management

Introduction ,

Enabling Supply Chain Management Through Information

Technology

IT in Supply Chain Transaction Execution

IT in Supply Chain Collaboration and Coordination

IT in Supply Chain Decision Support

IT in Supply Chain Measurement and Reporting

Strategic Management Framework for IT Adopt ion in Supply

Cha in Management

161

163

164

164

165

166

167

167

168

168

168

170

170

172

173

174

175

179

180

182

185

185

189

190

190

192

193

197

199

200

8/11/2019 www.gbv.de_dms_zbw_585303606

5/7

Contents

Supply Chain Managem ent Application Marketplace 203

Future Trends 203

Part IV: Supply Chain Inn ova tions 211

Supply Chain Integration 2 1 3

Introduction 214

Internal Integration 215

Centralized System 21 6

Decentralized System 217

Hybrid System

217

External Integr ation 218

Increase in Dem and Volatility W hile Moving U p the Supply

Chain . 218

Impact of Buyer Practices on Demand Distortions Across

the Buy er-Suppl ier t ink

219

Impact of Supplier Practices on Dem and Distortions Across

the Buyer-Supplier Link 221

Bullwhip Effect: Demand Volatility and Information

Distortions Across Supply Chains

223

Remedial Strategies to Counteract Demand Distortions

Across Supply Cha ins . 225

Barriers to External Integration

227

Bu ilding Partnership and Trust in a Supply Ch ain 230

Steps in Building Successful Relationships

231

Effect of Interdependence on Relationships

232

Supply Ch ain Extern al Integ ration : Industry level Init iatives 233

Vendor-managed Inventory 233

Efficient Customer Response

234

CPFR 235

JO Supply Chain Restructuring 23 9

Introduct ion 240

Supply Chain M apping 240

Value-addition Curve

241

Customer E ntry Point in the Supply Chain

241

Point of Differentiation . 24 2

Supply Ch ain Pro cess Restructu ring . 242

Postpone the Point of Dif feren t iat ion 244

Postponem ent Case Studies

244

Postponement for Reducing Transportation Cost

246

Problems with Imp lemen ting the Postponem ent Strategy

246

Changing the Shape of the Value addit ion Curve 247

8/11/2019 www.gbv.de_dms_zbw_585303606

6/7

Contents

Advance the Customer Ordering Point: Move from MTS

to CT O Supply Chain 248

Altering Customer Offering Bundle

249

Illustrative Case Studies 250

Moving from M TS to CTO : Alternative Approaches

251

Moving from the MTS to the CTO Model: The Role of

Innovat ions and Experim entat ions . 253

Restructuring the Supply Ch ain Architecture 253

Restructure Flow in the Chain : Hin dustan Unilever Case 254

Restructure Placement of Inventory in the Chain

255

_ ^ _ _ Agile Supply Chains 261

Introduct ion 262

Supply Chains for High De ma nd Uncerta inty Environm ent 263

Forecast Updating

26 4

Responsive Supply

Chain:

Optimal Use of Du al Sources of Supply 266

Il lustrat ion of Responsive Supply Chain Approac h 267

^\ Speculative Ap proac h 268

Responsive Ap proac h 270

Impact of N egatively Correlated Dem and Structure 27 4

Sources of Supply Cha in Disru ptions and Its Impact on Busine ss 275

Sources of Supply Cha in Disru ptions 275

Consequences of Supply Chain Disruptions 277

M ethod ologies for Hand ling Disrup t ions 277

Multi-location Sourcing 278

Location of the Secondary Source .

279

Pricing and Revenue Man agem ent 285

Introduct ion 286

Pricing 286

Law of Dem and and Optimal Pricing Decision

286

Case of Non-linear Demand Curve

288

Revenue Man agem ent for Mu lt iple Custom er Segments 289

Pricing Under Capacity Constraint for Mu lt iple Segments 293

Revenue Management Under Uncerta in Dem and and

Lim ited capacity Situat ions 295

Capacity A llocation A mo ng M ultiple Segments

295

Forward Ma rket Versus Spot M arket 297

Overbooking

298

Revenue Management for Inventory Assets: Markdown

Management 300

Innovative Pricing 301

8/11/2019 www.gbv.de_dms_zbw_585303606

7/7

Part

V:

Supply Chain Cases 30 5

Kurlon Limited 307

Vehicle Routing at Baroda Un ion 321

PC International Division 327

Supply Chain Initiative at AP R Limited 331

Managing

endupatta

Collection Operations 341

Supply Chain Management at Dalmia Cem ent Ltd 355

Power Equipm ents (India) Ltd 363

Th e Global Green Company 375

Marico Indu