Table of Content

Chapter 1: Introduction to the topic(Related To Subject)

• Objective and Vision of Projects

• Limitations of the Project

• Literature Review

Chapter 2: Research Methodology

• Research Design (Exploratory, Analytical etc.)
• Data Collection
• Primary and Secondary data
• Instruments for Data Collection (Questionnaire, Inventories, Interview
etc.)
• Method for Data Collection (Shopping Mall Intercept, Telephone, E-mail
etc.)

Chapter 3: Findings & Analysis

Chapter 4: Conclusions

Chapter 5: Recommendations/ Suggestions

Chapter 6: Limitations of the Study

 Bibliography

 References

 Annexure

1. Questionnaire (If Applicable)

2. Miscellaneous

Chapter 1

Introduction to the Topic

 The Introduction of Supply Chain Management.

The Basic of Supply Chain Management.

A supply chain is a network of facilities and distribution options that performs the functions of
procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers. Supply chains exist in both
service and manufacturing organizations, although the complexity of the chain may vary greatly
from industry to industry and firm to firm. Supply chain management is typically viewed to lie
between fully vertically integrated firms, where the entire material flow is owned by a single
firm and those where each channel member operate independently. Therefore, coordination
between the various players in the chain is key in its effective management. Cooper and Ellram
[1993] compare supply chain management to a well-balanced and well-practiced relay team.
Such a team is more competitive when each player knows how to be positioned for the hand-off.
The relationships are the strongest between players who directly pass the baton (stick), but the
entire team needs to make a coordinated effort to win the race. Below is an example of a very
simple supply chain for a single product where raw material is procured from vendors,
transformed into finished goods in a single step, and then transported to distribution centers, and
ultimately, customers. Realistic supply chains have multiple end products with shared
components, facilities and capacities. The flow of materials is not always along an arborescent
network, various modes of transportation may be considered, and the bill of materials for the end
items may be both deep and large.

Supply chains exist in both service and manufacturing organizations, although the complexity of
the chain may vary greatly from industry to industry and firm to firm. Unlike commercial
manufacturing supplies, services such as clinical supplies planning are very dynamic and can
often have last minute changes. Availability of patient kit when patient arrives at investigator site
is very important for clinical trial success. This results in overproduction of drug products to take
care of last-minute change in demand. R&D manufacturing is very expensive and
overproduction of patient kits adds significant cost to the total cost of clinical trials. An
integrated supply chain can reduce the overproduction of drug products by efficient demand
management, planning, and inventory management. Traditionally, marketing, distribution,
planning, manufacturing, and the purchasing organizations along the supply chain operated
independently. These organizations have their own objectives and these are often conflicting.
Marketing’s objective of high customer service and maximum sales dollars conflict with
manufacturing and distribution goals. Many manufacturing operations are designed to maximize
throughput and lower costs with little consideration for the impact on inventory levels and
distribution capabilities. Purchasing contracts are often negotiated with very little information
beyond historical buying patterns. The result of these factors is that there is not a single,
integrated plan for the organization---there were as many plans as businesses. Clearly, there is a
need for a mechanism through which these different functions can be integrated together. Supply
chain management is a strategy through which such integration can be achieved. Availability of
patient kit when patient arrives at investigator site is very important for clinical trial success.
This results in overproduction of drug products to take care of last-minute change in demand.
Background & Literary Review

Since its foundation in 2008, the Transco India Ltd. has rapidly grown through the integration of
new technology, new services, and new investments around the world. Transco India has a
composite in efficient infrastructure of two branch offices strong backup of all India's retail
transportation network for daily inland movement of more than 10 trucks moving in the northern
India on clearing house and shipping tie-ups warehouse measuring about one Lac square feet
area which is very close to iris it has a 75 multi-scaled empowered work force sure management
the company provide end to end national supply chain management solutions to Indian retail
industry.

VISION

Our vision is to provide excellent in managing the complexity of our customers notice taken
supply chain requirements.

MISSION

Our mission is to provide superior service through clear concise two-way communication on the
cone is to build relationships through our flexibility to meet our customers changing needs we
will show who are experience and knowledge or for transportation that you are working with the
very best in 3rd party logistics.

OBJECTIVE

Our objective is to develop a third party supply chain management service which will enhance
and improve the existing parties of retailing in India it is committed to providing a quality
service to a competitive cost while adapting to the rapid changes involved in supply chain
management
Implication of SCM on Logistic Management:
The challenge of integrating and coordinating the flow of materials from multitude of suppliers,
including offshore, and similarly managing the distribution of the finished product by way of
multiple intermediaries. Achieving cost reduction or profit improvement at the expense of their
supply chain partners does not make companies more competitive. Transferring cost upstream or
downstream leads to “logistics myopia” as all costs ultimately will make way to the final market
place to be reflected in the price paid by the end user. Therefore, the leading-edge companies
seek to make the supply chain as a hole more competitive through the value it adds and the cost
it reduces overall. Thus, today the real competition is not the companies against the companies
but rather supply chain against supply chain.

Definitions:

Supply Chain Management (SCM) is the process of planning, implementing, and controlling the
operations of the supply chain with the purpose to satisfy customer requirements as efficiently as
possible. Supply chain management spans all movement and storage of raw materials, work-in-
process inventory, and finished goods from point-of-origin to point-of-consumption.
Differences between Logistics Management and Supply Chain Management:

LOGISTICS MANAGEMENT SUPPLY CHAIN MANAGEMENT

Logistics management is primarily Supply Chain Management deals

concerned with optimizing flows with integration of all the partners
within the organization. in the value chain.
Logistics is essentially a framework Supply chain builds upon this
that creates a single plan for the framework and seeks to achieve
flow of products and information linkage and coordination between
Through a business. process of other entities in the
pipeline i.e. suppliers and
costumers, and the organization it
Self.
Components of Supply Chain Management:

The following are the five basic components of Supply Chain Management:

1. Plan: -

This is the strategic portion of SCM. You need a strategy for managing all the resources that go
toward meeting customer demand for your product or service. A big piece of planning is
developing a set of metrics to monitor the supply chain so that it is efficient, costs less and
delivers high quality and value to customers.

2. Source: -

Choose the suppliers that will deliver the goods and services you need to create your product.
Develop a set of pricing, delivery and payment processes with suppliers and create metrics for
monitoring and improving the relationships. And put together processes for managing the
inventory of goods and services you receive from suppliers, including receiving shipments,
verifying them, transferring them to your manufacturing facilities and authorizing supplier
payments.

3. Make: -

This is the manufacturing step. Schedule the activities necessary for production, testing,
packaging and preparation for delivery. As the most metric-intensive portion of the supply chain,
measure quality levels, production output and worker productivity.

4. Deliver: -

This is the part that many insiders refer to as logistics. Coordinate the receipt of orders from
customers, develop a network of warehouses, pick carriers to get products to customers and set
up an invoicing system to receive payments.

5. Return: -

The problem part of the supply chain. Create a network for receiving defective and excess
products back from customers and supporting customers who have problems with delivered
products.
A professional association that developed a definition in 2004, Supply Chain Management
“encompasses the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities”. Importantly, it also includes
coordination and collaboration with channel partners, which can be suppliers, intermediaries,
third-party service providers, and customers. In essence, Supply Chain Management integrates
supply and demand management within and across companies.

Supply Chain Management is “The network of organizations that are having linkages, both
upstream and downstream, in different processes and activities that produces and delivers the
value in form of products and services in the hands of ultimate consumer.” Thus, a shirt
manufacturer is a part of supply chain that extends up stream through the weaves of fabrics to the
spinners and the manufacturers of fibers, and downstream through distributions and retailers to
the final consumer. Though each of these organizations are dependent on each other yet
traditionally do not closely cooperate with each other. An integrated supply chain management
streamlines processes and increases profitability by delivering the right product to the right place,
at the right time, and at the lowest possible cost.

Supply Chain Management is a “systems approach to managing the entire flow of information,
materials, and services from raw materials suppliers through factories and warehouses to the end
customer.”
 Objective of Supply Chain Management.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations

along the supply chain operated independently. These organizations have their own objectives
and these are often conflicting. Marketing objective of high customer service and maximum sales
dollars conflict with manufacturing and distribution goals. Many manufacturing operations are
designed to maximize throughput and lower costs with little consideration for the impact on
inventory levels and distribution capabilities. Purchasing contracts are often negotiated with very
little information beyond historical buying patterns. The result of these factors is that there is not
a single, integrated plan for the organization---there were as many plans as businesses. Clearly,
there is a need for a mechanism through which these different functions can be integrated
together. Supply chain management is a strategy through which such integration can be achieved.

Moreover, shortened product life cycles, increased competition, and heightened expectations of
customers have forced many leading-edge companies to move from physical logistic
management towards more advanced supply chain management. Additionally, in recent years it
has become clear that many companies have reduced their manufacturing costs as much as it is
practically possible. Therefore, in many cases, the only possible way to further reduce costs and
lead times is with effective supply chain management. In addition to cost reduction, the supply
chain management approach also facilitates customer service improvements. It enables the
management of:

 Inventories

 Transportation systems

 Whole distribution networks

So that organizations are able to meet or even exceed their customer’s expectations. The major
objective of supply chain management is to reduce or eliminate the buffers of inventory that
exists between originations in chain through the sharing of information on demand and current
stock levels. Broadly, an organization needs an efficient and proper supply chain management
system so that the following strategic and competitive areas can be used to their full advantage if
a supply chain management system is properly implemented.
1. Fulfillment of raw materials:

Ensuring the right quantity of parts for production or products for sale arrive at the right time.
This is enabled through efficient communication, ensuring that orders are placed with the
appropriate amount of time available to be filled. The supply chain management system also
allows a company to constantly see what is on stock and making sure that the right quantities are
ordered to replace stock.

2. Logistics:

The cost of transporting materials as low as possible consistent with safe and reliable delivery.
Here the supply chain management system enables a company to have constant contact with its
distribution team, which could consist of trucks, trains, or any other mode of transportation. The
system can allow the company to track where the required materials are at all times. As well, it
may be cost effective to share transportation costs with a partner company if shipments are not
large enough to fill a whole truck and this again, allows the company to make this decision.

3. Smooth Production:

Ensuring production lines function smoothly because high-quality parts are available when
needed. Production can run smoothly as a result of fulfillment and logistics being implemented
correctly. If the correct quantity is not ordered and delivered at the requested time, production
will be halted, but having an effective supply chain management system in place will ensure that
production can always run smoothly without delays due to ordering and transportation.

4. Increase in Revenue & profit:

Ensuring no sales is lost because shelves are empty. Managing the supply chain improves a
company flexibility to respond to unforeseen changes in demand and supply. Because of this, a
company has the ability to produce goods at lower prices and distribute them to consumers
quicker than companies without supply chain management thus increasing the overall profit.

5. Reduction in Costs:
Keeping the cost of purchased parts and products at acceptable levels. Supply chain management
reduces costs by increasing inventory turnover on the shop floor and in the warehouse
controlling the quality of goods thus reducing internal and external failure costs and working
with suppliers to produce the most cost-efficient means of manufacturing a product.

6. Mutual Success:

Among supply chain partners ensures mutual success. Collaborative planning, forecasting and
replenishment (CPFR) is a longer-term commitment, joint work on quality, and support by the
buyer of the supplier’s managerial, technological, and capacity development. This relationship
allows a company to have access to current, reliable information, obtain lower inventory levels,
cut lead times, enhance product quality, improve forecasting accuracy and ultimately improve
customer service and overall profits. The suppliers also benefit from the cooperative relationship
through increased buyer input from suggestions on improving the quality and costs and though
shared savings. Consumers can benefit as well through higher quality goods provided at a lower
cost.

Several models have been proposed for understanding the activities required managing material
movements across organizational and functional boundaries. SCOR is a supply chain
management model promoted by the Supply-Chain Council . Another model is the SCM Model
proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped
into strategic, tactical, and operational levels of activities.
 Advantage of Supply Chain Management:

1. Supply Chain Management helps to increase savings in labor and procurement costs.

2. Supply Chain Management helps to achieve better inventory control.

3. Supply Chain Management is used to get better control over suppliers.

4. Supply Chain Management can increase market visibility.

5. Chances of product failure rate can be reduced by Supply Chain Management.

6. Supply Chain Management is used to provide better information on customer needs, tastes etc.

7. Supply Chain Management helps to achieve regular better communication with the customers.

8. Supply Chain Management helps to improve customer care service.

9. Supply Chain Management is used to achieve higher revenues.

10. Supply Chain Management increases performance and profitability.

11. Supply Chain Management is used to lower transportation, warehousing and packaging costs.

12. Supply Chain Management increases capacity, capability or flexibility.

13. Supply Chain Management enhance value for money.

14. Supply Chain Management is used to improve reputation of brand in market.

15. Supply Chain Management also increases the value of shareholder.

16. Supply Chain Management is used for faster and more accurate order processing.

17. Supply Chain Management allows higher discount on price to wholesaler due large order
size.

18. Supply Chain Management is also good for returns and recall management.

19. Supply Chain Management is used for production tracking.

20. Supply Chain Management can increase market visibility.

21. Chances of product failure rate can be reduced by Supply Chain Management.
22. Supply Chain Management is used to provide better information on customer needs, tastes
etc.

23. Supply Chain Management helps to achieve regular better communication with the
customers.

24. Supply Chain Management helps to improve customer care service

Here the supply chain management system enables a company to have constant contact with its
distribution team, which could consist of trucks, trains, or any other mode of transportation. The
system can allow the company to track where the required materials are at all times.
 Limitation of Supply Chain Management

1. Sometimes Supply Chain Management can be very expensive to implement.

2. Competitors can easily copy the strategy of Supply Chain Management.

3. For better Supply Chain Management, proper skills and experience is required to achieve
success.

4. Sometimes in Supply Chain Management various functions may be difficult to manage.

5. In Supply Chain Management there may be staff resistance.

6. Competitors can copy the supply chain management strategy.

7. Sometimes different functions of supply chain management is difficult to manage.

8. Supply chain management process can be expensive to implement.

Supply chain management involves organizations, people, procedures, packaging, purchasing,
delivery, checking, warehousing etc. It also helps to maintain long term relationship with the
suppliers and the distributors.

Key business areas of supply chain management include: Demand planning, customer service,
partnership, warehouse distribution, enterprise performance, order management and supply base
management.

A 10-year research project conducted at Australia’s University of Melbourne discovered that

supply chain integration clearly benefited successful businesses, yet its adoption was not
widespread. Adoption occurred more in response to short-term pressures rather than as a result of
strategic planning and long-term goals. The report concluded that implementation of supply
chain management “often lacks cohesion, strategy and forward thinking. Instead, managers focus
on local, short-term business benefits for their own organization, rather than on strategic supply
chain integration."

The software is meant to forecast parts distribution needs, but if the information entered isn’t
accurate, neither is the forecast. The system also can be plagued by employees bypassing the
SCM system to manually manage ordering and inventory with fax machines and spreadsheets. If
the training isn’t enough to make employees comfortable using the system, then the system only
gives an incomplete picture of a supply chain’s status.

Enterprise resource planning software is meant to integrate all of the company’s information into
a single application, which benefits SCM applications by having a single source for up-to-date
information. ERP software, however, is expensive and difficult to implement as well.

Supply chains are lean by design. Larger inventories were more expensive to house, but they did
create a buffer for unexpected events. If surprise demand for a product occurs due to an
unpredictable trend, a supplier could run out of stock of a vital part, resulting in production
delays and wasted resources as a manufacturer waits on a supplier or attempts to find a new one.