- Cover
- Title Page
- Brief Contents
- Contents
- About the Author
- Dedication
- Preface
- Part-I Supply Chain Basics
- 1. Understanding Supply Chain
- In Practice - Kitchen Supply Chain
- Introduction
- Evolution of Supply Chain Concept
- Defining SCM
- Extended Supply Chain
- Box 1.1: Extended Supply Chain—A Cost Burden on Berry Interlining
- Supply Chain Integration
- Supply Chain Linkages
- Decisions in Supply Chain
- Prevailing Practices
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignments
- 2. Role of Logistics in Supply Chain
- In Practice–Logistics for ‘Works of Art
- Introduction
- Defining Logistics
- Goals of Logistics
- Functions of Logistics
- Box 2.1: Adding Value to Airport Logistics—Baggage Handling System
- Business Processes Impacted by Logistics
- Logistics Decision Hierarchy
- Logistics in the Indian Context
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignments
- 3. Supply Chain vs. Demand Chain
- 4. Value Creation Through Supply Chain
- In Practice–Lijjat Papad—Creating Value Without Technology Support
- Introduction
- Customer Value
- Box 4.1: DECATHLON: A Global Supply Chain Creating Customer Value in Sports Goods
- Box 4.2: Telematics: Adding Value by Capturing ‘Customer-Life-Cycle’ and ‘Vehicle-Life-Cycle’
- Customer Service for Competitiveness
- Service Attributes
- Customer Service Dimensions
- Supply Chain Value Delivery
- Value-added Services in Supply Chain
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignments
- 1. Understanding Supply Chain
- Part-II Supply Chain Sub-Systems
- 5. Supply Chain Planning
- In Practice–Gillette: Demand Planning to Improve SCHealth
- Introduction
- Why Supply Chain Planning?
- Supply Chain Planning Matrix
- Collaborative Planning
- Role of Technology in Planning
- Box 5.1: Dairy Farm Supply Chain—Technology Planning
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 6. Procurement Methods
- In Practice–Vendor-Managed Inventory at ZICO Ltd
- Introduction
- Procurement
- Economic Order Quantity (EOQ)
- Box 6.1: EOQ Example
- Just-in-Time Procurement (JIT)
- Vendor-Managed Inventory (VMI)
- Box 6.2: VMI’ System in Retail Industry
- Box 6.3: Marico Industries, P&G and Wal-Mart
- Online Procurement
- Purchasing Cards
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignments
- 7. E-Procurement
- In Practice–Tata Motors Benefiting Through E-Procurement
- Introduction
- E-Procurement
- Reverse Auction (RA)
- Benefits of E-Procurement
- Box 7.1: Reverse Auction at Blue Star&
- Constraints of E-Procurement
- E-Procurement Types and Models
- Open Trading Environment
- Government Initiatives
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignments
- 8. Strategic Sourcing
- In Practice–Strategic Sourcing at Speed Auto
- Introduction
- Box 8.1: Dell-Leveraging Supplier Expertise for Green Packaging Solution
- Purchasing Orientations
- Strategic Sourcing
- Key Factors Leading to Success
- Major Trends in Procurement
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 9. Lean Manufacturing
- In Practice–Lean Manufacturing at Arya Motors
- Introduction
- Manufacturing Transformation
- Principles of Lean Manufacturing
- Gaining Competitiveness
- Value Stream Analysis
- Essentials of Lean Supply Chain
- Success Factors for Leanness
- Lean—Roadmap to Success
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 10. Distribution Decisions
- In Practice–Skylak: Moulded Luggage Distribution Strategy
- Introduction
- Distribution: Channels and Logistics
- Box 10.1: HUL's Focus on Rural Distribution Network
- Flows in Distribution Channel
- Channel Strategy
- Box 10.2: Eureka Forbes Distribution Strategy
- Channel Members
- Distribution Centres
- Box 10.3: Polaroid-Shift to Centralized Distribution
- Distibution Centre Site Selection
- Logistics: The Distribution Imperative
- Box 10.4: Channel Integration to Achieve Logistics Objective at HUL
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignments
- 5. Supply Chain Planning
- Part-III Tactical and Operational Decisions
- 11. Transportation and Freight Management
- In Practice–Cargo Movement by Sea-Air Mode—A New Concept
- Introduction
- Transportation Infrastructure
- Freight Management
- Factors Influencing Freight Cost
- Transportation-Related Problems in SC
- Transportation Networks
- Milk-Run
- Route Planning
- Containerization
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 12. Inventory Management
- In Practice–Priya Cosmetics: Seeking a Solution to Reduce Inventory
- Introduction
- Inventory Functions
- Box 12.1: Supply Chain of Bhel-Puriwala
- Inventory as Buffer
- Reasons for Carrying Inventory
- Inventory-Related Costs
- Inventory and Customer Service
- Approaches to Managing Inventory
- Box 12.2: Dell's Lean Supply Chain
- Risk Pooling in Inventory Management
- Box 12.3: RPL—Tracking Hidden Cost of Inventory
- Selective Control Techniques
- Bullwhip Effect
- Modern Inventory Control Tools
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 13. Network Designing
- In Practice–Camy Petroleum Ltd: Network Design
- Introduction
- Role of Network Design
- Strategic Factors in Network Decision
- Operational and Tactical Factors
- Box 13.1: Ambuja Cements: Lowest Logistics Cost
- Steps in Network Design Process
- Facility Location and Capacity Allocation
- Network Design Decision Issues
- Distribution Network Design
- Box 13.2: Adani: Networking in End-to-End Agricultural Supply Chain
- Supply Chain Merger
- Summary
- Review Questions
- Internet Exercise
- Video Links
- Project Assignment
- 14. Information System and IT Enablement
- In Practice–Ambuja Cement—IT Initiatives
- Introduction
- Box 14.1: Developing a Bottling Hub that Increased Efficiency by 75 per cent
- Designing Information System
- Decision-Making Levels
- Decision Support System
- Role of IT in Managing Supply Chain
- Technology—Role in Information System
- Box 14.2: RFID-Enhancing Productivity in the Laundry Industry
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 11. Transportation and Freight Management
- Part-IV Strategic Approach
- 15. Alliances and Outsourcing
- In Practice–Boeing 787—Global Suppliers Alliance Issues
- Introduction
- Strategic Alliance
- Box 15.1: LEVI's: Closing Outlets and Collaborating with Wal-Mart
- Third-Party Logistics
- Fourth-Party Logistics
- Retailer-Supplier Partnership
- Distributor Integration
- Legal Contract
- Issues in Strategic Alliance
- Summary
- Review Questions
- Internet Exercises
- Project Assignment
- Video Links
- 16. Agile Supply Chain
- In Practice–Re-engineering a Responsive Supply Chain
- Introduction
- Why Agility?
- Barriers to Agility
- Creating an Agile Supply Chain
- Box 16.1: Tesco: Supply Chain Agility for Achieving Global Competiveness
- Box 16.2: Addressing the Uncertainty
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 17. Global Supply Chain
- In Practice–R-Toys: Global Supply Chain Freight Consolidation
- Introduction
- Domestic vs. Global Supply Chain
- Box 17.1: International Trade—Port Operations
- Strategic Issues
- Role of IT Supply Chain
- Cross-Border Logistics
- Risk Associated
- Operational Factors
- Box 17.2: Global Logistics Hubs
- Box 17.3: Business Process in Exports Trade
- Documentation
- Free Trade Zone
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 18. Reverse Supply Chain
- In Practice–Reverse Logistics Process Improvements
- Introduction
- Why Reverse Supply Chain?
- Reverse Supply Chain
- Scope of Reverse Supply Chain
- Box 18.1: Reverse Supply Chain in Beer Industry
- Box 18.2: ‘Green Dot’ on Wrapper for Recycling
- Reverse Supply Chain Design
- Subsystems in Reverse Supply Chain
- Reverse Supply Chain Challenges
- Trends in Managing Reverse Supply Chain
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 19. Supply Chain Optimization
- In Practice–SC Optimization at Lombard Pvt. Ltd (LPL)
- Introduction
- Optimization
- Areas of Optimization
- Optimization Methods
- Problems in Optimization
- Benefits of Optimization
- Value Enhancement
- Optimization Strategy
- Optimization and Simulation
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 20. Re-engineering SC to Differential Strategies
- In Practice–Streamline.com: Differential Supply Chain Strategy
- Introduction
- Marketing Needs
- Supply Chain Constraints
- Supply Chain Differentials
- Box 20.1: Asian Paints: Manufacturing as Differentiator
- Manufacturing Strategy
- Strategy to Market Requirements
- Materials Planning
- Supply Chain Visibility
- Differentiation Through Postponement
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignement
- 21. Supply Chain Integration Strategies
- In Practice–Nita Paints: Information Visibility to Integrate Distribution Process
- Introduction
- Role of Information in SC Integration
- Push Strategy
- Pull Strategy
- Push–Pull Strategy
- Box 21.1: Pull Strategy at Asian Paints
- Strategy Implementation
- Internet and SC Integration
- E-Business SC Integration
- Collaborative Planning, Forecasting and Replenishment
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 22. Cold Chain Networking
- 15. Alliances and Outsourcing
- Part-V Measurements and Controls
- 23. Quantitative Techniques in Supply Chain
- In Practice–Linear Programming in Octagon Petroleum
- Introduction
- Forecasting
- Qualitative Forecasting
- Quantitative Forecasting Methods
- Linear Programming
- Route Planning
- Queuing Theory
- Simulation
- Game Theory
- Modelling
- Limitations of Mathematical Models
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 24. Supply Chain Risk Management
- In Practice–Ashwini Healthcare: Reducing SC Risk Using Technology
- Introduction
- Supply Chain Vulnerability
- Meaning of Risk
- Categories of Risks
- Supply Chain Risk Management
- Models of Supply Chain Risk Management
- Role of IT in Managing Risk
- Success Factors in Risk Management Process
- Business Continuity Planning
- Approach to Mitigate Risks
- Box 24.1: Supply Chain Risk Assessment
- Box 24.2: Hewlett Packard-Approach to Supply Chain Risk
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 25. Pricing, Costing and Financial Decisions
- In Practice–ITC Managing Cash Flow with No Credits to Customers
- Introduction
- Pricing Decisions in Supply Chain
- Costing Decision in Supply Chain
- Types of Supply Chain Costs
- Box 25.1: NANO: New Approach to Supply Chain Costing
- Supply Chain and Finance
- Box 25.2: ABD Bank—Financing the Supply Chain Operations
- Financial—SCM
- Financial Metrics
- Strategic Allignment
- Economic Value Added (EVA)
- SCM and SCOR Model
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 26. Performance Measurement and Controls
- In Practice–C-Auto Tyres: Performance Measures for Supply Chain Health
- Introduction
- Performance Measurement System
- Why Benchmarking?
- Benchmarking Process
- Steps in Supply Chain Benchmarking
- Performance Dimensions and Measures
- Supply Chain Operations Reference (SCOR) Model
- Performance Measurement and Controls
- Inventory Turnover
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignment
- 23. Quantitative Techniques in Supply Chain
- Part-VI Sustainability Processes and Practices
- 27. Sustainability Practices and ‘Greening’ of SC
- In Practice–Hindustan Pencils Ltd—Journey Towards Sustainability
- Introduction
- Corporate Social Responsibility
- Box 27.1: IBM Suppliers to Meet Environmental Goals
- Supply Chain Responsibility
- Box 27.2: GUCCI's CSR Initiative Across Its Supply Chain
- Box 27.3: BERGER Paints India's Green Supply Chain Initiative
- Green Supply Chain Management
- Competitive Sustainability
- Box 27.4: Herman Miller—Competitive Advantage through Sustainable Practices
- Box 27.5: Starbucks—Sustainable Practices in Supply Chain
- Box 27.6: Procurement Policies Towards Sustainability
- Green Manufacturing: A Strategic Priority
- Green Marketing
- Summary
- Review Questions
- Internet Exercise
- Project Assignments
- Video Links
- 28. Regulatory Compliance
- In Practice–ABL-Transfer Pricing
- Introducton
- Multimodal Transport of Goods Act, 1993
- Free Trade and Warehousing Zones Act 2005
- Goods and Services Tax (GST)
- VAT and CENVAT
- Warehousing (Development and Regulation) Act, 2007
- Transfer Pricing
- IATA Guidelines for Cargo Movements
- Box 28.1: Air India—Cargo Regulation
- ‘TIR Carnet’ for Trans-Border Logistics
- Certified Cargo Screening Programme
- Incoterms
- Shipping Trade Practices Bill
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignments
- 29. Ethical Orientation
- In Practice–Mattel Toys: Lapses in Quality Checks
- Introduction
- Procurement—Ethical Practices
- Manufacturing—Ethical Practices
- Box 29.1: Recall of ‘A-Star’ by Maruti—Ethical Practice
- Marketing—Ethical Practices
- Designing and Implementing Ethical Code
- Ethical Issues in the Supply Chain
- Supplier Ethics Management (Sem)
- Summary
- Review Questions
- Internet Exercises
- Video Links
- Project Assignments
- 27. Sustainability Practices and ‘Greening’ of SC
- Part-VII Cases
- Case 1 Palas Acqua
- Case 2 Arihant Consumer Products (ACP)
- Case 3 Rem Chemicals
- Case 4 Mask Packaging
- Case 5 Zapak Ltd
- Case 6 Indian Paints
- Case 7 Mann Diesel Sales and Services
- Case 8 Padmini Motors Ltd
- Case 9 Digital Storage (India) Ltd
- Case 10 Zara
- Case 11 Econ Industry
- Case 12 Afcon Watches
- Case 13 Zico
- Case 14 La Vogue
- Case 15 Trika Exports
- Notes
- Bibliography
- Annexure A Glossary
- Annexure B Supply Chain-Related Information Sources
- Copyright
Chapter 25
1. Sople V. V. ‘Financial Issues in Managing SC and Its Linkage to EVA’ Presented in IMRC 2008 Conference at IIMB on 22–24 December 2008.
2. Monczka, Robert, ISM Conference on E-procurement, Scottsdale, AZ, June 2000.
3. The Supply Chain Operations Reference Model (SCOR) is a process reference model that has been developed and endorsed by the Supply Chain Council as the cross-industry standard diagnostic tool for supply chain management. SCOR enables users to address, improve and communicate supply chain management practices within and between all interested parties.
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