Chapter-1: Supply Chain Management System
Chapter-1: Supply Chain Management System
Chapter-1: Supply Chain Management System
CHAPTER-1
Introduction
1.Introduction:-
Supply Chain Management, as defined by the world famous, Institute of Supply
Management Inc., USA, is the design and management of seamless, value added process
across organizational boundaries to meet the real needs of the end customer.
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 an integrating function with
primary responsibility for linking major business functions and business processes within and
across companies into a cohesive and high-performing business model. It includes all of the
logistics management activities noted above, as well as manufacturing operations, and it drives
coordination of processes and activities with and across marketing, sales, product design,
finance and information technology.
In essence, Supply chain management integrates supply and
demand management within and across companies. Some experts distinguish Supply Chain
Management with Logistics while others consider the term to be interchangeable.
From the point of view of an enterprise, the scope of supply chain management is usually
bounded on the supply side to the supplier's supplier and on the customer side by your
customer's customer.
1.1 Rationale :-
Supply chain management professionals play a key role in capturing customer demands,
creating forecasts, developing schedules, ordering and managing inventory, controlling
production orders, and maximizing customer satisfaction. We'll understand all the necessary
elements to fulfill the requirements of a formal supply chain cycle beginning with developing
long-range production, sales, and capacity plans and ending with planning, implementing, and
controlling daily manufacturing schedules. We'll master the fundamentals of supply chain
management, including customer demand forecasting, master production scheduling (MPS),
material requirements planning (MRP), capacity planning, and production activity control
(PAC).
1.3 Viability :-
While supplier viability isn’t new to the business world, the increased incident rate of supplier
shut down brought on by the recession this past year has made it a front-and-center supply
chain issue. Because the economy is not making it easy to identify supplier viability’s greatest
origin of risk, companies across many different industries and sectors have incurred more
supply chain disruptions with detrimental consequences.
You are probably aware that every organization is trying to be better at managing projects.
Project management is no longer a leading edge concept. In fact, companies that are not doing
well at project management are at a competitive disadvantage versus their counterparts that can
consistently complete projects within expectations.
There is no question that a common set of project management processes provides value to an
organization. Even if your organization utilizes “light” methodologies, there is still value in
implementing a common set of “light” project management processes that everyone can use on
similar projects.
Even though most managers understand there is value to project management, most have a
hard time articulating the value proposition. If you can’t describe the value, you are going to
have a hard time convincing executives and sponsors that this is an area where you need to
focus. The exact argument for deploying common project management practices is going to be
different from company to company because every company has a unique culture and unique
problems. However, the general value proposition for project management is described in this
white paper.
The majority of organizations have a spotty reputation for delivering projects within
expectations. Characteristics of these organizations include:-
o Consistently completing projects late, over budget, or not meeting agreed upon
requirement
o Weak standard processes and techniques used inconsistently by project
managers
o Project management is usually applied in a reactive manner and no seen as
providing value
o The time required to manage projects proactively is not built into the work plan
and is considered 'overhead'.
o Projects are 'successful' in spite of a lack of planning and project management, through
heavy stress and overtime work throughout the life cycle.
o Good project management discipline is the way to overcome these shortcomings.
Having a good project management skills does not mean you have no problems.
o It does not mean that risks go away. It does not mean that there are no surprises. The
value of good project management is that you have a proactive mindset and standard
processes in place to deal with all of these events.
In the project report very firstly we defined about the "Abstract" of the project that is An
abstract is a concise summary of a completed research project or paper. A well-written abstract
will make the reader want to learn about Project.The abstract allows readers to quickly grasp
the purpose and major ideas of a paper and lets other researchers know whether reading the
entire paper will be worthwhile.
After Abstract the description of report is divided in numbers of
Chapters
Therefore the chapter1 contains the INTRODUCTION about "supply chain Managment
System " These Introduction part contain its own sub parts that are as follow
1.1 "Rational" which shows in Supply chain management the professionals play a key role in
capturing customer demands, creating forecasts, developing schedules, ordering and managing
inventory, controlling production orders, and maximizing customer satisfaction.
1.2 "Problem Definition & Proposed Solution" it give description about problem and solutions.
1.3 "Viability"it provide details about the project related to bussiness feild.
Chapter2 Describe about Literature Survey the goal is to show that you have read and
understand the positions of other academics who have studied the problem/issue that you are
studying and include that in your paper or project. you can do this by way of comparing and
contrasting, simple summarization, or any number of ways that show that you've done the
research.
Chapter-3 Analysis part contains the analysis model connects the system description and design
model. System description provides information about the entire functionality of the system,
which is achieved by implementing the software, hardware and data.These part also contains its
own subparts they are as follow
3.1" Requirements Analysis" A software requirements definition is an abstract description of
the services which the system should provide and the constraints under which the system must
operate.
3.2"Requirements Specification" When requirements specifications are written, it is
important that related requirements should be cross-referenced.It also provide Functional and
Non Functional requirments .
In Functional Requirements the functional
requirements also called behavioral requirements, describe the functionality or services that
software should provide.
3.3 "Use case Analysis" A use case analysis is the primary form for gathering usage
requirements for a new software program or task to be completed. The primary goals of a use
case analysis are: designing a system from the user’s perspective, communicating system
behavior in the user’s terms, and specifying all externally visible behaviors.
3.3.1"Use Case Diagram" A use case diagram in the unified modeling language(UML) is a
type of behavioral diagram defined by and created from a use-case analysis .Its purpose is to
present a graphical overview of the functionality provided by a system in terms of actors, their
goals (represented as use case) , and any dependencies between those use case. Use case
diagram overview the usage requirements for a system.
CHAPTER-2
Literature Survey
2.1Literature Survey 1
Review:-scm.ncsu.edu/scm-articles/article/what-is-supply-chain-
management/20/3/13
The field of supply chain management (SCM) has historically been informed by
knowledge from narrow functional areas. While some effort towards producing a broader
organizational perspective has been made, nonetheless, SCM continues to be largely eclectic
with little consensus on its conceptualization and research methodological bases. In recent
years, the area of supply chain management (SCM) has become very popular. This is evidenced
by marked increases in practitioner and academic publications, conferences, professional
development programs and university courses in the area. While interest in SCM is immense, it
is clear that much of the knowledge about SCM resides in narrow functional silos such as
purchasing, logistics, IT and marketing. At least partly as a result of this, there appears to be
little consensus on the conceptual and research methodological bases of SCM. This has
contributed to the existence of a
number of gaps in the knowledge base of the field. Firstly, from a conceptualization
perspective, the definition of the term is unclear and the impact of theoretical diversity is such
that it is doubtful SCM is based on a coherent theory.
Supply Chain Management is one area of continuous interest to academicians as well as to
practitioners for last two decades. It has shown a very dynamic behavior and recent
developments of Information Technology, Green Marketing as well as issue of Sustainability
has taken the debate of SCM to greater heights. Researchers over a period of time have
discussed SCM from different perspectives.
The present paper is an attempt to understand the key domain areas of SCM with the help of
detailed literature review encompassing more than 250 published papers. On the basis of these
papers and on the basis of direction of external business environment, a road map of future
direction for SCM is also proposed in the paper.
Based on the annual energy outlook (IEA 2009), there are still enough oil and gas reserves left
in the world which would be able to meet the world production demand for a considerable
amount of time to come. In this regard one of the main challenges being faced by the oilfield
industry is to tap the existing oil and gas reserves and deliver the products to its users at the
lowest possible cost which cannot be achieved without an efficient and solid SC under an
effective management.
As various organizations in the world experience growth and have established worldwide
supply chain teams very few among these manage to have a culture of productivity, discipline,
efficiency and ultimate satisfaction; Schlumberger is one of them.
It is the world's leading oilfield service company supplying technology, information solutions
and integrated project management for various oilfield operations. As of today the company
employs more than 77,000 employees of 140 different nationalities with operations spread over
80 different countries in the world.
Schlumberger manages its business through 33 Geo-Market regions, which are grouped into
four geographic areas: North America, Latin America, Europe & Africa and Middle East &
Asia (Schlumberger global website).
The Geo-Market structure offers customers a single point of contact at the local level for
operations and brings together geographically focused teams to meet local needs and deliver
customized solutions.
Due to the rapidly evolving business environment of the oilfield industry and the company’s
international footprint spanning over 80 different countries, in order to maintain its leading
position, Schlumberger is faced with certain challenges revolving around management and
control of its supply chain at the global level.
These challenges could be divided in two broad categories one being the issue of cost control
which is a very important aspect of any supply chain especially in the current times of
economic uncertainty and the second being the need for a common structure and
implementation across.
The organization based on a framework which provides a systematic approach for the
management team, enabling them to overcome the contemporary management challenges like
chaos, change and physical control issues regarding supply chain management (SCM), spread
across different geographic regions. Because of the size and complexity of the global
operations and the implications associated with the inappropriate handling of the complex
supply chain, the report would focus on the output driven control system and its management,
to be more specific this report concerns the physical organization of resources but will not
consider the control mechanisms used in managing the knowledge worker.
2.2Literature Survey 2
Review:- http://simoncroom.files.wordpress.com/2011/11/croom-romano-giannakis-supply-chain-
lit.pdf
(1994):- Supply chain management aims at building trust, exchanging information on market
needs, developing new products, and reducing the supplier base to a particular OEM (original
equipment manufacturer) so as to release management resources for developing meaningful,
long term relationship.
(1985):-An integrative approach to dealing with the planning and control of the materials flow
from suppliers to endusers.
(1995) :-External Chain is the total chain of exchange from original source of raw material,
through the various firms involved in extracting and processing raw materials, manufacturing,
assembling, distributing and retailing to ultimate end customers.
(1997) :-A network of entities that starts with the suppliers’ supplier and end with the
customers’ customers for the production and delivery of goods and services.
CHAPTER-3
Analysis
3. Analysis:-
The analysis model connects the system description and design model. System description
provides information about the entire functionality of the system, which is achieved by
implementing the software, hardware and data. The analysis model must meet three primary
objectives:-
There are three types of major problem with requirements definitions written in natural
language :
Hardware Requirements
RAM : 256 MB
Software Requirements
ASP .NET: ASP .NET is an application which provides the services of a server when
using as a standalone application.
SQL Server: SQL server is used as a back end for our project .It is a set of components
that work together to meet data storage and analysis needs of the largest Web sites and
enterprise data processing systems.
language specification is not a particularly good basis for either a design or a contract
between customer and system developer.
There are various alternatives to the use of natural language which add structure to the
specification and which should reduce ambiguity. These are:
Normal requirements:-These are the basic requirement that the project must provide.
Functional Requirements:- The functional requirements also called behavioral requirements, describe
the functionality or services that software should provide. For this, functional requirement describe the
interaction of software with its environment and specified the inputs, outputs, external interface and the
functions that should not be included in the software .Also, the services provided by the functional
requirement specify the procedure by which the software should react to particular inputs or behave in
particular situation.
Time: The project should be completed within the stipulated time period.
Physical Environment
a) The equipment for the project is located at the college MITM and at the homes of the
developer.
Interface
a) The input to the module working on Proxy Server may come from several clients located on
different machines on LAN.
b) The response should be sent to the client machine; however one machine can request and
receive more than one http information.
A use case analysis is the primary form for gathering usage requirements for a new software
program or task to be completed. The primary goals of a use case analysis are: designing a
system from the user’s perspective, communicating system behavior in the user’s terms, and
specifying all externally visible behaviors. Another set of goals for a use case analysis is to
clearly communicate: system requirements, how the system is to be used, the roles the user
plays in the system, what the system does in response to the user stimulus, what the user
receives from the system, and what value the customer or user will receive from the system.
Roles of the actors in the system can be depicted. Interaction actors are not shown on the use
case diagram. This use case starts when the actor something. An actor always initiates use
cases. The use should describe what happens inside the system, but not how or why. If
information is exchanged, be specific about what is passed back and forth. Its hold be phrased
in the form of a dialog between the actor and the system. If this interaction is essential to a
coherent description of the desired behavior, perhaps the system or use case boundaries should
be re-examined. Alternatively, interaction among actor can be part of the assumption used in
the use case.
1. Use cases: - A use case describes a sequence of action that provides something of measurable
value to an actor and is drawn as a horizontal ellipse.
2. Actors: - An actor’s a person, organization, or external system that plays a role in one or
more interactions with your system. Actors are drawn as stick figures.
3. Associations: - Association between actors and use cases are indicated in use case diagrams
by solid lines. An association exists whenever an actor is involved with an interaction described
by a use case.
4. System boundary boxes (optional):- You can draw a rectangle around the use case, called the
boundary box, to indicate the scope of your system. Anything within box represents
functionality that is in scope and anything outside the box is not.
Use case templates do not automatically ensure clarity. Clarity depends on the skill of
the writer(s).
Use cases are complex to write and to understand, for both end users and developers.
As there are no fully standard definitions of use cases, each project must form its own
interpretation.
Some use case relationships, such as extends, are ambiguous in interpretation and can
be difficult for stakeholders to understand.
Use cases are a starting point for test design, but since each test needs its own success
criteria, use cases may need to be modified to provide separate post conditions for each
path.
Precondition: Person at national level account is existing in the database and has not yet
Logged In.
Post condition: After login person at national level get access of his/her portal.
3.4Sequence Diagram:-
A sequence diagram in a Unified Modeling Language (UML) is a kind of interaction diagram
that shows how processes operate with one another and in what order.
It is a construct of a Message Sequence Chart. Sequence diagrams typically (but not always),
are associated with use case realizations in the Logical View of the system under development.
Sequence diagrams are sometimes called event diagrams, event scenarios, and timing diagrams.
A sequence diagram shows, as parallel vertical lines (lifelines), different processes or objects
that live simultaneously, and, as horizontal arrows, the messages exchanged between them, in
the order in which they occur. In order to display interaction, messages are used.
These are horizontal arrows with the message name written above them. Activation boxes, or
method-call boxes, are opaque rectangles drawn on top of lifelines to represent that processes
are being performed in response to the message (Execution Specifications in UML).
When an object is destroyed (removed from memory), an X is drawn on bottom of the lifeline,
and the dashed line ceases to be drawn below it (this is not the case in the first example
though).
It should be the result of a message, either from the object itself, or another. A message sent
from outside the diagram can be represented by a message originating from a filled-in circle
(found message in UML) or from a border of the sequence diagram.
3.5Activity Diagram :-
Activity diagrams are constructed from a limited number of shapes, connected with arrows.
The most important shape types:
rounded rectangles represent actions;
diamonds represent decisions;
bars represent the start (split) or end (join) of concurrent activities;
a black circle represents the start (initial state) of the workflow;
an encircled black circle represents the end (final state).
CHAPTER-4
Design
4. Design:-
The Design phase is when you build the plan for how you will take your project through the
rest of the SDL process—from implementation, to verification, to release. During the Design
phase you establish best practices to follow for this phase by way of functional and design
specifications, and you perform risk analysis to identify threats and vulnerabilities in your
software.
4.2 Modules Identified: - Software architecture embodies modularity; that is, software is
divided into separately named and addressable components called modules that are integrated
to satisfy problem requirements. Modularization reduces the effort and complexity of the
problem, hence it should be followed, but care should be taken to avoid under modularity or
over modularity. Our project is divided into six different modules each is responsible for
different type of services and also they are inter-related with each other provides services to
each other. The data is flowing through different modules and helps in the proper functioning
of the proxy server.
Modules:-
Admin:-
It will manage all the levels of chain system .It also acts as database administrator, also
monitors all object of other lower levels and also can delete the lower levels.
National Level:- It acts as a supplier of the product .Its responses to the order placed
by its lower levels This module will does the following work:-
Add Brand.
Add Product.
Add color.
Zone Level:-It act as a purchaser and supplier of product .Zone level will describe the
zone i.e. east zone, west zone, south zone, north zone.
Purchase
Sales
Payment made
Payment received
Payment due
View stock
View supplier
Product Detail
State Level:- It act as a purchaser and supplier of product .This module will describe
the no. of states where the product has to be distributed in the no. of state.
Purchase
Sales
Payment made
Payment received
Payment due
View stock
View supplier
Product Detail
District Level:- It act as a purchaser and supplier of product. This module will describe
about many cities in which the product has to be distributed.
Purchase
Sales
Payment made
Payment received
Payment due
View stock
View supplier
Product Detail
City Level:- It act as a purchaser and supplier of product This module will give details
to the retailer about the product at city level.
Purchase
Sales
Payment made
Payment received
Payment due
View stock
View supplier
Product Detail
Retailer:-Customer directly purchase the product from retailer. It act as a purchaser and
supply the product directly to customer.
Purchase
Sales
Payment made
Payment received
Payment due
Product Detail
4.2Class Diagram:-
The class diagram is the main building block of object oriented modeling. It is used both for
general conceptual modeling of the systematic of the application, and for detailed modeling translating
the models into programming code. Class diagrams can also be used for data modeling. The classes in a
class diagram represent both the main objects, interactions in the application and the classes to be
programmed.
The term database design can be used to describe many different parts of the design of an
overall database system. Principally, and most correctly, it can be thought of as the logical
design of the base data structures used to store the data. In the relational model these are
the tables and views. In an object database the entities and relationships map directly to object
classes and named relationships. However, the term database design could also be used to
apply to the overall process of designing, not just the base data structures, but also the forms
and queries used as part of the overall database application within the database management
system (DBMS).
The process of doing database design generally consists of a number of steps which will be
carried out by the database designer. Usually, the designer must:
4.3.1.E-R Diagram:-
Physical model:-
One or more physical ER models may be developed from each logical ER model. The physical
ER model is normally developed to be instantiated as a database. Therefore, each physical ER
model must contain enough detail to produce a database and each physical ER model is
technology dependent since each database management system is somewhat different.
The physical model is normally forward engineered to instantiate the structural metadata into a
database management system as relational database objects such as database tables,database
indexes such as unique key indexes, and database constraints such as a foreign key
constraint or a commonality constraint. The ER model is also normally used to design
modifications to the relational database objects and to maintain the structural metadata of the
database.
The first stage of information system design uses these models during the requirements
analysis to describe information needs or the type of information that is to be stored in
a database. The data modelling technique can be used to describe any ontology (i.e. an
overview and classifications of used terms and their relationships) for a certain area of interest.
In the case of the design of an information system that is based on a database, the conceptual
data model is, at a later stage (usually called logical design), mapped to a logical data model,
such as the relational model; this in turn is mapped to a physical model during physical design.
Note that sometimes, both of these phases are referred to as "physical design". It is also used in
database management system.
E-R Diagram
CHAPTER-5
Implementation
Bottom up Approach
What is bottom up Approach? Up approach is to start with the concrete business logic
And test and test its test case and processed with presentation implication.
Advantage:
One of the most successful models to emerge from the client/server world has been the three-
tiered model. A tier, or layer, is a collection or set of independent homogenous objects that
together solve a large but common problem. The three tiers are generally known as
presentation, business logic and data services.
A particular tier should know nothing whatsoever about its adjacent tiers other than their
exposed public interfaces. From a procedural standpoint, this indifference seems like a
restriction, but it’s really a liberating mechanism. Herein lays the strength of the model:
changes in one tier have minimal impact on the others. This rule puts the architecture in a
comfortable position to be easily expanded and freely upgraded with time.
Presentation Layer:-
The presentation tier involves all interaction with the user. Specific GUI-only operations such
as repainting a window, capturing mouse-up clicks, text input, and so on, live here. The model
does not allow interaction with the user at any other tier. Minimal validation of data can be
done at this layer, but validation is better suited for the adjacent business tier. The presentation
tier does not know about any particular data store technology or where its data originates. The
presentation tier has a defined set of interfaces that enable it to communicate to the business
layer, and that’s the only capability it has.
Next is the middle, or business logic tier, where most of the processing is carried out. All
business-specific rules are grouped into this tier. This is the part of the application that actually
solves the problem. It is the middleware between the user and any physical data storage. Like
its parent tier, the business logic tier should not used above. It should only process data, not
store it or present it.
Data services is in charge of any physical persistence the application requires. Specific data
services mechanism, such as low-level database access or SQL, should go here. When the time
comes to upgrade or change physical stores, nothing but this layer is affected, and nothing else
breaks or requires extensive retesting. Typical client/server three-tiered models involve
structured relational database storage of some type, but this is not the case in newer three-tiered
designs. An application does not require a database to benefit from a three-tiered model. Any
kind of persistent storage can be placed here, away from the presentation and logic layers, so as
to increase the potential for maintainability and evolution of the system in the future.
User Function:- In my project user function has handled by user and super user. User has to
authority for viewing the products and enquiries about the products.
Supply chain managers have a tremendous impact on the success of an organization. These
managers are engaged in every facet of the business process – planning, purchasing,
production, transportation, storage & distribution, customer service, and more! In short, these
managers are the “glue” that connects the different parts of the organization. Their performance
helps organizations control expenses, boost sales, and maximize profits.
Two additional roles focus on facilitation and collaboration. Because supply chain managers
touch so many different parts of the business, they are in a unique position to help other
functions execute their strategies. They are also called upon to diagnose and support the needs
of external supply chain partners. Here are just a few examples of these cross-functional roles:
• Designing :- the long-term supply-chain structure to position the company in the right
roles in the right supply chains with the right customers and suppliers.
• Re-engineering supply-chain processes:- to streamline product, information, and funds
flow internally and externally.
• Reinforcing:- the supply chain's functional foundation by improving quality and
Productivity within operational areas such as warehousing, transportation, and fleet
management.
CHAPTER-6
Testing
• The tester does not need knowledge of any specific programming languages.
• The test is done from the point of view of the user, not the designer.
Alpha testing
Alpha testing is simulated or actual operational testing by potential users/customers or an
independent test team at the developers' site. Alpha testing is often employed for off-the-shelf
software as a form of internal acceptance testing, before the software goes to beta testing.
Alpha software can be unstable and could cause crashes or data loss. External availability of
alpha software is uncommon in proprietary software. However, open source software, in
particular, often have publicly available alpha versions, often distributed as the raw source
code of the software. The alpha phase usually ends with a feature freeze, indicating that no
more features will be added to the software. At this time, the software is said to be feature
complete.
Beta testing
Beta testing comes after alpha testing and can be considered a form of external user acceptance
testing. Versions of the software, known as beta versions, are released to a limited audience
outside of the programming team. The software is released to groups of people so that further
testing can ensure the product has few faults or bugs. Sometimes, beta versions are made
available to the open public to increase the feedback field to a maximal number of future users.
Beta, named after the second letter of the Greek alphabet, is the software development phase
following alpha. It generally begins when the software is feature complete. Software in the beta
phase will generally have many more bugs in it than completed software, as well as
speed/performance issues and may still cause crashes or data loss. The focus of beta testing is
reducing impacts to users, often incorporating usability testing. The process of delivering a beta
version to the users is called beta release and this is typically the first time that the software is
available outside of the organization that developed it.
The users of a beta version are called beta testers. They are usually customers or prospective
customers of the organization that develops the software, willing to test the software without
charge, often receiving the final software free of charge or for a reduced price. Beta version
software is often useful for demonstrations and previews within an organization and to
CHAPTER-7
Conclusion
7.1CONCLUSION:-
The review of commercial SCM applications has presented the state of the art in the field of
SCM.
Some requirements have been proposed for next generation of SCM systems. Agent-based
SCM systems provide a single solution for managing the next generation of SCM in a multi-
plant, inter-enterprise environment. Future efforts seem to be focused only on the Multi agent-
based approaches to integrated and globalized SCM. All achievements in agent-based SCM
systems implementation can be extended to developer other distributed information
management systems
The sections of the industrial supply chain need to interact to ensure goods or services reach
consumers.
The efficient delivery of the product to the consumer at the right price, in the right place and at
the right time will result in good business for each link of the chain. This takes strategic
planning and effective collaboration with all partners. Thus Supply chain management (SCM)
can also be described as the oversight of materials, information, and finances as they move in a
process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain
management involves coordinating and integrating these flows both within and among
companies. It is said that the ultimate goal of any effective supply chain management system is
to reduce inventory (with the assumption that products are available when needed). As a
solution for successful supply chain management, sophisticated software systems with Web
interfaces are competing with Web-based application service providers (ASP) who promise to
provide part or all of the SCM service for companies who rent their service.
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.
Improved Collaboration –
A SCM system wired in to the latest software allows you to know the position your raw
materials and your finished products are in by tracking both your suppliers and your
distributors. These companies can also track where you are at in receiving or sending those
materials. This knowledge can keep relationships between these businesses strong. This system
often includes the
development of reports on how the chain of goods progresses from supplier through distributor.
These reports help your businesses to determine potential areas of improvement.
7.2.2 Limitation-
Person at National level can not interact directly with the customer. He has to interact
firstly to its lower level.
The biggest disadvantage of global SCM is heavy investment of time, money needed to
implement and overlook the supply chain.
The decision to the outsource a production facility or call center lower the cost of doing
business for company using global SCM but the decision to outsource or not can lead to
customer backlash.
CHAPTER-8
References
And
Bibliography
8.2Bibliography:-
1 Logistics and Supply Chain Management : Strategies for Reducing Cost and
Improving Service (Financial Times Management) -- Christopher Martin;
2 Introduction to Supply Chain Management -- Robert B. Handfield, Ernest
L. Jr. Nichols
3 Advanced Supply Chain Management : How to Build a Sustained
Competition -- Charles C. Poirier
4 Supply Chain Management : The Basics and Beyond (The St. Lucie
Press/Apics Series on Resource Management) ~ William C. Copacino /
Published 1997
5 Basics of Supply Chain Management James E. Hill,/ Published 1999
6 Introduction to Supply Chain Management ~ Robert B. Handfield, Ernest
L. Jr. Nichols / Published 1998
7 Quick Response in the Supply Chain Eleni Hadjiconstantinou(Editor), Eleni
Hadjiconstaninou (Editor/Published 1999)
8 Partnership Sourcing : An Integrated Supply Chain Management Approach
(Financial Times) Douglas K. MacBeth, Neil Ferguson / Published 1994
9 Global Cases in Logistics & Supply Chain Management David H. Taylor
(Editor / Published 1997
10 Designing and Managing the Supply Chain: Concepts, Strategies and Case
Studies David Simchi-Levi, / Published 1999
11 Strategic Alliances : Managing the Supply Chain Tim Underhill / Published
1996
12 Quick Response : Managing the Supply Chain to Meet Consumer Demand
Bobn Lowson, / Published 1999
13 Logistical Management: The Integrated Supply Chain Process Donald J.
Bowersox, David J. Closs / Published 1996
14 Keeping Score: Measuring the Business Value of Logistics in the Supply
Chain James S. Keebler,
15 The Executive's Guide to Supply Management Strategies : Building Supply
Chain Thinking into All Business Processes David A. Riggs, Sharon L.
Robbins (Contributor) / Published 1998
16 Erp : Tools, Techniques, and Applications for Integrating the Supply Chain
(St. Lucie Press/Apics Series on Resource Management) Carol A. Ptak, Eli
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