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SUPPLY CHAIN MANAGEMENT SYSTEMS

Assignment No. 2 Management Information Systems (8507)

Submitted By Waheeda Mumtaz Roll No. : AO 559158

ACKNOWLEDGEMENTS

All praises are for Allah who is the most beneficent and most merciful. I must thank my teacher for the guidance provided by him which enabled me to complete this assignment. Without his teaching it would have been difficult for me to comprehend the subject and produce any kind of research or writing. I also thank my class fellows who have supported me in my efforts.

ABSTRACT OF THE REPORT


The Supply Chain Management (SCM) is a cross functional, inter-enterprise system that integrates and automates the network of business process and relationships between a company and its suppliers, distributors ,and other business partners .The goal of SCM is to help a company achieve agility and responsiveness in meeting the demands of its customers and needs of its suppliers ,by enabling it to design ,build, and sell its products using a fast, ,efficient and low cost network of business partners, processes, and relationships or supply chain. Children First is a Not For Profit National NGO. Children Firsts core philosophy and entire scope of action plan is pivoted around the care, protection and overall welfare of child at all the levels of society. The key thematic areas include Child Protection, Education, Health, Livelihood, Community Physical Infrastructure and DRR. At Children First a laid down policy covers the whole process of supply chain management. It includes activities like identifying the need, specifying the need, sourcing potential suppliers or service providers, obtaining prices that are competitive, evaluating proposals from potential suppliers or service providers, placing orders, making payment, and receiving goods and services under the contract. Children Firsts strict and clearly laid down policy and procedures for supply management are a strength. Operating in specific areas means that the organisation can develop better knowledge and working relations with its suppliers and end users. The organisation depends on its donors to assign and fund projects and is hampered to make elaborate plans for its Supply Chain Management. The organisation can make better use of supply chain management system by making annual plans for purchase of supplies.

TABLE OF CONTENTS

Introduction Supply Chain Sustainability Management Component Case Study of Chidren First o Organisational description o Origin and Philosophy o Main Thematic Areas o Organisational Culture o Donors Profile o Projects Undertaken o Strengths and Weaknesses o Supply Chain Management at Children First o Code of Practice o SWOT Analysis o Conclusion & Recommendations References
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INTRODUCTION:
The Supply Chain Management (SCM) is a cross functional, inter-enterprise system that integrates and automates the network of business process and relationships between a company and its suppliers, distributors and other business partners .The goal of SCM is to help a company achieve agility and responsiveness in meeting the demands of its customers and needs of its suppliers ,by enabling it to design ,build, and sell its products using a fast, ,efficient and low cost network of business partners, processes, and relationships or supply chain.SCM is frequently subdivided into supply chain Planning applications, such as demand and supply forecasting, and supply chain execution applications such as inventory management, logistics management and warehouse management. Developing effective supply chain systems and achieving the business goals of SCM have proven to be complex and difficult challenges for many firms, but SCM continues to be a major concern and top e business initiative as companies increase their use of internet technologies to enhance integration and collaboration with their business partners, and improve the operational efficiency and business effectiveness of their supply chains. Supply chain activities can be grouped into three levels which are strategic, tactical, and operational levels.

Strategic level
SCM at strategic level needs long term planning and resource commitment. The Strategic network is optimized which includes optimizing the number, location, and size of ware housing, distribution centres, and facilities. Strategic partnerships with suppliers, distributors and customers create communication channels for critical information and operational improvements such as cross docking, direct shipping, and third party logistics. Other important aspects of SCM at strategic level include information technology chain operations, taking make-buy decisions, aligning overall organizational strategy with supply strategy.

Tactical level
Activities at tactical level include sourcing contracts, taking purchasing decision and taking production decisions which include contracting, scheduling and planning process definition. SCM at tactical level would also require benchmarking of all operations against competitors and implementation of best practices throughout the enterprise.

Operational level
The SCM system will provide for daily production and distribution planning including all nodes in the supply chain, production scheduling for each manufacturing facility in the supply chain (minute by minute), demand planning, forecasting and coordinating the demand forecast of all customers and sharing the fore cast with all suppliers. In planning for sourcing consideration is made for current inventory and forecast demand ,in collaboration with all suppliers. Production operations planning will enable the forecasting of the consumption of materials and flow of finished goods.

SUPPLY CHAIN SUSTAINABILITY:


Supply chain sustainability is a business issue affecting an organizations supply chain or logistics network and is frequently quantified by comparison with SECH ratings. SECH are defined as social, ethical, cultural and health footprints. Consumers have become more aware of the environmental impact of their purchases and companies SECH ratings, along with non-governmental organizations (NGOs) are setting the agenda for transitions to organically-grown foods, anti-sweatshop labour codes and locally produced goods that support independent and small businesses. Since supply chains frequently account for over 75 percent of a companys carbon footprint many organizations are exploring how they can reduce this and thus improve their SECH rating.

MANAGEMENT COMPONENTS:
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SCM suggests various possible components that must receive managerial attention when managing supply relationships. Lambert and cooper (2000) identified the following components; Planning and control Work structure Organization structure Product flow facility structure Information flow facility structure Power and leadership structure Risk and reward structure Culture and attitude

CASE STUDY OF CHILDREN FIRST (AN NGO):


Organizational Description
Children First is a Not For Profit National NGO registered under section 42 of Companies Ordinance 1984 with the Securities and Exchange Commission of Pakistan (SECP). Children First got registered on October 21, 2008.

Origin and Philosophy


Children Firsts core philosophy and entire scope of action plan is pivoted around the care, protection and overall welfare of child at all the levels of society. The key thematic areas include Child Protection, Education, Health, Livelihood, Community Physical Infrastructure and DRR. The very existence of Children First originated from a child protection and rehabilitation program carried out in AJK by Save the Children that was reshaped to a formal organization later on. In addition to the focus on the sector-related development the organization has extensive expertise in carrying out sustainable social mobilization, social organization and individual and institutional capacity building initiatives. To ensure standardization with a proactive approach Children First has an independent Monitoring, Evaluation and Research Unit that carries out the Project Base-line, Pre-KAP (knowledge, attitude and practices) and Post KAP surveys to assess the situation of the projects geographical area. It is also made certain that all the relevant segments of community are engaged in the process through social mobilization.

Main Thematic Areas Education Programme


The education programme of children first has four pillars including a) access & retention b) quality of education & human capacity development c) institutional capacity development d) skill based & alternative education. It involves key stakeholders in all the processes from program planning to participatory evaluation.

Child Protection Programme


Child Protection Programme follows area development approach with integrated package of programme interventions. The approach is three pronged in its nature to address the protection issues and promotes child rights.

Health Programme
Children First has a three-tiered approach which includes a) Working on preventive health b) Institutional strengthening through capacity building and c) Policy reforms by adopting innovative advocacy approaches.

Livelihoods Programme
Children First has a community driven livelihood area development approach. It revolves

around three basic principles of developing livelihood resource that is a) Graft on existing resources b) Innovate indigenous local livelihood opportunities c) Ensure pro-active involvement of women.

Community Physical Infrastructure Programme


Children First uses multi-disciplinary, innovative and community based approaches around community roads, water & sanitation, water harvesting structures, irrigation channels, hydro power and other small infrastructures.

Disaster Preparedness Programme


Children First has four-component disaster preparedness approach which includes a) Strengthening Disaster Preparedness Unit within Children First b) Capacity building of all educational and other local institutions within programme outreach c) Institutionalizing and strengthening disaster risk reduction mechanisms and d) Develop cadre of volunteers within programme outreach.

Organizational Outreach
Head Office: Azad Kashmir: Khyber Pakhtunkhwa: FATA: Islamabad All ten districts of AJK Peshawar, Swat, Lower and Upper Dir Orakzai Agency 10

Punjab : Rawalpindi, Rajanpur, Layyah

Organizational Culture Vision


A society where children and their best interests come first.

Mission
Contribute towards realization of child rights by engaging key stakeholders in ways We strive to achieve this through: Increasing access and quality of education; Expanding livelihood opportunities for the poor; Enhancing access to quality health services; Improving community physical infrastructure; Protecting children from neglect, abuse and exploitation; and Developing institutional capacities for disaster risk reduction. multiple

Values
Gender equality Transparency Accountability at all levels; Collaboration with all stakeholders Non discrimination

Objectives
Capacity building of relevant institutions and the community to safeguard children from potential abuse, exploitation and neglect; Enhanced outreach and access of quality education particularly for marginalized children, greater coordination among various actors, strategic advocacy and strengthening government education departments; Improved health outcomes for children through innovative approaches and strategies including introduction of school health screening and referral services, introduction of

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life skills training, capacity building of health care providers and awareness raising within the local communities and schools; Poverty Alleviation efforts, through micro-enterprise development and income generation activities, to ultimately enable households and communities to protect child rights; Improvement and up-gradation of community physical infrastructures; Promotion of Gender equality by ensuring Gender sensitivity of organizations programmes as through direct interventions; Enhanced disaster preparedness and disaster risk reduction in programme areas.

Donors Profile:
The organization has worked with number of national and international donor agencies including Save the Children-UK, Save the Children-Alliance, Foreign and Commonwealth Office of the British High Commission, John Snow Research and Training Institute, Inc., UNICEF, UNFPA, UNDP, UNHCR, Food and Agriculture Organization (UN-FAO), World Food Programme, USAID-OFDA, Concern Worldwide, Earthquake Reconstruction and Rehabilitation Authority (ERRA), State Reconstruction and Rehabilitation Authority (SERRA) and District Reconstruction Unit-Muzaffarabad (DRU). The organization successfully accomplished various developmental initiatives in the field of child protection, education, health, livelihoods and CPI with prime focus on marginalized communities and emphasis on women empowerment. The total financial portfolio of the organization is over PKR 682.02 million.

List of Projects Undertaken:


S. No 1. Activities Capacity Building of Education Service Providers to Improve Governance Correlation 2. Community based care system for children without parental care and institutional strengthening July to Dec, 11 District Muzaffarabad and SWAT PKR 7.8 million Save the ChildrenUK and Service Period July 2011March 2012 Location Mirpur, Kotli and Dadyal, Azad Kashmir Project Cost PKR 50 Million Funding Source Foreign and Common Wealth Office (FCO)

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3.

Restoration Based

of

Community Sources &

June 11 to Sept 11

Lower Orakzai, Tehsil Kalaya, sec. Feroz Khel, sec. Uthman Khel and sec. Bezot

PKR 9.4 million

USAID-OFDA

Water

Hygiene Promotion

4.

Restoration of Shelter for IDP returnees

Aug 11 to Dec 11

Lower Orakzai Stori Khel, Utman Kalli, Bezot, Feroz Khel, Misti Khel and Sheikhano

PKR 134.24 million

UNHCR

5.

Strengthening Protection Capacity Communities Affected Punjab

of Services Building in Four of

Child and of Flood South

1 Sept to Dec 2011

District DG Khan, Muzaffargarh, Layyah and Rajanpur

PKR 8.5 Million

UNICEF

Districts

6.

Tahaffuz-A state-Civil Society Action for the protection of Children, children, exploitation especially from and working sexual abuse in

Ist January 2012-30


th

Rawalpindi District

PKR 47 Million

European Commission

June 2014

Rawalpindi District 7. Establishing Based Community June 01,2012Nov 30, 2012 8. Strengthening of Child Rights Movement to Protect Child Rights in Pakistan May Dec 2012 National Level PKR 3.3 Million Save the Children District Muzaffargarh PKR 10.637 Million Save the Children

Child

Protection

Systems in Muzaffargarh

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Supply Chain Management at Children First:


At Children First a laid down policy covers the whole process of supply chain management. It includes the following activities: Identifying the need, Specifying the need, Sourcing potential suppliers or service providers, Obtaining prices that are competitive, Evaluating proposals from potential suppliers or service providers, Placing orders, Making payment, and Receiving goods and services under the contract

This Policy has been approved by Senior management Team of CHILDREN FIRST. It sets out the responsibilities of all employees who are involved in procuring goods and services. Over 5 million of CHILDREN FIRST annual budget is spent on buying goods and services. It is important that any purchases made give full value for money (that is, the best possible quality at the least possible cost).

Code of practice:
Every employee is responsible for ensuring CHILDREN FIRST gets value for money in all purchases regardless of their size. Concerned staff should find out what other suppliers in the market place are offering. It is expected that an employee must not use his/her position for personal gain and should comply with appropriate legislation and reject any business practice that could be considered improper. Non-compliance to this would result in disciplinary actions against the employee.

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SWOT Analysis:
Amongst the strengths of Children First are the strict and clearly laid down policy and procedures for supply management. The organisation is working in three districts of Punjab, four districts of Khyber Pakhtunkhwa and eleven districts of Azad Kashmir. Restricting operations to specific areas means that the organisation can develop better knowledge and working relations with its suppliers and end users. The organisation does not do elaborate planning about its future projects and its needs for supplies neither does it do any demand forecasting. The organisation depends on its donors to assign and fund projects and is hampered to make elaborate plans for its Supply Chain Management. There are huge variations in the needs for supplies for the organisation depending upon the numbers of projects going on and the inflow of grants.

Conclusion and Recommendations:


Children First has a well settled policy and procedure laid down for Supply Chain Management. This policy provides for all the necessary elements in SCM. This policy is strictly complied with. Based on the case study following recommendations can be made: the organisation can make better use of SCM system by making annual plans for purchase of supplies, and the organisation can make better use of its resources if it starts to manage inventory of items most commonly used in all its projects.

REFERENCES:
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Children first (1999)

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