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SUPPLY CHAIN MANAGEMENT

Submitted towards the partial fulfillment of the degree of Masters of Fashion


Management

SUPPLY CHAIN MANAGEMENT IN


RETAIL

Submitted by:
Vrinda Gupta (MFM/16/212)

Under the guidance


Ms. Harsha Rani (Assistant Professor)

Submitted to:

Department of Fashion Management Studies


National Institute of Fashion Technology
(Ministry of Textiles, Govt. of India)
NIFT Campus, IDCO Plot No-24,
Bhubaneswar, Odisha-751024.
www.nift.ac.in
SUPPLY CHAIN MANAGEMENT

A supply chain is comprised of all the businesses and individual contributors involved
in creating a product, from raw materials to finished merchandise. Retail companies
become involved in supply chain management to control product quality, inventory
levels, timing, and expenses. In a global economy, supply chain management often
includes dealings with companies and individual contributors in other countries,
which requires involvement in politics, trade and tariff laws, quality control, and
international relationships. SCM module in ERP makes use of the speed and the
simplification that the technology offers and makes the most of it efficiently. It makes
the business dynamic with smart and updated business decisions which are derived by
using the real-time data.

Advantages of SCM in ERP:

Sales forecasting: Based on production numbers and the capacity of the


business, the module helps to predict the overall sales of the firm. It considers
several factors such as inventory, human resources, and deadlines and so on.
Track production: The module helps the business to take into account every
raw material that comes and the expected output. If the target is not reached it
also helps the firm to know the root causes thereby helping the company to
identify the reasons for the same and rectify it without any further damage.
Apart from maintaining the records it also helps the firm to plan the
production and accordingly make appropriate adjustments to leverage the
production.
Inventory management: Helps in maintaining an apt level of inventory and
ensuring that the company does not spend too much of costs to procure and
store the goods. This further enhances the production system by keeping the
crucial goods on hand and ensure no production halts.
Reporting: With customisations that understand the requirement of the firm, a
proper application can be built which can fetch crucial reports for the firm.
These reports are updated due to the real-time data that is captured at regular
intervals. Based on the available information the firm can take important
business decisions that can prove to be profitable and intelligent.

RECENT DEVELOPMENTS

1. BLOCK CHAIN
A block chain is a data structure used to create a digital ledger of transactions
and share it among a distributed network of users. It uses cryptography to
allow each participant on the network to update the ledger in a secure way
without the need for a central managing authority, even across dissimilar
companies.
In late August 2017, IBM announced 10 food industry companies had recently
signed up with IBM to test the use of so-called blockchain technology for
tracking the movement of food products across the global supply chain. The
goal is to increase visibility and traceability
Walmart has said that in the trials the time it took to trace the movement of
mangoes fell to 2.2 seconds from about seven days without blockchain. It
added that a single product recall could cost anything from tens of thousands
to millions of dollars in lost sales - a risk blockchain may be able to reduce
through better visibility and awareness of emerging supply chain issues. The
scale of a given recall might also be reduced from the improved visibility and
traceability.
2. DISTRIBUTED ORDER MANAGEMENT
Distributed order management meets todays complex business requirements
like drop shipping and order splitting. It utilizes practices and technologies
needed to replenish an order and therefore optimizes order fulfillment across a
complex network of systems and processes. It relies on a single, global view
of inventory across an entire organization to intelligently manage orders so
that they are fulfilled accurately and cost effectively. Distributed order
management technology improves the efficiency of supply chain, allowing u
to better meet customer expectations.
Unlike traditional order management, distributed order management is much
more dynamic. It treats all parties involved in order replenishment process as
if they are in the same organization. Merchants benefit from more information
of and visibility into their supply chain.

REFERENCES
https://www.cnbc.com/2017/08/22/ibm-nestle-unilever-walmart-blockchain-food-
contamination.html
https://www.thebalance.com/definition-of-supply-chain-management-2892749
https://www.nchannel.com/blog/distributed-order-management-success/
http://starsofstartups.in/columns/randomly-right/supply-chain-management-module-
erp/