GLOBAL BUSINESS SCHOOL, HUBLI – 580025

Academic Year: 2018 – 2020

SUBMISSION OF VIDEO REVIEW
Semester : MBA 3st SEMESTER

Subject : SUPPLY CHAIN MANAGEMENT

University Seat No Roll No. Student Name

18MBA210 Sk Kaveri Kadam

18MBA271 Sk Siddiqa Soudagar

18MBA279 Sk Totesh Kollavar

18MBA213 SU06 Akshaykumar Kshtri

18MBA213 SU21 Mahantesh Mamdapur

18MBA269 SU49 Shruti Halavdarmath

Submitted to : Assistant Prof: Arun sir

Date of Submission: 15/10/2019
 1. What is supply chain management?

Supply chain management is the management of the flow of goods and services
and includes all processes that transform raw materials into final products. It
involves the active streamlining of a business's supply-side activities to
maximize customer value and gain a competitive advantage in the marketplace.

2. About 3 entities and 4 flows?

3 entities are as follows,

 Manufacturer
 Supplier
 Seller

Following are the 4 flows,

 PRODUCTS - things in demand at various facilities

 FACILITIES - places where products are made, stored, sold or
consumed
 VEHICLES - mechanisms to move products between facilities to meet
demand
 ROUTES - paths taken by vehicles to move products between facilities

3. About 3 main strategies of supply chain management?

 Strategy 1: Adopt a demand-driven planning and business
operating model based on real-time demand insights and demand
shaping. The right prediction and contingency planning tools will
ensure a complete view and an effective response to risks such as
 suppliers going out of business, political upheaval, and natural
calamities affecting manufacturing. Companies then can adjust
pricing and promotions strategies to shape demand, move
additional product quickly, drive revenue growth, or further expand
margins for a high-demand product with limited market supply.

 Strategy 2: Build an adaptive and agile supply chain with rapid

planning and integrated execution. Once executives are able to
better understand and shape demand and risk, they need to adapt
their supply chains to changing market opportunities and events.
Companies must deploy dynamic planning capabilities and
continually fine-tune operations to ensure responsive agility to
meet changing demand.
 Strategy 3: Optimize product designs and product management for
supply, manufacturing, and sustainability to accelerate profitable
innovation. Innovation is crucial for being one step ahead of the
competition. But innovation doesn’t exist in a vacuum. To be
successful, products must be manufactured at the right cost, place,
and time. Decisions made in the early cycles of product
development can make or break the product. Designs must be
optimized for supply, manufacturability, and supply chain
operations. All true costs to deliver must be accurately captured
and analysed to maintain balance across the end-to-end business.

About example :-

The “Big Box” store, which represents one of the major disruptions of the
retail model from the last century, thrives on size, ubiquity, and well-
planned supply chains to drive out the competition. How else would a
 company like Walmart make a profit on a t-shirt made overseas that
retails for $7.00?

Walmart succeeds by having fewer links in its supply chain, and buying
more generic goods directly from manufacturers, rather than from
suppliers with brand names and mark-up. It uses “Vendor Managed
Inventory” to mandate that manufacturers are responsible for managing
products in warehouses owned by Walmart. The company is also is
particularly choosy with suppliers, partnering only with those who can
meet the quantity and frequency it demands with low prices, and with
locations that limit transportation needs. They manage their supply chain
like one firm, with all partners operating on the same communication
network.

By buying at large enough quantities to take advantage of economies of

scale, moving products directly from manufacturers to warehouses, and
then delivering to stores which are large enough to be distribution centres,
it reduces links in the supply chain and cost per item, translating to low
prices for consumers.

Vertical integration & lateral integration example

 Vertical integration example:-

An example of vertical integration is a retailer, like Target, which has its

own store brands. It owns the manufacturing, controls the distribution,
and is the retailer. Because it cuts out the middleman, it can offer a
product like the brand name product at a much lower price.
 Manufacturers can also integrate vertically. Many footwear and apparel
companies have a flagship store that sells a wider range of products than
you can get from a regular retailer. Many also have outlet stores that sell
last season's products at a discount.

 Lateral integration example

Procter & Gamble (P&G) is one of the most prolific consumer goods
producers in the world. As they scaled up their manufacturing capabilities
to keep up with the fluctuating demand and prices, they sought a better
way to stabilize supply and demand to end promo-driven pricing. P&G
formed a famous partnership with super retailer Walmart, becoming an
exclusive supplier of some of the product categories they produced for
the big-box retailer, and integrating their backend information systems to
ensure they matched stock perfectly across stores, rather than over-
supplying and then discounting as before.

Though neither firm owned the other, their loose vertical integration of
information and product supply chains enabled both companies to
increase their sales eightfold.

Evaluation of SCM

Supply chain management does not have a long history relative to other
business disciplines such as accounting or economics. The term supply
chain management was first introduced by Keith Oliver of Booz Allen
Hamilton in 1982, but did not gain significant traction until the turn of the
21st century (Heckmann, Dermot, & Engel, 2003). However, concepts
that underpin supply chain management have been in existence for many
decades. For example, today’s supply chain strategies continue to draw
upon the customer focus of early 20th century catalog retailers and the
 military’s logistics goal of “getting the right people and the appropriate
supplies to the right place at the right time and in the proper condition”
(U.S. Department of the Army, 1949).

Objectives of SCM?

Following are the objectives,

The purpose of the supply chain is to make product available to meet

customer demand – and that includes delivery to the appropriate location,
on time, in sufficient quantity. Supply chain management is focused on
doing that in the most efficient and effective way. Everything else is of
secondary importance.

Given the above, it is logical that companies would focus all of their
supply chain efforts on that single overriding goal – availability. And they
do. But it’s easy to get distracted. Individual participants and managers
may be focused on specific objectives that are built into their
performance measurement system and incentives, and that’s a good thing,
too, because the purpose of measurements and incentives is to drive
behaviour. But it only works if those measurements are in line with the
overall strategy (product availability to meet demand.

A warehouse manager or inventory manager in a warehouse (somewhat

different, but lumped together for this discussion), for example, might be
incanted to reduce material handling costs (labour). Reducing those costs,
however, may compromise timely picking and shipping, harming the
overall performance of the supply chain. A supply chain manager may be
directed to reduce inventory, and in doing so causes a reduction in
availability of key products to important customers.