SCM Training

 A supply chain is the system of
organizations, people, activities, information and

resources involved in moving a product or service
from supplier to customer.
 An integrated group of processes to “source,”
“make,” and “deliver” products.
 Supply chain activities transform raw materials and
components into a finished product that is
delivered to the end customer.
Presented by-
Shubham Bhutada
Aurangabad
Supplier Manufacturer Distributor Retailer Customers
 It is the process of planning, implementing and
controlling the operations of the supply chain with
the purpose to satisfy customer requirements as
efficiently as possible.
 Supply chain management manages all movement
and storage of raw materials, work-in-process
inventory, and finished goods from point-of origin
to point-of-consumption.
✘ Efficient supply chain management must result in tangible
business improvements. It is characterized by a sharp focus on
– Revenue growth
– Better asset utilization
– Cost reduction.
 Some experts distinguish supply chain management and
logistics management, while others consider the terms to be
interchangeable.
 Logistic management can be termed as one of its part that is
related to planning , implementing , and controlling the
movement and storage of goods, services and related
information between the point of origin and the point of
consumption. But supply chain management includes more
aspects apart from the logistics function.
Proper implementation of SCM helps to use the
following strategic areas to their full advantage:
1. Fulfillment:-
a) Ensure the right quantity at the right time.
b) It makes sure that the right quantities are ordered.
2. Logistics:
a) Keep the cost of transporting materials as low as
possible consistent with safe and reliable delivery.
b) Constant contact with its distribution team.
3. Production:
Ensure production lines
function smoothly.
4. Reduced Cost of
a.Inventory carrying cost
b.Internal and external
failure cost
c. Purchase cost
5. Revenue & Profit
No Sales are lost and
flexible to respond
unforeseen changes
SUPPLY CHAIN Levels
Supply Chain Design
Strategic Resource Acquisition
Long Term Planning (1 Year ++)
Production/ Distribution Planning

Tactical Resource Allocation
Medium Term Planning (Qtrly,Monthly)
Production Scheduling
Resource Scheduling
Operational
Performance tracking
Short Term Planning (Weekly,Daily)
Issue Details
Distribution network Number and location of suppliers, production

configuration facilities, distribution centers, warehouses and
customers
Distribution strategy Centralized versus decentralized, direct shipment,

pull or push strategy
Information Integrate system and processes though the

supply chin to share valuable information,
including demand signals, forecast
Inventory Quantity and location of inventory including raw

management materials, work in process and finished goods.
 Meaning: The Bullwhip effect or Whiplash effect is
an observed phenomenon in forecast-driven
distribution channels.
 Because customer demand is rarely perfectly stable,
businesses must forecast demand in order to
properly position inventory and other resources.
Forecast are based on rarely perfectly accurate
statistics.
 Forecast Errors
 Lead Time Variability
 Batch Ordering
 Price Fluctuations
 Product Promotions
 Inflated Orders
 Methods Intended to reduce

Uncertainty, variability, and lead time i.e., Just in
time replenishment and strategic partnership
The magnification of variability in orders in the supply-chain.
Retailer’s Orders Wholesaler’s Orders Manufacturer’s

Orders

Time Time Time
A lot of retailers …can lead to …can lead to even

each with little greater variability for greater variability
variability in their a fewer number of for a single
orders…. wholesalers, and… manufacturer.
• Recognize the difficulty of change.
• Prepare a blueprint for change that maps linkages
among initiatives.
• Assess the entire supply chain from supplier
relationships to internal operations to the market
place, including customers, competitors and
industry as a whole.
1
01/23/13 All rights reserved

2
Logistics and Supply Chain

Space
Horizon,
Market Size Future Potential
IndiaSkills Qualification-Level 1 Certificate in Logistics

and Warehousing Operations

3
Supply Chain Management

Supply chain management is the management of network of
interconnected businesses involved in the ultimate provision of goods and
services required by the end customer.
Supply chain management spans all movement and storage of raw
materials, work-in-process inventory and finished goods from point-of-
origin to point-of-consumption.
Critical aspect:
Everyone is involved
Systems approach to reducing costs
Integration being the key

4
Supply Chain Management – In a nutshell is

SCM is all about effective integration of…
Right Product ✓ At Right Place
Right Quantity At Right Time
Right Quality At Right Value

5
An Overview of Logistics and SCM Space

Diverse footprint across industries

6
Potential Market Size*
* All figures pertaining to organised sector only

7
Potential Market size*

1. These are conservative estimates.
2. The figures mentioned are for organised sectors
only.
3. Manufacturing is a diverse domain (automobile,
consumer durables, engineering, etc.)
4. These figures do not include emerging areas like
green, agri-business, etc.
5. Logistics figures do not include carriers such as
shipping, aviation.
6. Retail figures are only for back-end operations
personnel which is approximately 15% of entire
retail workforce.
Total Market Size: 8.0 L
8
Logistics and SCM Sector: The Opportunity

Ahead…
✘ Current, organised sector’s conservative market size estimates itself

is huge.
✘ The sector is rightly poised for high and sustained growth, for the next
10 years in India. The dependent infrastructure is being given a big push.
✘ L&SCM areas like transportation and logistics, warehousing and

packaging are identified as one of the high growth sector by National
Skills Development Mission established by Ministry of Labour.
✘From current skill set gap and policy push perspective, L&SCM is a
big opportunity area.
9
Careers in SCM
A synergy of our strengths

10
Careers in SCM
SCM is listed globally as one of the top ten forces of business world in the 21st
century.
90% of Indian corporates now believe that SCM strategy is vital to

competitive strategy.
Arvind Mills, Ranbaxy, Bombay Dyeing, Marico, Hindustan Lever and

many more major companies run with strong SCM backbone.
Career opportunity exists in abundance for professionals with Management

or Materials background and having proficiency in computers.
Opportunity to work with people throughout company—Logistics, IT,

Manufacturing and Marketing.

Opportunities in Sectors
Manufacturing Industries Areas of Excellent
Industrial and Consumer Products Employment Opportunities
for Freshers
Merchandising
Firms Service Sectors
Wholesaler, Distributor, Banks, Hospitals, IT Sectors
Stockist and Retailer
Transportation Careers in Logistics

Industries L&SCM Firms
Freight and Passenger Warehousing, Dedicated
Careers, C&F etc.
Consulting Organisations Educational Establishments

Strategy, Technology, Business Universities, Institutions, Training Firms
Government Organisations
Defence, Telecom, Postal, Railways
11 01/23/13 All rights reserved
Opportunities in Sectors-Few Prospective
Employers
Manufacturing Logistic Retail Industry Transportation
Industries Companies
Hindustan Liver DHL Future Group Transport

Ltd Corporation of
India
Reliance TNT Reliance Retail Inter world Cargo
Industries Ltd care Pvt Ltd
Glaxo Smithkline Blue dart Landmark Group Welgrow Line

India (Pvt) Ltd
Coca Cola Ashok Leyland Aditya Birla Jet Airways

Typical Designations of SCM Professionals
Junior Management Middle Management Senior Management
Manager/Sr. Manager –
Purchase Officer/Officer – GM – Planning and Purchase/VP
Materials/Planning/
Materials/Officer – Planning – Strategic Sourcing
Vendor Development Manager
Executive – Demand
Logistics Manager/Distribution Head – Supply Chain/VP –
Planning/Distribution/ Regional
Manager/Customer Service Logistics
Supply Chain
Practice Head/VP – SCM

Functional Consultant – Solutions Architect/Program
Practice/VP – Enterprise
ERP/Executive – ERP Support Manager/Delivery Manager
Solutions
Shipping Officer/Warehousing
Manager – Transport GM/VP – Logistics
Executive
Executive – Plant operations Plant Manager Group Manager – Manufacturing
Professor – SCM and Operations

Lecturer in SCM Dean and Director
Management

A Typical SCM Professional Requirement
(Warehouse)
Designation Executive – Warehouse
Experience 1 – 4 years
Education Any graduate
Industry type Telecom/ISP
Functional area Purchase, Logistics, Supply Chain
Job description The job responsibility includes:
Strategic sourcing
Material management
Cost planning
Warehouse management
Procurement, sourcing
Logistics
Vendor management
Desired candidate Graduate with good communication skills
Company name Zeppelin Mobile Systems India Limited (leading telecom

company)
Source Naukri.com
A Typical SCM Professional Requirement (Petro)
Designation Supply Chain Executive
1 – 4 years
Experience
Any graduate
Education
Industry type Petrochemicals, Petroleum/Oil and Gas/Power
Functional area Materials/Logistics/Supply Chain Management/Procurement
Job description Interface with depots, dispatch schedulers, deployment

planners and customers
Responsible for running back order report and provide inputs to

deployment planning team
Handling delivery status enquiries on orders which are outside

promised date.
Key skills Depots, dispatch schedulers, deployment planners, back order

report
Shell
Company name
www.timesjobs.com
Source
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trainer programme.
2.Qualification built around 2.The knowledge and skill
particular job positions 2.Teaching plan with outcomes are assessed at
classroom and practical every milestone through
3.Defined and measurable sessions focused on formative assessment unit
learning outcomes of skills knowledge and skill tests
and underpinning outcomes
knowledge 3.Final summative
3.Simulated work assessment to validate
4.Multiple levels of environment to enhance candidate achievement
qualifications and multiple on-job skills
qualification paths to fit 4.Consistent and
industry career 4.Balanced visual, transparent assessment
progression auditory and kinaesthetic process across centres
learning process

Developing the Right Qualification
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Expertise Products Team Industry
Stakeholders
Functional Industry Specific, Industry Specific,

Skills Qualification Neutral Skills Qualification Specific Skills
Core Course Content
Theory | Knowledge Intensive Practical | Exposure Intensive

Modules Modules

Assessment Methodology
Key Components
A clear statement of the standards of performance expected of successful candidates
Assessment instruments gathering sufficient valid and reliable evidence of ability to

perform to the identified standards
A quality control system ensuring consistent application of standards and assessments

over time and, where appropriate, place
An administrative system supporting smooth running of the programme
Our Eight Principles of Assessment

Validity Authenticity Efficiency Feedback
Reliability Accessibility Cost Effect Transparency

21
435 Centres
Impactful Reach
395 Centres
275 Centres
125 Centres
PAN INDIA
40 Centres
PRESENCE
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

22
Level 1 Certificate in Logistics and

Warehousing Operations

23
Learner Entry Criteria
Minimum Class XIIth Pass

Age: Minimum 18 years at the time of completion
Clear centre screening process
Counseling/Interview: aptitude and interest in chosen
vocation
Basic English and Microsoft Office

24
Name Level 1 Certificate in Logistics and Warehousing Operations

GLH 120 hours
Units 9 units
Designed to develop effective Warehouse and Transport

Executives/Assistants
Modular short-term course – duration 120 hours
Delivered through a combination of:

Classroom lectures
Practical sessions
Role plays, discussions, activities
Functional skills – Ms Excel, Ms Word, Workplace Skills

25
Learner Employer
Employable

26
Unit No. Unit Name GLH

1. Introduction to logistics and supply chain 14 hours
management
2. Warehousing receipt operations 20 hours
3. Warehousing dispatch operations 15 hours
4. Introduction to transportation 09 hours
5. Types and modes of transport 12 hours
6. Pick-up and delivery process 16 hours
7. Health and safety Regulatory 14 hours
8. framework 10 hours
9 Workplace skills 10 hours

27
❖ Evolution of SCM and its benefits to stakeholders

Introduction to
❖ KRAs of warehouse assistant (WA)
logistics and supply
❖ Working environment in the warehouse for a WA
chain management
❖ Receiving and unloading operations at warehouse

Warehousing receipt ❖ Processes of inwarding, binning and storing materials
operations ❖ Processes in minimising quality and quantity losses
❖ Picking and packing materials for dispatch

Warehousing ❖ Loading and dispatch process
dispatch operations
❖ Evolution of transportation and its benefits to

Introduction to stakeholders
transportation ❖ KRAs of transport assistant
❖ Working environment for a transport assistant

28
❖ Types and modes of transportation

Types and modes of ❖ Key elements of each type and mode of transportation
transport
❖ Process of consignment pick-up

Pick-up and delivery ❖ Process of consignment delivery
process ❖ Importance and functions of HUB in transportation
❖ Background and importance of health and safety in the

SCM industry
❖ Health and safety specific to warehousing and
Health and safety transportation
❖ Guidelines and standards governing health and safety in
the SCM industry
❖ Regulatory framework in India and its importance.

❖ Statutory regulation required for warehousing and
Workplace skills transportation
❖ Regional Transport Officer (RTO) regulations in India
. 28
29
Centre Requirements
To deliver IndiaSkills Level 1 Certificate in Logistics and Warehousing

Operations qualification, a centre requires
Minimum 1500 sq ft carpet area
Space to set up counselor rooms, staff rooms, classrooms and other
requisite infrastructure to deliver the course
Warehouse environment for practical assignments
Manpower: Trainers (Min 2), Counselors (Min 1), Centre Head (1),
Admin (Min 2) to deliver the qualification
Note: Detailed requirements will be given as a part of the Centre

Guidelines document and Qualification Handbook.

30
Classroom Training
Knowledge Activities
Classroom
90 hours
Group Discussions Role Plays

Practical Training
Skills Activities
Practical
30 hours
Case Studies Role Plays

Assessment and Certification
To achieve the Level 1 Certificate in Logistics and Warehousing

Operations, candidates must
1.Pass the final synoptic multiple choice test

2.Attend and successfully complete the practical assignments.
The certificate will reflect performance through

A. Pass (50% to 60%)
B. First (60% to 70%)
C. Distinction (70% +) categorisation

The Qualification Outcome!
Course Module (GLH) Competency Gained
Introduction to logistics and supply chain State KRAs of warehousing assistant
management (14)
Supervise and document warehousing
Warehousing receipt operations (20) receipt operations
Supervise and document warehousing
Warehousing dispatch operations (15) dispatch operations
State KRAs of transport assistant
Introduction to transportation (09)
Identify and use the right mode and type of
Types and modes of transport (12) transportation for any given situation
Pick-up and delivery process (16) Perform pick-up and delivery operations as
per SLA
Health and safety (14) Adapt and practice the best practices
pertaining to health and safety in the supply
Regulatory framework (10) chain environment
Adhere to the regulatory frameworks of the
government
Workplace skills (10)
Focus on customer retention with emphasis
on customer delight

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standard

PRESENTED BY:
Nitesh gupta
Bhabesh Gautam
2/20/2014 bhabesh 1
What is supply chain management ?
 First one is that practically every product that reaches an
end user represents a cumulative effort of multiple
organizations. These organizations refers collectively as a
supply chain.
 The second idea is that while supply chain have existed for
a long time , most organizations have only paid attention
to what was happening within their “four walls ”. Very few
organizations realized about delivering goods to final
consumer .
 SCM is the active management supply chain activities to
maximize customer value and achieve a sustainable
competitive advantage.
2/20/2014 bhabesh 2
Meaning:
Supply chain:
Network of organizations and business process for procuring
materials, transforming raw materials into the finished products
and distributing the finished products to the customers.
Supply chain management :
Integration of suppliers , distributors and customer logistics
into one cohesive process.
Supply chain management process:
information system that automate the f low information between
a firm and its suppliers in order to optimize the planning ,
sourcing , manufacturing and delivering of products and services.
2/20/2014 bhabesh 3
SCM objectives: SCM outcomes:
What? Objectives.
Establish policies , objectives and Supply policies(service levels).
operating footprints. Strategic Network design.
How much? Demand forecast

Deploy resources to match supply Production ,procurement &logistic plan
Tactical
with demand . Inventory target.
When ? Where?
Schedule , monitor , control Work center scheduling
and adjust production. Order/inventory tracking
Operational
Do:
Build and transport. Order cycle
Material movement.
Execution
2/20/2014 bhabesh 4
Business value goals: Customer value goals:
Rapid demand Give customer what
fulfillment. they want , when and
Collaborative supply how they want it , at
chain planning and low cost.
execution.
Enterprise
coordination of Effective distribution Responsiveness and
manufacturing and system accountability to
business process. customers.
Objectives of SCM
2/20/2014 bhabesh 5
upstream
supplier
supplier
supplier
manufacturer distributer retailer customer
supplier
supplier
supplier downstream
fig: an example of supply chain.
2/20/2014 bhabesh 6
Information system and SCM
 Supply chain activities cover every thing from product
development , sourcing , production and logistics as
well as information system.
 The organizations that make up supply chains are
“linked” through physical f low and information f low.
Physical f low involves transformation , movement and
storage of goods & materials . Information f low allows
various supply chain partners to co-ordinate their long
term plans and control day to day f low of goods and
materials forward and backward. One of the strategy to
effective mgmt of supply chain is “just-in-time ” strategy.
2/20/2014 bhabesh 7
 Some uncertainties in supply chain are uncertain
product demand , late shipment from suppliers ,
defective parts or raw materials , production process
break down.
 One of the recurring problem in SCM is “bullwhip”
effect.
The bullwhip effect :
Inaccurate information can cause minor f luctuations in
demand for the product to be amplified as one moves
further back to supply chain. Minor f luctuation in retail
sales for a product can create excess inventory for
distributors , manufacturers and suppliers.
2/20/2014 bhabesh 8
How information system facilitate SCM
 Information from supply chain management system
helps firms
Decide when and what to produce , store and move
Rapidly communicate others
Track the status of orders
Check inventory availability and monitor inventory
levels.
Reduce inventory , transportation and warehouse cost
Track shipments
Plan production based on actual customer demand
Rapidly communicate changes in product design.
2/20/2014 bhabesh 9
Supply chain management software
 Supply chain planning system: it enables the firms to
model its existing supply chain , generate demand
forecast for product and develop optical sourcing and
manufacturing plans.
 Supply chain execution system: it manage the f low of
products through distribution centers and warehouse
to ensure that products are delivered to right location
in most efficient manner.
 Supply chain management software vendors are SAP ,
Oracle PeopleSoft , Manugistics , i2 technologies etc.
2/20/2014 bhabesh 10
Each interface in the supply chain represents:
Raw material Movement of goods
Information f low
Transfer of title
Component
Purchase and sale
Manufacturer
Strategic SCM consists of Retailer
developing smarter ways to:

Choose
Consumer
Buy from and
Sell to your business partners
2/20/2014 bhabesh 11
SCM addressesSupply
challenges
chain
through several
areas. strategy
Logistics Supply chain
planning
Product life SCM Supply chain

cycle enterprise
management application
Procurement Assets
management
2/20/2014 bhabesh 12
GLOBAL SUPPLY CHAIN AND
INTERNET
 Intranet is used by firms to improve coordination
among their internal supply chain process and they
use extranet to coordinate among business partners
and customers .
2/20/2014 bhabesh 13
USE OF INTERNET IN SCM
Planning
and Suppliers
Order scheduling
processing
Procurement
Customers
Logistics
service
Shipping
Production
Retailers Inventory
Distributors
2/20/2014 bhabesh 14
Demand driven supply
chains
Push versus pull based supply chain models:
Push model:
Supplier Manufacturer Distributer Retailer Customer

Supply to production based inventory based stock based purchase what
Forecast on forecast on forecast on forecast is available
Pull model:
Supplier Manufacturer Distributer Retailer Customer
Supply to produce to order automatically automatically customer

Order replenish replenish stock orders
warehouse
2/20/2014 bhabesh 15
Future internet driven supply chain operates like
Distributors
a digital nervous system.
Retailers
Manufacturers
Suppliers Virtual Logistic

manufacturers providers Customers
Private
industrial
networks
Logistics
Net market
Contract exchange
place
manufactures
2/20/2014 bhabesh 16
ANvY QUERIES ?
2/20/2014 bhabesh 17
2/20/2014 bhabesh 18

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 A supply chain is the system of

organizations, people, activities, information and

Production/ Distribution Planning

Distribution network Number and location of suppliers, production

Distribution strategy Centralized versus decentralized, direct shipment,

Information Integrate system and processes though the

Inventory Quantity and location of inventory including raw

 Methods Intended to reduce

Retailer’s Orders Wholesaler’s Orders Manufacturer’s

Time Time Time

A lot of retailers …can lead to …can lead to even

01/23/13 All rights reserved

Logistics and Supply Chain

IndiaSkills Qualification-Level 1 Certificate in Logistics

01/23/13 All rights reserved

Supply Chain Management

01/23/13 All rights reserved

Supply Chain Management – In a nutshell is

Right Product ✓ At Right Place

Right Quantity At Right Time

Right Quality At Right Value

01/23/13 All rights reserved

An Overview of Logistics and SCM Space

01/23/13 All rights reserved

Potential Market Size*

* All figures pertaining to organised sector only

Potential Market size*

Logistics and SCM Sector: The Opportunity

✘ Current, organised sector’s conservative market size estimates itself

✘ L&SCM areas like transportation and logistics, warehousing and

01/23/13 All rights reserved

90% of Indian corporates now believe that SCM strategy is vital to

Arvind Mills, Ranbaxy, Bombay Dyeing, Marico, Hindustan Lever and

Career opportunity exists in abundance for professionals with Management

Opportunity to work with people throughout company—Logistics, IT,

01/23/13 All rights reserved

Transportation Careers in Logistics

Consulting Organisations Educational Establishments

Hindustan Liver DHL Future Group Transport

Glaxo Smithkline Blue dart Landmark Group Welgrow Line

Coca Cola Ashok Leyland Aditya Birla Jet Airways

12 01/23/13 All rights reserved

Practice Head/VP – SCM

Executive – Plant operations Plant Manager Group Manager – Manufacturing

Professor – SCM and Operations

13 01/23/13 All rights reserved

Company name Zeppelin Mobile Systems India Limited (leading telecom

Functional area Materials/Logistics/Supply Chain Management/Procurement

Job description Interface with depots, dispatch schedulers, deployment

Responsible for running back order report and provide inputs to

Handling delivery status enquiries on orders which are outside

Key skills Depots, dispatch schedulers, deployment planners, back order

World Class Solutions to Your

16 01/23/13 All rights reserved

The pedigree – City & Guilds, The World’s #1 Skills Certification

A Workforce With Pride and Proficiency In Their Vocation

QUALIFICATION DELIVERY ASSESSMENTS

18 01/23/13 All rights reserved

C&G Subject Matter Experts +

Functional Industry Specific, Industry Specific,

Core Course Content

Theory | Knowledge Intensive Practical | Exposure Intensive

19 01/23/13 All rights reserved