To understand the supply chain management process in an

organization:
Supply Chain Management (SCM) is the management of the flow of goods and services.
It includes the movement and storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of consumption. Interconnected or
interlinked networks, channels and node businesses are involved in the provision of
products and services required by end customers in a supply chain. Supply chain
management has been defined as the "design, planning, execution, control, and
monitoring of supply chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics, synchronizing supply with
demand and measuring performance globally.

Number of companies dealing with Supply Chain Management:

Damco India
+(91)-22-66538200
Rackons Database Company
+(91)-7834813119
Om Logistics Ltd
+(91)-9594966637
UT Worldwide India
+(91)-22-39119100, 39119000
Transpole Logistics Pvt Ltd
+(91)-22-42214221, +(91)-9987503428
DA Logistics Ltd
+(91)-22-25802347, +(91)-9323797053

AND 943 OTHER COMPANIES.

Types Of Logistics in Supply Chain Management

Air transport: Air transport is the second fastest method of transport, after space travel.
Commercial jets reach speeds of up to 955 kilometres per hour (593 mph) and a
considerably higher ground speed if there is a jet stream tailwind, while piston-powered
general aviation aircraft may reach up to 555 kilometres per hour (345 mph).
Land Transport (Rail, Road, Water) :
1. Rail Transport: Rail transport is a means of conveyance of passengers and goods by
way of wheeled vehicles running on rail track, known as a railway or railroad. The
rails are anchored perpendicular to railroad train consists of one or more connected
vehicles that run on the rails. Propulsion is commonly provided by a locomotive, that
hauls a series of unpowered cars, that can carry passengers or freight. The locomotive
can be powered by steam, diesel or by electricity supplied by trackside systems.
2. Road Transport: A road is an identifiable route of travel, usually surfaced with gravel,
asphalt or concrete, and supporting land passage by foot or by a number of vehicles.
The most common road vehicle in the developed world is the automobile, a wheeled
passenger vehicle that carries its own motor. As of 2002, there were 591 million
automobiles worldwide. Other users of roads include buses, trucks, motorcycles,
bicycles and pedestrians.
3. Water Transport: Water transport is the process of transport that a watercraft, such as
a barge, boat, ship or sailboat, makes over a body of water, such as a sea, ocean, lake,
canal or river. If a boat or other vessel can successfully pass through a waterway it is
known as a navigable waterway.

Problems faced by supply chain management organization:

Purchasing or merchandising:
Lack of visibility from placement or a purchase order to receiving; inability to cost
effectively manage less- than- truckload (LTL) sized inbound purchase order
shipments.
Store replenishment: Imbalance of inventory when multiple distribution centers are
stocking the same; high inventory levels due to the inability to predict customer
demand by product; store replenishment arriving from different distribution centers
due to the stock imbalances.
Transportation damages:
Beverage transportation Leakages, Disruption in Supply Chain; Recurring product
damage when shipping less than truckload.
Infrastructure: Number of check posts; Road conditions and km per day; Old
vehicles; rugged landscapes.

Availability of infrastructure for logistics and SCM:

Strong GDP growth.

Economic liberalization and relaxed FDI norms
Growth in retail, agri, pharma, automobile, FMCG, Textile sectors.
Opportunity to reduce logistics cost.
Infrastructure development.
Investment in logistics by companies.
Change in tax laws VAT/ CST.
Industry moving toward outsourcing logistics.
Moving toward shift to organized players.

Advantages of SCM:
QualityAssurance
ManymanufacturersintheU.S.haverelocatedtheiroperationstocountriessuchas
China,IndiaandRussiainanefforttocutproductioncosts.Thishascausedexperienced
domesticpersonneltooptforotherjobassignments.Asaresult,productqualitywithin
thesupplychainhasbecomeapressingissue.Defectsandreworkattributabletopoor
systemsareraisingthecostsofdoingbusiness.Oneoftheadvantagesofsupplychain
managementisthatitincorporatesqualitytechniques,suchasqualitymanagement
systems,toimproveoperations.
InventoryBuffers
Inalmosteverytypeofbusiness,thereisvariabilityincustomerspending.Thisrequires
companiestomanagetheirinventoriesinawaythatminimizesholdingcostswhile
providingenoughflexibilitytomeetcustomerdemands.Ifinventorylevelsfalltoolow,
businessesmayhavetopayovertimetoproduceproductsorloseoutonrevenueby
makingcustomerswaitorshopsomewhereelse.Supplychainmanagementsystems
typicallyincludeinventorybufferlevelsthatarepredeterminedwithcarefulanalysisof
historicaltrends.
RelatedReading:LeanSupplyChainAdvantages
ShippingOptions
Asecommercecontinuestogrowglobally,buyershavemoreoptionstoorderproducts
thaneverbefore.Shippingoptionsneedtokeeppacewiththedemandsofthe
marketplace,whichrequirescompaniestoreadjusttheirsupplychainstomeetcustomers
preferences.Whetheritissmallparcelshippingorlargerbulkorders,shippinginaquick
andaccuratefashioniskeyforbusinesssuccess.Supplychainmanagementsystemshelp
companiesdeterminetheoptimalwaystoshipwhilereducingcoststothelowestpossible
level.
RiskMitigation
Managingriskisakeyresponsibilityforbusinessleaders,andsupplychainmanagement
systemsallowfortheidentificationofcriticalriskfactorsinanorganizationorwiththeir
suppliers.Whetheritisproductquality,compliancewithapplicablelawsoroperational
safety,managementmustmitigateriskinaneffectivemanner.Supplychain
methodologiesassistmanagementwithorganizingrisksandascertainingthepotentialfor
internalorexternalfailures.Withouteffectivesupplychainmanagementsystems,many
companiesareexposedtolegalrisksandliabilities.

ComponentsofSCM:
SCM components are the third element of the four-square circulation framework. The
level of integration and management of a business process link is a function of the
number and level of components added to the link (Ellram and Cooper, 1990; Houlihan,
1985). Consequently, adding more management components or increasing the level of
each component can increase the level of integration of the business process link.
Literature on business process re-engineering[28] buyer-supplier relationships,[29] and

SCM[30] suggests various possible components that should 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
Management methods
Power and leadership structure
Risk and reward structure
Culture and attitude