TERM PAPER

OF
LOGISTICS & SUPPLY CHAIN
MANAGEMENT

TOPIC: PRODUCT LIFE CYCLE ( NOKIA )

SUBMITTED TO: SUBMITTED BY:

DR. ANAND THAKUR KAPIL KUMAR

INTRODUCTION
Supply chains are real world systems that transform raw materials and
resources into end products that are consumed by customers. Supply
chains encompass a series of steps that add value through time, place,
and material transformation. Each manufacturer or distributor has some
subset of the supply chain that it must manage and run profitably and
efficiently to survive and grow. Decisions about how to plan a company's
supply chain operations can be operational, tactical, or strategic. Strategic
decisions are the most far-reaching and difficult to make. These decisions
are characterized by complexity, interdependence, and uncertainty.
Simulation and optimization modelling techniques are used to help make
supply chain strategic decisions
Corporate Strategy
Approach to future that involves (1) examination of the current and
anticipated factors associated with customers and competitors
(external environment) and the firm itself (internal environment), (2)
envisioning a new or effective role for the firm in a creative manner, and
(3) aligning policies, practices, and resources to realize that vision.
Corporate Strategy: The organization’s positioning in terms of
– responsiveness,

– cost leadership and

– product differentiation

Requirements, i.e., the sought competitive advantage(s).

The corporate strategy dictates the detailed strategies for each functional
area (i.e., Operations, Finance, and Marketing) but it is also affected by
those areas.
Collectively, all these strategies seek to exploit (external) opportunities
and (internal) strengths, neutralize (external) threats, and address
(internal) weaknesses
Pulsar PC Ltd.

The mission of Pulsar PC Ltd. is to provide society with superior products

and services-innovations and solutions that improve the quality of life and
satisfy customer needs-to provide employees with meaningful work and
advancement opportunities and investors with a superior rate of return.
LOGISTICS STRATEGY

Functional strategies must be developed within the framework of corporate strategy where
decisions are made about lines of business to pursue and geographic markets to enter, based
on core competencies and capabilities, which will meet stakeholders' expectations and
provide the desired pattern of growth.

Logistics strategies must not only consider these overarching corporate-level considerations
but also take into account relevant functional strategies, particularly in terms of
manufacturing capacity available and the product-price-promotion mix.

The growing visibility of logistics is at least partly due to the pervasive nature of logistics'
interaction across the functional spectrum of the firm. The challenge to logistics managers is
how to develop a coordinated logistics approach in this environment--and the answer
increasingly is a method referred to in the literature as supply chain management.

The management of the logistical supply chain as an integrated system has long been
advocated by academics as well as by other students and practitioners of the logistics
concept.

The term "supply chain" as used here denotes the channel of firms and intermediaries through
which a product (or group of products) moves from the original sources of its basic raw
materials through conversion/manufacture and then distribution in its finished form to the
ultimate consumers. Thus it supersedes the logistical operations of any one firm. The concept
is closely related to the channel of distribution, but that term typically connotes the chain for
finished goods only, with a strong emphasis on marketing, as opposed to logistical, issues.

We will use the term "logistics system" to indicate the specific set of fixed facilities (of
suppliers, producers, and customers) and the transportation and information
processing/transmittal choices linking those fixed facilities used to implement the supply
chain concept. There have been no definitive studies either determining the exact
circumstances under which integrated supply chain management is clearly superior to other
alternatives or measuring the extent of that superiority. However, several studies have shown
that managing inventories independently and/or with simplistic decision rules at each of the
various points in the chain leads to higher inventories or dysfunctional fluctuations in demand
at upstream (supplying) locations than would be the case when coordinating techniques are
employed.

The means for achieving integration typically involve the sharing of information, particularly
with regard to projected demands and planned production. In addition, integration requires a
comprehensive look at all of the critical. The discussion below describes these elements first
and then presents a model for their integration.

Customer Service Levels.

This element involves determining the appropriate levels of customer service for the
appropriate product-market combination. In order to evaluate strategic options, it is necessary
to

1. survey and study customers,

2. determine opportunities for differentiation,

3. identify and benchmark the performance of competitors and

4. Define the best network options and associated costs of offering various levels of
service.

Pulsar PC Ltd. has been cited as a firm that decided to make field service its competitive
advantage to replace its expired patent rights.

Channels of Supply and Distribution.

How many channel members should there be and what should be the working relationships
with them? Pursuing total quality management (TQM) and JIT, Pulsar PC Ltd. have moved to
reduce the number of suppliers, carriers, and distributors/dealers they do business with and
bolster their relationships with those remaining, often entering into long term contractual and
partner shipping arrangements. Pulsar PC Ltd is one of the few firms to formalize this
strategy, calling it its "Channel Approach." Under this approach, Pulsar PC Ltd. has identified
five logistics channels with teams established to develop customized logistics strategies for
each channel.

Facility Locations.

What raw material supply sources, supply consolidation points, distribution facilities, field
service centers should be part of the logistics network and what should be their capabilities?
Answering these questions involves close liaison with manufacturing and marketing
departments so that the whole supply chain is working in a satisfactory manner. Pulsar PC
Ltd. Will gets its raw material from the delhi based supplier groups. There are many suppliers
who can provide the Pulsar PC Ltd. the computer items at cheap rates. Nehru Place is such
market place where we can find suppliers for our company. The market is very good option
for the company as the bargaining power is strong. The material purchased from the suppliers
would be supplied to the company situated in gurgaon city. And all the services,
manufacturing and logistics operation are controlled and operated from its gurgoan office.

Allocations.

Coupled with the facility element above, these strategies involve the best use of the facilities.
All the material like computer monitors, keyboards, mouse and other accessories are
delivered at the gurgaon manufacturing units by the suppliers itself. All the imported goods
are also been delivered at the main manufacturing unit. The company is very efficient and
effective in running it business along with suppliers.

Inventories.

What should be the inventory management system, how much inventory should be carried, of
what products, and where should they be carried? Traditionally, inventories have served a
buffer function to smooth seasonal peaks in demand and provide for production economies.
As the hidden cost of large inventories has become better known, there has been a move to
reduce these assets, requiring a much more coordinated operation to manage product and
goods flows. The company prefers to maintain low inventory levels due to having large no. of
suppliers at one place. The company has 250 raw material and intermediate and goods
suppliers.
Practices such as postponement, standardization, and speculation can still be useful when
viewed in a systems context. Pulsar PC Ltd. has adopted these inventory techniques for the
material handling:

1. Economic Order Quantity:

To demand and utilise the economic order only, so as to keep in pace with the change
of technology and demand by consumers.

2. FIFO: To utilise the old material quickly and save warehouse handling charges.

3. EVL (Essential, Vital and Luxury): To handle such categorized material in more
appropriate environment and with cost.

Transportation.

One of the most important questions while determining the transportation has involved so
many folds of costing like:

1. Routing of transportation to deliver the material in right time and safely without any
harm to it.

2. What modes of transportation to use,

3. what carriers and shipment sizes and

4. Who should make the transportation decision, shippers or receivers?

Deregulation by Indian Govt. for operating Industries has opened this area as a major
opportunity for cost savings and quality improvement. We will build three warehouses in
Punjab situated in Rajpura, Jalandhar and Amritsar. All three warehouses will be
connected through Indian Railway network. Company will transport its good through
railway to its warehouses because all these warehouse location are efficiently covering
the Punjab market.
Information Management.

What planning, operational, and control systems are appropriate, and what type of
telecommunication systems are needed to track product flows throughout the logistics
pipeline?

1. The rapid growth of bar coding and other forms of automatic identification,

2. Electronic data interchange (EDI),

Imaging facilitating transaction processing and communications as well as sophisticated

decision support and expert systems for planning attest to the significant role of this strategic
element.

Retail Outlets or Dealers

The company supplies to more than 200 retail outlets or dealers and 10 sales offices in India
through 8 depots as opposed to 500 to their nearest competitor. Over 35% of the dealers do
business only with Pulsar PC Ltd. It has 25 offices in India and 10 situated all across the
country.
WASTE MINIMISATION, RECYCLING AND REUSE
PULSAR PC has identified a total of 78 types of wastes from PC assembling facilities, out of
which 18 are hazardous as per HW Amendment Rules, 2000.
Given below is the approach to waste minimisation adopted by PULSAR PC. (Options
are not given in order of preference)
a. Recycling a potential waste or portion of it 'on site' where it is generated
b. Improving process technology and equipment that alter the primary sources of
waste generation
c. Improving plant operations, such as housekeeping, materials handling,
equipment maintenance, automating process and packing equipment
d. Redesigning or reformulating products
e. Conducting waste audits and monitoring and tracking of waste generation
The company’s efforts have resulted into almost no wastage during production. There is
almost no damages during transportation also.

Upgraded i2 Solutions to Improve its Supply Chain Planning Capabilities

i2 planning solutions provide Pulsar PCs improved demand forecasting for approximately
1,600 SKUs and allows the business to simultaneously plan for procurement, production,
distribution and inventory across its entire supply chain including manufacturing locations,
warehouses, distribution centers and depots. i2 solutions are helping Pulsar PCs manage the
following business processes:

-- Master Planning: The i2 solution generates a supply chain plan for Pulsar PCs that
synchronizes procurement, production and distribution. This plan is optimized and
constrained by resin/emulsion and critical material availability, shade-stream manufacturing
capacity, target inventory requirements and demand forecast. It also makes pre-season, pre-
build planning process repeatable, consistent and logical while eliminating non-value added
activities.

-- Material Planning: Given the high number of raw materials and vendors, optimized
material planning is a key requirement for Pulsar PCs. i2 Supply Chain Planner connects
across multiple factory planning instances, provides visibility for resolving shortages/lateness
across plants and maintains an audit trail of the actions taken. i2 solutions have significantly
reduced planning cycle time and improved consistency of the decision making process.

-- Distribution Planning: The demand patterns experienced by Pulsar PCs are typically highly
skewed towards the last week of a month. This requires flexible distribution planning to cater
to frequent changes to demand and supply positions in the supply chain. The i2 Supply Chain
Planner solution allows planners to quickly re-plan, thus optimizing distribution costs and
reducing inventory stock-outs simultaneously.

The i2 SCM engine will link all the vendors and suppliers, thus helping the company in
assessing the stock of their vendors and suppliers at any given time.

Additionally, Microsoft Dynamics NAV 4.0, formerly Microsoft Business Solutions—

Navison®, offered a hub-and-spoke model which was ideal for Pulsar PCs. The hub-and-
spoke concept refers to a parent or holding company that uses one business software system
(the hub), which is integrated with the systems