Professional Documents
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1.1 MEANING........................................................................................................4 1.2 Definition..........................................................................................................5 1.3 Business logistics................................................................................................5 1.4 Production logistics.............................................................................................6 1.5 Logistics Management..........................................................................................6 1.6 Importance of logistic...........................................................................................7 1.7 Third-party logistics (3PL) ....................................................................................8 1.8 Fourth-party logistics (4PL)...................................................................................8
A Meaning.......................................................................................................30
B Need for warehouse..........................................................................................31 C Types of warehouse..........................................................................................32 2.25 Packaging......................................................................................................33 2.26 Process of Supply Chain Management...................................................................34 2.27 Supply Chain Now..........................................................................................36 2.28 Logistics v/s. Supply Chain Management...............................................................37
3.8 About Supply Chain Management at Mahindra.........................................................46 3.9 SUPPLY CHAIN MANAGEMENT OF MAHINDRA & MAHINDRA:..........................47 3.10 About Mahindra People Transport Solutions...........................................................48 3.11 Mahindra Logistics to Go Global, Looks For Partner in China Posted by Jayashankar Menon 4 months ago........................................................................................................49 3.11 Supply Chain Solutions.....................................................................................50 3.12 People Logistics Solutions.................................................................................50 3.13 Manufacturing & Supply Chain Management..........................................................50 3.14 Compliant Supply Chain....................................................................................51 3.15 BPO Services.................................................................................................52 3.16 Logistics and supply chain strategy.......................................................................53 2
INTRODUCTION
The word "logistics" has many applications however only one intrinsic meaning. The word itself is a plural noun that can be treated as both singular and plural. The Oxford English Dictionary defines logistics as "the detailed organization and implementation of a complex operation". From this one definition two individual meanings can be derived, the former of these two involves organization of the movement of equipment or people for a purpose. An example of this could be logistics within the army, where the logistics of moving troops needs to be addressed for an attack to be carried out effectively. The second is probably the more commonly used of the two meanings and it relates to the commercial activity of transporting goods to customers. UPS (United Parcel Service) who are one of the world's largest packaging and Logistics Company have recently had an advertising campaign based around the slogan "We? Logistics."Many of their adverts show different parts of their shipping and distribution lines, demonstrating the wide variety of things that the term "logistics" can refer to. Ranging from packing in a factory to shipping on container ships or cargo flights. The word logistics has its origins in Greek, coming from the word "logistiki" to mean financial organisation or accounting. It was originally used to mean military movement, and there was a position in the Roman, Greek and Byzantine armies with the title of Logistikas who had the role of organising financial matters in the army and distributing supplies. Later the term became used for the movement of raw materials.
1.1 MEANING
Logistics is the process of planning, implementing and controlling the efficient, costeffective flow and storage of raw materials, in- process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements The mission of logistics is to get the right goods or services to the right place, at the right time, and in the desired condition and quantity in relation to customers order
Main logistics activities and decisions: cooperate with marketing to set customer service levels, facility location decisions transportation activities (eg. transportation mode selection, vehicle scheduling, carrier routing ),
inventory management (inventory short -term forecasting, planning and control, cooperate with production to calculate EOQ, sequence and time production), information collection and flows and order processing, warehousing and materials handling, packaging and packing,
1.2 Definition
The process of planning, implementing and controlling the efficient, effective flow and strong of goods, service, and related information from point of origin to point of consumption for the purpose of conforming to consumption to customer requirements.
The Chartered Institute of Logistics & Transport (CILT) was established in the United Kingdom in 1919 and was granted a Royal Charter in 1926. The Chartered Institute is one of the professional bodies or institutions, for the logistics and transport sectors, that offers professional qualifications or degrees in logistics management.
Increased public concern of products Growth of several new, large retail chains or
As a result of these developments, the decision maker has a number of choices to work out the most ideal marketing logistics system. Essentially, this system implies that people at all levels of management think and act in terms of integrated capabilities and adoption of a total approach to achieve pre-determined logistics objectives. Logistics is also important on the global scale. Efficient logistics systems throughout the world economy are a basis for trade and a high standard of living for all of us. Lands, as well as the people who occupy them, are not equally productive. That is, one region often has an advantage over all others in some production specialty. An efficient logistics system allows a geographical region to exploit its inherent advantage by specializing its productive efforts in those products in which it has been an advantage by specializing its productive to other regions. The system allows the products landed cost (production plus logistics cost) and quality to be competitive with those form any other region. Common examples of this specialization have been Japans electronics industry, the agricultural, computer and aircrafts industries of United States and various countries dominance in supplying raw materials such as oil, gold, bauxite, and chromium.
2.1 Definition
Another definition is provided by the APICS Dictionary when it defines SCM 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 Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.
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2.3 Supply Chain Management Technology If a company expects to achieve benefits from their supply chain management process, they will require some level of investment in technology. The backbone for many large companies has been the vastly expensive Enterprise Resource Planning (ERP) suites, such as SAP and Oracle. These enterprise software implementations will encompass a companys entire supply chain, from purchasing of raw materials to warranty service of items sold. The complexity of these applications does require a significant cost, not only a monetary cost, but the time and resources required to successfully implement an enterprise wide solution. Buy-in by senior management and adequate training of personnel is key to the success of the implementation. There are now many ERP solutions to choose from and it is important to select one which fits the overall needs of a companys supply chain.
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In the 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, strategic alliances and business partnerships, significant success factors were identified, complementing the earlier "Just-InTime", "Lean Manufacturing" and "Agile Manufacturing" practices. Second, technological changes, particularly the dramatic fall in information communication costs, which are a significant component of transaction costs, have led to changes in coordination among the members of the supply chain network. Many researchers have recognized these kinds of supply network structures as a new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", Global Production Network", and "Next Generation Manufacturing System. In general, such a structure can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration"
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metric-intensive portion of the supply chainone where companies are able to measure quality levels, production output and worker productivity.
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increasing the level of each component can increase the level of integration of the business process link. The literature on business process re-engineering, buyer-supplier relationships, and SCM suggests various possible components that must 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
shared); delivery scheme, e.g., direct shipment, pool point shipping, cross docking, DSD (direct store delivery), closed loop shipping; mode of transportation, e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC (container on flatcar); ocean freight; airfreight; replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL).
3. Trade-Offs in Logistical Activities: The above activities must be well coordinated in
order to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs, there will be an increase in inventory holding costs which may increase total logistics costs. It is
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therefore imperative to take a systems approach when planning logistical activities. This trade-offs are key to developing the most efficient and effective Logistics and SCM strategy.
4. Information: Integration of processes through the supply chain to share valuable
information, including demand signals, forecasts, inventory, transportation, potential collaboration, etc.
5. Inventory Management: Quantity and location of inventory, including raw materials,
across entities within the supply chain. Supply chain execution means managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional One could suggest other key critical supply business processes which combine these processes stated by Lambert such as: Customer service management Procurement Product development and commercialization Manufacturing flow management/support Physical distribution Outsourcing/partnerships Performance measurement Warehousing management
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Inventory Decisions. These refer to means by which inventories are managed. Inventories exist at every stage of the supply chain as either raw materials, semi-finished or finished goods. They can also be in-process between locations. Their primary purpose to buffer against any uncertainty that might exist in the supply chain. Since holding of
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inventories can cost anywhere between 20 to 40 percent of their value, their efficient management is critical in supply chain operations. It is strategic in the sense that top management sets goals. However, most researchers have approached the management of inventory from an operational perspective. These include deployment strategies (push versus pull), control policies --- the determination of the optimal levels of order quantities and reorder points, and setting safety stock levels, at each stocking location. These levels are critical, since they are primary determinants of customer service levels 3. Transportation Decisions The mode choice aspect of these decisions are the more strategic ones. These are closely linked to the inventory decisions, since the best choice of mode is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode. While air shipments may be fast, reliable, and warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail may be much cheaper, but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainty associated with them. Therefore customer service levels, and geographic location play vital roles in such decisions. Since transportation is more than 30 percent of the logistics costs, operating efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments versus Lot-for-Lot), routing and scheduling of equipment are key in effective management of the firm's transport strategy.
External performance measurement is examined through customer perception measures and "best practice" benchmarking, and includes 1) customer perception measurement, and 2) best practice benchmarking.
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4. Specialization era: outsourced manufacturing and distribution In the 1990s, industries began to focus on core competencies and adopted a specialization model. Companies abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements by extending the supply chain well beyond company walls and distributing management across specialized supply chain partnerships. This transition also re-focused the fundamental perspectives of each respective organization. OEMs became brand owners that needed deep visibility into their supply base. They had to control the entire supply chain from above instead of from within. Contract manufacturers had to manage bills of material with different part numbering schemes from multiple OEMs and support customer requests for work -in-process visibility and vendor-managed inventory (VMI). The specialization model creates manufacturing and distribution networks composed of multiple, individual supply chains specific to products, suppliers, and customers who work together to design, manufacture, distribute, market, sell, and service a product. The set of partners may change according to a given market, region, or channel, resulting in a proliferation of trading partner environments, each with its own unique characteristics and demands. 5. Specialization era: supply chain management as a service Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management, and non-asset-based carriers and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution and performance management. At any given moment, market forces could demand changes from suppliers, logistics providers, locations and customers, and from any number of these specialized participants as components of supply chain networks. This variability has significant effects on the supply chain infrastructure, from the foundation layers of establishing and managing the electronic communication between the trading partners to more complex requirements including the configuration of the processes and work flows that are essential to the management of the network itself.
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distribution network to serve a specific market. This will consist of a set of warehouses and retail outlets, together with the manufacturing plant and supply sources. The design will be based on consideration of location and capacity of each of these elements. The total network cost will include the costs of inventory at various levels and costs of transportation between various facilities. This will also determine the level of service available to the customers.
2. Inventory control: This is concerned with the levels of inventory to be held at various
points in the supply chain. As inventory represents costs, the sensible approach is to hold as low an inventory as possible but businesses are forced to hold inventories as a buffer to counter the effects of an uncertain demand. How to minimise the uncertainty and
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therefore the necessity of holding unnecessary inventory which increases the cost at the end?? This is one of the key issues in supply chain management.
3. Distribution strategy: The distribution strategy is concerned with the distribution of the
firm's products. There are several strategies available such as cross-docking, the classical distribution strategy or direct shipping. Which one is the best suitable for the firm to achieve its supply chain and corporate goals??
4. Supply chain integration and strategic partnering: This is concerned with the
complex issue of strategic inter organisational partnership for achieving competitive advantage. This is about sharing of information and efficient use of the information for coordinating business processes to deliver a superior value to the customers. How to achieve this and what are the challenges? This is one of the emerging issues in supply chain management.
5. Product design: This is concerned with the design of the product and its impact on total
cost of the product. How does the design of a product affect the various cost elements within the supply chain? It is possible that the design determines the strategies to be followed regarding inventory or transportation. The design may also determine the length of the product life cycle and the extent of uncertainty associated with demand for this product. How to leverage design to achieve supply chain management objectives.
6. Information technology and decision support systems: The enabling role of
information and communication technologies has been identified. The concerns of contemporary supply chain management are the efficient use of modern technology including the Internet and computerized decision support systems. The technology allows acquisition of vast quantity of data, information and their subsequent processing in accordance with selected decision criteria. Will these technologies emerge as key determinants of success in the management of supply chains?
7. Customer value: The key issue is the definition of customer value in an age of
increasing consumer power. How will supply chains will be designed to provide value to the customers and how will firms define value?
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The following describes each of the elements: 1. Production Strategic decisions regarding production focus on what customers want and the market demands. This first stage in developing supply chain agility takes into consideration what and how many products to produce, and what, if any, parts or components should be produced at which plants or outsourced to capable suppliers. These strategic decisions regarding production must also focus on capacity, quality and volume of goods, keeping in mind that customer demand and satisfaction must be met. Operational decisions, on the other hand, focus on scheduling workloads, maintenance of equipment and meeting immediate client/market demands. Quality control and workload balancing are issues which need to be considered when making these decisions. 2. Supply Next, an organization must determine what their facility or facilities are able to produce, both economically and efficiently, while keeping the quality high. But most companies cannot provide excellent performance with the manufacture of all components. Outsourcing is an excellent alternative to be considered for those products and components that cannot be produced effectively by an organizations facilities. Companies must carefully select suppliers for raw materials. When choosing a supplier, focus should be on developing velocity, quality and flexibility while at the same time reducing costs or maintaining low cost levels. In short, strategic decisions should be made
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to determine the core capabilities of a facility and outsourcing partnerships should grow from these decisions. 3. Inventory Further strategic decisions focus on inventory and how much product should be in-house. A delicate balance exists between too much inventory, which can cost anywhere between 20 and 40 percent of their value, and not enough inventory to meet market demands. This is a critical issue in effective supply chain management. Operational inventory decisions revolved around optimal levels of stock at each location to ensure customer satisfaction as the market demands fluctuate. Control policies must be looked at to determine correct levels of supplies at order and reorder points. These levels are critical to the day to day operation of organizations and to keep customer satisfaction levels high. 4. Location Location decisions depend on market demands and determination of customer satisfaction. Strategic decisions must focus on the placement of production plants, distribution and stocking facilities, and placing them in prime locations to the market served. Once customer markets are determined, long-term commitment must be made to locate production and stocking facilities as close to the consumer as is practical. In industries where components are lightweight and market driven, facilities should be located close to the end-user. In heavier industries, careful consideration must be made to determine where plants should be located so as to be close to the raw material source. Decisions concerning location should also take into consideration tax and tariff issues, especially in inter-state and worldwide distribution. 5. Transportation Strategic transportation decisions are closely related to inventory decisions as well as meeting customer demands. Using air transport obviously gets the product out quicker and to the customer expediently, but the costs are high as opposed to shipping by boat or rail. Yet using sea or rail often times means having higher levels of inventory in-house to meet quick demands by the customer. It is wise to keep in mind that since 30% of the cost of a product is encompassed by transportation, using the correct transport mode is a critical strategic decision. Above all, customer service levels must be met, and this often times determines the mode of transport used. Often times this may be an operational
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decision, but strategically, an organization must have transport modes in place to ensure a smooth distribution of goods. 6. Information Effective supply chain management requires obtaining information from the point of enduse, and linking information resources throughout the chain for speed of exchange. Overwhelming paper flow and disparate computer systems are unacceptable in today's competitive world. Fostering innovation requires good organization of information. Linking computers through networks and the internet, and streamlining the information flow, consolidates knowledge and facilitates velocity of products. Account management software, product configurators, enterprise resource planning systems, and global communications are key components of effective supply chain management strategy.
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2.17 WHAT EXACTLY IS SUPPLY CHAIN MANAGEMENT OR WHAT IS BASIC COMPONENTOF SCM?
As per Supply-Chain Operations Reference-model (SCOR) which has been developed by Supply-Chain Council. This model organized and focused on the five primary management PLAN SOURCE MAKE DELIVER RETURN
1. Plan: This is vital part of SCM philosophy, where the companies normally need to make strategy for managing all the resource that go towards fulfilling the customer demand for the product and services that they offers. A big piece of planning is developing a set of matrices to monitor the Supply chain so that it would be efficient, cost effective and deliver high quality and value to the customer. 2. Source: It means processes that procure goods and services to meet planned or actual demand. This part of SCM consists of selecting right suppliers that will deliver the good and services that need to create your product. Developing a set of pricing, delivery and payment process with supplier is important. Also this will also take care of managing the inventory of goods, and services you receive from your suppliers, including receiving shipping, verifying them, transferring them into various facilities and authorizing supplier payment.
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3. Make: This is basically a step where your company starts fulfilling the request or BUILT for products into finished state to meet planned or actual demand. Schedule activity necessary for production, testing, packaging and preparation for delivery. 4. Deliver: This is also called Logistic Process. This is the processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management. 5. Return - This is real pain of SCM model, which defined as processes associated with returning or receiving returned products for any reason.
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2.2 0
Elaborating Analysis
complete some techniques that are based on two different types of analysis. These are divided by the quantitative and qualitative studies. The qualitative analysis provides the right support to discover the critical points through a process that implies interviews and report reviews. The quantitative analysis actually consists in data collection which is followed by a profound analysis. This analysis can help the implementer to produce related information that shows what type of action should be taken. The tools that are requested to implement the supply chain management usually depend on the circumstances that defer from one business to another.
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Improvement in supply-chain management is very significant in providing competitive advantages to the companies going for this. A recent survey in USA was conducted with sixty-five closely-associated engineers, project managers, director, and executives of firms dealing in supply-chain area (Savoie, 1998). Their ranked-response regarding most important benefit of supply-chain improvement included: 1. reduce operating costs, 2. improve responsiveness and reduce cycle time, 3. improve customer service, 4. simplify operations, 5. improve quality, 6. support significant volume growth,
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7. reduce improved return on capital, 8. effectively support a growing or diverse customer base,
The benefits of supply-chain improvement can be harnessed by better integration of supply-chain in terms of information, material and money flows. Better coordination of different functions is possible through ERP implementation/SCM solution.
Certain seasons, but their consumption or use takes place throughout the year. Therefore, there is a need for proper storage or warehousing for these commodities, from where they can be supplied as and when required.
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2. Seasonal Demand- There are certain goods, which are demanded seasonally, like
Woolen garments in winters or umbrellas in the rainy season. The production of these Goods takes place throughout the year to meet the seasonal demand. So there is a Need to store these goods in a warehouse to make them available at the time of need. Takes place to meet the existing as well as future demand of the products. Manufacturers Also produce goods in huge quantity to enjoy the benefits of largescale production, Which is more economical? So the finished products, which are produced on a large Scale, need to be stored properly till they are cleared by sales.
3. Quick Supply - Both industrial as well as agricultural goods are produced at some
Specific places but consumed throughout the country. Therefore, it is essential to stock these goods near the place of consumption, so that without making any delay these Goods are made available to the consumers at the time of their need.
4. Continuous Production- Continuous production of goods in factories requires
Adequate supply of raw materials. So there is a need to keep sufficient quantity of Stock of raw material in the warehouse to ensure continuous production.
5. Price Stabilization- To maintain a reasonable level of the price of the goods in the
market there is a need to keep sufficient stock in the warehouses. Scarcity in supply of goods may increase their price in the market. Again, excess production and supply may also lead to fall in prices of the product. By maintaining a balance of supply of goods, warehousing leads to price stabilization.
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C Types of warehouse
A. Private Warehouses - The warehouses which are owned and managed by the
Manufacturers or traders to store, exclusively, their own stock of goods are known as Private warehouses. Generally these warehouses are constructed by the farmers near their fields, by wholesalers and retailers near their business centres and by manufacturers Near their factories. The design and the facilities provided therein are according to the Nature of products to be stored.
B. Public Warehouses - The warehouses which are run to store goods of the general
public are known as public warehouses. Any one can store his goods in these warehouses on payment of rent. An individual, a partnership firm or a company may own these warehouses. To start such warehouses a licence from the government is required. The government also regulates the functions and operations of these warehouses. Mostly these warehouses are used by manufacturers, wholesalers, exporters, importers, government agencies, etc.
C. Government Warehouses -These warehouses are owned, managed and controlled
by central or state governments or public corporations or local authorities. Both government and private enterprises may use these warehouses to store their goods. Central Warehousing Corporation of India, State Warehousing Corporation and Food Corporation of India are examples of agencies maintaining government warehouses.
D. Bonded Warehouses - These warehouses are owned, managed and controlled by
government as well as private agencies. Private bonded warehouses have to obtain licence from the government. Bonded warehouses are used to store imported goods for which import duty is yet to be paid. Incase of imported goods the importers are not allowed to take away the goods from the ports till such duty is paid. These warehouses are generally owned by dock authorities and found near the ports.
E. Co-operative Warehouses - These warehouses are owned, managed and controlled
by co-operative societies. They provide warehousing facilities at the most economical rates to the members of their society.
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2.25 Packaging
Packaging has a significant impact on the cost and productivity of logistics. Inventory control depends upon the accuracy of manual or automatic identification systems keyed by product packaging. Order selection speed, accuracy and efficiency are influenced by package identification, configuration, and handling ease. Handling efficiency is affected by package design, unitization capability and techniques, and communication or information transfer between channel partners. Transportation and storage costs are driven by package size and density. Customer service depends upon packaging to allow quality control during distribution to provide, customer education and convenience, and to comply with environmental regulations. Given the increasing length and complexity of global supply chains and the costs of locating new facilities, the concept of packaging postponement to achieve strategic flexibility is particularly important.
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Customer Relationship Management concerns the relationship between the organization and its customers. Customer service is the source of customer information. It also provides the customer with real-time information on scheduling and product availability through interfaces with the company's production and distribution operations. Successful organizations use the following steps to build customer relationships: determine mutually satisfying goals for organization and customers establish and maintain customer rapport produce positive feelings in the organization and the customers b) Procurement process Strategic plans are drawn up with suppliers to support the manufacturing flow management process and the development of new products. In firms where operations extend globally, sourcing should be managed on a global basis. The desired outcome is a win-win relationship where both parties benefit, and a reduction in time required for the design cycle and product development. Also, the purchasing function develops rapid communication systems, such as electronic data interchange (EDI) and Internet linkage to convey possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers involve resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage, handling and quality assurance, many of which include the responsibility to coordinate with suppliers on matters of scheduling, supply continuity, hedging, and research into new sources or programs. c) Product development and commercialization Here, customers and suppliers must be integrated into the product development process in order to reduce time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched with ever shorter time-schedules to remain competitive. According to Lambert and Cooper (2000), managers of the product development and commercialization process must:coordinate with customer relationship management to identify customer-articulated needs;select materials and suppliers in conjunction with procurement, anddevelop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination. d) Manufacturing flow management process The manufacturing process produces and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes and must accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency in
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meeting customer demand. Activities related to planning, scheduling and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations. e) Physical distribution This concerns movement of a finished product/service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product/service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing, thus it links a marketing channel with its customers (e.g., links manufacturers, wholesalers, retailers). f) Outsourcing/partnerships This is not just outsourcing the procurement of materials and components, but also outsourcing of services that traditionally have been provided in-house. The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage, and outsource everything else. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. Also, managing and controlling this network of partners and suppliers requires a blend of both central and local involvement. Hence, strategic decisions need to be taken centrally, with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level. g) Performance measurement Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. Taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can both be correlated with firm performance. As logistics competency becomes a more critical factor in creating and maintaining competitive advantage, logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes more narrow. A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity.
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2.27 Supply Chain Now Faced with the challenge of increasing profits and cash flow, midsized companies need the ability to improve supply chain processes such as demand forecasting and supplies planning yet often dont have the capacity or resources to implement and support a supply chain management solution in a traditional manner. JDA's Supply Chain Now is a fully maintained solution offering, delivered via the JDA Private Cloud. Supply Chain Now delivers a return on investment with reduced risk in as fast as four months. JDA's solution combines unparalleled speed of deployment with the advanced capabilities that have made JDA a leading provider of supply chain management technology. Midsized companies using Supply Chain Now will be able to increase profits and achieve business objectives without burdening an already-taxed IT department with yet another initiative. The expectations of customer for increased value addition, response time sensitivity, need for reliability, cost consciousness and information sensitivity.
The nature of competition favouring firms that have been in a position to decrease
lead times as well as operational costs. The recent revolution taken place in the field of information technology has enabled and encouraged the firms to initiate newer means in the field of distribution management.
Managers have realized and recognised the need for continuous improvement of
process involved in marketing activity. The attitude of managers has changed in favour of integrating all activities in the chain from sourcing to consumption. Perception of firms to have inventories has changed to JIT philosophy. While money locked up in inventories leads to poor use of working capital, higher inventories lead to higher lead times for procurement, manufacture and distribution.
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2.28 Logistics v/s. Supply Chain Management Logistics and Supply chain Management are two areas that are often felt that they could overlap. It is possible that different companies define them differently. Logistics deals with strategy and coordination between marketing and production. On the other hand supply chain management focuses more on purchasing and procurement. This is one of the main differences between logistics and supply chain management. It is interesting to note that supply chain management can include factors relating to inventory, materials and production planning too in its concept. On the other hand logistics includes factors relating to demand management and forecasting in its concept. This is also an interesting difference between logistics and supply chain management. Experts argue that logistics management is a part of the supply chain management that plans and implements the flow and storage of goods, services in order to meet the demands of the consumers. This is indeed an important study made by the experts. On the other hand supply chain management encompasses the management of all activities involved in the procurement and conversion. In addition to these activities the supply chain management takes care of all the logistics management activities. It is important to note that supply chain management involves all movements and storage of raw materials. In short it can be said that supply chain management takes care of the design, planning, execution, control, and monitoring of supply chain activities with the sole objective of creating net value and leveraging worldwide logistics. On the other hand logistics can be simply defined as the management of the flow of goods and the services between the point of origin and the point of consumption in order to meet the requirements of customers. It is interesting to note that logistics is a business concept that was introduced for the first time in the year 1953. Business logistics is nothing but having the right item in the right quantity at the right time at the right place for the right price in right condition to the right customer. It is also interesting to note that logistics management is known by many names such as materials management, channel management, distribution, business or logistics management, business or logistics management and supply chain management. This only shows that supply chain management can be called the subset of logistics but the converse is not true. There is a thin line of difference between the two.
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: Public (BSE: 500520) : Automotive : 1945 : Mumbai, Maharashtra, India : Automobiles : 23,803.24 crore (US$4.52 billion) (2011). : 2,871.49 crore (US$545.58 million) ( 2010).
Net income
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3 INTRODUCTIONS
Mahindra & Mahindra Limited (BSE: 500520) is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. The company was set up in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. After India gained independence and Pakistan was formed, Mohammed emigrated to Pakistan where he became the nation's first finance minister. The company changed its name to Mahindra & Mahindra in 1948. Mahindra & Mahindra Limited (M&M) is the flagship company of US $ 2.59 billion Mahindra Group (F04 - US$ 1.96 billion, which has a significant presence in key sectors of the Indian economy. A consistently high performer, M&M is one of the most respected companies in the country. Set up in 1945 to make general-purpose utility vehicles for the Indian market, M&M soon branched out into manufacturing agricultural tractors and light commercial vehicles (LCVs). The company later expanded its operations from automobiles and tractors to secure a significant presence in many more important sectors. M&M has two main operating divisions - Automotive Division manufactures utility vehicles, light commercial vehicles and three wheelers. Tractor (Farm Equipment) Division makes agricultural tractors and implements that are used in conjunction with tractors, and has also ventured into manufacturing of industrial engines. Tractor Division has won the coveted Deming Application Prize 2003, making it the only tractor manufacturing company in the world to secure this prize. The Company has recently entered into a JV with Renaultof France for the manufacture of a mid-sized sedan, the Logan, and with International Truck & Engine Corporation, USA, for manufacture of trucks and buses in India.
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3.1 History
CEO OF MAHINDRA & MAHINDRA "We will be setting up three mega warehouses of 5,00,000 sq ft and another eight smaller ones of around 1,50,000-2,00,000sq ft," he said. The three mega warehouses will come up in North, South and West India. These will be leased out from developers who will build them according to the company's requirements, he added. On the revenue side, Sarkari said: "Last fiscal we crossed the Rs 1,000 crore marks and this year we are looking at a growth of 25 percent." Out of the total, Rs 300 crore were from the people transport services provided to many BPOs, ITes and other corporate, he said, adding the rest Rs 700 crore were from the supply chain management vertical. Sarkari said the company has made investments of over Rs 10 crore in technology and "with a growing focus on transportation, warehousing and international logistics, we are set to become truly globally competitive". Mahindra Logistics - a Mahindra group company is focused on offering end-to-end Supply Chain Solutions and people logistics Solutions. Mahindra Logistics supply chain solutions focus on key industry verticals including automotive, retail, telecom, pharmaceutical and express logistics. Mahindra Logistics is a market leader in People Logistics segment with dominance in the ITes and BPO industry. Mahindra Logistics is a leading established player in the Indian logistics industry with over 200 major corporate clients. "We hold a strong presence in the automotive sector and are currently managing more than 35 automotive plants. Having a warehousing capacity of more than three million square feet, seconded by aggressive plans for expansion to meet growing customer needs, Mahindra Logistics will soon have a dominant presence in the warehousing segment", said the official. "Our focus on select industry verticals ensures that we successfully partner with our customers and deliver value to them by offering customized integrated logistics solutions. Our comprehensive and timely service support allows them to focus on their core business areas", said another official of the firm.
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3.3 SAP SUPPLY CHAIN MANAGEMENT PLANNING, EXECUTION, AND COLLABORATION ACROSS THE RESPONSIVE SUPPLY NETWORK To meet the challenges of rapidly changing market dynamics, your company needs to synchronize all logistics, transportation, and fulfillment operations in a 24/7, alwayson, environment. SAP SCM enables you to carry out supply chain planning and generate high efficiency at lowest possible cost. You can respond to demand through a responsive supply network in which distribution, transportation, and logistics are integrated into realtime planning processes. Features include: Order fulfillment Procurement Transportation Warehousing Real-world awareness Manufacturing
3.4 Key Execution Benefits of SAP Supply Chain Management With SAP SCM, you benefit from:
Improved order, production, and execution tracking with RFID-enabled processes Seamless integration and global visibility of different transportation process steps, and higher transparency Improved warehouse efficiency and extend real-time visibility and control of warehouse operations Reduced costs of goods sold throughout your company Read additional details about order-fulfillment, procurement, transportation, and warehousing activities. Gets a complete view of supply chain planning capabilities with SAP SCM solution maps. To meet pressure to reduce costs while increasing innovation challenges, you may do business in regions and countries where costs are lower, develop and maintain relationships with global suppliers, or outsource nonstrategic activities to suppliers. To do so, you must foster collaborative relationships with suppliers, outsource manufacturers, and customers.
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3.5 SAP Supply Network Collaboration, included in SAP SCM, helps you connect to and collaborate with:
Suppliers Give them easy and seamless access to supply chain information to facilitate your ability to synchronize supply with demand. Customers Provide broad capabilities for replenishment, including min/max-based vendor managed inventory (VMI) and for exclusion of promotions and transport load building. Contract manufacturers Provide easy, seamless access to supply chain information by extending visibility and collaborative processes to their manufacturing processes.
3.6 Key Collaboration Benefits of SAP Supply Chain ManagementWith SAP SCM, you can gain these benefits:
Streamline collaboration with your suppliers, contract manufacturers, andcustomers
Significantly decrease procurement, sales, and inventory costs Enhance supply chain visibility and increases overall speed, accuracy, and adaptability of your supply network Reduce inventory levels while managing variations in supply and demand Improve communications and reduces errors and processing costs Read more on the supply chain collaboration process support. For a more detailed overview, see the SAP SCM business maps.
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A. Practice Overview
With in-depth experience that covers the entire LSP business cycle, Mahindra Satyams Logistics practice offers end-to-end solutions for LSPs. Our services span across enterprise solutions, supply chain management, customer relationship management, business intelligence, business process quality, engineering & product life cycle management, and infrastructure services. We have partnered with leading LSPs with operations in integrated services, lead logistics, 3PL, freight forwarding, trucking, LTL operations and railroads. We have been involved in implementing core industry solutions including transaction management applications, customer solutions, customer on-boarding, self-service applications, portal, mobility and analytics solutions to help customers drive operational efficiency, deploy processes and integrated services for increasing the speed-to-market and integrated visibility. The practice also has a strong relationship with its alliance partners and proven expertise in best-of-the-breed applications in the transportation and warehousing space. Mahindra Satyam is the development partner for LSP process-integration packs for quote-tocash process across Oracle applications. While we leverage alliances with best-of-the-breed product vendors, we are also poised to provide customized IT solutions to the transportation and logistics industry.
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B. Service Offerings
Mahindra Satyam is one of the first Indian companies to have an exclusive Logistics Practice. As a result, it has gained vast experience in logistics technology development and in leveraging technology for managed services in the Logistics sector. The service offerings cover areas such as Transport Management System (TMS), Warehouse Management system (WMS), back office, service parts logistics, visibility solutions, fleet & asset management,
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C.
association with OTM dates back to 2003 when the solution was known as G-Log. Mahindra Satyam since then has worked with G-Log as a strategic partner in product development, custom enhancements, functional testing and regression testing. Our involvement in the development gives an added advantage when we advise and implement solutions for customers.
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Oracle Transportation Management Solution (OTM) enables organizations to meet their customer service and logistics objectives by managing all orders and shipments, both domestic and international, as a single, integrated global logistics business process across the multi-enterprise supply chain. OTM delivers robust transportation planning and execution capabilities to shippers and third party logistics providers. It integrates and streamlines transportation planning, execution, freight payment and business process automation on a single application across all modes of transportation; from full truckload to complex multi-leg air, ocean, and rail shipments OTM delivers the capabilitiessuch as tight integration, modular adoption regardless of the size or volume of customer businessthat are required in an open, standards-based architecture that allows customers to start with a single component or a mix of components. It also provides the flexibility to grow easily, without installing or reinstalling added functionality. OTM can be used with an enterprise resource planning or legacy order management system, as well as any commercial best-of-breed or legacy warehouse management system
D.
Customer Speak/Credentials
joint know-how, proven business processes has resulted in a "next generation" supply chain management solution that will provide unparalleled cost effective business capabilities and benefits to our customers across multiple industries and marketplace Executive Chairman, A leading Asian 3PL
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3.9 SUPPLY CHAIN MANAGEMENT OF MAHINDRA & MAHINDRA: Our focus has always been on providing end to end solutions. Our capabilities are a reflection of this focus. Our capabilities span various logistics activities:
Allowing us to provide end-to-end solutions and continuously innovate improvements to our partners value chain:
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Our extensive transportation and warehousing capabilities coupled with solutions customized to the need of our customers and industry verticals, allow us to continually add value.
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3.11 Mahindra Logistics to Go Global, Looks For Partner in China Posted by Jayashankar Menon 4 months ago
Mahindra Logistics, the transportation and logistics arm of the Mahindra & Mahindra group says that it is scouting for a partner in China as it looks to expand its new foray into the international markets. The company, which clocked a turnover of Rs 1,000 crore last fiscal, is eyeing a growth of 25 percent this year, a PTI report said. What is more, the logistics player is also contemplating on setting up eleven warehouses in North, South and West India in partnership with developers to enhance its supply chain management services ahead of the planned rolled out of Goods and Services Tax, said the report. Pirojshaw Sarkari, the CEO of Mahindra Logistics told the agency: "We are looking at all the international markets for freight forwarding by both sea and air. The top two priority markets are the US and China". Considering the traffic between India and China, he said the company is 'looking for a partner in China to expand the freight business'. "As for the US market we are currently developing lane," he said, adding, the choosing a partner would come later. It may be recalled that six months back, Mahindra Logistics had started its international vertical in sync with the global expansion of the M&M group and got into freight forwarding. On the domestic front, Sarkari said the company expects consolidation by
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many corporates in their logistics chain once GST is introduced in India and Mahindra Logistics would look to tap the opportunity by strengthening its warehousing facility.
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INTERVIEW I have take interview Mr. Solemon. He is production manager of Mahindra & Mahindra (kandivali )
1. How do you supply your products to the final consumer? After the vehicle is ready, it will go to inspection, quality result is 100%. And then it is dispatched to the final consumer. 2. What is the supply chain of your company? Dealers individuals 3. Who are your distributers? We dont have distributers; we our self only distribute the products. We have entered into agreement with Lego distributers. 4. How many employees are involved in doing this operation? 5000 employees are involved in it. {in mumbai} 5. How many places you are distributing your products? All over India, china, Russia we distribute our product. 6. Do you face any difficulties in doing this operation? No not at all. Because we are having well-trained professional in each and every department. 7. Which type of transportation you take to transport your product to other places? We transport our product by road transportation. But few parts come with air transport. 1. How many places your company has been situated? Nasik, Delhi, Chennai, Kolkata, Nagpur, jaipur, Bangalore, pune, all over India our company has situated.
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9. When your company was incorporated? The company was incorporated & converted into public limited in 1955 at Mumbai. 10. In which other field your company is dealing in spite of automobiles? We operate in the key industries that gives economic growth, enjoys a leadership position in utility vehicles, it industries, aerospace, aftermarket, consulting services, financial services, real estate, energy, telecommunication. 11. How much time is required for supplying the product to the retail showroom? Its depends on the customers demand, and availability of the products. 12. Do you set any target for supplying the product? Yes of course we set target for supplying the product 13. How much target you set as per month? Approximately 60000 vehicles per month. 14. Who is the in charge of supplying the product? There are many in charge of many divisions. As not specific. 15. How you handle your customers demand? We listen to our customers demand, suggestion, and complaints. As customer care number is provide to the customers. Its toll free and also its chargeable. And there are also many departments who solve the problems of customers. 16. How you fulfill your employees demand? Unions & the management handle all the demand of the employees. Union are appointed internally. No outsiders are involved in it. Union leader: Rajiv sahani {auto sector, kandivali branch}
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17. You have signed any agreement with the union? We have signed a wage agreement with our union at automotive plant in kandivali, evolving a Mahindra production system. This is an amalgamation of latest work measurement technique & Toyota.
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CUNCLUSION Mahindra Company was delivered any product after vehicle is ready, it will go to inspection, and quality result is 100% And then it is dispatched to the final consumer. Mahindra Company is do supply chain in individual dealer. They are dont have any distributer they are our self is doing the product and they make agreement for the lego. They are use the software in supply chain is SAT. When they are face any of difficulty they are solve internally because they have well trained professional in each and every department.
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REFERANCE
Packaging:- Christopher. M. (1998). Logistics and supply chain management: Strategies for reducing cost and improving service. (2nd ed.).. Last Update: 22 May 1995
Terry P. Harrison, hbx@psu.edu Production planning, inventory management, distrbution and transportation, mathematical programming.
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