Traditional

Supply Chain
Management
Group 7
Lavanya Sinha ABM15024
Pranjal Rajawat ABM15026
Raghav Nuwal ABM15027
Akshansh Agarwal PGP34199
Girish Bhangale PGP34209
Himanki Shahu PGP34216
 “ The Traditional supply chain
process involves taking raw
materials and making a physical
product that is then transferred to
a consumer. There are several
steps in a traditional supply chain
process

Traditional
Supply
Chain
2
Objectives

01 Solving Suppliers Problem

02 Performance Improvement

03 Minimizing Total Cost

04 Flexible Planning

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 Traditional Supply Chain Process

06 CONSUMER
The Supply chain ends with the
RAW MATERIAL
The process involves taking raw
materials and making a physical
01
delivery of the finished product or
service to the end consumer product that is then transferred to a
01 consumer

05 RETAIL
The retailers provide the efficient
06 02
SUPPLIER 02
The supplier helps the manufacturing
channel for serving the last and the
firm in acquiring the raw materials.
most important segment of the supply
chain i.e. the consumer
05 03

04 In the
industry,
DISTRIBUTION
ever-changing coatings
distributors play an
04
FACTORY 03
The manufacturing of the goods is
important role in the supply chain. taken care by this part of the supply
From just-in-time procurement chain
strategies to risk management,
distributors can bring real value to
customers

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Digital Supply Chain Process

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 Traditional vs Digital
Supply Chains
01 TRANSPARENCY
The traditional supply chain
only provides a limited view
of the supply chain,
whereas the digital supply
chain provides a complete
view of the whole supply
chain.
04 FLEXIBILITY
In the traditional supply chain
model, the demand of the end-
customer in the supply chain is
not accurate as the information
flow moves along the material
path. Whereas because of a
control, the changes in customer
demand are rapidly acted upon,
improving the efficiency in the
supply chain
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Supply Chains
02 COMMUNICATION 03 COLLABORATION
Information is typically delayed as it moves Collaboration is often hindered in the traditional
through each entity in the supply chain in supply chain as a result of limited visibility to the
the traditional supply chain whereas in the entire chain. On the other hand, the digital
digital supply chain there is information supply chain results into an increase in
available to all supply chain members information sharing resulting into natural
simultaneously. development of collaboration and therefore
improving the value of a supply chain and its
performance.
01 02 03 04 05
05 RESPONSIVENESS
Regarding responsiveness, the
traditional model results into delays
and responses which are not in place.
In the digital supply chain, real-time
responses can be implemented on
planning and execution level.
6
 Traditional vs Best Value
Supply Chains Supply Chains

VIEW AGILITY ADAPTABILITY ALIGNMENT COMPETITIVE

PRIORITIES
Best Value Supply Best value supply chains Best value supply chain In best value supply
chains are a possess strong ability to maintains a limited set chain , the interests of Best value supply chain
be proactive as well as of multiple chains to participants coincide (or competes on total value
strategic weapon
responsive to changes ensure distribution is developed to be across speed, quality,
whereas traditional as compared to whereas traditional synergistic) whereas in cost, and flexibility.
supply Chains are a traditional supply chain supply chains are Often traditional supply chain Traditional supply chain
method to move management which limited to single chains participants are forced emphasizes on one of
products in order to have a modest ability to or a large number of to choose between own the four competitive
support strategy respond to changes chains and chain's interests priorities

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 Grocery to e-grocery
The company operates on Hub and
Spoke model. Big Basket directly
01 purchases from the suppliers like
HUL, P&G, farmers, mills and
stores them in their own
warehouse.
Spokes are the refrigerated
BIG BASKET
vans placed in different
02 zones of the city from
where the order is deliver
to the customer.
The company has recently acquired
Delyver for time-based deliveries
03 thus it is integrating in all possible
directions. Since its own staff
delivers orders it executes full
control on point of customer
interaction
This model has high capital
requirement, high
04 operation cost and wastage
cost.
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This type of model does not have
any warehouse (only limited
number of small storage houses),
nor even delivery system and 01
delivery staff.
AARAMSHOP
More than an e-grocer it is a
platform for small grocery stores
to go online and consumers to
order from the convenience of 02
their home.
As soon the customer
opens the app, it fetches
his location details and 03
shows grocery stores with
offers.
Doesn’t require heavy capital
investment. This model serves
the local taste better. 04
8
Limitations
Breach of Trust Non Addressal

Trying to predict others’ actions is a key Fails to address three key requirements of
element of game theory. Within the today’s business, which can be categorized
supply chain setting, members of as:
traditional chains have reason to be Adaptability: Not customer centric
suspicious of each other's motives. Agility: cannot be easily or quickly re-
Problems of free riding, hold up, and configured to keep up with the internal or
leakage to benefit themselves and to the external shifts
detriment of the chain. This results in Alignment of the interests of the members
suboptimal chain performance along key in the chain and the business usually is
issues such as speed, quality, cost, and absent in the traditional model.
flexibility
Example :In recent years many aerospace
manufacturers maneuvered to make their
part suppliers highly dependent on them,
and then used this leverage to squeeze
the suppliers’ margins. This abuse
eventually led the part suppliers to begin
bypassing the manufacturers and selling
spare parts directly to end‐users.

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