Supply Chain Management Basics

In this article, we take you on a tour on the very basic focus of supply chain management. While there are many articles, which talk about the intricacies, the sole focus of this article is to cover all the various aspect an opening class for a grad program is likely to address.

There are few issues which are of prime importance while studying the subject. Before, one can call oneself conversant with the discipline, one needs to ask himself,  can he answer the questions in details regarding these aspects? This article is off course written more on lines of a strategic view point rather than an implementer ‘ s viewpoint.

  • Distribution Network Configuration: This is related to the number and location of suppliers, production facilities, distribution centers, warehouses and customers.
  • Distribution Strategy: This is related to the centralized versus decentralized issue, direct shipment, cross docking, pull or push strategies, and third party logistics.
  • Information: This is related to integration of  systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation etc.
  • Inventory Management: How should one manage stored quantity and decide the location of inventory including raw materials, work-in-process and finished goods.
  • Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain.

Focus: Customer, cost saving, value adding, time from cash to cash, percentage of fill rate against customer specifications and total response times

The extension of the supply chain definition is to provide a context for measurement or to operationalize theoretical concepts. Existing definitions may not always explicitly provide a basis for measurement. The development of new measures and the development of new benchmarks, based on these measures; in developing the new measurement format, various aspects of the supply chain definition can be expected to affect the specific mix of measures used.

It is important to understand that the position of players in the chain (supplier, manufacturer, wholesaler, service supplier) affects their contribution and relevant measures, the level of integration and the strategic approach may affect the relevance of measures needs to be scrutinized. Creating benchmarks based on the new measurement systems may contribute to directing management effort in optimizing the supply chain. Thus this is of prime importance to a supply chain manager.

Also, the development of tools that can help support the implementation of the new measurement approach may be a crucial final step leading to the actual application of new measurement approaches. The tools cannot be limited to the measurement system itself; they also need to include strategic trade-off and planning frameworks in order to assure executive “buy-in” and commitment and initiate actual improvement processes in the supply chain.

Finally some finer aspects to ponder for supply chain managers while attempting to operationalize theoretical models.

  • Whether the models are qualitative or quantitative will affect the plans.
  • What they measure is of paramount importance: cost and non-cost; quality, cost, delivery, resource utilization, flexibility, visibility, trust and innovativeness
  • Collaboration efficiency and coordination efficiency and configuration and input, output and composite measures.
  • Their strategic, operational or tactical focus.
  • The process in the supply chain they relate to.

These are some of the basics that a supply chain manager is expected to plan about while going about his job. By the way, did you read our article on Supply Chain Value Management

Office Cartoons – Coffee Break

Some of our colleagues always seem busy loitering around the coffee vending machine. Despite their apparently not working as hard as some of the others, they always seem to do just great. What can be their secret success story?

The road to success is not an easy one to travel. To achieve it, some professionals work hard, others work smart. Which one would you prefer?

Top Social Media Marketing Channels

In an independent survey conducted by Business Fundas, the top channels as perceived by social media marketers were identified and ranked. For this study, the over 20,000+ twitter followers (and also other social media marketers on twitter) were presented with a questionnaire for understanding the perceived importance of the various media for these marketing experts with a conversion of 1034 respondents for the study. Based on the results, the following results were obtained:

The top social media marketing channel based on our survey results was search engine. It performed extremely well as a channel to improve brand or service or product awareness, as well as a channel to improve conversion rates from potential leads to actual customer engagement.

The results for the best channel for creation of awareness for the service or products are as displayed in the graph below:

As these results indicate, some of the more popular and initially perceived important social media channels like Twitter, Digg, Reditt, Stumbleupon received lesser votes in confidence when it came to actual performance in terms of a channel to increase service or product or brand awareness.

Similarly, the top social media resources to convert potential customers to buyers are as follows:

As is evident from the results of the graph, the top resource, as perceived by the social media marketers in both cases are search engines. This was closely followed by Facebook and Youtube. However, some of the more popular and initially perceived important social media channels like Twitter, Digg, Reditt, Stumbleupon received lesser votes in confidence when it came to actual performance. Maybe since these are perceived as more of a media for capturing interesting sources of stories and / or multimedia, they are losing their importance as channels of social media marketing.

Do let us know what are your feedback about the social media marketing channels. How do YOU draw traffic to your blog? Is that a sustainable source of traffic or does that depend on daily marketing efforts and link exchanges amongst colleagues to promote your content? Do let us know.

Am I SICK?

Is the title giving a blow!! You must be thinking what is this!! “Am I SICK?” No, I am fit and fine. Who says I am sick !! Whoever is telling, he is sick!! And why I will be!! –No Not All.— I know this is what is going on in your mind – am I right!!

 

Let’s give some time for ourselves. Let’s realize ourselves. Let’s give a blow in our inner mind- let’s give a shock in our everyday behavior. I am telling you- you will find yourself in ICU. Shocked !! I know you are. But this is a bitter truth.

Trust me- find out some time for analysis. See who you are, what you are doing, how you are doing and for whom you are doing. Are you actually working!! Working hardly or smartly!! Or just running after money. Dream is big money- big house- costly car; A luxury life. If you are already enjoying- still you want more!! Right!! And if you are a struggler or gradually making your career- still dream remains the same. Going through the same rat-race. Right! Have you ever though to find five minutes for the needy person standing beside you! Have you ever extended your hand when you saw a blind person struggling to find his way on the road where you just passed him giving a veered look? Have you ever gone to help the person who just met with an accident!! Probably No. And if at all your friend suggested going, you said No No!! This can be a police case!! So let us be safe and keep ourselves away. I know you are remembering when you did that. Probably you thought to go but your friend suggested the same. Right!! Have you ever thought to just get up from the seat and let the old person sit there –who is just standing beside you!! You are just happy that somehow you managed a seat. Good if you have done. But probably you will find the answer ‘No’ if you ask yourself.

You must be thinking – how does these make a difference in your life. Your life is cool- and it will be as cool as it is. Right!! You are absolutely right. And if you are thinking in this way- you can’t be blamed for this. Because the value system you are in or the value system you are inculcating into your  next generation – this is quite natural. You don’t have time. But think once. Instead of the person met with an accident; you have met with the same accident! And people are reacting in the same manner and you are just   lying-down  helplessly on the road. How will you feel!! Good !! !! No ; right!! You will expect help from the persons probably whom you did not help when they required oneday!! Right!! If everybody will think the way you think- then imagine what will be your situation on the road after your accident. But do you think that you were not capable of helping the person. Were you sick that day!! You were too sick to talk with the person or hold the hand of that blind person!! No !! But Yes – I will say- you were SICK. Mentally you were SICK. Otherwise a healthy and Ok mind would have instructed you the right thing. Your mind would not have stopped you from helping. Or your mind would not have stay untouched in spite of seeing the blood-stained person lying on the road. It clearly shows that we are fine, but our mind is not. It’s not well. It’s SICK.

 

Find some time to think. Think – are you doing right!! Think are you inculcating the right value into your kids!! Because if you are giving such value to your child – definitely when you will require help, the person who will be standing beside you probably with the same value like your kid- will not help- because they never realized this thought.

It’s never a late. Beginning of anything is good. Let’s think and start realizing. Let’s start making a difference. Let us take our society towards a better one- a cultured- value added healthy and humane society.

Brief Profile of Author : Amitava Pal is a Software Engineer and XLRI Alumni. His special areas of interests are Human Psychology and Soft Skills. He has been writing papers since 2005 and the papers have already been published in India and Abroad like University of California, Bonn University Germany and so on. He is currently writing a book on “Typical Human Psyche on Differential Behaviour”.