![What is SCM?
Supply chain management (SCM) is the
management of a network of interconnected
businesses involved in the ultimate provision of
product and service packages required by
end customers (Harland, 1996).[2] Supply
chain management spans all movement and
storage of raw materials, work-in-process
inventory, and finished goods from point of
origin to point of consumption (supply chain).
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."](https://image.slidesharecdn.com/guestlectitm-1317289839288-phpapp01-110929045244-phpapp01/85/Career-in-SCM-2-320.jpg)
Career in SCM
- 1. Career in Supply Chain Management
- 2. What is SCM? Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996).[2] Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). 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."
- 3. What is SCM? Supply/ Chain Management Demand Involves other Multiple It is about both companies, components, art and science, people, policies, linked together involves planning, cultural Variances with a common organising, and conflicting objective. directing and goals and monitoring objectives
- 4. A better view of SCM The above model is referred to as the ‘SCOR’ model. SCOR(Supply Chain Operations Reference)
- 6. Can you solve this?
- 7. Thinking out of the box
- 9. State of Logistics in India ¤ Logistics cost in India is 13% of GDP. ¤ National highways form only 2% of the road network, which handle 40% of the freight traffic. ¤ Out of the 54% of the outsourced logistics spend, only 10% is handled by organized players. ¤ In road transportation, 74% of the players are small time owning just a single truck ¤ In the warehouse sector 92% of the players are unorganised. ¤ Commercial vehicles in India run at a speed of 20miles per hour, as compared 60miles per hour in other places.
- 10. State of Logistics in India Customer ¤ Indian Infrastructure is poor Handling & WH shopping 6% as compared to 9% developed and Transportatio developing countries and Packaging 11% n 35% is rated 54th among the 59 countries Losses 14% ¤ Road : 56/59 Inventories 25% ¤ Rail: 25/59 ¤ Seaport: 51/59 ¤ Airport: 40/59
- 11. What lies ahead? ¤ The Indian logistics industry is estimated at $90 billion. ¤ The Industry is expected to grow at a CAGR of 8% as per CII estimates. ¤ 3Pl are expected to grow at a CAGR of 16%. ¤ Primary growth drivers are ¤ Investment in infrastructure ($350 b) ¤ Streamlining of indirect taxes. ¤ Robust trade growth. ¤ Globalisation of manufacturing sector. ¤ 100% FDI permitted in all Logistic activities services.
- 12. Mumbai Dabbawalla A simple, but effective logistics system which handles both forward and reverse flow at a high level of precision(sigma level of 99.999999)
- 13. Industry Verticals for SCM
- 14. Indian Food Industry Statistics Issues ¤ India is the second largest ¤ Rs 58,000 Crore worth of food is producer of food next to China wasted every year due to lack of proper storage facilities ¤ Total food production in India is ¤ Lack of post harvest infrastructure likely to double in the next like cold chain, transportation and 10years proper storage lead to food wastage. ¤ India is a major food producer, but accounts for only 1.5% of the ¤ 30% of fruits and vegetables perish due to lack of cold storage global food supply facilities ¤ Only 2% of the total agricultural ¤ 7% of the grains are wasted every and food produced is processed year due to lack of facilities in India
- 15. SCM Role 100% FDI permitted in food A target for 20% of perishable processing industry food items processing Processes food industry to grow Have a global marker share of 3% by 10% by 2015
- 16. Life Science Industry ¤ Logistics might be the weakest link in the supply chain of drugs ¤ A great amount of deaths are caused due to consumption of drugs and vaccines stored in improper conditions ¤ 43 percent of critical and major product deficiencies are related to ineffective temperature control and monitoring during storage and transportation. ¤ WHO recently maintained that 25 percent of all vaccine products arrive at their final destination in a degraded state 128 kids died after vaccination in ¤ The basket initial had vaccines and serums, now it includes clinical trials, 2010, govt can't say why blood samples, crucial vials and anti- venom Time of India, May 29th, 2011
- 17. Logistical Support for Life Sciences Industry The above are based on a global study conducted by Capgemini Consulting along with Georgia Instituted of Technology in 2010.
- 18. Indian Scenario Cold Stores • 22% growth rate projected for the industry • Govt considering incentives for this sector as it is highly capital intensive Reefer Transport • Maintaining and monitoring temperature throughout • Special cost effective packing solutions Automation • To assist 100% monitoring • System-product-technology combination for track and trace till the product reaches the end customer
- 19. Retail Industry Statistics Issues ¤ Indian retail industry accounts for 22% of ¤ Lack of proper infrastructure and GDP and 8% of employment distribution channels ¤ Demographic factors are driving the ¤ Transportation, including railway systems should be more efficient Indian retail story ¤ Highways, airport, power situation ¤ 25% growth rate is expected for the and warehouse facilities should industry improve ¤ The industry is fifth largest in the world ¤ Not about mere merchandising, but about value creation ¤ Only 6% is organised retail ¤ Changing customer demands ¤ Food and groceries followed by apparel, ¤ Higher proliferation in SKU variants foot-ware and consumer electronics would form part of the organised retail
- 20. Logistics in Retail Supply Demand Process People Secondary Stock Visibility Collaboration Demand IT Primary Distribution Secondary Distribution
- 21. Technology Adoption Against For It is a Capex Real-time Technology Complexity Herd Mentality Adoption in Logistics Excel Mania Regulation DFIINB
- 22. IT Must have for SCM Instrumented Sales, Relationship, and Proactive MDM Predictive tracking Dashboard, analytics and light weight Tactical planning tool Storage, retrieval and Enterprise level destruction execution tool
- 23. Beyond MBA ¤ SCOR • Certified Production & CPIM Inventory Management ¤ Six Sigma • Inside four walls ¤ Yellow ¤ Green • Certified Supply ¤ Black CSCP Chain Professional • Covers end-to-end ¤ Master Black ¤ BPMN • Certificate in Transportation & Logistics CTL • Improve ¤ Lean Management transportation and logistics processes ¤ PMP
- 24. Nothing ventured, nothing gained Joseph C Vijayakumar Logesys Solutions India Pvt. Ltd., Bangalore josephcv@logesys.com