what is supply chain management 2

8/8/2019 What is Supply Chain Management 2

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Supply Chain Management

Wal Mart&

Future Group


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` What is supply chain management` Advantages & objectives of SCM` Models of supply chain management`

Retail scenario` Difference between India and abroad

Technology Advancements Operation, procedures Logistics & Inventory Data

Distribution & Partner Network Resources & Trained People

` Case study


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` Supply Chain Management (SCM) is themanagement of a portfolio of assets (human,equipment, components, etc.) and relationships

(customers, suppliers, staff, etc.) to transform acustomers product from raw material to finishedproduct as efficiently as possible.


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ServiceKnowledgeClimate Price

Quality

Style & FashionIntensity

Assortment

Si eocation

ayout & esign

Place

Information

Product

PeopleValue

Pentagon is Customer Centricand Customer Facing.

The Retailer can impact the Customers perceptions by leveraging

the above elements.


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` The Triangle isorganization centric

` Integration between

and across theenterprise and industry

` A strong anddifferentiating triangle

would result in betterservice offering tocustomer.

Systems

Logistics Partners


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Partners Objectives

Organization Objectives

Customers Objectives


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Customer Objectives

Customer always gets the merchandise of his / her size and choiceMerchandise is always presentable and ready before customer entry

Timely replenishment of fast moving merchandise

Partner ObjectivesPartner ObjectivesPartners always deliver the right quantities as per schedulePartners always deliver the right quantities as per schedule

Sharing of information with partners related to sales stocks and purchase ordersSharing of information with partners related to sales stocks and purchase orders

Organization ObjectivesOrganization ObjectivesCustomer Response TimeCustomer Response Time

Merchandise AvailabilityMerchandise Availability

Distribution CostDistribution Cost

ShrinkageShrinkage

Collaboration with PartnersCollaboration with Partners


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` Anss


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` TYPE - Public (NYSE)

` FOUNDER - SamWalton

` FOUNDED- Rogers,Arkansas(1962)

` HEADQUARTERS Bentonville , Arkansas

` CEO - H. Lee Scott` CHAIRMAN- S. Robson

Walt

` OPERATIONS -16Countries

` PRODUCTS - Supercentres,neighborhood

` Market Cap.- US$ 228 Bn.

(2007)

` SALES-$374.5 billion(2008)

`

EMPLOYEES-

2.1 Million

` AREA SERVED Worldwide

` INDUSTRY Retail


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` Retail Units

Worldwide 7,390

` US Retail Units 4,219

Wal-Mart Stores 920Supercenters 2,565

Sams Clubs 593Neighborhood Market141

` International Retail

Units 3,171


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Partner 1

Partner 2

Partner 3

Partner 4Bangalore DC

Kolkata DC

Delhi DC

Mumbai DC Store

Store

Store

Store

Store

Store

Store

Store

B2B

WMS DSS/MMS

Reverse

Logistic

s

Western

Region

Northern

Region

Eastern

Region

Southern

Region

Operations

Outsource

d

Outbound

Logistics


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Point-of-sale

systemcaptures datain real-time

Data is

transmitted towarehouses

for Inv. Mgmt.

Retail Link

transmitsdata to

supplier

Orders are

generated fromprevious-day

sales

Merchandise is

loaded ontotrucks using

cross-docking

Merchandiseis delivered to

the store

Merchandise is

manufacturedbased on historical

and real-time data

Merchandiseis shipped to

warehouses

Customermade a

purchase

The store will re-stock the shelves

with merchandise

Wal-Marts merchandise replenishment cycle is no more than 48hrs

Fleet of 7,000 trucks in US


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` world class supply chain.

` cut cost by eliminating unneeded steps

` supply chain is so high tech that it can notify

Wal-Marts suppliers directly` efficiently and effectively re-supply their

3,500+ stores in a quarter

` utilize Electronic Data Interchange technology

to shorten the distribution cycle` RFID to automate tasks.

` low cost mode of operation


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` Using IT in Supply Chain ManagementWal-Mart employed the most advanced IT tools and

applications in all supply chain functions, startingfrom demand forecasting, procurement, logistics,distribution and inventory management. The

company focused on bringing efficiency to everyfunction of the supply chain so as to offer itscustomers products at the lowest possible prices.

` Using The Internet In Supply Chain ManagementWal-Mart is integrating its supply chains with

major customers. Wal-Mart is an innovator inSCM, which has helped it to provide low-costmerchandise to its customers and undercut itscompetitors


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Wal-Mart tr atand rati ns

str t r

Enabl v r day l w ri andab v av rage r fitabilityby r ring , distrib ti nandselling r ducts, whenandwhereneededat l wercost thananycom etitor

erationsstrategy

Short response times Low inventory level

perationstructure

Fast transportationsystem

Crossdocking Retail link between wal-mart andsuppliers


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The Strategy of 3 Pl strategy and the remix one

Is the most successful


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what is supply chain management 2

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