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Om - 01
1. Explain Supply Chain Strategy and Factors Influencing an Organization’s Supply Chain Strategy:
Supply Chain Strategy: It's the plan devised by an organization to effectively manage the
flow of goods, services, information, and finances from suppliers to customers. It involves
decisions regarding sourcing, production, inventory management, transportation, and
distribution to meet customer demands efficiently while minimizing costs.
Technological advancements.
Enhance supply chain talent and capabilities through training and development.
3. Outline the Supply Chain Drivers and How Strategic Fit is Achieved:
Strategic Fit: It's achieved by aligning supply chain decisions with overall business objectives
and customer needs. This involves understanding customer requirements, designing
responsive supply chains, and optimizing internal processes to create value for customers.
5. Define Stages in the Supply Chain When a Customer Orders a Product Online (e.g., Amazon):
These stages ensure efficient and satisfactory delivery of products to customers while maintaining a
positive shopping experience.
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Mode of Transportation: It refers to the method used to move goods from one place to
another in the supply chain. Common modes include trucking, rail, air, water (such as ships),
and pipeline.
Fixed Costs: Expenses that remain constant regardless of the quantity of goods
transported, such as vehicle purchase or lease, insurance, and facility maintenance.
Variable Costs: Expenses that change with the amount of goods transported, such as
fuel, labor, tolls, and vehicle maintenance.
Direct Costs: Costs directly associated with transportation, such as fuel and driver
wages.
A supply chain is considered a strategic fit when its design and operations align closely with
the overall business strategy and goals.
This alignment ensures that the supply chain can effectively meet customer demands,
respond to market changes, and support the organization's competitive advantage.
3. Discuss the Role of Transportation Function, Cost, and Mode in Logistic Management:
Cost: Transportation costs can significantly impact the overall logistics expenses. Efficient
transportation management helps minimize costs while ensuring timely delivery and
customer satisfaction.
Mode: Choosing the appropriate transportation mode depends on factors like cost, speed,
reliability, distance, and type of goods being transported. Different modes offer varying
advantages and disadvantages, and the selection of the mode depends on the specific
requirements of the supply chain.
4. Discuss Distributed Related Issues and Challenges in Logistics Management:
5. Explain Push/Pull Processes for Ethan Allen (Customized Furniture) Supply Chain:
In a push system, Ethan Allen might produce furniture based on forecasts or anticipated
demand without waiting for specific customer orders. This allows them to maintain inventory
levels and respond quickly to customer requests.
In a pull system, Ethan Allen might wait for customer orders before initiating production,
thereby reducing the risk of excess inventory and ensuring that furniture is customized to
meet customer specifications.
These processes help Ethan Allen balance inventory levels, minimize lead times, and improve overall
supply chain efficiency.
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Use in Supply Chain: The SCOR model helps organizations assess and optimize their supply
chain operations by providing a standardized approach to benchmark performance, identify
areas for improvement, and align processes with industry best practices. It enables
companies to achieve supply chain excellence by facilitating collaboration, reducing costs,
improving efficiency, and enhancing customer satisfaction.
2. Analyze How Global Supply Chain Works and its Pros and Cons:
How Global Supply Chain Works: Global supply chains involve sourcing materials,
manufacturing products, and distributing goods across international borders. They rely on
complex networks of suppliers, manufacturers, distributors, and logistics providers to meet
global demand.
Pros:
Supply chain disruptions due to geopolitical instability, natural disasters, and trade
disputes.
The importance of global supply chains lies in their ability to connect businesses with
suppliers, manufacturers, and customers worldwide.
They enable companies to access global markets, source materials at competitive prices, and
leverage specialized capabilities and resources.
Global supply chains promote economic growth, facilitate trade, and drive innovation by
fostering collaboration and knowledge exchange across borders.
Key Performance Indicators (KPIs): These are metrics used to evaluate the performance of
supply chain processes and operations. Examples include on-time delivery, inventory
turnover, fill rate, and order accuracy.
Bullwhip Effect: It refers to the phenomenon where small fluctuations in customer demand
result in amplified variations in upstream supply chain activities. This leads to inefficiencies,
increased costs, and inventory imbalances across the supply chain.
Adopt Agile and Responsive Supply Chain Strategies to quickly adapt to changes in customer
demand.
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Facility layout and design: Designing warehouse layouts to optimize space utilization,
material flow, and operational efficiency.
3PL providers manage and execute logistics operations based on defined service
agreements with their clients.
4PL providers act as supply chain integrators, managing and coordinating the entire
supply chain network on behalf of their clients.
4PL providers often partner with multiple 3PLs and other service providers to deliver
comprehensive supply chain solutions.
For commodity items with high volume and low variability in demand, a distribution network
with centralized distribution centers (DCs) is typically preferred.
Centralized DCs enable economies of scale, efficient inventory management, and cost-
effective transportation for bulk shipments of commodity products.
4. Short Explanation:
Reverse Logistics: Reverse logistics involves the process of managing product returns,
exchanges, repairs, and recycling after the sale. It includes activities such as product recall
management, warranty repairs, recycling, and disposal of returned or obsolete inventory.
Third-Party Logistics (3PL): Third-party logistics providers offer outsourced logistics services
such as transportation, warehousing, and distribution on behalf of companies. They
specialize in specific logistics functions and help companies streamline operations and
reduce costs.
Fourth-party logistics providers act as supply chain integrators, managing and coordinating
the entire supply chain network on behalf of their clients. They offer strategic direction,
technology solutions, and network optimization services to enhance supply chain
performance. 4PL providers often partner with multiple 3PLs and other service providers to
deliver comprehensive supply chain solutions.
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Cost reduction: Implementing green initiatives can lead to cost savings through
energy efficiency, waste reduction, and improved resource utilization.
Demand forecasting: CRM data provides insights into customer preferences and
buying patterns, which can inform inventory planning and production decisions.
Feedback loop: CRM feedback helps improve product design, service quality, and
overall supply chain performance.
3. Key Features of Green Supply Chain Management:
Social responsibility: Promoting ethical practices and fair labor standards throughout the
supply chain.
Customer service and support: Managing customer inquiries, complaints, and support
requests through various channels.
Analytics and reporting: Analyzing customer data to gain insights into behavior, trends, and
opportunities for improvement.
Data management: IT systems capture, store, and analyze vast amounts of data to support
decision-making and optimize supply chain processes.
Visibility and transparency: IT platforms provide real-time visibility into inventory levels,
order status, and transportation movements across the supply chain network.
Risk management: IT systems help identify and mitigate risks such as disruptions, delays, and
quality issues by providing early warnings and enabling contingency planning.