Session 2020-23
GROUP MEMBERS:
Avishi Kapoor (20021021049)
Bhavya Ummat (20021021057)
Harsh Dang (20021021091)
Kabir Sharma (20021021107)
Naman Jain (20021021161)
Madhur Srivastava (20021021134)
Submitted to:
Mr. Vivek Mittal
(Supply Chain Management faculty)
INTRODUCTION
The capacity to reduce costs has been the pinnacle of supply chain management for many
years. Customer happiness, efficiency, and sustainability are now included in this goal. The
strategic supply chain management decision-making process heavily weighs ethical conduct.
Cost-cutting is still important, but it is no longer a guarantee of success.
Supply chain assets are interconnected, according to Professor Scott, a recognized authority
on the development of supply chain management. Modern supply chains, according to
Professor Scott, "must work practically every element of the firm to do so—customers,
suppliers, sales and marketing, finance, and senior leadership—in order to do not only deliver
customer value profitability."
Every aspect of the end-to-end process requires innovation on the part of supply chain
management. The supply chain leaders must accomplish this successfully:
Gain recognition: Effective management requires real-time data for the handling of
products and materials at every point in the supply chain. Businesses may reassure
customers that the items they are purchasing are produced in a way that is sustainable
from an environmental and social standpoint by having visibility into the supply
chain. Ask H&M, which just disclosed a map of its supplier factories. Customers are
better equipped to plan their purchases when they are more informed. By having
access to this information, businesses can keep things under control, uphold
regulations, and solve issues as they arise.
Predictive techniques: don't have a crystal ball, but they look for patterns to
proactively address problems before they arise, satisfy demand without overstocking
and cut expenses. Shippers need to be ready for anything given the present trade
environment.
Employ data teams: Strong technical investment is necessary for supply chain
management to succeed in the future, but not simply at the material level.
Organizations struggle without devoted human resources for data teams. This is so
because supply chain data teams provide a variety of dynamic benefits in addition to
putting new systems in place. They carefully consider the demands of the firm when
analyzing data, producing insights, and making growth strategy recommendations.
The following list of new technology developments, tools, and trends in supply chain
management:
Big data: Every day, enormous volumes of data are produced. 4.5 million searches are
made on Google every minute, 18.1 million texts are exchanged, and 188 million
emails are sent. Wearables, smartphones, and tablets are just a few examples of
mobile devices that account for a sizable portion of daily data usage. With so much
information at our disposal, gathering, sorting, cleaning, and analyzing such massive
data sets requires sophisticated computing tools. Businesses may use data to acquire
insightful insights and transform supply chain management thanks to data science and
analytics. Big data is useful and helpful in the following supply chain management
areas:
1. Quality control
2. Cash flow
3. Real-time deployment
4. Warehouse efficiency
5. Weather patterns
6. Predictive strategies
7. Inventory, supply, and demand
Artificial Intelligence: both machine learning and artificial intelligence. For supply
chain optimization, AI and machine learning produce completely or partially
automated processes and procedures. By integrating AI and machine learning to
simulate human performance and knowledge, optimization enhances forecasts,
planning, implementation, and maintenance in logistics. The end-to-end supply chain
benefits from AI and machine learning by:
Stricter data security, the use of predictive modeling in third-party logistics, and full supply
chain visibility for better key performance indicator (KPI) management; automating shipping
processes, delivery routing, and inventory management, as well as enhancing customer
service.
The Cloud: Companies track products and materials across the whole supply chain,
receive real-time updates, and update customers on the progress of their orders. The
cloud has made all of this possible. A number of areas, including data storage,
integration, security, and information exchange, are improved by cloud-based
solutions. Between various devices and a group of software users inside an
organization, activities, and procedures are streamlined.
LITERATURE WRITE-UP
GREEN SUPPLY CHAIN MANAGEMENT
The literature's definition and scope of GrSCM range from green purchasing to integrated
green supply chains that flow from supplier to manufacturer to customer. Even Reverse
Logistics's research identifies that the primary goal of GrSCM is to lessen environmental
pollution by producing green products. It is a product that uses less energy and resources,
starting with green manufacturing practices, materials, and packaging to lessen pollution of
the environment and natural resources. determines that GrSCM is driven by regulatory needs
and consumer forces.
In light of this, the scope of GrSCM includes both reactive monitoring of standard
environmental management programs and more proactive measures conducted through
methods like Reduce, Reuse, Rework, Refurbish, Reclaim, Recycle, Remanufacture, Reverse
logistics, etc.
FUTURE OF SCM LOGISTICS
There are several things to think about, from future technology to investigate and use to
changing rules requiring new approaches and techniques to guarantee compliance. For their
businesses to be cutting-edge and competitive, logistics companies need to keep connected to
current and new trends. Businesses that embrace the most recent problems and developments
in the logistics sector and make effective use of technology are those that prosper.
1. Agility in the Supply Chain
Logistics firms can use self-managed onboarding, change management, and exception
management to achieve supply chain agility.
Self-managed services allow enterprises to take direct, active control over operations rather
than depending on third parties to perform tasks. Take the case of your business acquiring a
sizable new client. Your team must submit an onboarding ticket to the service provider if
your company relies on managed services. This ticket will be placed in a line behind all the
requests from other businesses that came before it. This implies that it can take days or weeks
before the managed service provider onboards your new client, reducing your opportunity for
revenue and hurting your connection with your new client.
2. Accept Complexity by Automating
Automation is a crucial tool for modern enterprises since it lowers costs, boosts efficiency,
and frees up people to work on other, more productive tasks. By building end-to-end
connections between backend WMS/ERP systems and the numerous eCommerce solutions
that are becoming more and more popular, logistics organizations can leverage the potential
of automation.
There is more data than ever to collect as businesses continue to integrate additional
platforms and systems into their operational procedures. The utilization of data in commercial
decision-making is tremendously beneficial. The fact that there are more platforms and/or
applications, however, also implies that the data is dispersed over more places. This
necessitates users to switch between software programs in order to search and gather data,
which is a tiresome and time-consuming operation.
3. Customers Demand Real-Time Visibility and Data
Amazon has had a significant impact on consumer expectations and buying habits. Trading
partners and customers increasingly anticipate continuous updates on order placement and
delivery windows, which is one aspect of the so-called "Amazon effect." This is primarily
caused by Amazon's renownedly quick delivery speeds (2-day and same-day shipping). So
how can your company keep its customers informed throughout the shipment process?
Take into consideration linking your WMS/ERP with supply chain visibility solutions to
provide real-time status updates to your clients (such as project44 or FourKites). Your
company will be able to manage and monitor order shipments as well as provide clients with
real-time progress information by integrating the platforms.
4. Demand for Less Than Truckloads (LTL)
Logistics companies are being asked to make smaller shipments more frequently as a result of
the popularity of eCommerce and the demand for speedier service. The reason for this is that
businesses cannot afford to wait until they have enough orders to fill a whole carrier. LTL,
commonly referred to as less than truckload, is one remedy. This technique involves placing
numerous smaller orders from various businesses on one carrier, resulting in a full load with
numerous delivery stops. LTL offers a variety of advantages, such as:
Cost, E-commerce, Small Business Friendly, Environmentally conscious.
5. Computerized Business Development
Start-to-finish computerization and EDI modernization can extraordinarily expand the
efficiency of occasion-based work processes. At the point when occasions are planned for a
robotized work process, people are taken out of the situation. This intends that there is no
trust that a human will get done with a job before the subsequent stage in the process can
happen. Rather, innovation is used to rapidly and precisely play out each move toward the
work process.
For instance, suppose a retailer sends a planned operations organization an EDI 204 Engine
Transporter Burden Delicate for a request for office supplies. The operations organization's
EDI programming can almost momentarily answer the 204 with an EDI 990 Reaction to a
Heap Delicate — either tolerating or declining the request. The two organizations will utilize
EDI innovation to keep imparting until the occasion-based work process is finished. Without
start-to-finish computerization and EDI modernization, a human would need to physically get
done with every responsibility which would call for significantly greater investment.
SCM FRAGILITY
Since fragility is dependent on the disruption probability and fee, it does not vary much with
the version in the inventory degree.
Therefore, the disruption chance and fee of impact are better at these suppliers. Fragility is
higher for the producer as compared to all other nodes in the delivery chain, even though it
has a less wide variety of risks related to it.
Global supply chains additionally account for large contributions to greenhouse fuel
emissions and feature an effect on air, land, and water biodiversity and geological assets. A
standard agency’s supply chain is responsible for 80 consistent with cent of its greenhouse
emissions and more than 90 in step with cent of its contribution to air pollution generated in
the production and distribution of a purchaser product.
One billion metric tonnes of emissions might be stored if key suppliers to one hundred
twenty-five of the sector’s biggest consumers accelerated their renewable electricity input via
20 in line with cents.
The effect of supply chains extends to society. For example, the trouble of forced labor is
well-documented in nowadays’ global supply chains, resulting in numerous controversies
about current slavery. More than 24.9 million human beings are documented to be running in
slavery situations in those chains.
Businesses in worldwide supply chains are going through improved pressure from
extraordinary stakeholders to undertake sustainability and reveal their impacts. A Dutch court
lately ordered Shell to reduce its carbon emissions by means of 45 in keeping with cent from
its 2019 degrees. In the future, supply chain disclosure and transparency will become the
norm of suitable governance.
VOLATILITY AND VERIFICATION METHODS OF PROCESSES
Information technology is infused into every business to manage volatility and enable
management to confirm that processes are being carried out effectively. Information
technology facilitates strategic decision-making that establishes priorities and settles
disagreements. ERP software is trusted by forward-thinking businesses to power their supply
chains. The art and business of producing, marketing, and distributing goods across
international networks are made simpler by ERP software. Worldwide clients of ERP
Software use the software to manage change and drive growth. Competition, customer
demands, and sophisticated tools like RFID are improving distribution operations and
bringing management at all levels of the organization new efficiencies.
From "shop floor to the top floor," how does cloud-based ERP improve business operations?
Online cloud ERP is ideally suited to meet the needs of the plant floor because it avoids
laborious processing and helps cut costs. By offering advantages: online cloud ERP is a
component of the solution.
1. Automating routine manual processes
2. Reducing inventory costs
3. Streamlining operations
4. Enabling 100 percent production visibility
The following factors make it possible to implement supply chain management solutions for
MRO (maintenance, repair, and operations):
1. Detailed industry and data-specific domain expertise combined with a reliable project
methodology
2. Automated workflows from beginning to end that harmonize and enhance historical master
dataĀ
3. Ability to guarantee ongoing data integrity and quality, both semantically and structurally
4. Being able to handle enormous amounts of cryptic and difficult data in various languages
UPDATES IN THE INVENTORY MANAGEMENT SYSTEM
When there is ambiguity regarding supply and demand, inventory will always happen.
Inventory maintenance is no longer required if all of the links in the productive chain are
perfectly in sync. The processes where there is a requirement to synchronize supply and
demand are where the sources of uncertainties are found. Thus, the inventory exists to make
up for any potential management shortcomings, necessitating adjustments to keep it
competitive. Understanding what makes up the demand is necessary for this to happen. The
two main categories of productive systems are make-to-order production systems, where
demand forecasting is relatively straightforward, and make-to-stock production systems,
where demand forecasting is more difficult and the planner may turn to traditional forecasting
techniques.
NEW SUPPLY CHAIN MANAGEMENT RISK AND REGULATIONS
1. financial fraud: Financial fraud can take the form of cooperation, lax oversight of
employee spending, or wrongdoing on the part of the vendor, such as fabricated labor and
exorbitant invoices. The majority of fraud happens when executives fail to carefully examine
individual line items and instead focus on identifying high-level trends in the characteristics
of invoices. When there are several suppliers involved, the likelihood of fraud also rises,
making it crucial for procurement teams to have visibility into every link in the supply chain.
Procurement teams must utilize their right to examine vendor invoices and activities and use
the analytics and monitoring technology at their disposal in order to reduce the risk of fraud.
2. Cybersecurity threats: Many firms lack adequate safeguards for sensitive data, making
them vulnerable to intrusions that could damage brands, consumers, and business operations.
Despite the fact that you may have security procedures in place, your suppliers might not.
Procurement leaders must implement security measures, use multi-tier supplier governance,
only purchase from reputable vendors, unplug important computers from outside networks,
and promote cooperation among security, IT, and supply chain management in order to
prevent catastrophic interruptions.
3. Supply chain management regulations: Companies must be prepared to share information
about their sourcing and supply chain activities as new laws and regulations continue to be
passed and appear in the supply chain. The Transparency on Trafficking and Slavery Act, for
instance, mandates that businesses submit annual reports to the SEC outlining their efforts to
address specific human rights risks in the supply chain.
It's crucial to have complete supply chain insight in order to support compliance and
sustainability. Gaining complete visibility and compliance may be expensive and/or time-
consuming, but it will be worthwhile in the end.
4. The talent gap: There aren't many upcoming procurement experts to replace the retiring
baby boomers. The repercussions of this issue are likely to persist for at least a decade, thus
CPOs are frantically trying to find a solution.
By providing thorough yet focused training programs to shape these individuals into the well-
rounded procurement leaders the industry requires, procurement executives may close the
skills gap among their staff and attract the talent they need.
5. Rising cost of essentials: Roughts are getting worse across the country, affecting food
prices and, eventually, many businesses' cost structures. This year, the cost of food is
predicted to rise by 2.5–3.5% overall, with fruit and vegetables rising by 3.5–4.5% and 2-3%,
respectively.
A piece of advice: If you want to avoid increasing prices for consumers, look at other areas of
expenditures, including facilities management or transportation. Consolidating spending and
keeping track of where your money is going will help you stay resilient in the face of this risk
CASE STUDY
Walmart
According to (Françoise van den Broek, 2010), GrSCM drives product and service
innovation, enhances asset utilization and deepens customer relationships and service levels
by focusing on waste and cost reduction. Walmart, which announced a comprehensive
business sustainability strategy in 2005, has declared a goal of reducing packaging by 5% by
2013. The retailer estimates that the reduction in packing will avoid 667,000 metric tonnes of
carbon dioxide from entering the atmosphere. In addition, the firm anticipates $3.4 billion in
direct savings and over $11 billion in supplier chain advantages. Walmart has also enhanced
the efficiency of its truck fleet by 65%. It obtained this massive outcome by employing three
best practices. The first required performing a comprehensive analysis made possible by
software modeling in order to determine optimal routes that saved fleet kilometers. The
second stage was to pack the trucks in such a way that the number of trips was minimized.
Finally, it invests in cutting-edge technology to boost fleet efficiency. In its Supplier Energy
Efficiency Program, Walmart is taking a similar strategy (SEEP). Walmart is making a
concerted effort to make its stores more energy efficient. It collaborates with suppliers to
reduce its location-based energy use. Walmart hopes to give an energy audit based on
knowledge through SEEP. Walmart provides best practices in areas such as lighting
technology, which will reduce both its carbon footprint and its electric expenditure (Adam
Heying and Whitney Sanzero, 2009) has identified fourteen sustainable value networks at
Walmart, including Global Greenhouse Gas Strategy, Alternative Fuels, Global Logistics,
Energy, Design, Construction & Maintenance, Operations, and internal Procurement,
Packaging, Chemical Incentive Products, Sea Food, Electronics, Food & Agriculture, Forest
& Paper, Jewelry, and Textiles, each of which serves at least one of Wal-three Mart's
environmental goals. To begin, their stores are powered entirely by renewable energy.
Walmart now has around 65 renewable energy projects in the works, including solar, wind,
fuel cells, and anaerobic digestion. Second, Walmart is implementing a zero-waste system.
Furthermore, Walmart announced a program that resulted in 81 percent of its waste being
diverted from landfills in California. This program has begun to be implemented on a
national scale in the United States. Finally, introducing or revamping products that benefit
both people and the environment. Walmart collaborates with the sustainability consortium to
develop life cycle monitoring methods for consumer products in categories such as food,
beverage, toys, apparel, textiles, electronics, home, personal care, and paper.
Hewlett Packard (HP)
Hewlett Packard (HP) integrates GrSCM by addressing environmental standards such as
prohibited materials and green operations expectations through executive-level supplier
involvement. Each supplier is aware of HP's code of conduct, which outlines social and
environmental responsibilities. HP routinely asks suppliers to participate in the product
design process and collaborates with them on mutually beneficial projects. HP evaluates the
packing materials used throughout the supply chain. Excess packing reduces cargo quantity,
increases fuel economy per unit shipped, and necessitates proper disposal after use. HP
examined the packaging for one of its camera products and found that it could raise the
number of units on a pallet from 300 to 720 while lowering package weight by 175 grams per
unit. (2006) (Kevin O'Marah and Eric Karofsky) When deciding how to approach its
suppliers, a company should keep in mind that it may also supply other companies in the
industry. HP has pioneered the development of industry-wide standards that increase
compliance while minimizing the reporting load on vendors. Through the Electronics
Industry Code of Conduct, HP created and implemented a scorecard. In 1997, HP initiated a
program to collect printer cartridges. In 2003, the business decided to include a return-for-
recycling envelope with products that were sold in the USA and portions of Europe. Its global
operations had returned and recycled over 1 billion LaserJet cartridges and 20 million HP
Inkjet print cartridges as of 2005.
CONCLUSION
The chain segment can update the speed of its productivity and distribution in relation to the
end consumption in real-time thanks to the collaboration of the e-SCM. This is a crucial
feature because it prevents unwanted inventory and supply interruptions if the supply chain's
links synchronize production, supply, and consumption. Another option to consider what
long-term consumer behavior would be is to project into the future and design a supply chain
around it. The e-SCM, whether used alone or in combination, is significantly more effective
than the conventional demand forecasting methods. This is because forecasts are typically
made monthly or weekly, which makes updating the information considerably more difficult
(in terms of quality and quantity).
This adjustment in the e-SCM depends on the IT systems that update the data in real time.
Through the study of logistics, network design, procurement, relationship management, and
sustainability, we might have the chance to concentrate on resolving actual strategic and
tactical difficulties. The role that corporate strategies utilizing cloud technology can play in
effective supply chains by:
Changing collaboration in the creation of content fundamentally
Moving away from new methods that embrace parallel collaboration (where several
steps can be completed at once), and away from a delivery model that traditionally
relied on serial (step-by-step) processes and
Economic and experiential transformation for the effective supply chain.