Supply Chain Management_kishore

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Supply chain management

concepts

& case study

Kishore P Chakravarthy

1MS12MIA04

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What is the Supply Chain

Management concept?

The Supply Chain Management Concept

encompasses all activities associated with:

i. Flow and transformation of Goods From

the raw material stage (extraction) through

to the end user

ii. Information flows to and from the end user

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What does the Supply Chain

Concept consist of?

The Supply Chain Concept consists of allparties involved (directly and/or indirectly),in fulfilling customers requests. The partiesinvolved are:

- Manufacturers

- Suppliers

- Transporters

- Warehouses

- Retailers

- Customers3


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The Supply chain Concept may also include:

- New product development- Marketing

- Operations

- Distribution

- Finance

- Customer service

Supply Chain Concept

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Types of Supply Chain

Configurations

Three types of supply chain configurations

are

Direct Supply Chain

Extended Supply Chain

Ultimate supply chain

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Direct Supply Chain

SourceProf. Dr. Ted Lees Class Presentation - 2010

Supplier Organization Customer

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Extended Supply Chain

SourceProf. Dr. Ted Lees Class Presentation - 2010


Supplierssuppliers

Customerscustomers

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Ultimate Supply Chain


Ultimate

supplier

Ultimatecustomer

Financial Provider

Source Prof. Dr. Ted Lees Class Presentation - 2010

Market Research

3rd Party Logistic Supplier

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CASE STUDY OF DABBAWALAS

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Nutan Mumbai Tiffin Box Suppliers

Association(NMTBSA)

History : started in 1890

Charitable trust : registered in 1956

Avg. Literacy rate : 8th grade schooling

Total area coverage : 60 kms to 70 kms

Employee strength : 5000

Number of Tiffin's : 2lac Tiffin boxes(4lac

transactions every day) Time taken : 3 hours

Error rate : 1 in 6million transactions

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Working of Dabbawalas

Six sigma performance (99.999999)

Technological backup : NIL

Cost of service : Rs 250 per month(Standard

price for all : weight, distance &space)

Turnover : Rs 36cr

No strike record : As each one a shareholder

Earning per dabbawala : Rs 5000-6000/month

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How do they do it ?.....

Through excellent command over:

Organisational Structure

Operations/Supply chain The Code

EXECUTIVE COMMITTEE

( 5 MEMBERS)

TEAMS OF 20-25 HEADED

BY A GROUP LEADER

INDIVIDUAL DABBAWALAS

WORKLOAD

COLLECT FROM HOME : 35 TIFFINS

DELIVER AT OFFICE : 35 TIFFINS

RETURNS EMPTY TIFFINS TO HOME:35 TIFFINS14


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POINT OF

SORTING

A

BC

D

E

COLLECTION FROM HOME

GRANT ROAD

(12)

CHURCH GATE

(1-10)

LOWER PAREL(14)

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2

3

4

5

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ZONES FOR

DESTINATION

DISTRIBUTION BY

CARRIER AT

LUNCHTIME TO

OFFICES

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The Coding system.....

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Dabbawala achievements Zenith Computers(100 rs per sale to dabbawala,

discount to buyer)

Dabbawalas as Brand Ambassadors for Mumbai

state owned Corporation Bank

Name in Guinness Book of world records Registered with Ripley's believe it or not

World record in best time management Awarded

Six sigma rating in 1998 by Forbes.

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Supply Chain Top 10

Companies

Source: Gartner (2010)


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References

Supply chain management-strategy, planning,

and operation by Sunil Chopra & Peter Meindl

Supply Chain Management- Roberta Russell &

Bernard W. Taylor, III Supply chain Management- Rabindranath

Bhattacharya (IIT Madras)

Prof. Dr. Ted Lees Class Presentation - 2010

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