Marketing and

Supply Chain
Management
(MSM)
Intermediate
Level 1

Classification: Internal
 Introduction

Classification: Internal
 SHAZZADUR RAHMAN
CMA I CFO I ERP I ESG
Founder Chairman of iCalipers
A Visionary, Versatile and Result-driven Finance professional. Experienced in developing and implementing finance strategies to support company’s
ambitious growth. With 20+ years of experience mostly in S&P500 MNC based in home and abroad, led multiple changes in Finance/operations across Asia-
pacific and Middle-east region as above market services setup. Expertise in developing shared service (BPO) business model across group of business. Best
known as business consultant delivering numerous restructuring projects with local conglomerates. Balance in business and finance together with keen
interest in ongoing disruption led by technology, innovation and shared economy enabled to groom as a future-fit change agent for any organization.
Professional accountant, self-educated in multiple discipline and fervent driver of people development at scale.

EXPERTISE KEY PROJECTS PROFESSIONAL EXPERIENCE

• Business Strategy • SAP Implementation at BAT, Multiple entity
• Corporate Finance • Shared Service migration and setup in BASS Malaysia for BAT
• Business Partnering • Setup of Compliance Services (Tax/GST) for Asia Pacific region
• Supply Chain at BASS Malaysia
• Marketing • New GST Compliance system implementation for BAT in
• ERP- Readiness, Implementation Malaysia
• GRC- Design, Develop and Implement • Global Transfer Pricing Modeling (Sanction and multiple
• Business Analytics jurisdiction compliance in focus)
• Process Re-Engineering • Led multiple restructuring project in Supply Chain at above
ACADEMIC & PROFESSIONAL EDUCATION
• Project Management market set up
• Masters in Accounting
• Digital Solutions and Automations • Founder of iCalipers Limited: CFO Services, ERP • CMA: Cost and Management Accountant
• Change Management at large scale Implementation, Accounting BPO, Value Financing, GRC, • PRINCE2: Project Management
• Leadership Trainings: Leadership Trust UK
• ESG- Compliance and Sustainability Tax/VAT

Classification: Internal
 Syllabus Structure Total Marks 50
Marketing 25
Supply Chain 25

Classification: Internal
Classification: Internal
 Instructions

- This presentation designed to facilitate discussions only during the classes

- Models and pictures relevant to the topic are used to explain context
- Students are advised to follow ICMAB learning manuals and recommended books
learning and prepare for exams.
- This presentation will be handed over to students as reference at the end of course

Classification: Internal
 Introduction of Supply Chain Management

 Definition, objectives, and importance of supply chain and its management

 Decision phases in supply chain
 Foundations of supply chain management
 Process views of supply chain
 Examples of supply chain
 Current trends in supply chain management

Classification: Internal
What is Supply Chain?
Objectives, Importance
Supply Chain Flow

Information

Supplier Product Supplier

Funds

Classification: Internal
 Supply Chain Decision Phases

 Supply Chain Strategy or Design: Longer Term decisions

 Supply Chain Planning: 1 quarter - 1 year view

 Supply Chain Operation: Daily and weekly activity

Classification: Internal
 Process View of Supply Chain
 Macro Processes in Firm:

Classification: Internal
 Process View of Supply Chain
 Cycle View:  Push/Pull View:

Classification: Internal
 Example: Toyota
 Japanese top Auto Manufacturer
A global manufacturer like Toyota needs following
 Significant growth in global market
questions to address for supply chain strategic decision:

 Where should the plants be located? What capacity

should each plant should have? What degree of
flexibilities to be built into the factories?

 Should factories produce for all markets or specific

markets

 How should markets be allocated to plants? How

frequently this allocation be revised?

 How do they distribute cars into markets having no

plants?

Classification: Internal
 Example: ????
Pick any local company: ??

Analyze and discuss the supply chain strategy, practice

Classification: Internal
 Supply Chain Planning and Design

 What is ERP? How It connects the functional units? Controls and integrated performance
evaluation and effectiveness
 MRP: Understanding Material Requirement Planning system
 Demand Forecasting in supply chain
 Managing Demand and Supply Chain, Sales and Operational Planning process
 Designing Supply Chain Network
 Designing Global Supply Chain network
 Onshore or Offshore?

Classification: Internal
 Supply Chain Planning and Design
What is ERP? How It connects the functional units? Controls and integrated performance evaluation
and effectiveness

Classification: Internal
 Supply Chain Planning and Design
What is ERP? How It connects the functional units? Controls and integrated performance evaluation
and effectiveness

Classification: Internal
 Supply Chain Planning and Design
MRP: Understanding Material Requirement Planning system

Material requirements
planning (MRP) is a system
for calculating the materials
and components needed to
manufacture a product

Classification: Internal
 Supply Chain Planning and Design
Demand Forecasting in supply chain

Demand forecasting is the process

of using predictive analysis of
historical data to estimate and
predict customers' future demand
for a product or service.

Demand forecasting helps the

business make better-informed
supply decisions that estimate the
total sales and revenue for a
future period of time

Classification: Internal
 Supply Chain Planning and Design
Supply Chain Design Network

How many Manufacturing Plants?

How many Production lines?
Where should the Distribution centers locate?
Which products should the plant produce?
Where to set up stores?
How to distribute products?

Classification: Internal
 Supply Chain Planning and Design
Designing Global Supply Chain

Why Global Supply Chain??? Key Considerations of GSC- Total Cost

Apparels - Order Communication

Electronics - Supply Chain Visibility
Services- IT - Raw materials Cost
- Unit Cost
- Freight Cost
- Taxes and Tariffs
- Supply Lead Time
- Ontime Delivery
- Minimum Order Qty
- Product Returns
- Inventories
- Working Capital
- Hidden Cost (Forex rates)
- Stockouts

Classification: Internal
 Supply Chain Planning and Design
Designing Global Supply Chain Onshore Vs. Offshore

Classification: Internal
 Supply Chain Process
 Procurement, Sourcing and Purchasing in Supply Chain Management
 Manufacturing in a Supply Chain Context;
 Inventory Management
 Logistics, distribution, transportation and Warehousing in a Supply Chain
 Returns Management
 Customer Service in a Supply Chain
 Order Fulfillment
 Lean and six sigma in the supply Chains

Classification: Internal
 Supply Chain Process
Procurement, Sourcing and Purchasing in Supply Chain Management
Key Components in Supply Chain

Procurement: Overall process of identifying,

evaluating, selecting, and acquiring goods
and services from suppliers.

It involves strategic planning, establishing

supplier relationships, negotiating contracts,
and managing the procurement lifecycle.

The goal of procurement is to ensure that the

organization obtains the right goods or
services at the right time, quantity, quality,
and price

Sourcing: involves identifying and evaluating potential Purchasing: actual transactional process of buying goods
suppliers who can provide the required goods and services. and services from selected suppliers.

It includes activities such as supplier identification, supplier It includes activities such as issuing purchase orders,
evaluation, supplier selection, and supplier relationship managing order changes, coordinating delivery schedules,
management. and handling supplier payments.

Sourcing aims to find the most suitable suppliers based on Purchasing focuses on executing the procurement activities
criteria such as quality, cost, reliability, capacity, and in line with the agreed-upon terms and conditions, ensuring
location. timely delivery and adherence to quality standards.

Classification: Internal
 Supply Chain Process
Procurement, Sourcing and Purchasing in Supply Chain Management
Key considerations in procurement, sourcing, and purchasing include:

1. Supplier relationship management: Developing and maintaining strong relationships with suppliers to enhance collaboration, trust, and

long-term value creation.

2. Cost management: Optimizing costs through negotiation, volume discounts, competitive bidding, and effective supplier selection.

3. Quality management: Ensuring that goods and services meet the organization's quality requirements and standards.

4. Risk management: Identifying and mitigating potential risks associated with suppliers, such as supply chain disruptions, quality issues, or

non-compliance with regulations.

5. Ethical and sustainable sourcing: Considering environmental and social factors when selecting suppliers, promoting responsible practices and

ensuring compliance on ethical standards.

6. Technology utilization: Leveraging procurement and supply chain management software for efficient process automation, data analysis,

supplier collaboration, and performance tracking.

Classification: Internal
 Supply Chain Process Manufacturing within the supply chain context
involves several key aspects:

Manufacturing in a Supply Chain Context 1.Production Planning

2.Inventory Management
3.Procurement of Raw Materials
Manufacturing: a crucial component of
the supply chain that involves 4.Production Processes
transforming raw materials or
5.Quality Control:
components into finished products.
6.Supply Chain Coordination
It is an integral part of the supply chain,
7.Continuous Improvement:
where efficient and effective production
processes contribute to meeting customer 8.Sustainability and Environmental Considerations
demands, minimizing costs, maintaining
product quality, and ensuring the overall
success of the supply chain network.

Classification: Internal
 Supply Chain Process
Inventory Management
Various Activities in Inventory Management
Inventory management is a critical component 1.Demand Forecasting:
of supply chain management. It involves 2.Inventory Classification: The ABC analysis categorizes items into three groups: A items
overseeing the flow and control of goods and
materials within an organization. (high-value, low-volume), B items (moderate-value, moderate-volume), and C items
(low-value, high-volume). This classification helps prioritize inventory management
Effective inventory management aims to strike a
balance between meeting customer demand and efforts and allocate resources efficiently.
minimizing inventory holding costs. 3.Safety Stock Management:
4.Reorder Point and Order Quantity Determination:
5.Economic Order Quantity
6.Inventory Tracking and Monitoring: RFID, Barcode, ERP
7.Inventory Optimization: Just-in-Time (JIT), Vendor-Managed Inventory (VMI)
8.Inventory Turnover and Performance Measurement: Inventory turnover ratio, fill rate,
stockout rate, and carrying cost.
9.Collaboration and Communication: suppliers, manufacturers, distributors, and
retailers. Sharing demand forecasts, production plans, and inventory data helps align
supply and demand, reduce lead times, and optimize inventory levels across the supply
chain.
Classification: Internal
 Supply Chain Process
Logistics, distribution, transportation and Warehousing in a Supply Chain

Classification: Internal
 Supply Chain Process
Logistics, distribution, transportation and Warehousing in a Supply Chain
Transportation

Distribution Network Design

Warehousing
Classification: Internal
 Supply Chain Process
Returns Management

Classification: Internal
 Supply Chain Process
Customer Service in a Supply Chain

Classification: Internal
 Supply Chain Process
Customer Service in a Supply Chain
Key Elements of Customer Service:
Customer Service is a vital aspect of any business or
organization that interacts with customers. It helps build 1.Communication: Interacting with customers through multiple channels, such as phone, email, chat, or
trust, loyalty, and positive brand perception, leading to in-person, to understand their needs, provide information, and address their queries or problems.
increased customer retention, repeat business, and
positive word-of-mouth recommendations. 2.Problem-solving: Identifying and resolving customer issues or complaints in a timely and efficient
manner. Customer service representatives often require good problem-solving skills and product
knowledge to offer appropriate solutions.

3.Product knowledge: Having a deep understanding of the products or services offered by the company
to provide accurate information, guidance, and recommendations to customers.

4.Empathy: Showing empathy and understanding towards customers' concerns and frustrations, and
treating them with respect and courtesy. Empathetic customer service can help create a positive
emotional connection with customers.

5.Timeliness: Responding to customer inquiries or resolving issues promptly to minimize waiting times
and demonstrate a commitment to customer satisfaction.

6.Personalization: Tailoring the customer service experience based on individual needs and preferences
to provide a personalized and customized experience. This may include remembering customer
preferences, previous interactions, and providing personalized recommendations or solutions.

7.Continuous improvement: Regularly seeking customer feedback and using it to improve processes,
products, and services. Businesses that prioritize continuous improvement in customer service can adapt
and evolve based on customer needs and expectations.

Classification: Internal
 Supply Chain Process
Order Fulfillment

Order fulfillment refers to the entire process

involved in receiving, processing, and
delivering customer orders. It encompasses
various steps from the moment an order is
placed to the moment the customer receives
the products or services they have purchased

Classification: Internal
 Supply Chain Process
Lean and six sigma in the supply Chain

Lean:
Lean principles focus on eliminating waste and maximizing value in processes. In the
supply chain context, Lean aims to streamline operations, reduce lead times, and
enhance overall efficiency.

Here are some key Lean concepts and their application in the supply chain:

a. Value Stream Mapping (VSM): VSM helps identify and analyze the flow of materials,
information, and activities throughout the supply chain. It helps visualize the value-
added and non-value-added steps, enabling organizations to eliminate waste,
optimize processes, and improve customer value.

b. Just-in-Time (JIT): JIT is a Lean practice that emphasizes the delivery of materials
and products at the exact time they are needed. By synchronizing supply with
demand, organizations can reduce inventory holding costs, minimize lead times, and
enhance responsiveness to customer demands.

c. Kanban: Kanban is a visual signaling system used to manage inventory levels and
control the flow of materials. By using visual cues, organizations can maintain
optimal stock levels, reduce excess inventory, and ensure a smooth flow of goods
within the supply chain.

d. Continuous Improvement: Continuous improvement is a core principle of Lean. It

involves empowering employees to identify and address problems, inefficiencies, or
bottlenecks in the supply chain. By fostering a culture of continuous improvement,
organizations can drive ongoing enhancements and sustain Lean practices.

Classification: Internal
 Supply Chain Process
Lean and six sigma in the supply Chain

Six Sigma:

Six Sigma focuses on reducing process variations and improving quality by applying statistical tools and
methodologies. When applied in the supply chain, Six Sigma aims to minimize defects, errors, and variability,
ultimately leading to better customer satisfaction.

Here are some key Six Sigma concepts in supply chain management:

a. DMAIC: DMAIC (Define, Measure, Analyze, Improve, Control) is the structured problem-solving
approach used in Six Sigma. It helps identify process inefficiencies, measure performance metrics,
analyze root causes, implement improvements, and establish control mechanisms to sustain the
improvements.

b. Statistical Process Control (SPC): SPC involves using statistical techniques to monitor and control the
variation in processes. By applying control charts and data analysis, organizations can identify trends,
detect abnormalities, and take corrective actions to maintain process stability and quality within the
supply chain.

c. Process Capability Analysis: Process capability analysis helps assess whether a process is capable of
meeting customer requirements. It involves analyzing process data and determining the process
capability index to quantify the level of process performance and identify areas for improvement.

d. Design for Six Sigma (DFSS): DFSS focuses on designing new products, services, or processes with a
focus on quality and customer requirements. In the supply chain context, DFSS can be applied during the
design and development of new logistics systems, warehousing layouts, or transportation networks to
ensure optimal performance and efficiency.
Classification: Internal
 Supply Chain Process
Lean and six sigma in the supply Chain

By combining Lean and Six Sigma principles,

organizations can optimize supply chain processes,
reduce waste, enhance quality, improve lead times,
and increase customer satisfaction. These
methodologies provide a structured approach and
toolbox of techniques to drive continuous
improvement in supply chain operations.

Classification: Internal
 Supply Chain Integration Issues
 Supply Chain Process Integration:
 Supply Chain Management Integration Model
 Factors Driving Supply Chain Integration
 Benefits and obstacles to Process Integration along the Supply Chain
 Managing Supply Chain Risk and Security

 Performance Measurement along Supply Chain:

 Supply chain as a competitive force
 Traditional performance measures
 World Class performance measurement system
 Drivers of Supply Chain Performance
 The Balanced Scorecard and SCOR Model

Classification: Internal
 Supply Chain Integration Issues:
Supply Chain Management Integration Model

Vertical Integration: Horizontal Integration:

Vertical integration involves the integration of different Horizontal integration focuses on integrating similar
stages of the supply chain, typically through ownership or entities or organizations at the same stage of the
strategic partnerships. It can include backward integration supply chain. It often involves collaboration between
(acquiring suppliers) or forward integration (acquiring companies operating in the same industry or sharing
distributors or retailers). Vertical integration allows similar markets. Horizontal integration enables
organizations to have more control over the supply chain, organizations to pool resources, share best practices,
reduce dependency on external entities, and optimize and achieve economies of scale, leading to cost
processes. reductions and enhanced market competitiveness.
Classification: Internal
 Supply Chain Integration Issues:
Factors Driving Supply Chain Integration
Several factors drive the need and adoption of supply chain integration. 5.Risk Management: Supply chain disruptions, such as natural disasters, geopolitical
These factors can vary depending on the industry, market conditions, and events, or supplier failures, can have severe impacts on business operations.
organizational goals. Integration facilitates better risk management by improving visibility into the supply
chain, enabling proactive monitoring and mitigation of potential risks. Collaboration
Here are some key drivers of supply chain integration: and information sharing with partners help identify and address vulnerabilities,
ensuring continuity of operations.
1.Globalization: Organizations often have suppliers, manufacturers, and customers
located across different countries, leading to complex logistics and coordination 6.Technology Advancements: The rapid advancement of technology has significantly
challenges. Supply chain integration helps streamline processes, improve influenced supply chain integration. Digitalization, IoT (Internet of Things), cloud
communication, and enhance visibility across geographically dispersed entities. computing, data analytics, and artificial intelligence enable real-time data sharing,
predictive analytics, and automation of processes. These technologies provide the
2.Customer Expectations: Customers now expect faster delivery, personalized foundation for seamless integration, efficient communication, and collaborative
products, and seamless service experiences. Integration allows organizations to better decision-making.
understand customer needs, collaborate with partners to meet those needs, and 7.Regulatory and Compliance Requirements: Compliance with regulations, standards,
provide a unified and consistent customer experience throughout the supply chain. and industry requirements is crucial for many organizations. Supply chain integration
helps ensure transparency, traceability, and adherence to regulatory obligations.
3.Competitive Advantage: Organizations realized that an efficient, responsive, and Integrated systems enable the efficient exchange of information, accurate record-
agile supply chain can differentiate them from competitors. Integration enables better keeping, and compliance monitoring throughout the supply chain.
coordination, faster response times, and improved supply chain performance, leading
to enhanced customer satisfaction and market competitiveness. 8.Sustainability and Social Responsibility: Increasing emphasis on sustainability and
social responsibility has driven the need for supply chain integration. Integration
4.Cost Reduction and Efficiency: Supply chain integration offers opportunities for cost allows organizations to assess and improve the environmental and social impact of
reduction and improved operational efficiency. By eliminating redundancies, their supply chains. It enables collaboration with suppliers, tracking of sustainability
optimizing processes, and enhancing collaboration, organizations can reduce inventory metrics, and implementation of responsible sourcing and production practices.
costs, transportation expenses, and lead times. Integration also helps minimize errors,
delays, and inefficiencies resulting from manual or disconnected systems.

Classification: Internal
 Supply Chain Integration Issues:
Benefits and obstacles to Process Integration along the Supply Chain

Benefits of Process Integration along the Supply Chain:

1.Improved Efficiency: Process integration enables streamlined operations, eliminates

redundancies, and reduces delays, resulting in increased efficiency throughout the supply
chain. Integrated processes reduce manual handoffs, minimize errors, and enhance overall
productivity.

2.Enhanced Visibility: Integration provides real-time visibility into supply chain activities,
enabling organizations to track inventory, monitor production, and manage logistics more
effectively. Improved visibility helps identify bottlenecks, optimize resource allocation, and
respond quickly to changes in demand or supply.

3.Increased Collaboration: Process integration fosters collaboration and information sharing

among supply chain partners. It enables better communication, coordination, and alignment of
activities across different entities. Collaboration enhances decision-making, facilitates joint
planning, and enables faster problem resolution.

4.Cost Reduction: Integration eliminates waste, reduces inventory levels, and optimizes
transportation and logistics processes. By streamlining operations, organizations can achieve
cost savings in areas such as inventory carrying costs, transportation expenses, and order
processing.

5.Improved Customer Service: Integrated processes enable organizations to respond quickly to

customer demands, reduce lead times, and enhance overall service levels. With better
coordination and information sharing, organizations can provide accurate and timely
information to customers, resulting in improved customer satisfaction.
Classification: Internal
 Supply Chain Integration Issues:
Benefits and obstacles to Process Integration along the Supply Chain
Obstacles and Challenges to Process Integration along the Supply Chain:

1.Resistance to Change: Implementing process integration often requires changes to existing systems,
processes, and organizational structures. Resistance to change from employees and stakeholders can pose a
significant obstacle to integration efforts. Overcoming resistance requires effective change management
strategies, clear communication, and employee involvement.

2.Technology Integration: Integrating processes often involves integrating different technology systems and
platforms used by supply chain partners. Incompatibility between systems, data sharing challenges, and
integration complexities can hinder smooth integration. Organizations need to invest in compatible technology
infrastructure and establish data sharing protocols.

3.Information Sharing and Trust: Process integration relies on sharing sensitive information among supply chain
partners. Establishing trust and ensuring data security can be a challenge. Organizations need to develop robust
information sharing protocols, address data privacy concerns, and establish clear guidelines for data sharing and
protection.

4.Cultural and Organizational Differences: Supply chain integration may involve collaborating with partners
from different organizational cultures, structures, and practices. Cultural and organizational differences can lead
to challenges in aligning processes, communication styles, and decision-making approaches. Building strong
relationships, establishing common goals, and fostering open communication are essential to overcome these
challenges.

5.Complexity and Scale: Large and complex supply chains involve numerous entities, locations, and processes.
Integrating such complex networks can be challenging due to the sheer scale of operations and the complexity
of coordination. Organizations need to carefully plan integration efforts, break down the process into
manageable steps, and leverage technology tools to manage complexity effectively.

Classification: Internal
 Supply Chain Integration Issues:
Managing Supply Chain Risk and Security

Supply chains are susceptible to various risks that can disrupt operations, impact 6.Financial Risk: Financial risks in the supply chain include exchange rate fluctuations, payment
performance, and lead to financial losses. Identifying and managing these risks is crucial for delays, credit risks, and cost volatility. These risks can impact profitability, cash flow, and
ensuring supply chain resilience. Here are some common risks in the supply chain: financial stability. Organizations need to assess and manage financial risks in their supply chain
relationships and develop contingency plans.
1.Demand Risk: Fluctuations in customer demand can create challenges in supply chain
planning and inventory management. Demand volatility, changing customer preferences, and 7.Cybersecurity and Data Privacy Risk: With increased digitalization, supply chains are
unpredictable market conditions can lead to stockouts or excess inventory, affecting customer vulnerable to cyber threats, data breaches, and information security risks. Unauthorized access
satisfaction and profitability. to sensitive data, disruption of digital systems, or theft of intellectual property can have severe
consequences on supply chain operations, customer trust, and regulatory compliance.
2.Supply Disruption: Disruptions in the supply of materials, components, or finished goods can
occur due to various factors such as natural disasters, political instability, labor strikes, supplier 8.Regulatory and Compliance Risk: Compliance with regulations and standards across different
bankruptcy, or transportation disruptions. These disruptions can result in delays, shortages, countries and industries is essential for supply chain operations. Failure to comply with legal
increased costs, and potential reputational damage. requirements, trade regulations, safety standards, or environmental regulations can result in
penalties, legal issues, and reputational damage.
3.Supplier Risk: Suppliers play a critical role in the supply chain, and any issues related to
supplier performance, quality, or reliability can pose risks. Supplier failures, quality defects, 9.Geopolitical and Trade Risk: Political instability, trade disputes, tariffs, and changes in
capacity constraints, or unethical practices can disrupt operations, impact product/service government policies can create uncertainty and disruption in the supply chain. Geopolitical
quality, and damage the organization's reputation. events, such as political unrest, terrorism, or war, can impact transportation routes, border
controls, and trade relationships, affecting the flow of goods and services.
4.Inventory Risk: Inventory-related risks include holding excessive inventory levels,
obsolescence, and stockouts. Holding excessive inventory ties up capital and incurs carrying 10.Natural Disasters and Climate Change: Natural disasters, including earthquakes, hurricanes,
costs, while stockouts can lead to lost sales and dissatisfied customers. Balancing inventory floods, and wildfires, can have severe impacts on supply chain operations. Climate change-
levels and accurately forecasting demand is crucial to mitigate these risks. related events, such as extreme weather patterns, rising sea levels, or resource scarcity, can
also disrupt supply chains, damage infrastructure, and disrupt logistics.
5.Quality Risk: Quality issues can arise at any stage of the supply chain, including substandard
raw materials, production defects, or inadequate quality control processes. Poor quality can To mitigate these risks, organizations should adopt a proactive approach to supply chain risk
result in product recalls, rework costs, customer dissatisfaction, and damage to the brand management. This includes conducting risk assessments, developing risk mitigation strategies,
image. establishing contingency plans, diversifying suppliers, enhancing visibility and transparency,
fostering collaboration, and investing in technologies for real-time monitoring and response.
Classification: Internal
 Performance Measurement in Supply Chain:
Supply chain as a competitive force
Supply chain management has evolved from being a mere support function to a strategic enabler and a competitive
force in today's business landscape. Here are some ways in which supply chain management contributes to a company's
competitive advantage:

1.Cost Efficiency: Cost savings can be passed on to customers, resulting in competitive pricing or increased profit margins.

2.Service Differentiation: A well-managed supply chain ensures product availability, on-time delivery, and effective after-
sales support, leading to customer loyalty and a competitive edge.

3.Speed and Agility: Speed and agility are critical competitive factors. Organizations with agile supply chains can quickly
adjust production volumes, respond to market trends, and launch new products or services ahead of competitors.

4.Innovation and Collaboration: By working closely with suppliers, partners, and customers, organizations can leverage
their collective knowledge and expertise to drive innovation in product design, process improvement, and customer
solutions.

5.Risk Mitigation and Resilience: By identifying potential risks, implementing contingency plans, and diversifying suppliers,
companies can reduce the impact of disruptions such as natural disasters, supplier failures, or market fluctuations.

6.Sustainability and Ethical Practices: Supply chain management is increasingly being scrutinized for sustainability and
ethical practices. Organizations that incorporate sustainable sourcing, responsible production, and ethical supply chain
practices can differentiate themselves in the market

7.Supply Chain Analytics and Insights: Analyzing supply chain data allows organizations to identify trends, optimize
processes, and make informed decisions. Data-driven supply chain analytics can improve forecasting accuracy, optimize
inventory levels, and identify areas for continuous improvement, resulting in a competitive edge.

To leverage supply chain as a competitive force, organizations must invest in supply chain capabilities, foster
collaboration with partners, embrace technology advancements, and continuously adapt to market dynamics. By
strategically managing their supply chains, companies can gain a competitive advantage, improve profitability, and
achieve long-term success.
Classification: Internal
 Performance Measurement in Supply Chain:
Traditional Vs. World Class Performance Measures

Traditional performance measures in the supply chain focus on key operational and financial metrics that assess efficiency, effectiveness, and customer satisfaction. These metrics are essential for
day-to-day operations and evaluating the performance of supply chain activities.
On the other hand, world-class performance measures of the supply chain go beyond these traditional metrics and encompass broader strategic aspects that drive competitive advantage and
excellence. Here's a comparison of traditional performance measures and world-class performance measures in the supply chain:

World-Class Performance Measures in Supply Chain: 6.Total Cost of Ownership (TCO): Considers the total cost incurred throughout the
product lifecycle, including procurement, production, transportation, inventory
Traditional Performance
1.Supply Chain Responsiveness: Measures the ability of the supply chain to quickly holding, and end-of-life disposal. TCO reflects a more comprehensive view of costs
Measures in Supply Chain:
adapt to changes in demand, supply, and market conditions. It includes metrics like and helps in better decision-making.
lead time reduction, flexibility in production, and responsiveness to customer needs.
1.On-time Delivery 7.Supply Chain Risk Management: Measures the effectiveness of risk identification,
2.Supply Chain Agility: Measures the supply chain's capability to respond to mitigation, and recovery strategies in the supply chain. Metrics may include the
2.Order Fill Rate unexpected disruptions, market shifts, and new opportunities. Agility metrics number of risk events, response time to disruptions, and the effectiveness of risk
consider risk management, scenario planning, and the ability to reconfigure the management plans.
3.Inventory Turnover
supply chain swiftly.
4.Perfect Order Rate 8.Supply Chain Talent Development: Evaluates the investment in developing supply
3.Supply Chain Collaboration: Evaluates the level of collaboration and information chain talent and the capability of the workforce to drive supply chain excellence.
5.Supply Chain Cycle Time
sharing among supply chain partners. Metrics may include supplier collaboration, Metrics may include training hours, employee satisfaction, and skill development
6.Transportation Cost joint planning, and shared innovation. programs.
7.Cash-to-Cash Cycle Time
4.Sustainability and Environmental Metrics: Measures the supply chain's 9.Supplier Innovation and Collaboration: Measures the level of supplier
8.Return on Investment (ROI) environmental impact, resource usage, and adherence to sustainable practices. involvement in the innovation process and the extent of collaboration in driving
Metrics may include carbon footprint reduction, waste management, and continuous improvement.
9.Supplier Performance
sustainable sourcing.
10.Customer Satisfaction 10.Supply Chain Resilience: Assesses the ability of the supply chain to bounce back
5.Supply Chain Innovation: Assesses the ability of the supply chain to foster and and recover quickly from disruptions or unforeseen events. Resilience metrics
implement innovation in processes, products, and technologies. Metrics may include include recovery time, alternative sourcing strategies, and post-disruption
the number of new products introduced, process improvement projects, and patent performance.
applications.
Classification: Internal
 Performance Measurement in Supply Chain:
Drivers of Supply Chain Performance
Several drivers influence supply chain performance and contribute to its overall 6.Supplier Management: This includes selecting reliable suppliers, establishing clear
effectiveness and efficiency. These drivers can vary depending on the specific industry, performance expectations, and building strong relationships. Collaborative supplier
company, and supply chain characteristics. Here are some common drivers of supply chain partnerships ensure timely delivery, quality assurance, cost efficiency, and innovation.
performance:
7.Logistics and Transportation: The efficient management of logistics and transportation is
1.Supply Chain Strategy: A well-defined and aligned supply chain strategy sets the direction crucial for supply chain performance. This driver involves optimizing transportation routes,
and goals for the supply chain. It includes decisions on sourcing, production, distribution, and modes of transportation, carrier selection, and minimizing lead times. Effective logistics
customer service. A clear strategy helps in prioritizing actions, resource allocation, and management reduces transportation costs, improves delivery reliability, and enhances
performance measurement. customer service.

2.Collaboration and Integration: Collaboration and integration among supply chain partners, 8.Continuous Improvement and Lean Practices: Embracing continuous improvement
including suppliers, manufacturers, distributors, and customers, are crucial drivers of supply methodologies, such as Lean and Six Sigma, can drive supply chain performance. These
chain performance. Effective collaboration fosters information sharing, joint decision-making, practices focus on eliminating waste, streamlining processes, improving quality, and
and coordination, leading to improved efficiency, responsiveness, and innovation. enhancing overall efficiency.

3.Technology and Information Systems: The effective use of technology and information 9.Risk Management: Supply chain risk management is essential to identify, assess, and
systems can significantly enhance supply chain performance. Technologies such as enterprise mitigate potential risks that can disrupt supply chain operations. Effective risk management
resource planning (ERP) systems, supply chain visibility platforms, warehouse management strategies help organizations prepare for and respond to supply chain disruptions caused by
systems (WMS) enable real-time data sharing, automation, process optimization, and better factors like natural disasters, geopolitical events, supplier issues, or demand fluctuations.
decision-making.
10.Performance Measurement and Metrics: Establishing key performance indicators (KPIs)
4.Demand Planning and Forecasting: Organizations need to forecast customer demand and measuring performance against set targets is critical for driving supply chain
accurately, considering factors like historical data, market trends, customer insights, and performance. Metrics such as on-time delivery, order accuracy, inventory turns, customer
seasonality. Effective demand planning helps optimize inventory levels, reduce stockouts, and satisfaction, and financial indicators help identify areas for improvement and monitor
improve customer service. progress.

5.Inventory Management: Efficient inventory management is a critical driver of supply chain These drivers are interconnected and require a holistic approach to achieve optimal supply
performance. Organizations need to balance inventory levels to avoid excess stock or chain performance. Organizations should regularly evaluate and refine their supply chain
stockouts. Optimized inventory management reduces holding costs, improves cash flow, and strategies, invest in technology and infrastructure, foster collaboration, and continuously
enhances customer satisfaction. monitor and improve key drivers to enhance their supply chain performance.
Classification: Internal
 Performance Measurement in Supply Chain:
The Balanced Scorecard and SCOR Model
SCOR Model

Classification: Internal
 Performance Measurement in Supply Chain:
The Balanced Scorecard and SCOR Model
SCOR Model

Classification: Internal
 Emerging Issues in Supply Chain
 Information Technology in Supply Chain
 E Business and Supply Chain
 Financial Flow is Supply Chain
 Recent Developments and Issues in Supply Chain

Classification: Internal
 Emerging Issues in Supply Chain
Information Technology in Supply Chain

Classification: Internal
 Emerging Issues in Supply Chain
E Business and Supply Chain

Classification: Internal
 Emerging Issues in Supply Chain
Financial Flow in Supply Chain

Classification: Internal
 Emerging Issues in Supply Chain
Recent Developments and Issues in Supply Chain

Issues: Trends:

1) Material Scarcity 1) Resilience

2) Increasing Freight Cost 2) Digital Supply Chain Twins
3) Difficult Demand Forecasting 3) Supply Chain as a service (SCaaS)
4) Port Congestion 4) Circular Supply Chain
5) Changing Customer Attitude 5) Cloud Based Products
6) Digital Transformation 6) AI and IoT
7) Restructuring 7) Robotics and Automation
8) Inflation 8) Capacity Crunch
9) FOREX Crisis 9) 5G Network

Classification: Internal
 Syllabus Structure Total Marks 50
Marketing 25
Supply Chain 25

Classification: Internal
 Thank You!

Classification: Internal