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:
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 i.

 The Supply Chain Concept consists of all parties involved (directly and/or indirectly), in fulfilling customers requests. The parties involved are: - Manufacturers - Suppliers - Transporters - Warehouses - Retailers - Customers
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What does the Supply Chain Concept consist of?

Supply Chain Concept

The Supply chain Concept may also include: - New product development - Marketing - Operations - Distribution - Finance - Customer service
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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

Supplier

Organization
Source Prof. Dr. Ted Lees Class Presentation - 2010

Customer

Extended Supply Chain

Supplier Suppliers suppliers

Organization

Customer

Customers customers
Source Prof. Dr. Ted Lees Class Presentation - 2010

Ultimate Supply Chain

3rd Party Logistic Supplier

Supplier Ultimate

Organization

Customer

supplier

Ultimate customer
Financial Provider Market Research
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Source Prof. Dr. Ted Lees Class Presentation - 2010

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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: EXECUTIVE COMMITTEE Organisational Structure ( 5 MEMBERS) Operations/Supply chain The Code 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: 14 35 TIFFINS

ZONES FOR DESTINATION GRANT ROAD (12) 1 2

POINT OF SORTING

CHURCH GATE (1-10)

A E

3 4 5

LOWER PAREL (14)

6 DISTRIBUTION BY CARRIER AT LUNCHTIME TO OFFICES

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COLLECTION FROM HOME

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)

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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