CU-MBA-SEM-IV-Sales And Distribution Management-Second Draft

12.7 LEARNING ACTIVITY 1. Is Apple supply chain really the number one? Discuss. ___________________________________________________________________________ ___________________________________________________________________________ 2. Give an example of supply chain disaster and lesson learnt from it? ___________________________________________________________________________ ___________________________________________________________________________ 12.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define supply chain management. 2. Explain the importance of supply chain management. 3. What are the intermediaries in the supply chain? 4. Discuss delivery of supply chain. 5. What is regional distribution centre? Long Questions 1. Explain evolution of supply chain management. 2. Explain the drivers of supply chain management. 3. Explain supply chain with the help of example. 4. What is responsiveness and efficiency of supply chain? Explain. 5. Discuss the common bottlenecks found in supply chain. B. Multiple Choice Questions 1. Which is the initial stage of supply chain process? a. Sourcing Stage b. Organizing Stage c. Planning stage d. Directing Stage 2. Who coined the term supply chain management? 251 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Frankel & Paulraj b. Peter Drucker c. Keith Oliver d. Philip Kotler 3. Which is the next step after planning in supply chain management? a. Developing b. Building a strong relationship with suppliers c. Sourcing d. Developing, sourcing and building strong relationship with suppliers. 4. What does ATP stands for in supply chain management? a. Acquire Track & Perform b. Available To Promise c. Active Transport Protocol d. Access To Point 5. What is the purpose of supply chain management? a. increase the production level b. manage and integrate supply and demand management c. enhance the quality of a product and services d. provide satisfaction to the customer Answers 1- c, 2- c, 3-d, 4- b, 5- b 12.9 REFERENCES References  Bell, S.J., Whitewall, G.J. and Lukas, B.A. (2002). Schools of Thought in Organizational Learning. Academy of Marketing Science.  Booz & Company (2007). Keeping Inventory and Profits off the Discount Rack: Merchandise Strategies to Improve Apparel Margins. San Francisco, CA: Booz Allen and Hamilton. 252 CU IDOL SELF LEARNING MATERIAL (SLM)

 Bowersox, D.J. and Closs, D.J. (1996). Logistical Management: The Integrated Supply Chain Process. New York: The McGraw-Hill Company, Inc. Textbooks  Braithwaite, A. & Hall, D. (1999). Risky Business: Critical Decisions in Supply Chain Management. United Kingdom: LCP Ltd.  Bovet (1999). Value Webs: The Next Business Revolution. Boston, MA: Mercer Management Consulting.  Chopra, S. and Meindl, P. (2004). Supply Chain Management: Strategy, Planning and Operation. New Jersey: Prentice-Hall. Websites  https://www.investopedia.com/terms/s/scm.asp#:~:text=Supply%20chain%20manage ment%20is%20the,raw%20materials%20into%20final%20products.&text=SCM%20r epresents%20an%20effort%20by,efficient%20and%20economical%20as%20possible .  https://www.iimu.ac.in/blog/what-are-the-five-basic-components-of-a-supply-chain- management-system/  https://www.thebalancesmb.com/definition-of-supply-chain-management-2892749 253 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 13 THE BASICS OF SUPPLY CHAIN MANAGEMENT STRUCTURE 13.0 Learning Objectives 13.1 Introduction 13.2 Definition of Supply Chain Management 13.3 Evolution of the Concept of Supply Chain Management 13.4 Key Drivers of Supply Chain Management 13.5 Summary 13.6 Keywords 13.7 Learning Activity 13.8 Unit End Questions 13.9 References 13.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Define supply chain management.  Explain the evolution of the concept of supply chain management.  Discuss the key drivers in supply chain management. 13.1 INTRODUCTION Inventory network the executives is the administration of the progression of labour and products and incorporates all cycles that change crude materials into eventual outcomes. It includes the dynamic smoothing out of a business' inventory side exercises to amplify client worth and gain an upper hand in the commercial centre. SCM addresses a work by providers to create and carry out supply chains that are pretty much as productive and affordable as could really be expected. Supply chains cover everything from creation to item advancement to the data frameworks expected to coordinate these endeavours. Supply Chain Management (SCM) 254 CU IDOL SELF LEARNING MATERIAL (SLM)

Store network the executives is the administration of the progression of labour and products and incorporates all cycles that change crude materials into eventual outcomes. It includes the dynamic smoothing out of a business' stockpile side exercises to amplify client worth and gain an upper hand in the commercial centre. SCM addresses a work by providers to create and carry out supply chains that are just about as productive and practical as could be expected. Supply chains cover everything from creation to item advancement to the data frameworks expected to coordinate these endeavours. Working of Supply Chain Management Regularly, SCM endeavours to halfway control or connection the creation, shipment, and dispersion of an item. By dealing with the inventory network, organizations can reduce abundance expenses and convey items to the shopper quicker. This is finished by keeping more tight control of inner inventories, inward creation, dissemination, deals, and the inventories of organization merchants. SCM depends on the possibility that essentially every item that comes to advertise results from the endeavours of different associations that make up a store network. Despite the fact that supply chains have existed for a very long time, most organizations have as of late focused on them as a worth add to their activities. In SCM, the store network supervisor facilitates the coordination’s of all parts of the inventory network which comprises of five sections:  The plan or technique  The wellspring (of crude materials or administrations)  Manufacturing (zeroed in on usefulness and effectiveness)  Delivery and coordination’s  The return framework (for imperfect or undesirable items). The inventory network chief attempts to limit deficiencies and minimize expenses. The work isn't just about coordination’s and buying stock. As per Salary.com, store network administrators, \"make proposals to further develop usefulness, quality, and proficiency of activities.\" Enhancements in usefulness and proficiency go directly to the main concern of an organization and have a genuine and enduring effect. Great inventory network the executives keeps organizations out of the features and away from costly reviews and claims. Supply Chains 255 CU IDOL SELF LEARNING MATERIAL (SLM)

A production network is the associated organization of people, associations, assets, exercises, and innovations engaged with the assembling and offer of an item or administration. An inventory network begins with the conveyance of crude materials from a provider to a producer and closures with the conveyance of the completed item or administration to the end buyer. SCM manages each touch point of an organization's item or administration, from introductory creation to the last deal. With such countless spots along the inventory network that can add esteem through efficiencies or lose esteem through expanded costs, appropriate SCM can build incomes, decline expenses, and affect an organization's primary concern. Example of SCM Understanding the significance of SCM to its business, Walgreens Boots Alliance Inc. set zeroed in exertion on changing its inventory network in 2016. The organization works one of the biggest drug store chains in the United States and needs to productively oversee and modify its inventory network so it remains in front of the changing patterns and keeps on enhancing its main concern. As of July 5, 2016, Walgreens has put resources into the innovation piece of its store network. It executed a forward-looking SCM that integrates important information and utilizations investigation to conjecture client buy conduct, and afterward it works its direction back up the inventory network to fulfil that normal need. For instance, the organization can expect influenza designs, which permit it to precisely conjecture required stock for over-the-counter influenza cures, making a proficient production network with minimal waste. Utilizing this SCM, the organization can lessen overabundance stock and the entirety of the inventories' related expenses, like the expense of warehousing and transportation. 13.2 DEFINITION OF SUPPLY CHAIN MANAGEMENT Inventory network the board is the act of organizing the different exercises important to create and convey labour and products to a business' clients. Contingent upon the business being referred to, this could include exercises like checking the assembling of an item, dispatching the item via air, ocean, or land; guaranteeing that it fulfils quality guidelines, and conveying the item to clients. 13.3 EVOLUTION OF THE CONCEPT OF SUPPLY CHAIN MANAGEMENT The development of store network the executives has been portrayed by an expanding level of mix of discrete undertakings; a pattern underlined during the 1960s as a critical region for 256 CU IDOL SELF LEARNING MATERIAL (SLM)

future usefulness upgrades since the framework was profoundly divided. Albeit the coordination’s assignments have remained somewhat comparable, they at first united into two particular capacities identified with materials the executives and actual dispersion during the 1970s and 1980s. This interaction moved further during the 1990s as globalization actuated a useful mix and the development of coordination’s from a genuine perspective; every one of the components of the production network turned out to be essential for a solitary administration point of view. Notwithstanding, just with the execution of present day data and correspondence advancements did a more complete combination became conceivable with the rise of production network the executives. It considers the coordinated administration and control of data, money, and merchandise streams and made conceivable another scope of creation and conveyance frameworks. Production network the board has turned into a perplexing arrangement of exercises focusing on esteem catch and intensity. All the more as of late, the developing degree of robotization of supply chains has been a prevailing component of the advancement of both actual dissemination and materials the executives. This digitalization is especially prominent inside conveyance places that have encountered a surprising push towards robotization like stockpiling, materials taking care of, and bundling. Robotization may ultimately prompt computerized conveyance vehicles. Stepwise and as indicated by upgrades in data and correspondence advancements, the two finishes of the sequential construction system became incorporated into the coordination’s of the store network: the ideal stockpile of crude materials and parts from outside and the powerful association of circulation and showcasing. High rack stockpiling, which later turned out to be consequently determined, or the inward developments of bundles by level robots were early articulations of calculated designing. At first, coordination’s were an action partitioned around the providing, warehousing, creation, and dispersion capacities, a large portion of them being genuinely free. With the new association and the board standards, firms followed a more coordinated methodology, in this manner reacting to the impending interest for adaptability without raising expenses. Simultaneously, many firms made the most of new assembling open doors in creating economies through re-appropriating and offshoring. As creation turned out to be progressively divided, exercises identified with its administration were united. Spatial fracture turned into a result of economies of scale in dissemination. 13.4 KEY DRIVERS OF SUPPLY CHAIN MANAGEMENT Store network abilities are directed by the choices you make in regards to the five store network drivers. Every one of these drivers can be created and figured out how to stress responsiveness or productivity relying upon changing business necessities. As you explore how an inventory network functions, you find out about the requests it faces and the abilities 257 CU IDOL SELF LEARNING MATERIAL (SLM)

it should be fruitful. Change the inventory network drivers depending on the situation to get those abilities. The five drivers give a valuable structure to pondering store network capacities. Choices made concerning how every driver works will decide the mix of responsiveness and effectiveness a store network is fit for accomplishing. The five drivers are shown in the chart underneath: Production This driver can be made extremely responsive by building processing plants that have a great deal of abundance limit and utilize adaptable assembling strategies to deliver a wide scope of things. To be significantly more responsive, an organization could do their creation in numerous more modest plants that are near significant gatherings of clients so conveyance times would be more limited. On the off chance that proficiency is alluring, an organization can construct processing plants with next to no overabundance limit and have those production lines upgraded for delivering a restricted scope of things. Further effectiveness can likewise be acquired by incorporating creation in huge focal plants to improve economies of scale, despite the fact that conveyance times may be longer. Inventory Responsiveness can be had by loading undeniable degrees of stock for a wide scope of items. Extra responsiveness can be acquired by loading items at numerous areas in order to have the stock near clients and accessible to them right away. Effectiveness in stock administration would call for decreasing stock levels, all things considered, and particularly of things that don't sell as often as possible. Additionally, economies of scale and cost investment funds can be accomplished by loading stock in a couple of focal areas, for example, territorial conveyance habitats (DCs). Location An area choice that accentuates responsiveness would be one where an organization builds up numerous areas that are near its client base. For instance, cheap food fastens use area to be extremely receptive to their clients by opening up bunches of stores in high volume markets. Proficiency can be accomplished by working from a couple of areas and concentrating exercises in like manner areas. An illustration of this is the way internet business retailers serve huge geological business sectors from a couple of focal areas that play out a wide scope of exercises. Transportation Responsiveness can be accomplished by a transportation mode that is quick and adaptable like trucks and planes. Many organizations that sell items through lists or on the Internet can give significant degrees of responsiveness by utilizing transportation to convey their items 258 CU IDOL SELF LEARNING MATERIAL (SLM)

regularly inside 48 hours or less. FedEx and UPS are two organizations that can give extremely responsive transportation administrations. Also, presently Amazon is extending and working its own transportation administrations in high volume markets to be more receptive to client wants. Proficiency can be stressed by shipping items in bigger clumps and doing it less regularly. The utilization of transportation modes like boat, railroad, and pipelines can be extremely effective. Transportation can likewise be made more proficient in case it is begun out of a focal centre point office or appropriation focus (DC) rather than from many separate branch areas. Information The force of this driver develops further each year as the innovation for gathering and sharing data turns out to be all the wider spread, simpler to utilize, and more affordable. Data, similar as cash, is an exceptionally valuable product since it tends to be applied straightforwardly to improve the exhibition of the other four inventory network drivers. Significant degrees of responsiveness can be accomplished when organizations gather and offer exact and convenient information created by the tasks of the other four drivers. An illustration of this is the stockpile chains that serve the gadgets market; they are probably the most responsive on the planet. Organizations in these stock chains, the makers, merchants, and the enormous retailers all gather and offer information about client interest, creation timetables, and stock levels. This empowers organizations in these stockpile chains to react rapidly to circumstances and new market requests in the high-change and eccentric universe of electronic gadgets (cell phone, sensors, home diversion and computer game gear, and so on). The table beneath sums up how can be dealt with guide the five inventory network drivers toward responsiveness or effectiveness. Organizations and supply chains constantly change their blend of responsiveness and proficiency as circumstances change. 259 CU IDOL SELF LEARNING MATERIAL (SLM)

Table 13.1: Supply chain driver As time goes on, the expense of Information keeps on dropping while the expense of the other four drivers keeps on rising. Organizations that utilize data to build their inward proficiency, and increment their responsiveness to outside store network accomplices will acquire the most clients and be the most productive. Challenges in Supply Chain The advanced inventory network should develop to satisfy new needs and store network difficulties, and store network supervisors need to prepare to keep everything streaming without a hitch. A blend of customer assumptions, more courses to advertise, global intricacies and different variables makes huge difficulties all through the inventory network organization.  Increased Costs Throughout the Supply Chain Overall revenues are feeling the squeeze as costs creep up all through the inventory network organization. These costs come from numerous spaces, and an absence of perceivability and responsibility for diminishing them can bring about rising functional costs. Significant supporters of expanded expenses include: Rising cost of fuel to move products by street, ocean or air  Increasing ware costs raising the expense of crude materials  Higher work costs from providers and producers 260 CU IDOL SELF LEARNING MATERIAL (SLM)

 Complex global coordination’s prompting higher charges for capacity, move and the executives of items.  Supply Chain Complexity Due to Multiple Channels to Market Customers purchase items across different channels, and as courses to showcase increment, the fundamental production network should adjust. Inventory network administrators need to foster minor departure from inventory network cycles to address every one of the channels:  Ecommerce sites selling straightforwardly to purchasers require quick last-mile conveyance and neighbourhood coordination’s.  Traditional retailers and wholesalers need huge capacity areas near significant metropolitan regions, joined with exact stock control to guarantee item accessibility.  Third-party commercial centres like Amazon require a profound comprehension of satisfaction alternatives and close consistence with their agreements.  Drop dispatching retail requires quick global administrations with the goal that customers get products rapidly. Inventory network supervisors should deal with different stock chains, outsiders and different associations to guarantee a decent end client experience, paying little mind to how they arrange and get items.  Consumer Demands Drive Need for Improved Speed, Quality and Service Shoppers have never had more decision, and each industry is confronting interruption. Each touch point with an end client should be centred on giving superb items and administrations. Quality and speed are becoming as significant as estimating with regards to buying products:  Consumers need retail products quickly and online merchandise inside a couple of days.  Products should meet the quality prerequisites requested by buyers.  Raw materials, merchandise and completed items should meet wellbeing and other consistence guidelines commanded by law, in all nations where they're accessible.  The natural sourcing of merchandise is turning out to be more imperative to morally mindful purchasers. The best items are those that meet buyer necessities of value, accessibility and cost. The basic inventory network is fundamental to addressing those necessities.  Risk in the Supply Chain Creates Pressure 261 CU IDOL SELF LEARNING MATERIAL (SLM)

Worldwide intricacy, natural changes, monetary pressing factors and exchange debates all put focus on the store network. This pressing factor can without much of a stretch transform into dangers and issues that snowball all through the organization, causing huge issues:  Suppliers, producers, coordination’s, customers and clients are spread across different nations, time regions and mainlands, requiring cautious coordination and the board.  Adding more strides to the inventory network makes remarkable intricacy for upstream and downstream accomplices.  Lack of perceivability expands the trouble of revealing, business insight and great dynamic.  Regulations, consistence and quality administration requests solid arrangements, agreements and controls with inventory network associations. Store network administrators should foster possibilities and alleviating activity intends to focus on and take out hazards and oversee issues when they happen. The Impact of Supply Chain Volatility Unpredictability and intricacy don't simply make issues at a particular point in the inventory network; rather the effect can swell all through the whole framework. Production network directors should manage these issues immediately before they make delays, excesses, bottlenecks and different issues. Political conditions and protectionism are presenting duties across shipping lanes those outcomes in extra charges, delays and expanded traditions handling time. This implies slower worldwide delivery and the capacity for rivals in various nations to exploit lower duties. Expanding volumes of universally sourced merchandise are driving up port clog. This makes extra pressing factors as boats, trucks and prepares need to hold on to stack, dump and move items. These issues are exacerbated as port specialists and administrators charge associations to store products at the port. A continuous, constant deficiency of long stretch drivers is making significant issues with shipping limit, prompting defers while moving merchandise across nations. The pressing factors on the job of the transporter are making it a less appealing calling, and coordination’s suppliers are thinking that it is harder to draw in and hold the correct individuals. These are endemic issues in the store network, and it's practically difficult to determine them on a neighbourhood or hierarchical level. All things considered, store network chiefs need to comprehend the significant issues affecting stockpile chains all throughout the planet and make solid detailing and the board intends to determine issues rapidly. 262 CU IDOL SELF LEARNING MATERIAL (SLM)

Quite a bit of this will be down to foreseeing issues before they occur, building powerful agreements and depending on solid relationship the board, coordinated effort and prioritization to limit the effect. Other Demands on the Supply Chain Different regions store network chiefs need to consider incorporate:  Speed to advertise dependent on without a moment to spare assembling – This requires conviction around the area and practicality of crude materials, parts and items.  Demand for items dependent on deals and advertising cycles – Consumer interest for product offerings should be anticipated and distinguished early and arranged into supply and assembling.  Inventory the executives dependent on adjusting accessibility and expenses – Retailers need to push through stock all the more rapidly and not have such a large amount their expense sunk into sluggish items, requiring quicker upstream store network the board.  New items require quick prototyping and improvement – Bringing another item to advertise requests a solid, quick and top-notch store network. Key Players in Global Supply Chain Global stock chains are convoluted. A regular production network could include many advances and handoffs from sourcing materials through transport and assembling to global delivery and last circulation to retailers Albeit each store network is unique, there are a few kinds of associations and regions that are normal to by far most. We'll investigate what they are, their main event and how they fit into sourcing, shipping, fabricating or conveying items. Here are the different strides in a store network and the associations in question.  If a retailer is advertising a particular item and expects there to be significant buyer interest, they advise their interest arranging region.  Sales and activities arranging (S&OP) predicts likely future interest and starts handling orders and deciding fundamental crude material and assembling needs with inventory network the board (SCM).  The orders for crude materials, handling and assembling are shipped off producers.  An assortment of makers gets the crude materials and develops them into the parts required for the end results; they move these parts into multi-purpose steel trailers.  A multi-purpose advertising organization (IMC) gets the holders and utilizations an organization of rail route and trucks to ship the materials to a terminal. 263 CU IDOL SELF LEARNING MATERIAL (SLM)

 A non-vessel working normal transporter (NVOCC) or cargo forwarder utilizations a sea transportation supplier to ship the products abroad.  A coordination’s specialist co-op (LSP) gets the products at another terminal and burdens them onto trucks rented from a gear supplier.  A transporter/useful freight proprietor (BCO) takes receipt of the products and store them in its stockroom preceding last dispersion to end clients.  The retailer sources things from the stockroom for its stores on a case by case basis to fulfil buyer need. Manufacturer A maker is an association that sources, gives or fabricates fixings, crude materials, parts, completed items or different merchandise. They then, at that point send what they produce to different associations. Makers give products to downstream inventory network associations. Those associations secure or purchase those products from the producer for ahead transport, further assembling, appropriation or deal. A maker will straightforwardly hand off products to a coordination’s or transport supplier that will convey them to the getting association. Intermodal Marketing Company (IMC) A multi-purpose promoting organization is a specific sort of coordination’s supplier that only handles multi-purpose holders like steel trailers. They stack and dump delivering compartments between boats, trucks and rail lines and may likewise move these multi- purpose holders to downstream production network associations. As particular coordination’s organizations, IMCs are possibly engaged with the inventory network when multi-purpose compartments are utilized. This implies stacking and dumping steel trailers, moving them between various sorts of transport and moving steel trailers to different associations in the store network. Terminal Terminals, ports and stops are areas where merchandise is sent, gotten, took care of, handled or in any case oversaw for ahead coordination’s. Terminals are usually utilized for moving merchandise starting with one sort of transport then onto the next, frequently in a multi- purpose steel trailer. One model would be a sea port where items are moved from a holder boat to trucks for forward transport to stockrooms. Terminals are the basic point for the sending, getting and handover of products. LSPs, NVOCCs, BCOs and IMCs all send and get products at terminals and stations and afterward transport them on to downstream associations or end clients. 264 CU IDOL SELF LEARNING MATERIAL (SLM)

Non-Vessel Operating Common Carrier (NVOCC)/Freight Forwarder A non-vessel working normal transporter controls, oversees and coordinators the exchange and transportation of fixings, crude materials, parts and completed items starting with one spot or association then onto the next. NVOCCs don't move merchandise themselves yet contract with LSPs to move products for the benefit of their customer. NVOCCs commonly direct the vehicle of merchandise. In spite of the fact that NVOCCs don't possess vessels, they will organize all vital documentation and delivery takes note. NVOCCs likewise oversee coordination’s and deal with a considerable lot of the low-level capacities. Outside the U.S., NVOCCs are known as cargo forwarders, forwarders or sending specialists. Transportation Provider A transportation supplier actually moves products starting with one area or association then onto the next. They own or rent the transportation foundation expected to actually deal with and move the merchandise and might be important for a coordinated coordination’s organization, or basically shrunk by a NVOCC or LSP This incorporates:  Ocean transportation suppliers through transport of delivery compartments on holder vessels  Rail transportation suppliers through transport of merchandise and multi-purpose compartments across the rail network on specific trains and carriages  Road transportation suppliers through trucks that transport steel trailers or other freight  Air transportation suppliers through delivery products in particular coordination’s planes. Transport suppliers are included at whatever point products need to move starting with one spot then onto the next. Regardless of whether they are not coordination’s organizations, they will be subcontracted by those associations for the exchange of items. Logistics Service Provider (LSP) Coordination’s specialist organization gives an assortment of capacities to the sending, getting, capacity, transportation and the board of products as they move through the store network. They are basically answerable for guaranteeing that merchandise gets from one point in the inventory network to another. Distinctive LSPs are engaged with a few different ways at numerous focuses in any store network. A LSP will get products from an upstream association and transport them to a downstream one. They may likewise be associated with putting away and warehousing 265 CU IDOL SELF LEARNING MATERIAL (SLM)

products, stock control, moving holders and merchandise, and bundling, cross docking, cargo sending and circulation to end clients. Equipment Providers A gear supplier makes, possesses or rents the actual foundation and resources expected to move products. Models incorporate:  Intermodal compartment suppliers that own or rent delivering holders for the safe exchange of products  Truck, suspension and trailer suppliers that own or rent trucks and trailers for street transport  Rail suppliers that own or rent trains and concentrated vehicle carriages for rail line transport  Other gear suppliers like holder transport proprietors or airship cargo proprietors Gear suppliers supply transport framework to coordination’s organizations, transport suppliers, BCOs, IMCs and NVOCCs. Supplier/Beneficial Cargo Owner (BCO) A provider/helpful load proprietor is a shipper of products who takes responsibility for merchandise when they are gotten. BCOs utilize their own coordination’s capacities to take receipt, oversee and transport products as opposed to depending on a LSP or cargo forwarder. BCOs are regularly bigger associations with enough capital and assets to have interior coordination’s capacities. BCOs incorporate huge retailers (for example Amazon, Target, and Wal-Mart), customer bundled merchandise organizations (e.g., Nestle, P&G, and Unilever), hello there tech organizations (e.g., Microsoft, Apple, and HP), car organizations (e.g., Toyota, Tesla) and different organizations, and will get products from upstream providers, makers and coordination’s organizations. In the wake of getting merchandise, they will handle them or offer them to end clients. Warehouse and Distribution Centre Stockrooms and conveyance focuses store fixings, crude materials, parts and completed items. They are liable for getting merchandise and putting away them in a fitting climate. Many stockrooms likewise work as circulation focuses, masterminding the exchange and transportation of merchandise to downstream production network associations or end clients. Stockrooms and circulation focuses are middle people in the vehicle of merchandise starting with one spot then onto the next. They hold items for the benefit of providers, and supply and disperse them to downstream associations when the interest is there. 266 CU IDOL SELF LEARNING MATERIAL (SLM)

13.5 SUMMARY  Supply chain the board is the administration of the progression of labour and products and incorporates all cycles that change crude materials into eventual outcomes. It includes the dynamic smoothing out of a business' stock side exercises to boost client worth and gain an upper hand in the commercial centre.  SCM addresses a work by providers to create and carry out supply chains that are just about as effective and prudent as could really be expected. Supply chains cover everything from creation to item advancement to the data frameworks expected to coordinate these endeavours  The advancement of inventory network the executives has been portrayed by an expanding level of coordination of discrete undertakings; a pattern underlined during the 1960s as a vital region for future usefulness enhancements since the framework was exceptionally divided. Albeit the coordination’s errands have remained moderately comparative, they at first merged into two unmistakable capacities identified with materials the executives and actual conveyance during the 1970s and 1980s.  Understanding the significance of SCM to its business, Walgreens Boots Alliance Inc. put zeroed in exertion on changing its store network in 2016. The organization works one of the biggest drug store chains in the United States and needs to effectively oversee and reconsider its production network so it remains in front of the changing patterns and keeps on enhancing its primary concern.  Supply chain abilities are directed by the choices you make with respect to the five productions network drivers. Every one of these drivers can be created and figured out how to accentuate responsiveness or effectiveness relying upon changing business necessities. These drivers are creation, stock, area, transportation and data.  An area choice that stresses responsiveness would be one where an organization builds up numerous areas that are near its client base. For instance, inexpensive food fastens use area to be extremely receptive to their clients by opening up bunches of stores in high volume markets.  Responsiveness can be accomplished by a transportation mode that is quick and adaptable like trucks and planes. Many organizations that sell items through inventories or on the Internet can give undeniable degrees of responsiveness by utilizing transportation to convey their items regularly inside 48 hours or less.  The force of this driver develops further each year as the innovation for gathering and sharing data turns out to be all the wider spread, simpler to utilize, and more 267 CU IDOL SELF LEARNING MATERIAL (SLM)

affordable. Data, similar as cash, is an extremely valuable product since it very well may be applied straightforwardly to improve the exhibition of the other four store network drivers.  Over the since a long time ago run, the expense of one driver Information keeps on dropping while the expense of the other four drivers keeps on rising. Organizations that utilize data to build their inner productivity, and increment their responsiveness to outer inventory network accomplices will acquire the most clients and be the most beneficial.  Warehouses and circulation focuses store fixings, crude materials, parts and completed items. They are answerable for getting products and putting away them in a suitable climate. Many stockrooms additionally work as dissemination focuses, masterminding the exchange and transportation of products to downstream inventory network associations or end clients.  A provider/advantageous payload proprietor is a merchant of products who takes responsibility for merchandise when they are gotten. BCOs utilize their own coordination’s capacities to take receipt, oversee and transport products as opposed to depending on a LSP or cargo forwarder. 13.6 KEYWORDS  Supply Chains- An inventory network is the associated organization of people, associations, assets, exercises, and advancements engaged with the assembling and offer of an item or administration.  Highest in Highest out (HIHO) - Most elevated in, first out (HIFO) is a stock dispersion and bookkeeping strategy wherein the stock with the greatest expense of procurement is quick to be utilized or removed from stock.  Cost of goods sold- Cost of products sold (COGS) alludes to the immediate expenses of creating the merchandise sold by an organization. This sum incorporates the expense of the materials and work straightforwardly used to make the great. It prohibits aberrant costs, for example, circulation expenses and deals power costs.  Bottleneck- A bottleneck is a state of blockage in a creation framework, (for example, a sequential construction system or a PC organization) that happens when responsibilities show up excessively fast for the creation interaction to deal with.  Bottom-line - The primary concern alludes to an organization's income, benefit, net gain, or profit per share (EPS). 268 CU IDOL SELF LEARNING MATERIAL (SLM)

13.7 LEARNING ACTIVITY 1. Is Apple supply chain really the number one? Discuss. ___________________________________________________________________________ ___________________________________________________________________________ 2. Give an example of supply chain disaster and lesson learnt from it? ___________________________________________________________________________ ___________________________________________________________________________ 13.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define supply chain management. 2. Explain the importance of supply chain management. 3. What are the intermediaries in the supply chain? 4. Discuss delivery of supply chain. 5. What is regional distribution centre? Long Questions 1. Explain evolution of supply chain management. 2. Explain the drivers of supply chain management. 3. Explain supply chain with the help of example. 4. What is responsiveness and efficiency of supply chain? Explain. 5. Discuss the common bottlenecks found in supply chain. B. Multiple Choice Questions 1. Which is the initial stage of supply chain process? a. Sourcing Stage b. Organizing Stage c. Planning stage d. Directing Stage 2. Who coined the term supply chain management? 269 CU IDOL SELF LEARNING MATERIAL (SLM)

a. Frankel & Paulraj b. Peter Drucker c. Keith Oliver d. Philip Kotler 3. Which is the next step after planning in supply chain management? a. Developing b. Building a strong relationship with suppliers c. Sourcing d. Developing, sourcing and building strong relationship with suppliers. 4. What does ATP stands for in supply chain management? a. Acquire Track & Perform b. Available To Promise c. Active Transport Protocol d. Access To Point 5. What is the purpose of supply chain management? a. increase the production level b. manage and integrate supply and demand management c. enhance the quality of a product and services d. provide satisfaction to the customer Answers 1-c, 2-c, 3-d, 4-b, 5-b 13.9 REFERENCES References  Bell, S.J., Whitewall, G.J. and Lukas, B.A. (2002). Schools of Thought in Organizational Learning. Academy of Marketing Science.  Booz & Company (2007). Keeping Inventory and Profits off the Discount Rack: Merchandise Strategies to Improve Apparel Margins. San Francisco, CA: Booz Allen and Hamilton. 270 CU IDOL SELF LEARNING MATERIAL (SLM)

 Bowersox, D.J. and Closs, D.J. (1996). Logistical Management: The Integrated Supply Chain Process. New York: The McGraw-Hill Company, Inc. Textbooks  Braithwaite, A. & Hall, D. (1999). Risky Business: Critical Decisions in Supply Chain Management. United Kingdom: LCP Ltd.  Bovet (1999). Value Webs: The Next Business Revolution. Boston, MA: Mercer Management Consulting.  Chopra, S. and Meindl, P. (2004). Supply Chain Management: Strategy, Planning and Operation. New Jersey: Prentice-Hall. Websites  https://www.investopedia.com/terms/s/scm.asp#:~:text=Supply%20chain%20manage ment%20is%20the,raw%20materials%20into%20final%20products.&text=SCM%20r epresents%20an%20effort%20by,efficient%20and%20economical%20as%20possible  https://www.iimu.ac.in/blog/what-are-the-five-basic-components-of-a-supply-chain- management-system/  https://www.thebalancesmb.com/definition-of-supply-chain-management-2892749 271 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 14EMERGING TRENDS IN SUPPLY CHAIN MANAGEMENT STRUCTURE 14.0 Learning Objectives 14.1 Introduction 14.2 Supply Chain Trends 14.3 Collaborative Strategies 14.4 Vendor Managed Inventory (VMI) 14.5 Third Party Logistics 14.6 Fourth Party Logistics 14.7 Green Supply Chain 14.8 Reverse Logistic 14.9 World Class Supply Chain 14.10 Summary 14.11 Keywords 14.12 Learning Activity 14.13 Unit End Questions 14.14 References 14.0 LEARNING OBJECTIVES  Discuss the trends and issues in the management of supply chains in the future.  Understand the collaborative strategic alliances for enhancing supply chain effectiveness.  Discuss about importance of outsourcing services like third and fourth party logistics.  Understand green supply chain strategies like reverse logistics.  Elaborate about world-class supply chains in the future. 272 CU IDOL SELF LEARNING MATERIAL (SLM)

14.1 INTRODUCTION Over the last two decades, supply chain management has shifted from a focus on integrating logistics and cutting costs to a focus on offering better products and services that add value to end customers. The problem that current supply chain systems are experiencing all across the world is managing uncertainty and understanding customers in a global market. With the use of cutting-edge information technology, efforts are being made to control demand flow, supplier collaboration, and customer service. Traditionally, firms have concentrated their efforts on intra-organizational flows over which they had some influence. Companies are increasingly recognising that supply chain management encompasses the entire chain, from inbound logistics to processing to outbound logistics, marketing and sales to customer service, as well as the reverse flow of unused materials and waste for successful value reclamation through reuse, remanufacturing, and recycling. Thisentails a vast and intricate network of suppliers, carriers, manufacturers, distributors, and customer’s Successful supply chain flow necessitates operational synchronisation via effective collaboration among the various channel stakeholders. In the ever-changing and dynamic market arena, organisations must provide world-class services to remain profitable and continue to serve society effectively. The parts that follow will go through the difficulties and patterns that supply networks are likely to embrace in the future. 14.2 SUPPLY CHAIN TRENDS There has been a change in supply networks all around the world. Internal evolution, technology advancements, and external challenges are prompting businesses to consider future supply chain structures and management. Reassess networks in terms of their capabilities and capacity. As a result, it is required. Before framing supply chains, business organisations should analyse supply chain trends policies in a chain the following are the major supply chain trends:  Autonomous technology has a far broader range of applications than autonomous vehicles. Autonomous technology is currently deployed in the form of self-moving robots in Warehouse Management Systems (WMS). Increased capacity to fully automate task chain policies has a huge impact on the supply chain.  Internet of Things (IoT): In addition to block chain technology, IoT can be used by businesses to increase supply chain visibility. The usage of IoT technology in warehouses and retail outlets can improve visibility in production and inventory 273 CU IDOL SELF LEARNING MATERIAL (SLM)

management. Furthermore, connecting sensors to shipment and delivery vehicles can provide real-time tracking data.  5G: The fifth generation of wireless technology is known as 5G. It is anticipated that uploading and downloading will be faster. This cuts down on the amount of time it takes to converse with and connect to other wireless devices. With the support of 5G, IoT allows for faster data signals and the sharing of real-time data. The utilisation of a fast wireless network in the supply chain is becoming increasingly important.  Artificial Intelligence (AI): It is a term that refers to the study of artificial intelligence. The many forms of AI technological advancements\\enable the use of AI in numerous supply chain operations. Machine Learning (ML) and natural learning processing may be included in AI technology. The supply chain benefits from AI by forecasting demand patterns and imagining future scenarios. 14.3 COLLABORATIVE STRATEGIES Through digital integration, supply chains will need to develop a coordinated strategy to manage demand flow and customer satisfaction in the future. Through collaborative product creation, synchronised production scheduling, collaborative demand planning, and logistic solutions, channel partners can acquire a better understanding of product demand flow and implement successful programmes to please customers. Effective collaboration among channel partners can aid in aligning them to increase the value of the supply chain's integrated activities. Through shared design development and modification documentation, this can help to speed up product development. It can also aid in the synchronisation of production and delivery schedules, as well as the smoothing of the material flow process, reducing inventory management issues. As a result, capacity utilisation, order fulfilment, and customer happiness may all improve. Downstream collaboration with distributors, wholesalers, and retailers can result in real-time POS data flow across the supply chain. This can aid in the development of successful forecasting and restocking strategies as well as the smoothing of demand changes throughout the supply chain. Manufacturers must accomplish one of their most important goals in order to avoid losses due to inventory excesses or shortages. Effective demand planning can be aided by a collaborative forecasting method incorporating all channel partners. Each supply chain partner should be able to forecast demand using a single, dependable source of demand 274 CU IDOL SELF LEARNING MATERIAL (SLM)

data. However, this can be possible through seamless data interchange among channel partners. Decreasing channel inventory pileups by reducing demand inconsistencies in the supply chain is a top priority since it can result in increased efficiencies and cost savings. This can be addressed through strategic partnerships (SP) or strategic alliances, which are collaborative activities (SA). Strategic partnerships such as Retailer-Supplier Partnerships (RSP), Vendor Managed Inventory (VMI), and Distributor Integration (DI) can thrive via collaborative efforts. Such strategic relationships can benefit both partners in the following ways:  Collaborative efforts to provide value to products.  Improving access to the market.  Increasing the efficiency of operations by reducing costs and cycle times.  Increasing technological flexibility and strength  Increasing strategic growth by combining partners' expertise.  Using mutual learning to improve organisational competences.  Increasing financial strength among partners by pooling costs and minimising non- value-added operations. The logistics function in the supply chain can also benefit from collaboration. In order to maximise capacity utilisation, transporters can better coordinate inbound, inter-facility, and outgoing transit. Collaboration with third-party (3PL) and fourth-party (4PL) logistics firms can also help to improve supply chain efficiency. Through a collaborative approach, sustainable supply chain configurations can be formed by trading off cost, revenues, profitability, market share, and flexibility to new products and technology. 14.4 VENDOR MANAGED INVENTORY (VMI) VMI has been identified as an effective technique for addressing supply chain inconsistencies induced by demand variability. The vendor acts as a link between the manufacturer and the wholesaler/retailer in this arrangement. In order to manage the wholesaler's inventory, the vendor obtains point-of-sale (POS) data from the wholesaler/retailer and prepares their demand from manufacturers appropriately. This eliminates the requirement for dual buffering by the wholesaler/retailer against consumer demands on the one hand and supply problems on the other. 275 CU IDOL SELF LEARNING MATERIAL (SLM)

When the supplier begins to account for the time and expense associated in inventory management, VMI or SMI might be challenging to implement. Some clients may not have access to computers and may be hesitant to let suppliers manage their inventory if it is a trade secret. Furthermore, if plant manager’s stock out and suppliers are unable to refill them in a timely manner, production may be forced to halt. These issues, however, can be overcome with patience and mutual trust in analysing customer and supplier inventory movement tendencies. Because buyers are frequently educated not to disclose information about their inventory, sufficient trust must be established between vendors and buyers before inventory-related information may be shared. Once inventory flows are understood, the initial implementation cost is more than offset by on- going inventory carrying costs savings and profits through inventory optimization. Because data must be available on-line and is difficult to process manually, computers must be used if this method is to be applied successfully. Suppliers may often give clients with computer hardware and simple software to acquire real-time inventory data, which is essential for producing rolling production forecasts and schedules. Clients can be offered VMI or SMI as a value-added service, which can help lock in customers. All channel partners can reap rich profits and extend the concept to other parts of the supply chain once this cost- effective technique is in place. Other collaborative efforts being developed towards effective supply chain management include third-party and fourth-part logistics. 14.5 THIRD PARTY LOGISTICS The utilisation of an outside entity to fulfil all or part of a company's materials management and product distribution functions is known as third-party logistics (3 PLs). Any company can gain a competitive edge by concentrating on its core skills and delegating supply chain operations to a third-party logistics provider. 3PL enterprises must communicate with consumers to learn their demands and then change their products to meet them in order to provide truly value-added services. It is self-evident that businesses can delegate a variety of supply chain procedures to entities that specialise in their efficient execution. Because specialist organisations doing the specified operations have a level of expertise and leverage not available to manufacturers, distributors, or retailers, outsourcing a wide range of supply chain functions can provide greater value across the whole supply chain. Transportation, warehousing, order processing 276 CU IDOL SELF LEARNING MATERIAL (SLM)

and fulfilment, packing, labelling, and bill payment are just a few of the major tasks that can be outsourced to third-party logistics organisations, sometimes known as 3PLs. If these companies are efficient and effective, the entire supply chain will benefit from higher capacity utilisation, better service levels, and cheaper prices. Client organisations might benefit from 3PLs' technological and other flexibility. Channel partners, for example, may need to upgrade their technology in order to deploy faster systems. Similarly, they may have fluctuating warehousing and transportation requirements. Third-party logistics providers can readily handle such fluctuating demands. Customers of 3PL firms are looking for four elements of value when outsourcing a process to them. Trust, information, capital use, and cost control are among these values. Some of the primary considerations that a client will evaluate when picking a suitable service provider are the 3PL's customer orientation, level of expertise, asset ownership status, and the price at which the service is given. Customers of 3PL firms are looking for four elements of value when outsourcing a process to them. Trust, information, capital use, and cost control are among these values. Some of the primary considerations that a client will evaluate when picking a suitable service provider are the 3PL's customer orientation, level of expertise, asset ownership status, and the price at which the service is given. 3PL firms must provide dependable services and resolve channel issues to ensure a seamless flow of goods and information. Customers are more likely to trust 3PL organisations as a result of this. The accuracy, quality, and timeliness of the information that 3PLs deliver to their clients, various channel partners, and final customers can add value to their customers. This data can be electronically incorporated into the customer's management information system (MIS) for immediate access. One of the most significant disadvantages of third-party logistics for businesses is the loss of control that comes with outsourcing a certain function. This issue can be mitigated by enlisting the help of reputable 3PL service providers. Furthermore, 3PL firms can reassure their clients of their dependability by smoothly integrating their activities with the latter's processes. Client branding on transport vehicles, for example, can indicate a tight relationship between the client and the 3PL service provider. 277 CU IDOL SELF LEARNING MATERIAL (SLM)

If meaningful and long-term value is to be realised, all channel partners must be successful. This necessitates open dialogue and collaboration. If any component of this supply chain relationship is overlooked, the chain will break and value will be lost. 14.6 FOURTH PARTY LOGISTICS Andersen Consulting owns the trademark for the term \"fourth-party logistics provider.\" It refers to the shift in logistics from third-party logistics providers (who specialise in warehousing and transportation) to suppliers who provide a more integrated and value-added service. Supply chain management and solutions, change management capabilities, and value added services are among the services offered by fourth-party logistics companies. A 4PL firm provides a complete supply chain solution while also adding value by impacting the entire supply chain. A 4PL combines the capabilities of the customer and its supply chain partners with the services of a wide range of service providers (3PLs, IT providers, contract logistics providers, call centres, and so on). Through a teaming relationship or an alliance, the 4PL serves as a single point of contact for the client company and manages several service providers. Through reinvention, transformation, and execution, a 4PL adds value to the whole supply chain. All supply chain participants must synchronise their supply chain planning and execution operations if they are to be reinvented. This is accomplished by combining standard supply chain management abilities with business strategy alignment and creatively restructuring and merging the supply chains of the players. Sales and operations planning, distribution management, procurement strategy, customer service, and supply chain technology are all areas where transformation efforts are concentrated. This is accomplished by integrating the client's supply chain activities and processes through strategic thinking and analysis, process redesign, organisational change management, and technology. While traditional approaches tend to focus exclusively on operational cost reduction and asset transfer, executing the supply chain integration plan leads to improved revenue, operating cost reduction, working capital reduction, and fixed capital reduction. 278 CU IDOL SELF LEARNING MATERIAL (SLM)

Due to the reduction of stock-outs and ‘ship-complete,' increased product quality and availability drive revenue growth and customer satisfaction. As the 4PL focuses on the entire supply chain, not only warehousing and low-cost transportation, and dramatic gains in customer experience can be achieved. Operational efficiencies, process improvements, and procurement savings are all used to reduce operating costs. Savings are realised by outsourcing the entire supply chain function rather than just a few components as is the case with a 3PL solution. A 4PL can give supply chain solutions using any of the three operating models. 1) Collaboration between a 4PL and a third-party service provider can be formed to market supply-chain solutions that take advantage of both organisations' strengths and market reach. The 4PL provides the 3PL with a wide range of services, including technology, supply chain strategy, marketability, and programme management knowledge. 2) For a single client, the 4PL may operate and manage a complete supply chain system. This agreement brings together the resources, talents, and technology of the 4PL and supplementary service providers to create a comprehensive integrated supply chain solution that adds value across the entire supply chain of a single client firm. 3) A 4PL organisation can build and administer a supply chain solution for numerous industry players with a focus on synchronisation and collaboration as a supply chain innovator. The construction of industrial solutions offers the greatest advantages; nonetheless, this model is complex and can provide a challenge to even the most capable businesses. To properly execute an integrated supply-chain solution, the 4PL service provider must have a diverse set of expertise. • Access to a wide pool of qualified supply chain specialists, as well as global competencies, reach, and resources.  The ability to manage a large number of service providers.  Capability of smoothly transitioning clients' personnel and other assets to the new 4PL environment.  Excellent interpersonal and teamwork abilities.  Formulation of world-class supply chain strategies and reengineering of company processes.  Proven ability to integrate supply chain technologies and outsourced services. 279 CU IDOL SELF LEARNING MATERIAL (SLM)

An understanding of the difficulties that arise as a result of organisational transformation. The next generation of supply chain outsourcing is Fourth Party Logistics. Information-rich, complex, and increasingly global supply chain activities are the norm. Simultaneously, technology and e-enabled capacities are advancing. A new generation of integration, which is now beyond the capability of existing outsourcing approaches, is required to enable a firm to harness all of the benefits of supply chain collaboration and synchronisation. 14.7 GREEN SUPPLY CHAIN The management of materials and resources from suppliers to manufacturers, service providers to customers, and back, all while safeguarding and maintaining the natural environment, is what a green supply chain entails. The execution of appropriate techniques to reconcile the supply chain to environmental protection and conservation on a long-term basis constitutes a green supply chain. One of the most significant tactics for a green supply chain is to reduce waste and eliminate non- essential non-value added activities. Wastage in the manufacturing process reduces efficiency and production. Profitability and growth are harmed as a result of reduced output and blocked inventory, making the company process unsustainable in the long run. Such commercial procedures ultimately waste fuel and energy while providing no value to society. Another significant green method is to automate procedures as much as possible utilising electronic media. This reduces paper work and removes non-value added operations such as document filing, storage, and retrieval. Materials should only be used to the degree necessary. Trimming and discarding half-filled containers of goods is both wasteful and detrimental to the environment. When materials or things are held unnecessarily before being used, wastage can occur. The wastage that can occur during multiple storage and handling can be reduced by just-in-time delivery and use of supplies. While the optimal policy is to reduce and eliminate waste, some waste is unavoidable at the customer's end in the form of old containers, packing, and so on. Recycling these materials allows them to be reused, hence lessening their impact on the environment. The process of recycling, restoring, and reusing materials can be carried out through a different supply-chain channel known as reverse logistics. 280 CU IDOL SELF LEARNING MATERIAL (SLM)

14.8 REVERSE LOGISTICS The process of transporting goods from the end client to another site in order to extract value that would otherwise be unavailable or dispose of them correctly is known as reverse logistics.  Manufacturing returns from the production floor consisting of unsatisfactory quality products or left over materials  Commercial returns arising from contracts for taking back obsolete stocks of short-life products.  Product recalls arising from the discovery of defective products released in the supply chain.  Service returns of products for servicing  End-of-use returns for re-manufacturing or re-cycling  End-of-life returns for proper disposal To keep the business successful, one of the key goals of reverse logistics is to keep the cost of reprocessing returned/refused materials lower than the cost of new products. As a result, transportation and handling expenses must be kept as low as possible. When things are first sold new, the extra cost of reverse logistics is frequently added to the price. Furthermore, applicable government and environmental protection legislation must be incorporated into recycling and disposal methods. 14.9 WORLD CLASS SUPPLY CHAIN World-class supply chains can outperform the competition in terms of consumer value while remaining financially sound and environmentally benign. They would be distinguished by the high quality of service they deliver to their clients. Their actions would be value-driven, responsive to customers, and characterised by continual learning, improvement, and innovation. Their employees would be given the freedom to think and behave like owners, and they would go to great lengths to ensure that their consumers were satisfied. To ensure good performance, they would be given the necessary atmosphere, management assistance, and training. They would be fully engaged and delighted to help the company achieve its goals. Proactive, balanced, and consistent management is required of world-class supply chain service providers. Their decision-making would be based on facts and data analysis. With the 281 CU IDOL SELF LEARNING MATERIAL (SLM)

support of IT, activities and processes across the supply chain would be seamlessly integrated, and IT would also be used to aid decision-making, reduce waste, and remain adaptable. They'd use a systems-thinking approach to management. The organization's direction and unity of purpose would be established by the leadership. They'd build a workplace that offers constant challenge and rewards based on performance, as well as equal prospects for advancement. They would collaborate and establish strategic alliances with suppliers based on ethics, honesty, professionalism, and a win-win mind-set that would result in the combined growth of all supply chain participants. 14.10SUMMARY  Effective management of large and complex supply chains necessitates the implementation of new strategies in the ever-changing market space in the future. Keeping customers satisfied and happy by delivering greater value than the competitor would be the prime concern of organizations in the coming years.  Supply chains have smooth product and information flow can continue to compete and grow in the market space.  Collaborative strategies like VMI, RSP etc. are gaining momentum. Companies can outsource supply chain services to third party and fourth party logistics companies in order to focus on their core-competencies.  Nations around the world are working towards the implementation of environment friendly supply chain activities. Reverse logistics closes the supply chain and can contribute to environmental protection and conservation. 14.11 KEYWORDS  Capability:the ability or power to perform something.  Collaboration: the act of working on a project with another person.  Procurement: Obtaining or procuring anything.  Delegate: assign (a duty or responsibility) to someone else.  Self-evident: It doesn't need to be proven or explained; it's self-evident.  Optimization:Making the greatest or most efficient use of a situation or resource. 14.12 LEARNING ACTIVITY 282 CU IDOL SELF LEARNING MATERIAL (SLM)

1. What is reverse logistics? ___________________________________________________________________________ ___________________________________________________________________________ 2. What is green channel chain? ___________________________________________________________________________ ___________________________________________________________________________ 14.13 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Explain Vendor Managed Inventory. 2. What is a Collaborative strategy? 3. Define Artificial Intelligence. 4. Discuss Internet of Things. 5. Explain 5G? Long Questions 1. What are advantages of fourth party logistics over third party logistics? 2. How can reverse logistics cater to a green supply chain strategy in the future? 3. What is the skill set required by 4PL companies to be able to effectively integrate the supply chain for their client company? 4. What are the advantages of collaboration among members in the supply chain? 5. How can vendor managed inventory contribute to supply chain effectiveness? B. Multiple Choice Questions 1. Autonomous technology has a far broader range of applications than autonomous …… a.vehicles b. buses c. Planning d. mobiles 2.The fifth generation of wireless technology is known as……………….. 283 a. 6G CU IDOL SELF LEARNING MATERIAL (SLM)

b. 5G c. 4G d. 3G 3.VMI means……………. a. Vendor Machine Inventory b. Vendor Managed Invention c. Vendor Managed Inventory d. Value Managed Inventory 4.The ………………. acts as a link between the manufacturer and the wholesaler. a. customer b. vendor c. government d. company 5.Who owns the trademark for the term \"fourth-party logistics provider?\" a. Andersen Consulting b. Andersen Common c. Andrew Consulting d. Amber Consulting Answers 1-a, 2-b, 3-c, 4-b, 5-a 14.14 REFERENCES References  Bell, S.J., Whitewall, G.J. and Lukas, B.A. (2002). Schools of Thought in Organizational Learning. Academy of Marketing Science.  Booz & Company (2007). Keeping Inventory and Profits off the Discount Rack: Merchandise Strategies to Improve Apparel Margins. San Francisco, CA: Booz Allen and Hamilton.  Bowersox, D.J. and Closs, D.J. (1996). Logistical Management: The Integrated Supply Chain Process. New York: The McGraw-Hill Company, Inc. 284 CU IDOL SELF LEARNING MATERIAL (SLM)

Textbooks  Braithwaite, A. & Hall, D. (1999). Risky Business: Critical Decisions in Supply Chain Management. United Kingdom: LCP Ltd.  Bovet (1999). Value Webs: The Next Business Revolution. Boston, MA: Mercer Management Consulting.  Chopra, S. and Meindl, P. (2004). Supply Chain Management: Strategy, Planning and Operation. New Jersey: Prentice-Hall. Websites  https://www.investopedia.com/terms/s/scm.asp#:~:text=Supply%20chain%20manage ment%20is%20the,raw%20materials%20into%20final%20products.&text=SCM%20r epresents%20an%20effort%20by,efficient%20and%20economical%20as%20possible  https://www.iimu.ac.in/blog/what-are-the-five-basic-components-of-a-supply-chain- management-system/  https://www.thebalancesmb.com/definition-of-supply-chain-management-2892749 285 CU IDOL SELF LEARNING MATERIAL (SLM)