Significance Of SCM For SMEs

Supply chain management (SCM) is a critical element in today’s highly complex and competitive business environment. It has direct influence on key issues like cost to market, time to market, responsiveness to changing customer demands and market dynamics and – in fact – on the overall business.

The SCM market in India, however, is still to mature and get organised. The process seems to have started but it has a long way to go.

To a great extent, due to the huge resources at their disposal, large enterprises have learnt to leverage SCM to their advantage.

Not surprisingly, most of the solutions and services available in the market tend to focus on the big players – leaving out SMEs who anyways start with a disadvantage due to their inherent resource constraints. Consequently, SMEs have been rather slow (and at times reluctant) to adopt and adapt SCM to their businesses.

However, various factors related to globalisation have now rendered implementation of SCM an imperative even for the SMEs. Mr Rajesh, MD, Rajathi Group highlights the relevance. He says, “The need for SCM is more than ever before because of the challenges unleashed on the competitiveness of the Indian industry by deregulation and globalisation.”

True, competition has now acquired a cross-border dimension and cost will play a key role with regards to competitiveness. “Effective and efficient SCM can help Indian SMEs to reduce their cost and compete aggressively in the international markets,” states Dr K Rangarajan, Head, Indian Institute of Foreign Trade (Kolkata).

The mammoth challenge for SMEs is to maintain the balance between demand and supply and, while doing so, provide the best possible products or services at the lowest possible cost. SMEs, obviously, do not have enough resources to employ at various stages of the chain. Hence, they often concentrate on individual components for optimising their internal operations.

But this is just a starting point and is never enough in the long run. The need is to optimise the supply chain in its totality and derive the highest possible value from it. “The objective of every supply chain is to maximise the overall value generated by an enterprise. It consists of all stages involved, directly or indirectly, in fulfilling a customer request,” remarks Mr Nikhil Shah, Executive Director, Elbee Express Pvt Ltd.

SCM is an ongoing process that involves precision in demand forecasting, inventory optimisation, reduction in warehouse costs and efficient as well as cost-effective handling of both incoming and outgoing stocks.

“Effective SCM brings down operating costs by a reduction in cost leakages like inventory pile-ups and reverse logistics, thereby ensuring a better planned environment wherein the production and supply sides are better synchronised and optimised,” says Mr Nikhil Sen, Director, Rosebys.

Thus, SCM is really about enhancing the efficiencies of the supply chain right from the planning stage to the execution stage while coordinating with diverse partners located at different locations. “As Indian SMEs go global it becomes even more imperative that their supply chains are linked with their global suppliers as well as vendors,” adds Mr Shah.

Efficient SCM needs an integrated approach; Indian SMEs need to start identifying and addressing various factors of their businesses so that they can enhance their supply chains accordingly. “An essential first step in the process is to assess the current supply chain capability and then linking that strategy to deliver bottom line results through SCM, competitiveness, order fulfilment, inventory management, etc,” says Mr Rajesh.

A good system will integrate not only information and processes but also people and technology. This is crucial if SMEs want to advance their market position. “An integrated SCM system can act as a powerful differentiator to significantly improve the competitiveness of the Indian SMEs,” says Mr Chittilappily, MD, V-Guard Industries.

As SMEs are gradually realising the significance of having an effective control over their supply chains, the SCM market in the country too is evolving in response. While the IT sector is gearing up to tap the growth, third party players, both at the level of consultation as well as implementation, are emerging on the landscape.

“SMEs are now increasingly relying on 3PL (Third Party Logistics) specialists to manage their entire supply chains, from procurement of raw materials to distribution of goods, in the domestic market as well as exports, so that they can focus on their core competencies,” explains Mr K Prabhakar, President and CEO, XPS.

It does make more sense to rely on specialists and to outsource it ‘to professional supply chain service providers that are well versed in the latest technologies and processes and have the cost benefit of economies of scale which they can pass on to the SMEs’ as Mr Shah says.

Although certain factors related to SCM are common to all industries, each industry vertical has its unique set of issues. Naturally, SCM requirement and implementation would differ from vertical to vertical. Mr Sivaram, Executive Director, Royal Classic Group, brings in the perspective from the apparel sector.

He says, “Being a fashion oriented business, our merchandise always has a limited shelf space and hence SCM has to be very effective. The co-ordination from design forecasting, conceptualising, samples production, bulk production, warehouse management & maintenance, effective distribution network are key activities involved in the process...” Similarly, other industries like auto-components, pharma, gems & jewellery, retail, etc. would have their distinctive SCM needs.

Moreover, each of these sectors is going through a different phase and hence its needs would change accordingly. The point is – SMEs from each industry would have to go for SCM solutions that are well-suited for their industry as well as their individual requirements and not blindly follow any trend.

Being small (or mid-sized) isn’t always bad; it has its advantages. As Mr Shah says, “SMEs have an advantage over their larger competitors as their smaller size gives them less bureaucracy to change and greater agility to respond.” Due to their leaner operations they are well-positioned to implement strategic changes quicker. This agility must be used to exploit business opportunities.

“However they have to do their homework on issues like getting the right team, dealing with lower volumes in the initial stages, keeping firm process documentation in position etc,” says Mr Ramkumar, Executive Director, Gemini Communication Ltd.

Globalisation has not just thrown up new challenges but has also opened up new opportunities. Likewise, just as SMEs have certain inherent limitations, they also have definite intrinsic strengths. SCM is all about aligning your strengths to take advantage of the opportunities while overcoming weaknesses and challenges. SMEs can definitely do it.

Source by indiatimes

'Oswaldtwistle dealer was high up in supply chain'

AN ALLEGED dealer accused of being involved in drugs sales in Oswaldtwistle was ‘high up’ in the chain of supply, a court was told.

Mumtaz Khan, 51, was said to have provided a man named Kevin Barsky with amphetamine which was then sold to undercover cops, Burnley Crown Court heard.

And the jury was told Khan had a large amount of the drug stashed at his house in the town when police searched it.

Three undercover officers had been based in Oswaldtwistle trying to catch dealers out and used video and audio tapes, the court heard.

The jury was told when Khan, who operated from his home on Springhill Road, was arrested he denied being involved in supplying drugs and made no comment when charged.

The defendant has pleaded not guilty to being concerned in making an offer to supply 595 grammes of amphetamine on September 20 2005, being concerned in supplying 508 grammes of the drug on Sept 30 and possessing 531 grammes of amphetamine with intent to supply on April 19 2006.

David Temkin, prosecuting, told the jury the defendant was high up in the chain of supply.

Mr Temkin said Khan held a large amount of amphetamine and would supply to dealers lower down the chain.

That dealer would then supply others further down the chain, Mr Temkin said.

He added: "The prosecution say this defendant was an essential part of the whole criminal enterprise."

In 2005, police set up an undercover operation into the supply of illegal drugs in and around Oswaldtwistle.

It had proved successful and led to a number of prosecutions, Mr Temkin said.

Mr Temkin told the jury that the undercover officers moved into the area and were able to get important information about drugs sale and use.

Two officers were in Oswaldtwistle and in early September Barsky approached Shaun, asking if he would be interested in buying amphetamine.

A sample of the drug was provided to the officers, the officers contacted the third undercover officer and it was decided Barsky would provide half a kilo.

He was to get £950 for the deal set for September 20.

The prosecutor said in the mid afternoon Barsky went to the officer’s address in Oswaldtwistle and the three officers asked about the supply of more amphetamine. Barsky made a call to his supplier, allegedly the defendant.

Ten days later Kevin Barsky went to an officer’s house, there was a further discussion about supply and Barsky left and returned with amphetamine.

Mr Temkin said :"The prosecution say this amphetamine came from the defendant.

"Some police officers saw Kevin Barsky making the short journey on foot to Springhill Road. He made that journey several times.”

Source by lancashiretelegraph.co.uk

Global Logistics and Supply Chain Management Provides a Concise, Global Approach to Logistics and Supply Chain Management

DUBLIN, Ireland - Research and Markets has announced the addition of “Global Logistics and Supply Chain Management” to their offering.

Written by two highly experienced authors, this new text provides a concise, global approach to logistics and supply chain management. Featuring both a practical element, enabling the reader to ‘do’ logistics (select carriers, identify routes, structure warehouses, etc.) and a strategic element (understand the role of logistics and supply chain management in the wider business context), the book also uses a good range of international case material to illustrate key concepts and extend learning.

Contents:PrefaceAbout the AuthorsPart 1 - Logistics and Supply Chain Context1. Introduction2. Globalisation and International Trade3. Supply Chain StrategiesCase Studies:DellMedical Devices CompanyPart 2 - Logistics and Supply Chain Operations4. Logistics Service Providers5. Procurement and Outsourcing6. Inventory Management (Chuda Basnet and Paul Childerhouse,   University of Waikato)7. Warehousing and Materials Handling8. Transport in Supply Chains9. Information Flows & Technology10. Resource Flows & Finance (Mike Tayles, The University of Hull)11. Measuring and Managing Logistics Performance (Noel McGlynn,    Microsoft)Case Studies:DHLGategourmetHBOSEADSPart 3 - Supply Chain Designs12. Risk, Resilience, Robustness, Responsiveness, Reliability (Helen    Peck, Cranfield University)13. Integration and Collaboration14. Sustainability15. New Supply Chain DesignsCase StudiesHumanitarian aid supply chains'Pharmaceutical SCMDubaiMorning 365Bowersox article

For more information visit http://www.researchandmarkets.com/reports/c91118

Global Competition Fosters Supply Chain Education Partnerships

Most business schools simply have not provided a meaningful emphasis on advanced supply chain strategies whereas the need for managers who are savvy in this area has increased exponentially. By Matthew B. Myers, Ph.D., Director of Global Business, University of Tennessee

May 12, 2008 -- The trend in modern supply chain management, and supply chain education, is to seek educational partnerships to improve both the company's and the university's competitive position. Intuitively, we would assume that such educational partnerships could help improve a firm's efficiency, assist in learning innovative processes, and remain current relative to front-line supply chain thinking. For universities, the benefits of such partnerships range from an institution's ability to use partner firms as 'living laboratories' and provide a platform for leading-edge research. Not to mention a gateway for the hiring of its graduates.

While educational partnerships between businesses and business schools have a long history, supply chain partnerships are rather new to the scene, this due to the fact that multiple firms are often involved and supply chain thought is still in a relatively early stage of development. There are several reasons, however, why this growing trend is critical to both businesses and business schools, and increasingly the most competitive members of both have strong collaborative relationships relative to supply chain education, As we will see, the trend is due to changes in the competitive landscape for companies and educational institutions, and can only be expected to continue for the long term.

Changes in the Educational Landscape

Recent numbers from the Graduate Management Admissions Council, or GMAC, indicate significant shifts in the way in which executives are being educated. First, in the U.S., enrollment for traditional two-year MBA programs (where many managers receive their first exposure to supply chain thought) are decreasing, while in Europe they are still increasing but at a decreasing rate. Conversely, applications to executive MBA programs, where managers can continue to work while pursuing their MBA, are increasing. There are a number of reasons for this shift, including the fact that it is more difficult to cut two years out of your life to attend an MBA program, and the fact that full-time MBA programs are increasing being seen as commodities, with little differentiating factors between them.

Another trend in education is the call for more programs with a specific focus on supply chain education, as opposed to general management principles. The reason for this may seem obvious, in that there has been considerably greater attention given to supply chain efficiencies and effectiveness as the world markets have demanded. However, a more latent reason is that, with the exception of a few institutions worldwide, most colleges of business simply have not provided a meaningful emphasis on advanced supply chain strategies whereas the need for managers who are savvy in this area has increased exponentially.

As a result of these trends, companies worldwide have sought to establish more direct relationships with universities and, to a limited extent, other educational providers to assist in their efforts to educate their workforce in supply chain strategies. The result has been an effective way to strengthen the capabilities of already valuable managers, while at the same time develop a conduit to the most recent research and the best and brightest graduates in supply chain thought.

How Partnerships are Working

Globally, there are a numbers of examples of educational partnerships that are helping both companies and universities compete. There is no standardized format for these arrangements: each partner has a unique set of needs and resources and as a result partnerships take on a wide variety of forms and formalities. One good example of innovative educational alliances is at my own institution, the University of Tennessee, where our Supply Chain Forum has over 35 partner firms that come together twice a year for roundtable discussions and research seminars.

These types of non-traditional educational activities exemplify university learning options that address specific supply chain issues for firms, while at the same times take advantage of potential symbiotic learning activities between the firms themselves. Other companies, or even multiple firms that represent buyer and seller partnerships within the supply chain, often have long-standing relationships with colleges of business for providing 'custom programs' for their employees. In this fashion, firms are better able to focus the learning experience on specific supply chain topics while at the same time expose their managers to the latest in supply chain thinking.

In speaking with companies interested in finding learning opportunities for their supply chain managers, it is clear that they want their employees to be exposed to two things: global issues and the benefits from being exposed to ideas from other managers, especially those working in overseas markets. For this reason, executive education is experiencing a new trend in global supply chain education: universities partnering with colleges of business abroad to develop new curricula in global supply chain management where managers from across the globe come together to learn and share ideas. They understand that, particularly when it comes to supply chains, the world is not flat, and different markets have widely divergent models of supply chain success. As a result, more and more U.S. managers are coming together to study with their Asian and European counterparts, often spending time in overseas locations such as Hong Kong or Budapest in order to better learn how things work there. This sort of focus on global supply chain management reflects the aforementioned educational shift towards specialty programs in graduate programs.

As the global business landscape becomes increasingly competitive and volatile, both businesses and universities will look for partnerships to better understand, and forecast, supply chain problems. A common denominator of future gold standard firms will be educational relationships that fit the specific needs of both the company and their partner institutions of higher learning.

Matthew B. Myers, Ph.D is the Nestle USA Profession of Marketing and the Director of Global Business at the University of Tennessee.

For over 50 years, University of Tennessee (UT) faculty have played a major role in the supply chain/logistics arena -- conducting innovative research, publishing leading-edge findings, writing industry-standard textbooks, and creating benchmarks for successful corporate supply chain management. Programming is top-ranked in Supply Chain Management Review, U.S. News & World Report, and Journal of Business Logistics. Certification is available. http://SupplyChain.utk.edu www.bus.utk.edu/ivc

News Source: industryweek.com

Canada Needs to Foster International Supply Chain Trade, CBOC Report Says

Ottawa – Canada must foster domestic firms’ integration into global supply chains in order to secure a better standard of living for its citizens and to stay competitive, says a new report by the Conference Board of Canada. North American supply chain trade growth has plateaued in recent years, following dramatic increases in the 1990s, says a CBOC report titled 'Stuck in Neutral'. The study argues that governments continue to view trade in outmoded terms of sales of finished goods from one country to another, but the new trans-national nature of corporations means goods and services flow across multiple borders around the globe before a finished product comes to market.

As a result, the paper argues, governments must adopt policies that recognize the new reality and help domestic firms to take advantage of lower cost labour and other efficiencies abroad, something that just isn’t happening to the extent it should, says the board.

“In aggregate the trend suggests that whereas there are rapidly growing opportunities Canadian firms are only taking small advantage of those opportunities,” said Danielle Goldfarb, associate director of the CBOC’s international trade and investment centre.

“After 2000, Canada’s overall trade data show a drop in Canadian companies’ engagement in global and regional supply chains. That did not pick up in any significant way by 2006,” the report says. In the post-free trade agreement era of the 1990s, trade between Canada and its North American partners almost tripled, but tapered off between 2000-2003 and only regained lost ground from 2003-2006, the report says.

“(North America) represented 84 per cent of Canada’s exports and 60 per cent of its imports in 2006 (with inflation removed). Mexico accounts for only a small fraction of this trade,” the report says.

Goldfarb said that when Canada's trade with North America is removed from the equation, it becomes clear that Canada has become somewhat more integrated in other regions' supply chains. But while Canadian firms have increased their trade in supply chains in other parts of the world, that increase has not been enough to offset the stagnation in growth in North America trade, she said. When it comes to Asia, Canadian trade is heavily weighted toward the export of raw materials and the import of finished goods. Goldfarb said Canada should be aiming to grow its trade in middle-stage goods.

"Trade in (supply chain) inputs is dominated—especially in the case of Asia—by the use of imported inputs, with Canadians not supplying significant inputs into regional supply chains elsewhere,” the report says.

Goldfarb said that U.S. firms that import information technology components for assembly into finished products were able to reduce their prices by 30% and significantly boost U.S. GDP. The failure of Canadian firms to similarly embrace emerging economies and the lower costs those countries offer could be partly to blame for Canada’s lagging productivity statistics, the board says. While importing finished goods has made some Canadian businesses more competitive, other Canadian firms could increase their competitiveness by trading in middle stage goods, she added.

Breaking production down into components across borders has been shown to be more efficient, Goldfarb said, adding Canada should be looking to attract higher value activities in the production chain such as engineering and design services. While commodities trade is important, she said that the country would be better served by having a diversified economy that can withstand a downturn in resource prices.

Goldfarb said the while much of the adjustment to the global economy will have to come from individuals and businesses, governments can help by eliminating trade barriers and investing in education to help workers adapt to rapid change.

“Examining the facts I don't think we have a complete answer for why businesses are not taking advantage of these opportunities in other regions,” Goldfarb said. “It just isn’t clear.”

Source: economicnews.ca

New courses on IIMM platter

Jamshedpur: The city chapter of Indian Institute of Materials Management (IIMM) would soon start internationally certified courses for managers and entrepreneurs of Adityapur industrial area.

The initiative comes after software giant Microsoft adopted Adityapur industrial area to develop it into an auto cluster around two months ago.

Those engaged in the supply chain management are now aiming to get certified by institutes of international repute, including World Trade Organisation (WTO), right next to their industrial houses.

The move, a joint initiative of Adityapur Small Industries Association (ASIA) and IIMM, would see the courses begin from June at the ASIA office at Adityapur.

“Last October, we had an interactive session with the small and medium enterprises (SMEs) at Adityapur. There, a need was felt for more organised courses that would help them deal better in both national and international markets. So we proposed to start the courses,” said G.D. Pandey, the IIMM course co-ordinator.

The two international courses that are on the launch pad are a six-month certificate programme in supply chain management from Institute of Supply Management, US, and diploma courses from United Nations Council for Trade and Development, which is under the aegis of World Trade Organisation.

On completion of the courses, the students would be provided with certificates not only from IIMM, but also from these global organisations.

“Today, supply chain is an important part of the entire business set-up. So these courses would be of immense help,” added Pandey.

The move also comes in wake of IIMM adopting supply chain management as its theme for the week- long foundation day celebrations that began on Wednesday.

“We had decided to adopt enhancing efficiency of supply chain management as our theme for this year. That is why, we decided to concentrate on these specific courses,” he added.

Next in the line after the international courses would a two-year MBA programme from Madhya Pradesh Bhoj (Open) University in Bhopal.

Tailor-made for purchase managers and supply chain managers, one can avail a full MBA degree for just Rs 45,000-50,000.

Apart from this, there are also regular courses in material management at both the undergraduate and postgraduate levels.

A panel discussion on the prospects and challenges in supply chain management is also scheduled on Friday.

Source: telegraphindia.com

World Wide Brands Review

One is bound to find many drop ship directories when looking into drop shipping or buying wholesale, and this fact can make choosing the right one a difficult decision. As a result, each different resource should be examined and compared in order to find the right one. While one's research may guide him or her to World Wide Brands, thus prompting a World Wide Brands review, one should consider what should be expected from any drop ship or wholesale resource. The following is a list of criteria that should be kept in mind when shopping for a quality drop ship directory. First, one should note the number of suppliers that a given drop ship directory has in its database. While some companies will brag about having thousands of suppliers in its directory, it means nothing unless each supplier is of high quality. For this reason, it is important that the company that you select investigates each of the suppliers that it provides. A directory of quality and inspected suppliers is a very valuable resource. To those new to the wholesaling world, ease of use is one of the most important features of a wholesale directory. A World Wide Brands review will reveal that one has the ability to search by category; that is, drop shipper, bulk wholesaler, liquidator, and/or overseas importer. The best wholesale directories will allow their users to search through the database by product in order to quickly find what one is looking to sell. If a large list is difficult to navigate, then finding the best prices will be a long process. Even though a World Wide Brands review demonstrates how easy it is to use, one still needs to do proper market research if he or she is hoping to turn a profit. For this reason, whatever drop ship directory you choose should have advanced market research tools. One should be able to see the demand for the product, find hidden niches, and be able to match up products to meet the needs of a certain group of people. When choosing a company to join, look for the difference between directories that connect you with the website of the suppliers versus those that connect you to a page that looks like a sign up page. While some are upset when directed to a sign up form, some research reveals that registering as a wholesaler allows even new drop shippers and wholesalers to receive the best prices. Those that simply connect you to the website of a supplier often are often either taking a cut of the sale prices or not directing users where they need to be. There are many choices for drop shippers and wholesalers when researching directories of quality suppliers. The number of suppliers, the quality of suppliers, market research tools, and ease of use should all be considered when choosing a company with which to do business. Finding the right directory can completely revolutionize a business and cause profits to soar.

Article Source : bestmanagementarticles.com

How to Choose Your Product Source

No matter if you are an ebay seller, drop shipper, sales distributor, whether you list your auctions or sale on your web site or a host site, your product source is the key of success. In other words who has lower price product is the one will grab more chances to win the game. There are tons of wholesalers and each of them claims to be the lowest price offering. Confused? You should be if you are not aware of the tricks behind how business is operated and how the cyberworld is touting itself in bursting information, technique and scams. From experience and collective knowledge, there is a three-step way to help your identify the true wholesaler, the right one fit you the most. Step one: choose a candidate list. You don't have to finish this work in a hurry. Do a widely comparison and make a candidate list that qualify your request. Those have significant advantages in scale, price and product line should earn your consideration. Step two:check their reputation and credibility. Weed out those obvious scammers and ones have negative track history. Always remember when one is too good to be true, it probably is. Search the company reputation in google to find reviews and relative information made by other individuals or organizations. Such as look up the wholesaler website history in whois.com, check google PR value and alexa traffic rank. Or you can go with relative message boards, forums to ask for decision-make help. Thoroughly inspect wholesaler's website. Search all the company information. Legitimate company will state their information clearly and fully. Pay attention to the concrete contacts like a land phone, physical location which allow your to reach them in person. The missing of any one should cause your suspect.Also legit wholesalers usual allow secure payment methods like paypal,world pay. Step three: start contact. Firstly, you can contact via email. Ask detail information about product condition, shipment and return policies if any. In most conditions your will get a prompt reply either tell you the information or refer a link of web page. Notice how long it takes to reply and what kind of manner is displayed. Still suspicious? Then make a phone call or use the live chat function. Talk about your worries and conditions and listen carefully of their response. Be wary of the company that urge your to take their services. By now you have gathered all the information necessary. Then is the final step-place a sample order . Don't be too afraid to place your first order, think it as a test. See if the goods is available as they say and will arrived within the estimated time. And most importantly check the quality according to its statement. This is the last shield of keeping you from internet scam and also serves for a potent and convincing Proof of the true wholesaler.

Article Source : bestmanagementarticles.com