SUPPLY CHAIN MANAGEMENT AT FUTURE GROUP INDUSTRY
Contents
Introduction
Supply chain management (SCM) is the oversight of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain management involves coordinating and
integrating these flows both within and among companies. It is said that the ultimate
goal of any effective supply chain management system is to reduce inventory (with
the assumption that products are available when needed). Supply chain
management flows can be divided into three main flows:
Supply chain management flows can be divided into three main flows:
The product flow
The information flow
The finances flow
The product flow includes the movement of goods from a supplier to a
customer, as well as any customer returns or service needs. The information
flow involves transmitting orders and updating the status of delivery. The
financial flow consists of credit terms, payment schedules, and consignment
and title ownership arrangements.
There are two main types of SCM software: planning applications and
execution applications. Planning applications use advanced algorithms to
determine the best way to fill an order. Execution applications track the
physical status of goods, the management of materials, and financial
information involving all parties.
Some SCM applications are based on open data models that support the
sharing of data both inside and outside the enterprise (this is called the
, extended enterprise, and includes key suppliers, manufacturers, and end
customers of a specific company). This shared data may reside in diverse
database systems, or data warehouses, at several different sites and
companies.
By sharing this data "upstream" (with a company's suppliers) and
"downstream" (with a company's clients), SCM applications have the potential
to improve the time-to-market of products, reduce costs, and allow all parties
in the supply chain to better manage current resources and plan for future
needs.
Increasing numbers of companies are turning to Web sites and Web-based
applications as part of the SCM solution. A number of major Web sites offer e-
procurement marketplaces where manufacturers can trade and even make auction
bids with suppliers.
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of
India's leading business houses with multiple businesses spanning across the
consumption space. While retail forms the core business activity of Future Group,
group subsidiaries are present in consumer finance, capital, insurance, leisure and
entertainment, brand development, retail real estate development, retail media and
logistics.
In the report we will study about the SCM of the Future group.
,Literature Review
Understanding SCM
the APICS dictionary defines the term supply chain as either the “processes from the
initial raw materials to the ultimate consumption of the finished product linking across
supplier-user companies,” or as the “functions within and outside a company that
enable the value chain to make products and provide services to the customer.”
The APICS dictionary defines value chain as those “functions within a company that
add value to the products or services that the organization sells to customers and for
which it receives payment.”
Supply chain—1) The processes from the initial raw materials to the ultimate
consumption of the finished product linking across supplier user companies. 2) The
functions within and outside a company that enable the value chain to make
products and provide services to the customer.
The differences between the definitions of the supply chain and the value chain are
illustrated in Figure 1.1. In Figure 1.1 the supply chain is shown as a series of arrows
moving from the raw materials stage to the final customer.
Each of these arrows represents an individual firm, which has its own value chain. In
Figure 1.1 this value chain is enlarged for one firm in the supply chain so that some
of the internal functions of the firm that add value can be shown. In this example note
that purchasing, marketing, and operations management are shown as part of the
firm’s internal value chain. These are internal functions of the firm and they occur in
every firm that is a member of a supply chain.
, Figure 1.1
Value chain—The functions within a company that add value to the products or
services that the organization sells to customers and for which it receives payment.
Another term used in some firms is pipeline. A pipeline is the supply chain for just
one part used in a product. In these firms a supply chain for a complex product
consists of many pipelines. An example of a pipeline would be a product that begins
with rolled steel. A second step in the pipeline is the cutting process. This is followed
by the stamping of the steel into a fender or other component. The component is
then assembled into the final product.
For example, it may be a fender which is assembled onto a car body. Figure 1.1 also
illustrates that the supply chain consists of more than the movement of physical
goods between firms. It is also involves the flow of information between firms. This
communication is necessary to manage and maintain the supply chain. Another
supply chain flow is the flow of money. This is also shown in Figure 1.1 to illustrate
that the primary purpose of every firm in the supply chain is to make money. This
helps to remind all supply chain members that increasing their own income requires
them to do everything in their power to improve the operations of the supply chain
Supply Chain Management Evolution
Supply Chain Management (SCM) represents a significant change in how most
organizations view themselves. Traditionally, firms view themselves as having
customers and suppliers. Historically, a firm did not consider the potential for either
its supplier or its customer to become a partner. In many industries each firm was
very competitive with its suppliers and customers, fearing that they would be taken
advantage of by them.
Contents
Introduction
Supply chain management (SCM) is the oversight of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain management involves coordinating and
integrating these flows both within and among companies. It is said that the ultimate
goal of any effective supply chain management system is to reduce inventory (with
the assumption that products are available when needed). Supply chain
management flows can be divided into three main flows:
Supply chain management flows can be divided into three main flows:
The product flow
The information flow
The finances flow
The product flow includes the movement of goods from a supplier to a
customer, as well as any customer returns or service needs. The information
flow involves transmitting orders and updating the status of delivery. The
financial flow consists of credit terms, payment schedules, and consignment
and title ownership arrangements.
There are two main types of SCM software: planning applications and
execution applications. Planning applications use advanced algorithms to
determine the best way to fill an order. Execution applications track the
physical status of goods, the management of materials, and financial
information involving all parties.
Some SCM applications are based on open data models that support the
sharing of data both inside and outside the enterprise (this is called the
, extended enterprise, and includes key suppliers, manufacturers, and end
customers of a specific company). This shared data may reside in diverse
database systems, or data warehouses, at several different sites and
companies.
By sharing this data "upstream" (with a company's suppliers) and
"downstream" (with a company's clients), SCM applications have the potential
to improve the time-to-market of products, reduce costs, and allow all parties
in the supply chain to better manage current resources and plan for future
needs.
Increasing numbers of companies are turning to Web sites and Web-based
applications as part of the SCM solution. A number of major Web sites offer e-
procurement marketplaces where manufacturers can trade and even make auction
bids with suppliers.
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of
India's leading business houses with multiple businesses spanning across the
consumption space. While retail forms the core business activity of Future Group,
group subsidiaries are present in consumer finance, capital, insurance, leisure and
entertainment, brand development, retail real estate development, retail media and
logistics.
In the report we will study about the SCM of the Future group.
,Literature Review
Understanding SCM
the APICS dictionary defines the term supply chain as either the “processes from the
initial raw materials to the ultimate consumption of the finished product linking across
supplier-user companies,” or as the “functions within and outside a company that
enable the value chain to make products and provide services to the customer.”
The APICS dictionary defines value chain as those “functions within a company that
add value to the products or services that the organization sells to customers and for
which it receives payment.”
Supply chain—1) The processes from the initial raw materials to the ultimate
consumption of the finished product linking across supplier user companies. 2) The
functions within and outside a company that enable the value chain to make
products and provide services to the customer.
The differences between the definitions of the supply chain and the value chain are
illustrated in Figure 1.1. In Figure 1.1 the supply chain is shown as a series of arrows
moving from the raw materials stage to the final customer.
Each of these arrows represents an individual firm, which has its own value chain. In
Figure 1.1 this value chain is enlarged for one firm in the supply chain so that some
of the internal functions of the firm that add value can be shown. In this example note
that purchasing, marketing, and operations management are shown as part of the
firm’s internal value chain. These are internal functions of the firm and they occur in
every firm that is a member of a supply chain.
, Figure 1.1
Value chain—The functions within a company that add value to the products or
services that the organization sells to customers and for which it receives payment.
Another term used in some firms is pipeline. A pipeline is the supply chain for just
one part used in a product. In these firms a supply chain for a complex product
consists of many pipelines. An example of a pipeline would be a product that begins
with rolled steel. A second step in the pipeline is the cutting process. This is followed
by the stamping of the steel into a fender or other component. The component is
then assembled into the final product.
For example, it may be a fender which is assembled onto a car body. Figure 1.1 also
illustrates that the supply chain consists of more than the movement of physical
goods between firms. It is also involves the flow of information between firms. This
communication is necessary to manage and maintain the supply chain. Another
supply chain flow is the flow of money. This is also shown in Figure 1.1 to illustrate
that the primary purpose of every firm in the supply chain is to make money. This
helps to remind all supply chain members that increasing their own income requires
them to do everything in their power to improve the operations of the supply chain
Supply Chain Management Evolution
Supply Chain Management (SCM) represents a significant change in how most
organizations view themselves. Traditionally, firms view themselves as having
customers and suppliers. Historically, a firm did not consider the potential for either
its supplier or its customer to become a partner. In many industries each firm was
very competitive with its suppliers and customers, fearing that they would be taken
advantage of by them.
