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Part - II

In a fast-paced, dynamic world, the entire supply chain must operate with maximum speed and pinpoint accuracy. It must be ready to rapidly shift gears to meet the changing tastes and requirements of customers. And also to weave a variety of partners - everybody from contract manufacturers and subcontractors to packagers and transportation providers - into a seamless whole that can keep pace with an always shifting marketplace. Hence, the leading-edge companies have been pursuing revolutionary transformations in their supply chain management. Four strategic imperatives that drive the revolutionary changes taking place in supply chain management are speed, visibility, boundary less supply chain and value for the stakeholders.

One of the successful supply chain management examples in India is Mahindra & Mahindra (M&M). M&M implemented Supply Chain Management to link all its plants and to help decide which plant should make what, when, and for which global market. This enabled a pull-based replenishment system that optimizes logistics and manufacturing operations - which helped M&M improve margins and reduce costs while enabling it to respond quickly to customer needs.

Introduction

The challenges of today’s business environment have underscored the need for expertise in supply chain management. Whether looking for new and innovative ways to meet and exceed the needs of customers, or just trying to survive in the midst of changing business environments, companies are trying to achieve success through application of the principles of supply chain management. Dealing with flows of product, information, and capital both with and between business organizations, expertise in supply chain management is fast becoming recognized as a key to efficiency, effectiveness, and differentiation.

SCM represents an integration of processes both within and between organizations that can lead to significant improvements in efficiency and effectiveness. In addition, a growing number of companies today are seeing ways to use the power of supply chain management to differentiate their product and service offerings from those of the competition. The effectiveness and efficiency of the supply chain can be what makes the difference between the company and the competition. This means supply chains need to be faster, more precise and more adaptable. There is a need to be able to customize the supply chain to one’s needs and change it rapidly according to market and economic conditions.

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* Contributed by -
Amit Mishra,
PGP 19188,
Indian Institute Of Management, Lucknow.