Basic concept of Supply Chain

Management
By Shubham Sharma
Overview of Supply Chain Management
Definition Concept, and Significance of Supply Chain Management (SCM)

Evolution of SCM

Objectives and Functions of SCM

The Role of SCM in Modern Business

Philosophies of SCM (Just-in-Time, Lean Manufacturing, Agile, etc.)

WHAT IS A SUPPLY
CHAIN?

• A supply chain consists of all parties involved,

directly or indirectly, in fulfilling a customer
request. The supply chain includes not only
the manufacturer and suppliers, but also
transporters, warehouses, retailers, and even
customers themselves. Within each
organization, such as a manufacturer, the
supply chain includes all functions involved in
receiving and filling a customer request. These
functions include, but are not limited to, new
product development, marketing, operations,
distribution, finance, and customer service.
What is Supply
Chain
Management
• 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.
SCM involves coordinating and
integrating these flows both within
and among companies.
• The ultimate goal of SCM is to reduce
inventory (with the assumption that
products are available when needed).
 Supply
Network or
Supply Web
 • The three principal streams are:
Supply chain • Sourcing, procurement, and
supply management
management • Materials management
• Logistics and distribution
 • In the context of supply chain
Sourcing, management, these processes fall
under sourcing, supply-side
procurement, management, inbound logistics, and
and supply supplier relationship management
together with materials, information,
management and cash flows interconnected with
each other.
 • Classic materials management included
the functions of forecasting, inventory
management, stores management,
warehousing, stock keeping, and
Materials scheduling till it came to include
production planning and production
Management control, to evolve into extended
materials management. With
subsequent inclusion of order processing
in its fold, it came to be known as
integrated materials management.
Do you know?

Efficient materials management can

reduce a company's overall costs Good materials management can also
significantly. For example, according to lead to a reduction in lead time. For
the Council of Supply Chain example, Toyota's Just-In-Time
Management Professionals, businesses inventory system is a leading example
have been able to reduce their of how integrated materials
inventory holding costs by 25-30% management can reduce lead times and
through effective materials inventory costs.
management practices.
Logistics and
Distribution
• In the context of supply chain
management, logistics would fall
at both ends, that is, inbound
logistics and outbound logistics.
PROCESS VIEWS OF A SUPPLY CHAIN
Push/Pull View of Supply Chain Processes
• All processes in a supply chain fall into one of two categories, depending on the timing of
their execution relative to end customer demand. With pull processes, execution is
initiated in response to a customer order. With push processes, execution is initiated in
anticipation of customer orders based on a forecast. Pull processes may also be referred
to as reactive processes because they react to customer demand. Push processes may
also be referred to as speculative processes because they respond to speculated (or
forecasted), rather than actual, demand. The push/pull boundary in a supply chain
separates push processes from pull processes, as shown in Figure 1-5. Push processes
operate in an uncertain environment because customer demand is not yet known. Pull
processes operate in an environment in which customer demand is known. They are,
however, often constrained by inventory and capacity decisions that were made in the
push phase.
 Facts

Effective CRM can increase customer retention rates by 5%, increasing

profits from 25% to 95% (Harvard Business Review).

Companies with effective supply chain practices have a 3.5 times greater
supply chain cost advantage and a 2.5 times greater order fulfillment
capacity than their lower-performing competitors (Accenture).
 SCM in manufacturing: Coordination from raw
materials to finished goods.

SCM in retail: Inventory management,

The scope of distribution, and customer satisfaction.

SCM in SCM in services: Information flow, service level

various management, and demand forecasting.

industries SCM in healthcare: Managing medical supplies,

patient care products, and regulatory compliance.

SCM in technology: Fast-paced product life cycles,

innovation, and intellectual property concerns.
 • SCM vs. Logistics:
• Logistics is considered a subset of SCM; it focuses on the
Differences movement and storage of goods within the supply chain.
and links • SCM covers a broader spectrum, including supply and
demand planning, sourcing, production, and overall
between SCM, strategic management.
• SCM vs. Operations Management:
logistics, and • Operations management is broader than SCM, focusing
operations on the efficiency of an organization's internal operations.
• SCM involves external entities and focuses on creating
management value beyond the company's internal operations.
• Links:
• All three areas are interconnected; efficient logistics
support effective SCM, and both are underpinned by
sound operations management.
• These disciplines work together to optimize the flow of
goods, services, and information to deliver value to the
end customer.
 • Pre-Industrial Revolution: Early trade systems and simple supply
chains based on small-scale production.
Historical • Industrial Revolution: The advent of mass production and the birth of
complex supply chains with the introduction of railways and
Development telegraph.
• Mid-20th Century: The refinement of logistics and distribution
and concepts during World War II and the post-war era, focusing on
military logistics principles.
Milestones in • 1970s-1980s: The rise of containerization and global sourcing, leading
to more international supply chains.
SCM • 1990s: The concept of SCM emerges as a holistic approach integrating
the entire product lifecycle, from raw material to the end consumer.
• Late 1990s-2000s: Advancements in IT and the Internet revolutionize
SCM, enabling real-time data sharing and collaboration across global
networks.
• 21st Century: Focus on agility, resilience, and sustainability. Concepts
like lean and just-in-time production become widespread.
The Transition
from Logistics • Initial focus on optimizing individual components of
production and distribution.
to Integrated • Shift towards the integration of all activities across the
SCM supply chain, with an emphasis on partnership and
collaboration.
 Information Technology: ERP systems and SCM software for
planning and executing complex supply chain activities.

How Automation and Robotics: Improvements in warehouse and

inventory management.
Technological
Advancements Big Data and Analytics: Enhanced decision-making
capabilities and predictive analytics for demand forecasting.
Have Shaped
SCM Artificial Intelligence and Machine Learning: Intelligent
supply chains capable of self-optimization.

Internet of Things (IoT): Connected devices providing visibility

and tracking throughout the supply chain.

Blockchain: Potential for increased transparency and security

in transactions.
 • Customer Centricity: Shifting focus
The from internal operations to
customer needs and values.
Emergence of • Sustainability: Integrating
environmental and social
Modern SCM governance into SCM to ensure
long-term viability.
Principles • Globalization: Managing complex
international supply networks,
with attention to cultural and
geopolitical factors.
Objectives of SCM
• Reducing Costs: Streamlining operations to lower production and
operational expenses, achieving economies of scale, and minimizing
waste.
• Tactics like strategic sourcing, bulk purchasing, and optimizing
transportation.
• Enhancing Quality: Ensuring that the processes within the supply chain
consistently produce results that meet or exceed customer expectations.
• Implementing quality management systems and continuous
improvement practices.
• Increasing Efficiency: Maximizing productivity with minimal wasted
effort or expense. Leveraging technologies and methodologies to
streamline operations.
• Process re-engineering and the use of automation tools.
Key Functions in SCM

Sourcing Procurement
Definition: Identifying, evaluating, and selecting Definition: The process of obtaining goods and
suppliers that can provide the goods and services services from the prepared and agreed-upon
needed to create a product. specifications through a contractual agreement.
Role in SCM: Ensures that inputs are of high Role in SCM: Manages the acquisition process,
quality, cost-effective, and delivered on time. negotiates contracts, and ensures compliance
Involves building strong relationships with with company policies. It directly impacts cost
suppliers for long-term collaboration. savings and supply chain efficiency.
 Key Functions in SCM

Production Planning Inventory Management

• Definition: The strategic alignment of • Definition: The supervision of non-

manufacturing capabilities with capitalized assets (inventory) and stock
demand. It involves the planning of items.
production processes, workforce, • Role in SCM: Aims to maintain optimal
equipment, and inventory levels. inventory levels to prevent stockouts or
• Role in SCM: Balances demand with excessive overstock, which both can be
manufacturing capacity, optimizes costly. Includes strategies like Just-In-
resource utilization, and aligns Time, ABC analysis, and safety stock
production schedules with market calculations.
demand.
 Key Functions in SCM

Logistics Customer Service

• Definition: The detailed organization and • Definition: The direct interaction between
implementation of a complex operation, the provider of a good or service and its
focusing on the transportation and customers before, during, and after a
storage of goods. purchase.
• Role in SCM: Ensures the efficient, cost- • Role in SCM: A critical function as it
effective flow and storage of goods from directly affects customer satisfaction and
point of origin to the point of loyalty. It includes managing customer
consumption. Encompasses inquiries, returns, warranties, and service
transportation management, agreements.
warehousing, material handling, and order
fulfillment.
 Just-in-Time (JIT)

Principles and Practices of JIT

• JIT is a management strategy that aligns raw-material orders from suppliers

directly with production schedules. It is aimed at reducing inventory levels
and carrying costs.
• Practices include frequent, small deliveries, quality management, and

Philosophies continuous improvement.

Benefits of Implementing JIT

of SCM • Reduces waste by minimizing inventory levels.
• Cuts down costs through improved workflow and reduced storage space.
• Encourages improved supplier relationships and product quality.

Challenges of Implementing JIT

• Requires accurate demand forecasting and a stable production process.

• Can lead to supply disruptions if suppliers fail to deliver on time.
• There is little room for error as inventory buffers are minimal.
 Lean Manufacturing

Eliminating Waste and Increasing Value in the Supply

Chain
• Focuses on creating more value for customers with fewer
Philosophies resources by identifying and eliminating waste ('muda') in all
forms.

of SCM • Emphasizes understanding customer value and focusing

processes to continuously increase it.

Tools and Techniques for Lean Operations

• 5S System for workplace organization.

• Kaizen for continuous improvement.
• Value Stream Mapping to visualize and optimize the flow of
materials and information.
 Agile SCM

The Need for Agility in Modern Supply Chains

• The ability to quickly respond to market changes and
customer needs is increasingly vital.
Philosophies • Agility involves flexibility, responsiveness, and the ability
to adapt to new conditions.
of SCM How Agility Complements Lean Principles
• While lean aims at creating value by eliminating waste,
agility focuses on the capacity to adapt quickly.
• An agile supply chain can implement lean practices more
effectively by responding swiftly to the fine-tuning of
processes.
 Resilient Supply Chains

Building Resilience Against Disruptions

• Resilience in SCM means the ability to recover from
or adjust easily to misfortune or change.
Philosophies • Strategies include diversifying suppliers, increasing
inventory for critical components, and developing
of SCM contingency plans.
Importance of Flexibility and Adaptability
• A resilient supply chain is not just reactive but also
proactive in anticipating potential issues.
• Flexibility and adaptability are crucial in minimizing
the impact of disruptions and maintaining continuity.
 Sustainable SCM

Incorporating Environmental and Social

Governance (ESG) into SCM
• Sustainable SCM integrates ecological and social concerns
Philosophies into supply chain management.
• ESG factors are considered in selecting suppliers, designing
of SCM products, and choosing logistics strategies.

Long-term Benefits of Sustainable Practices

• Builds brand reputation and customer loyalty.

• Ensures compliance with regulations and reduces risk.
• Sustainable practices often lead to cost savings through
efficiencies and innovations.
 • SCM and Business Strategy
• Aligning Supply Chain Strategies with Business Strategies
• The strategic integration of SCM with overall business
objectives, ensuring that supply chain capabilities
support and enhance business goals.
• Strategies for SCM are derived from, and in support
Role of SCM of, the broader business strategy, whether it's cost
leadership, differentiation, or focus.
in Modern • Case Studies of Strategic SCM Alignment
Business • Analysis of companies like Zara for fast fashion, Dell
for direct sales model, or Amazon for e-commerce
efficiency.
• These case studies demonstrate how supply chain
strategies can provide a competitive advantage and
support business growth.
 • Technology in SCM
• The Role of Information Systems
• Information systems like Enterprise Resource Planning
(ERP) and Supply Chain Management (SCM) software
form the backbone of modern supply chains,
integrating all facets of operations and finance.
• They facilitate real-time decision-making and improve
Role of SCM transparency across the supply chain.
in Modern • Advancements like AI, Blockchain, and IoT in SCM
• Artificial Intelligence (AI) for predictive analytics,
Business demand forecasting, and autonomous decision-
making.
• Blockchain for enhancing security, traceability, and
trust in transactions across the supply chain.
• The Internet of Things (IoT) for tracking assets,
monitoring inventory levels, and optimizing logistics.
 • Global SCM
• Managing and Optimizing Global Supply Chains
• Navigating the complexity of global supply chains
involves managing multiple suppliers, logistics partners,
and distribution channels across different countries.
Role of SCM • Strategies such as global sourcing, international
logistics, and multi-echelon inventory management are
in Modern critical.
Business • Dealing with Cross-Border Complexities
• Understanding and managing the risks associated with
global trade, including political, currency, and supply
risks.
• Compliance with international trade regulations,
customs, and standards.
Essential Features of Supply
Chain Management
• Integration of Supply and Demand Management
• Balancing Supply with Demand
• Effective SCM synchronizes supply with customer
demand, ensuring that products are available
when and where they are needed.
• This involves aligning manufacturing, distribution,
and purchasing to forecasted sales.
• Integrated Planning and Execution
• Coordination between various functions like
sales, operations, and finance through integrated
business planning (IBP) to respond to market
conditions proactively.
Essential Features of Supply
Chain Management
• Visibility and Transparency in the Supply Chain
• Real-Time Data Access
• SCM systems provide stakeholders with real-time data on inventory levels,
order status, and delivery schedules, enabling more informed decision-
making.
• Traceability
• The ability to trace the history, application, or location of items as they
move through the supply chain to ensure quality and compliance.
• Collaboration among Supply Chain Partners
• Strategic Partnerships
• Building long-term relationships with suppliers, manufacturers, logistics
providers, and customers to improve efficiency and responsiveness.
• Information Sharing
• Sharing information such as demand forecasts, production plans, and
capacity changes to align supply chain activities.
Essential Features of Supply
Chain Management
• Flexibility and Adaptability to Changes
• Responsive to Market Dynamics
• An agile supply chain can quickly adjust to changes in market demand,
supplier performance, and logistics to minimize disruptions.
• Risk Management
• Developing strategies to manage risks such as supply shortages, demand
variability, and geopolitical factors.
• Technology in SCM
• Information Systems
• Systems like ERP, Warehouse Management Systems (WMS), and
Transportation Management Systems (TMS) that integrate all aspects of
the supply chain.
• Advanced Technologies
• The use of AI for predictive analytics, IoT for tracking and monitoring, and
blockchain for secure, tamper-proof transactions.
Q. Which technology is used to create
transparent and secure supply chain
transactions?
A. Internet of Things (IoT)
B. Artificial Intelligence (AI)
C. Blockchain
D. Virtual Reality (VR)
 • Cash Flow Management in the Supply Chain
• Importance of Cash Flow
• Critical for maintaining the financial
health of the supply chain, ensuring that
all entities have the liquidity to operate
effectively.
• Strategies for Optimization
Various • Techniques like dynamic discounting,
Flows in SCM supply chain financing, and efficient
payment terms to optimize cash flow.
• Impact on the Supply Chain
• The flow of cash affects the ability to
invest in technology, manage inventory
levels, and respond to market demands.
 • Definition of Value in SCM
• Value in SCM is created by providing products
and services that meet or exceed customer
expectations at the right cost and at the right
time.
Value Flow – • Value Addition
Adding Value • Each stage of the supply chain should add
in Each Step value to the product, whether through
transformation, ensuring availability, or
of the Supply enhancing quality.
Chain • Measurement and Improvement
• Utilizing value stream mapping and other
lean tools to identify and eliminate non-
value-adding activities.
 • Role of Information in SCM
• The lifeblood of an effective supply chain,
enabling coordination, collaboration, and
decision-making.
Information • Technology Enablers
Flow – • The use of EDI, RFID, cloud computing, and
Communication other technologies to facilitate seamless
and Data information exchange.
Exchange • Challenges in Information Flow
• Overcoming barriers such as data silos,
cybersecurity threats, and ensuring data
accuracy and timeliness.
Key Issues in SCM
1. Risk Management and Mitigation
Strategies

1 2 3
Identifying and Developing Mitigation Building a Resilient
Assessing Risks Strategies Supply Chain
• Understanding various types • Implementing strategies such • Creating a supply chain
of risks in the supply chain, as diversifying suppliers, capable of responding and
including operational, maintaining safety stock, and adapting to unforeseen
financial, geopolitical, and establishing contingency challenges.
environmental risks. plans.
2. Supplier Relationship Management

Strategic Partnerships • Fostering collaborative relationships with suppliers to

with Suppliers ensure reliable supply and innovation.

Performance • Implementing systems for tracking and evaluating

supplier performance against agreed-upon metrics and
Monitoring standards.

Risk Sharing and Joint • Engaging in joint development activities and sharing
Development risks for mutual benefit.
3. Customer Demand Management
Understanding Customer Needs

• Analyzing customer data and market trends to accurately forecast demand.

Responsive Supply Chain Design

• Designing a supply chain that is agile and flexible enough to respond to varying
customer demands.

Enhancing Customer Experience

• Ensuring high service levels, customization options, and efficient after-sales

support.
4. Globalization and Its Impact on SCM
• Managing Global Supply Chains
• Handling the complexities of operating in diverse international markets,
including logistics, compliance, and cultural differences.
• Global Sourcing and Distribution
• Balancing the benefits and risks of global sourcing and distribution networks.
• Adapting to Global Market Dynamics
• Staying responsive to global economic and political changes that impact the
supply chain.
5. Ethical and Sustainable Practices in SCM
• Ethical Practices in SCM
• Definition and Importance:
• Ethical practices in SCM involve conducting business in a manner that is morally right and
just, respecting human rights, and adhering to fair labor practices.
• Importance in building trust with customers, enhancing brand reputation, and avoiding
legal issues.
• Sustainable Practices in SCM
• Understanding Sustainability:
• Involves managing environmental, social, and economic impacts of supply chain
activities.
• Aims to meet current needs without compromising the ability of future generations.
Amazon: Online Sales
 1. Why is Amazon building more warehouses as it grows?
How many warehouses should it have, and where should
they be located?
1. Amazon builds more warehouses to speed up delivery
and manage increased order volumes. The exact
number and location would depend on customer
distribution and demand, aiming for proximity to
Answers major cities and transport routes for quick delivery.
2. Should Amazon stock every product it sells?
1. No, Amazon should stock high-demand items and
consider drop shipping for niche products to optimize
inventory and storage costs.
 1. What advantage can bricks-and-mortar players derive from setting
up an online channel? How should they use the two channels to gain
maximum advantage?
1. Bricks-and-mortar stores can expand their reach and offer
convenience through an online channel. They should integrate
online and offline experiences, like offering in-store pickups for
online orders, to maximize customer convenience and
efficiency.
2. What advantages and disadvantages does the online channel enjoy
in the sale of shoes and diapers relative to a retail store?
1. Advantages: Convenience, wider selection, and potentially
Answers better prices.
2. Disadvantages: No immediate product trial for shoes, possible
shipping delays, and potentially higher return rates.
3. For what products does the online channel offer the greater
advantage relative to retail stores? What characterizes these
products?
1. Online channels are advantageous for products that are
standardized, non-perishable, compact, diverse in variety, and
benefit from rich product information and reviews.
 1. Global Distribution Centers (GDCs):
Central hubs strategically located near manufacturing bases or major
market entry points.
Serve as consolidation points for products to be distributed
internationally.
Architecture of 2. Regional Distribution Centers (RDCs):
Physical
Situated within specific geographic areas to serve local markets more
Distribution efficiently.
Network in the Stock inventory closer to the end consumer to reduce lead times and
Global Operation shipping costs.
Approach in SCM 3. Cross-Docking Facilities:
Used for sorting, consolidating, and transferring products without
long-term storage to minimize inventory holding and expedite
delivery.
 4. Multi-Modal Transportation:
Integration of different transportation modes (sea, air,
rail, road) to leverage their respective advantages and
ensure timely and cost-effective delivery.
Architecture of
Physical 5. Customs and Compliance Management:
Distribution Facilities and processes designed to manage customs
Network in the clearance and ensure compliance with international trade
regulations.
Global Operation
Approach in SCM 6. Inventory Deployment and Management:
Strategic placement of inventory across the network to
balance service levels with inventory carrying costs.
 7. Information Technology Systems:
Advanced IT systems for managing logistics,
Architecture of tracking shipments, and forecasting demand to
Physical ensure visibility and coordination across the
Distribution global network.
Network in the 8. Reverse Logistics:
Global Operation Infrastructure for managing returns, recycling,
Approach in SCM and disposal of products in an environmentally
responsible and cost-effective manner.
Types of Intermediaries
• Intermediaries are crucial participants in
the supply chain that act as a bridge
between the producers of goods or
services and the end-users. They play a
pivotal role in making products available
to a wider market and can significantly
affect the efficiency and speed of
distribution.
 Agents/Brokers:
• They represent either the buyer or seller (sometimes both) and work on
securing deals. Agents and brokers typically earn money through commissions
and fees for their services. They are ideal for companies looking to enter new
markets without establishing a physical presence.

Wholesalers/Distributors:
• Wholesalers buy in bulk from producers and sell to retailers or sometimes
directly to consumers. Distributors often take on a more involved role, not only
selling but also providing after-sales services and support. They are key when a
manufacturer wants to offload the logistics of storage and initial distribution.

Types Retailers:
• Retailers are the final link in the distribution chain, selling goods directly to the
end consumer. They range from large department stores to specialized
boutiques and online e-commerce platforms. Retailers are critical for consumer
goods companies since they provide the physical or digital storefront where
customers interact with the product.
Dealers

E commerce Platforms
 Channel Objectives:

Maximizing Coverage:
Channel • The goal here is to ensure that the product is available to as many
potential customers as possible, which might involve partnering
Objectives with multiple intermediaries or expanding into different
geographical areas.
and Increasing Customer Satisfaction:
Constraints • Distribution channels should aim to deliver the right products in
the right quantities, at the right time and place, to meet or
exceed customer expectations.

Optimizing Cost-Efficiency:
• While expanding reach and improving service are important, it’s
also crucial to control costs. This includes minimizing logistics
expenses, managing inventory levels, and negotiating favorable
terms with intermediaries.
 Constraints:

Regulatory Issues:
Channel • These include import/export controls, tariffs, and trade agreements that
can affect how products are moved internationally and the associated
Objectives costs.

Cultural Differences:
and • A deep understanding of local customs, buying behaviors, and preferences

Constraints is necessary to tailor the supply chain approach to each market effectively.

Logistical Challenges:
• Factors such as the reliability of transportation networks, the availability
of infrastructure, and the complexity of managing multiple logistics
partners can hinder distribution efficiency.

Trade Barriers:
• These might include quotas, embargoes, or other trade restrictions that
could limit market entry or increase the cost of operations.
 Selection Criteria:

Market Coverage:
• Evaluate intermediaries based on their reach and how well they can penetrate
the targeted segments of the market.

Channel Experience:
• Assess their track record in handling similar products or services and their
Selection and expertise in navigating the complexities of specific markets.
Reputation:
Management • A partner's reputation can significantly influence the brand image and customer
trust, making it a critical consideration.
Cost:
• Analyze the cost-effectiveness of partnering with the intermediary, considering
all logistics expenses, service fees, and the impact on the overall cost structure.
Strategic Compatibility:
• The intermediary's business practices and capabilities should align with the
company's long-term strategy and values.
 Management Strategies:

Relationship Building:
• Foster collaborative partnerships with intermediaries
Channel through regular communication, joint planning, and
shared objectives.
Selection and Negotiating Terms and Agreements:
Management • Craft contracts that clearly define expectations,
responsibilities, service levels, and compensation, with
flexibility to adapt to changing market conditions.

Performance Monitoring and Improvement:

• Implement metrics and Key Performance Indicators (KPIs)
to regularly assess the performance of intermediaries and
identify areas for improvement.
 Construction companies

What does the Physical retail store locations

term 'bricks-and-
mortar' refer to in Online shopping platforms

a retail context? Warehousing materials

 • Global retailing refers to the operations of retail businesses that expand
beyond their home countries to sell products in multiple countries across
the world. This expansion requires adapting to various markets, cultures,
and regulatory environments.
• Supermarkets:
• Large self-service stores with a wide variety of food and household
products organized into aisles.
• Specialty Stores:
• Retail outlets that focus on specific product categories, offering a
Global depth of assortment within those categories.
• Department Stores:
Retailing • Larger stores that carry a wide range of products under one roof,
divided into departments such as clothing, home goods, and
electronics.
• Online Retailers:
• E-commerce platforms that allow consumers to purchase goods
over the internet.
• Discount Stores:
• Retailers that sell products at lower prices by accepting lower
margins and selling higher volumes.
 • Market Entry Strategies: Choosing the right mode of entry, such as
franchising, joint ventures, acquisitions, or organic growth.
• Cultural Adaptation: Understanding and integrating into local
cultures, which may involve changes in product offerings, marketing
strategies, and store layouts.
Key • Supply Chain Management: Adapting logistics and supply chains to
local market conditions, including sourcing, transportation,
Considerations warehousing, and distribution.
• Compliance and Regulation: Navigating different regulatory
for Global environments, including tax laws, labor laws, and import/export
regulations.
Retailers • Currency and Payment: Managing currency exchange risks and
offering preferred local payment methods.
• Technology and Innovation: Leveraging technology for efficient
operations and to enhance customer experiences, such as through
mobile apps, virtual fitting rooms, or personalized marketing.
• Sustainability and Ethics: Addressing global concerns about
sustainability and ethical practices, which can affect brand reputation
and consumer loyalty.
 • International channel innovation refers to
the creative advancements and
International transformative strategies that companies
deploy in their distribution channels on a
Channel global scale. This is driven by the need to
Innovation adapt to changing market dynamics,
technology advancements, and evolving
consumer behaviors.
Emerging Trends
E-Commerce Mobile Commerce Omnichannel Data-Driven
Digital Integration:
Expansion: (M-Commerce): Retailing: Personalization:
• The use of digital • Extending the • Capitalizing on • Creating a • Utilizing big data
tools and reach of e- the ubiquity of seamless analytics to tailor
platforms to commerce smartphones to consumer the shopping
enhance the platforms to new facilitate on-the- experience across experience to
connectivity international go transactions, all channels, individual
between different markets, often providing a boost whether the preferences,
parts of the requiring to international customer is thereby
supply chain, such innovative sales channels shopping online increasing
as integrating approaches to through mobile- from a mobile customer
suppliers, logistics, payment optimized device, a laptop, satisfaction and
logistics, and processing, and websites and or in a brick-and- loyalty.
customer service digital marketing. apps. mortar store.
on a single digital
platform.
Q. Which of the following is a primary
challenge when implementing
omnichannel retailing strategies?

A. Ensuring the brand message is different

across various channels
B. Lowering the quality of customer service
online to match in-store experiences
C. Synchronizing inventory and pricing
information across all platforms
D. Reducing the number of channels to focus
on the most profitable one
Innovation Strategies

Technology Sustainability Direct-to-Consumer Customization and Logistics

Adoption: Initiatives: (DTC) Models: Localization: Optimization:

Implementing the latest Developing green supply Cutting out intermediaries Tailoring products and Investing in advanced
technologies such as AI, IoT, chain practices that reduce to sell directly to consumers, marketing strategies to local logistics solutions, including
and blockchain to streamline environmental impact and thereby gaining better tastes and cultural automated warehousing and
operations, improve meet the sustainability customer insights and preferences, which can drone delivery, to enhance
tracking, and secure demands of global increasing profit margins. require innovative efficiency in product
transactions across consumers. adjustments to the supply distribution.
international channels. chain.
Thankyou