Assignment on " Supply Chain Management" that includes key-words

starting with G, H, and I

Assignment type - Group (1)

Course code: BUS-3273
Course Title: Supply Chain Management

SUBMITTED TO
Md. Abdul Muhith Chowdhury
Associate Professor (HRM)
Department of Business Administration

SUBMITTED BY

Ayesha Jahan Eshita 0182210004081041

Ariha Ivy Chowdhury Florin 0182210004081016

Md. Rahy bin kamal 0182210004081043

Sharmi Kapali 0182210004081032

Khawaza Shahzeb 0182210004081035

Batch: 60
Department of Business Administration
Executive Summary

This assignment explores the key components of Supply Chain Management (SCM), including
Global Sourcing, Handling and Logistics, Inventory Management, Information Flow and
Integration, Green Supply Chain Management (GSCM), Human Resources, and Innovation in
Technology. Each component plays a crucial role in optimizing the flow of goods, services, and
information across the supply chain. Global sourcing helps companies access materials
worldwide, while handling and logistics ensure efficient movement of products.
Inventory management balances stock levels, and information flow ensures real-time data
sharing for better coordination. Companies are also adopting green supply chain practices to
reduce environmental impact, while human resources oversee skilled labor and operations.
Lastly, innovation in technologies like AI, blockchain, and IoT is transforming SCM, enhancing
efficiency and sustainability.
Introduction
Supply Chain Management (SCM) is a critical function in modern business operations that
focuses on the flow of goods, services, and information from suppliers to the final consumer. It
involves various interconnected activities that aim to enhance efficiency, reduce costs, and
ensure the delivery of products on time. In this assignment, we will discuss the key components
of SCM while placing emphasis on words starting with G, H, and I, along with practical
examples for better understanding.

1. Globalization in Supply Chain Management

Global sourcing refers to the practice of procuring raw materials, components, or products
from suppliers located in different parts of the world. This approach allows companies to
access a wider range of suppliers, benefit from lower costs, and tap into specialized
expertise that may not be available domestically. Global sourcing also helps businesses
achieve better economies of scale and competitive pricing by leveraging cost differences
across regions
Example: Apple Inc. is a prime example of a company with a globalized supply chain. It
sources materials like semiconductors and rare earth elements from countries such as China
and Japan, manufactures components in Taiwan and Vietnam, and assembles final products
in China, before shipping them to consumers worldwide. Apple's ability to integrate its
global supply chain is a key reason for its market success.

The Impact of Globalization on Supply Chain Networks

Globalization has had a significant impact on supply chain networks, offering companies
opportunities to increase revenues while simultaneously reducing costs. For instance, in its
2008 annual report, Procter & Gamble (P&G) highlighted that a substantial portion of its
sales growth stemmed from developing markets, contributing more than one-third of its
growth with profit margins comparable to those in developed markets. By 2010, sales in
developing countries made up nearly 34% of P&G’s global sales. Similarly, Nokia’s largest
markets by 2009 were China and India, which accounted for 21.5% of its global sales, with
the BRIC countries (Brazil, Russia, India, and China) collectively contributing over 28%.
These figures illustrate how globalization has significantly enhanced revenue opportunities
for multinational corporations.

Globalization has also provided substantial cost-reduction opportunities, particularly in industries

like consumer electronics and apparel. Consumer electronics, due to their lightweight and
high-value nature, are relatively inexpensive to ship, which has allowed companies to centralize
production and achieve economies of scale. Major contract manufacturers such as Foxconn and
Flextronics have become industry leaders by establishing large-scale production facilities in
low-cost countries. In the apparel industry, which is labor-intensive, companies have reduced
costs by relocating production to countries with lower labor costs, especially China. By
mid-2009, approximately 33% of U.S. apparel imports came from China, highlighting the
cost-saving advantages that globalization has brought to the sector. Overall, both industries have
greatly benefited from globalization through enhanced efficiency and cost reduction in their
supply chain networks.

1.2 Goods Flow Management

The goods flow refers to the physical movement of products from suppliers to
manufacturers, through distributors and retailers, and finally to the end customer.
Efficient goods flow management is essential for reducing transportation costs, minimizing
delays, and ensuring timely delivery. This component of SCM involves warehousing,
distribution, and logistics, all of which need to be optimized to streamline the delivery
process and meet customer expectations.
For instance, Amazon, the e-commerce industry leader, has mastered goods flow
management with its extensive network of warehouses, distribution centers, and delivery
services. By strategically placing fulfillment centers close to major markets and investing in
logistics innovations like drone delivery and robotics, Amazon can deliver goods quickly and
affordably, ensuring a high level of customer satisfaction.
2. Holt’s Model in Supply Chain Management
Holt’s Model, also known as Holt-Winters Model or Exponential Smoothing Model, is a
statistical forecasting technique used to predict future demand in supply chain management.
The model is an extension of simple exponential smoothing, taking into account both trends
and seasonality in time-series data. It is widely employed in supply chain management to
optimize inventory levels, production planning, and procurement strategies by forecasting
demand more accurately.

1. Key Components of Holt’s Model

Holt’s Model incorporates three main components to improve demand forecasting:

1. Level (L): The baseline value that represents the general trend of demand over time.
2. Trend (T): The direction and rate of change in demand, which can either be upward,
downward, or stable.
3. Seasonality (S): A repeating pattern of demand fluctuations over a specific period, such
as months, quarters, or years.

Example of Holt’s Model Application

A retail company using Holt’s Model may observe that their sales increase in December due to
holiday shopping, showing a clear seasonal pattern. Using the Holt-Winters Seasonal Model, the
company can forecast increased demand during this period and ensure adequate inventory levels
are in place. This reduces the risk of stockouts and lost sales, while also preventing overstocking
during off-peak months.

2.2 Handling Operations

Handling refers to the processes involved in managing and controlling products as they move
through different stages of the supply chain. This includes loading and unloading goods,
packaging, and transferring products from one location to another. Effective handling operations
minimize product damage, reduce waste, and increase operational efficiency. Automation and
mechanization have significantly improved the handling process in modern supply chains.
Example: A warehouse that uses automated guided vehicles (AGVs) to transport goods from
storage to shipping areas can handle products more quickly and efficiently. An example would be
the warehouses operated by companies like Walmart or Amazon, where robotic systems such as
Kiva robots autonomously move pallets of goods, reducing the need for human intervention and
optimizing the handling process.

3. Inventory Management
Inventory management is the process of ensuring that a company has the right amount of
stock to meet demand without overproducing or underproducing. Balancing inventory levels
is essential for minimizing storage costs and avoiding stockouts that could lead to lost sales.
Efficient inventory management relies on demand forecasting, safety stock calculation, and
inventory control techniques.
Example:
A classic inventory management example is the use of Just-In-Time (JIT) inventory
systems, where companies maintain minimal stock and replenish it only when needed.
Toyota’s JIT system ensures that parts arrive just in time for production, reducing inventory
costs while meeting manufacturing needs. Another approach is Inventory Optimization,
used by companies like Zara, which ensures that inventory levels are closely aligned with
seasonal fashion trends, reducing excess stock.

3.2 Innovation and Technology in Supply Chain Management

Innovation in SCM is the adoption of new technologies and practices to improve efficiency,
reduce costs, and enhance flexibility. From artificial intelligence (AI) to the Internet of
Things (IoT), innovations are transforming the way supply chains operate. Predictive
analytics, blockchain for transparent and secure transactions, and automation in logistics are
driving the future of SCM.
Example: Maersk, a global shipping leader, has introduced blockchain technology to
manage and track global shipments. Its platform, TradeLens, provides a secure, transparent,
and immutable record of transactions, allowing stakeholders to verify and track goods as
they move through the supply chain. This level of transparency increases trust, reduces
fraud, and improves efficiency across the entire supply chain.
Conclusion

In conclusion, supply chain management is a multifaceted discipline that requires the careful
coordination of various components, including globalization, goods flow, handling operations,
information flow, inventory management, green practices, human resources, and innovation.
Successful SCM can improve business performance, reduce costs, and enhance customer
satisfaction. As supply chains continue to evolve, companies must adapt to the latest
technological advancements, global challenges, and sustainability goals to remain competitive in
the global marketplace.