Decision Phases in Supply Chain

1111 WordsNov 26, 20115 Pages
Decision phases in supply chain Successful supply chain management requires much decision to the flow of information, product and funds. Each decision should be made to rise to supply chain surplus. These decision fall in to 3 phases depending on the frequency of the each decision and time frame during which a decision phase has an impact. As a result, each category of decision must consider uncertainty over the decision horizon. * Supply chain strategy or decision During this phase, given the marketing and pricing plans for a product, a company decides how to structure the supply chain over the several years. It decides what the change configuration will be, how resources will be allocated and what processes each stage perform.…show more content…
Dabur believed there was substantial opportunity to enhance customer service, reduce working capital and reduce the cost base. Since the company was running on high efficiency, it was a challenge for the management to further increase the company’s efficiency to improve its profitability and increase its bottom line. With help from IT, Dabur management captured the total opportunity potential from a supply chain exercise across the different levers. It was observed that incremental revenue through lost sales could account for six percent revenue. Cost reduction was cited as an area where the company could become more profitable. Damaged goods formed about 10 percent of the existing spend. The company has implemented SAP APO modules: DP (demand planning) and SNP (supply network planning) and integrated them with some existing legacy applications. The supply chain challenge Dabur’s supply chain is far more complex than other FMCG firms in India given its diverse product portfolio: * More than 800 SKUs spanning multiple shelf-life foods, personal care, home and healthcare products * A fragmented and multi-tiered distribution network, more than 10 plants, more than 40 warehouses and 1,500 distributors * It also has a large fragmented front end; general trade has direct reach to 1.5 million retail outlets and indirect reach to more than six million outlets; modern trade consists of B2B and B2C institutional
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