Supply chain at Alibaba

 

Hi everyone. I’m Arun R from final year Amrita School of Business. This blog is about the insights I got from supply chain decision at Alibaba.

Alibaba holding group or Alibaba Group is a Chinese multinational technology company started in 1999.  It is one of the biggest online commerce company. They have more than hundreds of millions of users and host millions of merchants and business. They specialize in e-commerce, retail, and technology. They are one of the sought-after destination for one of the fastest growing sector, the e-commerce market. Almost 80% of China’s online shopping market is dominated by Alibaba. They help to connect exporters in China with companies all over the world. Their goal is to build the future of infrastructure of e-commerce. And the success of this is mostly credited to the successful use of their supply chain resources. They are one of the top companies that effectively manage their supply chain.

Some of the lessons that we could gain from Alibaba's supply chain are;

·       They understand the customer behaviour and watch Their customers closely for any change in their behaviour. They found that Chinese like to negotiate while shopping and thus they created a real-life shopping experience for their customers. That developed a chat application that helps the customers to get in touch with the vendors and ask for discounts.

·       Another success factor is their customer service. They have a customer service representative called “Xiaoer”, who helps in mediation. That also manage and control vendors performance and invite top performing vendors to participate in marketing campaigns.

·       In order to serve the whole China, they depend on some third part logistics providers as China is a big country and only some places are developed. So, to meet all the customers demand they use the external logistics providers. They also used the help of China post for countryside delivery.

·       Alibaba uses an escrow system called “Alipay” for smooth financing. It makes sure that the when the customer get the product the vendors get the money.

·       They also have a unique employee rotation policy, where they rotate the work between each business unit and branches frequently. By doing this each employee will get a fair idea of the overall business process.

Supply chain management in the film industry

Welcome back readers, this is Krishnakanth TS pursuing MBA in Operations and marketing at Amrita school of Business Coimbatore.

The film industry supply chain include

• Development
• Pre production
• Production
• Post production
• Distribution/advertising
• Exhibition

Development

It is the stage at which the content is created or bought. Followed by drafting a screen play , starting the financing processes and finding the talented directors, actors and other technicians.

Pre-production

This is the stage where all the planning is being done. Forecasting the number of day for shoot is decided. What all are the objects or items required for the production .Budgeting the whole process and finding the financial investors. Pre production ends where the planning end and content starts producing.All of thee involve a legal relationship between the producer and the supplier

Production

The producer and director make the timetable and coordinate the use of all the different production tools lined up to make the film. Legal issues may occur if problems grow with workers, malfunctions of equipment, injuries, disagreements then legal counsel is at the ready. 

Post-production

A whole set of other experts are hired to supply the finished film product until production is complete. Editors, sound engineers, scoring musicians and composers, sound track music licencing, colouring, special effects, sound mixing, etc. Often producers employ a post house in a package deal contract to do all of this. In other occasions, the producer assembles a team to put the final touches on the film. This phase make the film ready to be watched by the audience as a product is made ready for the delivery. 

Distribution

Finding distribution channels to make the product reach out to the public. It also includes the international sales and international distribution. Marketing the product is also a part of this phase.

Exhibition

Delivering the film to the audience through theaters, OTT platforms , DVD, blue rays etc..

 Supply chain management in Indian textile industry

India’s textiles sector is one of the oldest industries in Indian economy for the past several centuries. Even today, textiles sector is one of the largest contributors to India’s exports with approximately 11 per cent of total exports. The textiles industry is also labor intensive and is one of the largest employers. The textile industry has two broad segments. 

• First, the unorganized sector consists of handloom, handicrafts and sericulture, which are operated on a small scale and through traditional tools and methods. 
• The second is the organized sector consisting of spinning, apparel and garments segment which apply modern machinery and techniques such as economies of scale. The Indian 

Textile sector supply chain management

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 make products available when needed.

 The supply chain of a typical textile industry consists of:

•  Raw materials 
•  Ginning facilities 
•  Spinning and extrusion processes 
•  Processing sector 
•  Weaving and knitting factories 
•  Garment manufacturing

Effective supply chain management is important for the Indian textile industry. The interface between textiles and clothing is one field which needs more focus for the global competitiveness of the entire supply chain. There is a change from the conventional supply chain for textiles to the supply chain for clothes. There was an evolution in trends in India's textile supply chain and the need for an interface between textiles and clothing in the textile industry for successful supply chain management.

It is important to note that while new technology accelerates the trend towards 'value chain slicing' and manufacturing and services fragmentation, new management practises are pushing the business towards the convergence of the value chain and the creation of a holistic viewpoint, which stretches from retail customers at the teeth-end to the primary raw material manufactory. Advances in technology have allowed various stages in the value chain to be fragmented and delocalized. And it is precisely this development that has intensified the need to look holistically at the entire value chain. In other words, the better the development of technology, the greater the need to 'tie them all together' to draw on the synergistic benefits.

 Supply chain management in agriculture

Welcome back readers , this is Krishnakanth TS pursuing MBA in Operations and Marketing at Amrita school of business.In this blog I'm taking you through the supply chain management in agriculture 

Agriculture supply chain network

An agriculture supply chain system comprises of organizations that are responsible for the production and distribution of vegetables, fruits, cereals, pulses and animal based products. There are mainly two types:-

• Agriculture food supply chains for fresh agricultural products
• Agriculture food supply chains for processed food products

1. Agriculture food supply chains for fresh agricultural products -

It includes fresh vegetables, fruits and flowers. It comprises of growers, auctions, wholesalers, importers and exporters, retailers and speciality shops and their input and service suppliers. The main processes are the handling, conditioned storing, packing, transportation and especially trading of these goods. 

2. Agriculture food supply chains for processed food products-

It includes meats ,snacks, juice, desserts and canned products.

Agricultural products are used as raw materials for producing consumer products with higher added value. Here agricultural products are used as raw materials for producing consumer products with higher added value .The conservation and conditioning processes extend the shelf-life of the products.

Issues with the agriculture supply chain management in India

Supply Chain at Nike

Hi readers, I'm Arun R of second year MBA, from Amrita School of Business and this is my 8th blog. In this blog I'm going to talk about the supply chain of Nike. 

Nike is an American multinational corporations engaged in the design and development of sales of footwear, apparel , equipment, accessories and services. The company was founded in 1964 as Blue Ribbon Sports and officially became bike Inc. In 1971.  The company is headquartered in Oregon. Nike is the largest supplier of athletic shoes and apparel. The market share of Nike is 27% . Nike is also ranked 89 in the fortune 500 list of the largest United States corporations by revenue in 2018.

They are the most influential player in the modern textile industry. They have a complex supply chain which is the reason for them selling more than 100 of millions of shoes and other products. Delivery precision is an important one in Nike Inc. which improves the margin , lower inventory, minimize price and deliver right product to the customer on time. This success of Nike is credited to this complex supply chain management. They have 525 factories in 40+ countries and move products to several thousands of retailers.

The key principles of Nike’s supply chain are outsourcing, diversification and corporate social responsibility. Almost 100% of its manufacturing for footwear and apparel is done by independent suppliers. The management team of Nike’s supply chain managed the additional logistics complexity involved in this and significantly reduced cost. Outsourcing is a risky one but the success of Nike is that they do not give more than 10% of orders to one particular factory. The highest they give is 9%. This helps them to not rely heavily on one supplier and less vulnerable to unpredictable occurrences. Nike selects high quality raw materials and suppliers for their global procurement.

Sourcing from so many components have its own disadvantages and they are really tough and are a challenge to them. They focus more on quality and long-term agreement.  Nike makes continuous contact with the supplier to make sure that their products meet the required quality standards in each echelons of production. They also provide support to suppliers through tools and training in lean management framework and TQM approach.

Nike also has an efficient distribution system to cater to the need of the individual customers really faster. They have a faster distribution and logistics network that helps in faster shipment and quick response to the customer demand. This distribution and logistics centers also serve as critical touch points for thousands of Nike retail stores, online sales and individual customers. An example of Nike’s to respond quickly to customer is their opening of new distribution center in North America. This has improved Nike’s ability to deliver premium products to customers quickly and efficiently.

They also give more importance to the employee health and safety. Suppliers are judged based on their fair labor standards. Nike started to bring more corporate social responsibility to their operations. Nike has revamped its sourcing strategy and prioritize suppliers to show CSR and sustainability. Nike became the first company to publish the complete list of factories in its supply chain. Nike is also planning to outsource their products by 100% in the near future.

Supply Chain Risk Management (SCRM)

Hello Everyone,

This is Vembu Raj T, pursuing my MBA second year in Amrita School of Business, Coimbatore. Today’s my blog is on topic “Supply chain risk management (SCRM)”. Supply chain risk management (SCRM) is the process of taking strategic steps to identify, assess and mitigate the risk in your end-to-end supply chain.  

Supply chain risks include cost instability, supply shortages, financial difficulties and failures of manufacturers, and natural and manmade disasters. SCRM techniques and technologies allow an enterprise as efficiently and effectively as possible to anticipate future challenges and respond to both such threats and unforeseeable supply chain disruptions.

A comprehensive approach to SCRM includes the management of all forms of risk, for all levels of supply and for all project risks (suppliers, locations, ports and much more). When implemented right, SCRM is a vital enabler that is incorporated and integrated into the core processes of an organization.

Below are the suggested best practices for supply chain risk management:

1. To gather, evaluate and manage supplier information, automate processes involved in supplier risk management (SRM).
2. For insight into future financial challenges, include supplier performance information in your study.
3. Identify red flags that can signify problems and automate their early detection using technology.
4. Integrate SCRM platforms with information systems for procurement and supply chain management (SCM), including spending visibility information, e-sourcing, purchase-to-pay, contract management and enforcement.
5. Provide dashboards that can track and report on risk indicators of supply to provide the executive team access to risk factors in real-time observations.

Importance for Supply Chain Risk Management (SCRM) is continuously increasing over the time because of,

1. Just in Production/Just in sequence - Running a lean supply chain means you have less wiggle room when things go wrong.
2. Globalization - Outsourcing and supply chain length and complexity are growing. This leaves you open to more risk.
3. Brand Reputation - It is important to tackle problems that could damage the brand reputation with more regulation and the rising impact of social media.

 

How Technology is Changing the Future of Logistics

 

Hello everyone,

This is Vembu Raj T, pursuing my MBA second year in Amrita School of Business, Coimbatore. Todays my blog is on topic “How Technology is Changing the Future of Logistics”. From this blog we would know about the five big technological developments that are transforming the logistics industry 's future.

Technological evolution is pushing the boundaries and changing the way the world does business. Today, for instant access, we're used to everything being online and right at our fingertips. Is it possible to receive a package less than an hour after ordering? Now it is possible depending on where you live, via Amazon, the pioneer of fast-paced delivery services. Improved technology has also improved supply chain efficiency, minimizing costs and mistakes. These advances benefit all areas of the logistics industry: trucking transportation, international transportation (ocean and air), supply chain management, and shipment tracking.

Here are five big technological developments that are transforming the logistics industry 's future.

1.      Radio Frequency Identification (RFID):

A common labor-saving way for businesses to monitor their inventory is RFID technology, which has also been in use for a few years.  A tag or sensor is placed on the product and radio waves are sent out. The information is then received and processed by the organisation. Barcodes are similar to RFID tags, but the superior speed of information delivery and data processing of RFIDs is more attractive to companies and the way technology travels. Today, many companies are using RFID tags in their distribution warehouses to monitor containers. Other industries are already using RFID tags, such as the apparel industry and major theme parks.

2.      Automotive trucks and drones:

With trucks not too far behind, autonomous cars are already a reality. Embark and Uber have both used autonomous vehicles for long hauls, with Tesla launching a truck this year. Although it wasn't fully driverless, it is a major move in this revolutionary technology with a driver in the passenger seat to control the machine and has the ability to improve productivity in the distribution phase.

Amazon have revealed the future of drones, called Amazon Prime Air, bringing deliveries right to the door. Because of regulatory measures and related costs, drone deliveries are still a few years away, but the prospect of not having to sit around over a four-hour period waiting for a delivery is very tempting.

3.      Shipment Tracking Systems:

Customers previously booked orders, obtained an approximate arrival date, and then, unless they wanted to make a phone call, were left in the dark. Today, advancements in the Internet and software give consumers 24/7 access to shipping and tracking systems. Not only does this boost the customer experience, but it also saves the business time and money.

4.      Enhanced GPS Accuracy:

Completely gone are the days when before you left the house, you printed out instructions from the screen. Nearly everybody uses GPS today, whether it's built-in on their cars or mobile phones. Throughout the years, the precision of these instruments has improved dramatically, not only helping angry, lost drivers, but also enhancing the supply chain. The advanced GPS accuracy makes it possible to increase efficiency and satisfy customers by monitoring the positions of trucks and improving transportation through access to updated traffic data.

5.      Social Media:

The power of social media is optimizing the logistics industry and operations as a whole. These networks are becoming the fastest and most powerful way for businesses to connect with consumers, rapidly sharing urgent information, industry news, and customer responses. 59 percent of Americans who have a social media account believe, according to Hootsuite, that customer service via social media has made it easier to address questions and concerns.

Staging a successful concert

Hello Everyone! I'm Madhumitha.M studying final year MBA in Amrita School of Business.Welcome to my learning space.This blog is about staging a successful concert with key factors of logistics and supply chain management.Hope it's interesting.😊

"The secret to a good, profitable show is an efficient supply chain production."

The key details behind a good concert are essentially the same, whether it is organising a small performance at a stage or preparing a huge stadium performance for one of the world's most famous artists. To keep a concert from being a logistical disaster, we'll pull the curtain back and shed a light on the simple steps that every event manager would take.

1.Planning Ahead 

It is not as easy to schedule a concert as merely to track down an artist. Concert promoters must conduct thorough analysis into possible locations, possible logistics suppliers, local transit alternatives, and all other considerations that might influence the event's accessibility after booking the performance.

Based on the size of the concert, the amount of planning required can differ. A promoter does not need much lead time if a concert is held at a small public space like a park, but a massive stadium show requires at least several months of logistical legwork. Even a set at a local club or bar typically needs several weeks of planning to ensure that organisers can market the event properly and allow fans ample time to purchase show tickets.

2.Always be prepared 

With all they need, particularly when it comes to technological equipment such as lighting and sound cables, no organiser can ever expect a band to turn up. Organisers can communicate to the band in advance, from special instruments and supplies to foods that suit the preferences of the band, to decide what would need to be delivered on the day of the performance.

Furthermore, the promoter needs to consider the technological capacities of the venue and ensure that it can meet the needs of the party. For eg, if the venue's stage does not satisfy the required needs of the band, the promoter may need to employ a team to create and instal a custom stage. This will pose some big logistical problems, as it would be important to move the stage to the location or instal it on site. Additionally, if the venue may not have a sound technician on site, the organiser can need to employ a trained expert.

Concerts are a team endeavour, working together together with vast crews spread around the facility to ensure the show runs smoothly. The lighting technician prepares the lighting effects while the band finalises their set list, the ground staff assures that the stage is structurally stable, the stable technicians check the acoustics of the venue, and the doorman and safety staff must prepare for the rush of visitors. A qualified, seasoned crew can make all the difference in staging a seamless performance, whether it's a crew of 3 or 300.

3.Sell,Sell,Sell!

When there's a concert going on and no one is there to hear it, has it ever happened? Nobody wants to place an empty spot on a stage, so organisers need to disclose the event well in advance and have enough opportunity for promoters and boost ticket sales. The publicity budget should be invested carefully, targeting the audiences and communities most likely to be involved in the case, encompassing everything from paper flyers to streaming advertising. Low-cost but high-impact advertisement strategies can also be used, such as social media and email marketing.

The market for live music is definitely there if you can reach into the right crowd. While not everybody can be a big star like Justin Bieber or Beyonce, taking the steps we have described here, who lead the most successful worldwide musical tours, the musical supply chain would keep running, helping the band bring down the house and making every member hungry for more tracks.

Happy learning!😊

KFC India's Supply Chain

 

      
        Hello Readers, This is Muhammad Jassim from Amrita School of Business Coimbatore. Welcome to my sixth blog on Supply Chain, Hope you find it interesting and insightful. This week blog is all about KFC India's Supply Chain Management.

KFC India :

        Kentucky's Fried Chicken which is popularly known as KFC, launched in June 1995 in India and its first outlet was established in Bangalore. As Bangalore outlet functioned as the Head office of KFC India due to its remote venture agriculturists relationship in the nation. 

        KFC started growing outside of Bangalore from 2004, by changing their menu's from only meat to serve other foods like wraps and juices which as a part of its change in operational strategy. They have also introduced few vegan menus which includes, rice, suppers and few veg side dishes. From 2014 KFC India launched a campaign "So Veg, So Good" which is menu feature of a India particular special system to target vegans upfront.

KFC India Operational Strategy :

        1. Localization of Menus

        2. Building a proactive supply chain.

        3. In a country with a population of over billion, KFC India mastered with the operational strategy of using Pricing, Product Mix and Branding to target young population.

Demand Forecasting :

        KFC usually follows Projection chart technique which is helpful to analyse their demand and project it for each day of the week. In which average of previous six Monday is considered for a Monday. Generally, Demand forecasting is done for per lakh consumption. It is also calculated monthly based on previous months data.

KFC Suppliers :

        KFC India's main supplier is Venky's Chicken, which is the biggest poultry farms in India. KFC chooses Venky's as they are in motto to source only Chicken of 100% quality. Their other supplies includes,

                1. Buns

                2. Vegetables

                3. Milks

                4. Pepsi (Every alternative day)

                6. Fries (Once a week)

                7. Paper package 

        KFC India adopted open vendor system, before getting into any suppliers contract they undergo a Supplier quality check to ensure that the particular supplier worth their deal. Once the supplier is found worthy they offer them with a Tender based price quotation.

KFC's Logistics :

        The KFC got all its consignment delivered through specialized trucks which can control on board temperatures exclusively for maintaining the freshness of the item being delivered to the outlets. Mostly for this purpose they rely on Refrigerated trucks that transfers the products from place to place. The products that are received from these transports are been checked on its arrival and the defect one's are rejected then and there. KFC has all its authority to accept or reject the product been delivered to them and the rejected item is clearly mentioned in their invoice about the reason behind the rejection. The team sends a mail within twenty four hours of delivery and it will be replaced within forty eight hours from the time of rejection.

KFC's Storage :

        The Storage yard that KFC has maintains specific temperature as the cold storage consists of a specialized storage containers in it. KFC's special maintenance committee takes care of it and they are the one's who are responsible for the storage. They follow First In First Out mechanism in their storage  and they ensure freshness in the product delivered by following this. For example, the products are stored in the numbered rows based on the date of its arrival and they are taken from it in ascending order from it.

KFC's Inventory Management :

        They follow farm to fork strategy where products are delivered from farms which are grown fresh to their consumers table. This includes Receiving of products, storing it, preparing it, using it for production and finally serving it to the consumers. In the inventory management they follow KFC has a buffer of nine days. They manage back orders with neighboring KFC branches.

KFC's Quality Control Management :

        KFC India own its Maintenance Committee which is responsible for giving its employees training of about forty five days in total. This training ensure that the employees can undergo Quality control check on their own to ensure quality if the products being sold to the consumers.