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logistics and supply chain management ALLIGNING SUPPLY CHAIN STRATEGIES WITH PRODUCT UNCERTAINITIES MBA course presentation defining about the issues faced in supply chain management and




















































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































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1. ALLIGNING SUPPLY CHAIN STRATEGIES WITH PRODUCT UNCERTAINTIES SUBMITTED BY: HIMANI DUSEJA (SAPID- 590017602) ASTHA TYAGI (SAP ID- 590017444) DEEPAK AGARWAL (SAP ID- 590010644) SIMRAN LOBIYAL (SAP ID- 590017494)

2. WHAT IS SUPPLY CHAIN MANAGEMENT ? SUPPLY CHAIN MANAGEMENT (SCM) IS THE PROCESS OF OVERSEEING AND MANAGING THE FLOW OF GOODS, INFORMATION AND FINANCES AS THEY MOVE FROM SUPPLIER TO MANUFACTURER TO WHOLESALER TO RETAILER TO CONSUMER.

3. UNCERATINITY FRAMEWORK DEMAND UNCERTAINITIES SUPPLY UNCERTAINITIES

4. DEMAND UNCERTAINITY Functional Products : Functional product are ones that have long life cycles and therefore stable demand. They tend to have less product variety. Demand for functional products are easier to forecast. EXAMPLE- household consumable items, basic foods, oil and gas, and basic clothing. Innovative Products : Innovative products are products that have short life cycles with high innovation and fashion contents and as a result, have highly unpredictable demand. It has high profit margin cost of obsolescence is high. EXAMPLE- Fashion apparel, high-end computers, the latest integrated circuits, and mass customized.

5. SUPPLY UNCERTAINITY STABLE SUPPLY A stable supply chain refers to a well-established, predictable, and reliable system for sourcing, producing, and delivering goods or services. It has Efficient use of technology and automation. It has Reliable Lead Time and Consistent delivery timelines. Stable supply ensures consistent performance and minimises disruptions . Evolving supply chains Evolving supply are dynamic, adaptive systems that respond to changing demands, market shifts, and technological advancements. Ability to adjust quickly to new requirements. Rapid response to unforeseen events. Evolving supply chains are future-proof, capable of handling uncertainty and volatility .

6. Managing a supply chain is more challenging for products with high demand or supply uncertainties. To develop an effective supply chain strategy, it's crucial to understand and reduce these uncertainties. By moving a product's characteristics from high uncertainty to low uncertainty, supply chain performance can improve. Changing the Uncertainty Landscape Strategies to Improve Supply Chain Performance: 1.Demand Uncertainty Reduction 2.Supply Uncertainty Reduction

7. DEMAND REDUCTION STRATEGIES The Bullwhip Effect is a phenomenon where slight fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels. The bullwhip effect severely impacts the supply chain as it causes  inventory management challenges , increases costs, hampers production scheduling and capacity planning, lowers customer service levels, and strains supplier relationships .

8. Improved Demand Forecasting When real demand data is shared across the supply chain, companies improve the accuracy of their forecasts. Stabilizing Order Patterns  Implementing  Just-In-Time (JIT) ordering  and reducing lead times can minimize the need for large safety stocks and decrease demand variability. Vendor Managed Inventory (VMI)  Allowing suppliers to manage the inventory levels based on actual demand data can significantly reduce the need for safety stocks and decrease order variability. Rationalizing Product Variety  Reducing the number of product variations and focusing on more standardized products can simplify the supply chain, making predicting and managing demand easier. Collaborative Relationships  Fostering a culture of collaboration and trust among supply chain partners can facilitate sharing accurate demand forecasts and inventory levels. This approach enhances transparency and enables more effective demand management. Implementing Technology and Automation  Implementing advanced supply chain technologies, such as cloud-based systems and AI-driven analytics, can provide real-time visibility and predictive insights, reducing the likelihood of the Bullwhip Effect.

9. SUPPLY UNCERTAINITY REDUCTION STRATEGIES Efficient Supply Chains— These are supply chains that utilize strategies aimed at creating the highest cost efficiencies in the supply chain. Risk-Hedging Supply Chains—These are supply chains that utilize strategies aimed at pooling and sharing resources in a supply chain so that the risks in supply disruption can also be shared. Responsive Supply Chains—These are supply chains that utilize strategies aimed at being responsive and flexible to the changing and diverse needs of the customers. Agile Supply Chaim—These are supply chains that utilize strategies aimed at being responsive and flexible to customer needs, while the risks of supply shortages or disruptions are hedged by pooling inventory or other capacity resources S hare Information- Collaborate with suppliers from product development to end-of-life.

10. Functional Products A stable supply process is one where the manufacturing process and the underlying technology are mature and the supply base is well established. In a stable supply process, manufacturing complexity tends to be low or manageable, highly automated, and long-term supply contracts are prevalent. Examples Basic Consumer Goods: Items like toothpaste, soap, and detergents. Staple Foods: Rice, flour, sugar, and canned goods. Household Essentials: Toilet paper, cleaning supplies, and basic kitchen utensils. Stable Supply Processes Evolving Supply Processes Functional products with evolving supply processes are those that, while still serving fundamental needs, experience changes in their supply chains over time. These changes might be driven by advancements in technology, shifts in consumer behaviour, or other factors influencing production and distribution. Examples Consumer Electronics: Basic electronics like smartphones or smart home devices. Food Products: Basic food products might evolve to incorporate healthier ingredients or respond to new dietary trends. Medical Supplies: Products like medical devices or pharmaceuticals.

11. INNOVATIVE PRODUCT Innovative products with stable supply processes Those that combine the characteristics of cutting-edge technology or design with a reliable and well-managed supply chain. These products are innovative in terms of their features, technology, or design, but their supply processes are stable, allowing for consistent production and distribution. Examples Consumer Electronics: Electric Vehicles (EVs): Smart Home Devices: High-Tech Wearables: Innovative Products with Evolving Supply Processes Those that combine groundbreaking technology or design with supply chains that are in a state of flux. These products push the boundaries of what is possible but may face changes and adaptations in their supply chains due to the nature of their innovation, market demands, or other external factors. Examples Emerging Technology Gadgets: Next-Generation Electric Vehicles (EVs): Bioengineered Foods: Advanced Medical Devices: