Copy of Managing Supply Chain Operations in India - lee v Prn 12:45 F:LEE06.tex VTEX\/NP p 1 crop(6.125in 9.25in type wd 10966 ht 17292 col.wd

Copy of Managing Supply Chain Operations in India - lee v...

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lee v.2006/05/16 Prn:19/06/2006; 12:45 F:LEE06.tex; VTEX/NP p. 1 crop: (6.125in, 9.25in) type wd: 10966, ht: 17292, col.wd: 10966(1/100mm) Hau L. Lee and Chung-Yee Lee (Eds.) Building Supply Chain Excellence in Emerging Economies ©2006 Springer Science + Business Media, LLC 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 42 42 Chapter 6 MANAGING SUPPLY CHAIN OPERATIONS IN INDIA Pitfalls and Opportunities Jayashankar M. Swaminathan Kenan-Flagler Business School University of North Carolina at Chapel Hill 1. Introduction An extensive area of research in operations relates to creation and deliv- ery of value through better demand supply coordination which is also termed as supply chain management. Supply chain management is often referred to as efficient management of the end-to-end process, which starts with the de- sign of the product or service and ends with the time when it has been sold, consumed, and finally, discarded by the consumer (Lee and Billington 1993; Swaminathan and Tayur 2003). One could think of any product or service sup- ply chain to be consisting of five major value elements – design, planning, procurement, production and delivery. In addition, managing supply chains typically entails efficiently coordinating the flow of information, products and finances (Swaminathan 2001). Managing a supply chain within a single coun- try is complicated due to various types of uncertainties in demand, supply and process. In most developed economies, there are limited uncertainties in avail- ability of basic necessities for any kind of business such as power, roads, water etc. However, in developing economies infrastructure is weaker and that poses several newer types of challenges. It may even cause successful well tested strategies that worked well in developed economies to fail. A classic example is that of Wal-Mart which has an efficient network of cross docking facilities in the US that store minimal inventory in them while simultaneously enabling more frequent supplies to the retail stores. This system relies heavily on the
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lee v.2006/05/16 Prn:19/06/2006; 12:45 F:LEE06.tex; VTEX/NP p. 2 crop: (6.125in, 9.25in) type wd: 10966, ht: 17292, col.wd: 10966(1/100mm) 138 BUILDING SUPPLY CHAIN EXCELLENCE IN EMERGING ECONOMIES 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35 35 36 36 37 37 38 38 39 39 40 40 41 41 42 42 fluid highway transportation system in the country which enables the firm to accurately estimate the travel times of trucks and efficiently coordinate their arrival and departure to the cross-docking facility, and therefore the inventory flow. When Wal-Mart went into operation into South America, it found it very difficult to run a logistic system based on such cross-docking facilities and had to adapt its approach. Therefore operating supply chains in developing nations often requires firms to be able to tailor their existing supply chain strategies or develop newer ones for that environment.
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  • Supply Chain Management, Developed country, India., supply chain operations, Building Supply Chain Excellence

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