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Last updated: 27 Sep, 2014  

Supply Chain generic THMB Supply chain management - imperative for SMEs

Supply Chain generic
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» India’s data centre capacity to more than double by 2027
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» PLI scheme has attracted Rs 1.46 lakh crore investment, created 9.5 lakh jobs
» Centre pays Rs 4,820 crore to 2.75 lakh farmers for pulses under MSP scheme
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Bikky Khosla | 29 Mar, 2011
In today's world of global competition success of a business is not always measured by its products or by the size of the market share of the company. It is, instead, measured by the ability to harness its supply in delivering responsively to customers as and when they demand it. In short, the success of any business lies in its ability to manage its supply chain effectively. I strongly believe that firms that can streamline their supply chain and churn out finished products faster will undoubtedly benefit the most.

Supply Chain Management (SCM) is an art as well as a science that involves the management of flow between and among stages in a supply chain to maximize profitability. The objective of every supply chain is to maximize the overall value generated by a business in its pursuit in fulfilling a customer's request.

Unfortunately in India, manufacturers, particularly small and medium enterprises (SMEs) are faced by hurdles of inefficiencies - both external and internal - and can be addressed with the help of technology. In India, experience of SMEs in supply chain management is generally lacking. I have seen that many SMEs often find themselves caught between customers' mounting demands and the company's need for growth and profitability.

Thus, SMEs need to develop the tools, techniques and training products that help companies to adapt and achieve viability. They need to focus on linkages by which SMEs can integrate themselves in the supply chains of large enterprises. SMEs must use technology-based tools in such a manner that they become the technology sources for larger companies.

Additionally, SMEs need to understand that it is not about using the highest technology or the most sophisticated techniques alone. They need to concentrate on the fundamental principles of being a good supplier or distributor, and on assessing the technology requirements for improvement in processes and management practices.

The need of the hour is that SMEs effectively and efficiently leverage SCM for greater productivity, greater competitiveness, and ultimately for better customer satisfaction within their domain markets. Amidst growing competition, SMEs will have to understand the pivotal role played by SCM and also the importance of supply chains in both cost reduction and operational efficiency. By fully leveraging supply chain concepts, SMEs can take their businesses a step forward - no doubt about that!
 
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Question
Muteeb | Thu Apr 7 21:16:37 2011
Dear writter, I've read your article about SCM, it was based on the ground realities now can you share some tool of SCM that can help SMEs to build a strong SCM system. Regards Muteeb.


Supply Chain Management
Allan d'Souza | Sun Apr 3 01:58:37 2011
In training college I learnt about the Indian version of just in time supplies. the professor called our system somewhat in time. back to desk work i learnt during inspection of securities that piling up of supplies led to funds wastage. we have yet to learn about PERT i.e. programme evaluation and review technique. using this system goes a long way materially and financially to remove bottlenecks to bring out the final product further supple chain management needs to be reviewed together with the capital of the company.the company should never siphon out the profits but plough some of it back into the production by way of supplies, R&D, and marketing experience with reference to the other players in the line.


supply chain managment...Agro produce
Agarwal P.F. | Thu Mar 31 08:54:20 2011
We are in to fresh fruits specially Alphonso and Kesar mangoes and its Pulp really it is a big issue to tackle and there is lot of scope for developing this supply chain management systems but to find a proper consultant or service provider is again a difficult task I , Please give me some pointers if possible relevant to Supply chain management in Agri-farming/plantation industry.


Supply Chain Management
S.Mohana | Wed Mar 30 08:49:09 2011
It is timely piece article. We, at the Renewable Energy Research Institute face acute problem especially during the year end. As a result, we do not get quality suppliers many a time to fabricate our special designed equipments. As a result we lose good manufacturers and they lose good clients like R&D institutes like ours. Further, when we deal with self employed workers for jobs like painting of houses, masonary work etc. it is observed that there is no standard procedures for executing these jobs. They follow their own way, inherited by their seniors with whom they must have worked. Nobody follows the procedures laid down, say on the paint container at all! Can a short term course be arranged for such people, say by the painting companies and at the end we have certified workers. There is a huge market which is depending upon the skills or no skills of improperly trained workers in the society for it's promotion!


Supply Chain Management
Madhava Reddy | Wed Mar 30 06:35:40 2011
Sir, I run a small company in the scuba diving space, which falls under the category of Tourism Industry. I am looking for a good solution for Supply Chain Management and for Inventory management. I ready the above editorial carefully but am not certain where to start. Could you give me some additional pointers.


SME to be able to blend with SCM of big client companies
P.R.Narayanaswami | Wed Mar 30 05:28:34 2011
I fully agree with whatever points u have expressed in your column, the most important being Can, SME can be or are they in par with the IT infrastructure of the parent companies with whom they are doing business.It is very essential that big MNC should take their SME suppliers into confidence and also provide IT infrastructure to an extent that the flow between the Big companies and SME are satisfactory and the smaller company are also able to contribute to a larger extent in complimenting with the SCM startegies of its "parent" companies.


Supply Chain Management
Meena | Wed Mar 30 04:56:08 2011
Thank you Bikky , for bringing this issue to the fore. Our company , the forefront of improving visibility in the Supply Chain. What is the point of investing crores in ERP solutions if there is a black hole from the time the goods leave the factory gate, till they are delivered ? Our primary product is cost effective Vehicle Tracking Solutions - all proudly made in India ( not like the cheap, cheep Chinese imports ) which comes with installation and maintenance support. The consignment tracking feature allows both the consignor and consignee to monitor the location status on a real time basis. What about all the sales/service people faking their calls ? We have Personal Tracking Solutions which allows a sales/service controller to monitor the where abouts of the field personnel on a real time basis. While people moan about the high cost of fuel is anybody doing anything about it ? What is the leakage of fuel in the entire hydrocarbon sector ? ( We estimate 15 % goes up in theft ) We have remote fuel monitoring solutions which allow a user to monitor the operation hours and the fuel level in the genset remotely i.e. on the Net .


Supply Chain Management for SMEs
Bruce Rubin | Tue Mar 29 19:56:34 2011
I agree with the basic premise of the editorial and as a thirty year veteran of Supply Chain Management for SMEs in the US I would like to make available my expertise to Indian companies looking to improve their Supply Chain processes with everything from basic paper systems to using the latest technologies available. The key to success in Supply Chain is following the principles and guidelines laid out and the checks and balances incorporated in them. This is an important point as companies are looking to expand and service the global marketplace

  Re: Supply Chain Management for SMEs
avinash mali | Thu Mar 31 13:04:17 2011
we are professional engineers having operations in consultancy, wholesale trading & distribution of dairy & frozen products of branded products in Pune [maharashtra]. Can we think of joint venture to explore the systems required for SME enterprenures w.r. t. local mkt. needs! This may include operational research, feasibility of cost effective projects & handling the same till handover time in defined terms!


 
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