the bridge from suppliers to customers 1

8/8/2019 The Bridge From Suppliers to Customers 1

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The Bridge from Suppliers to

Customers.

Abhishek Arun KH08OCTMBA03

Ramcharan KH2009SMBA16P001

Srinath Khodagale KH08AUGMBA57

Vinay Inamdar KH08OCTMBA80



Objective

To understand the importance of Logistics as a

bridge between Suppliers and Customers.

To study various channel to bridge Supplier

and Customers.



Introduction

Supplier collaboration is gaining prominence and lot

of data sharing is happening with the suppliers

helping them to plan their manufacturing capacity

better.

It has helped the suppliers meet the requirements

and ensuring adequate inventory control.

Supplier collaboration has become an important

supply chain initiative across different industries and

corporations have realized the benefits.



Customers

Customers are the whole reason for continuouslyimproving processes.

It is they who decide whether your product or serviceoffers the best value for money when they make theirpurchase decisions, and their purchase decisionsdetermine whether your business will be a success ornot.

You may provide an internal support function (such asAdministration, Personnel or Accounting) so yourcontribution to product or service quality will be evenmore difficult to identify. What all this means is that acustomer for you is anyone to whom you provideproducts or services, whether directly or indirectly.



Suppliers Suppliers are all those whose input you rely on to do your

job effectively.

Suppliers are those outside the organisation from whomyou acquire raw materials for production processes, stockfor re-sale, capital equipment or equipment consumables.

Suppliers are those who provide you with services or withinformation essential for you to do your job.

What is often overlooked is that all those who are insidethe company and on whom you rely to do your job are alsoyour suppliers.

The importance is that if you do not treat internal sourcesof input as suppliers, it is unlikely that you will develop theattitudes necessary to generate their support for yourimprovement efforts.



RelationShip

Customer/Supplier mapping is a technique forinitiating process improvement activity by givingit an overall orientation or direction.

Why are customer and supplier relationshipsimportant? Because process improvementactivity depends for success on,

± the relationship between the business and its

customers ± the relationship between the business and its

suppliers



Logistics

yLogistics is the process of strategicallymanaging the procurement, movement andstorage of materials, parts and finished

inventory( and the related information flows)through the organization and its marketingchannels in such a way that current and futureprofitability are maximized through the cost-

effective fulfillment of orders



Bridge Building in LSCM - B2C

MFG

Consumer

MFG

Consumer

Retailer

MFG

Consumer

Retailer

MFG

Consumer

Retailer

Whole Seller

CNF

Whole Seller

0 Level 1 Level 2 Level 3 Level



Bridge Building in LSCM - B2B

MFG

Industrial

Customer

MFG

Industrial

Customer

Industrial

Distributors

MFG

Industrial

Customer

MFG

Industrial

Customer

Manufacturers

Representative

0 Level 1 Level 2 Level 3 Level

Manufacturers

Representative



Hub and Spoke Model

yThe hub-and-spoke distribution Model is asystem of connections arranged like a chariotwheel, in which all traffic moves along spokes

connected to the hub at the center. The modelis commonly used in industry, in particular intransport, telecommunications and freight, aswell as in distributed computing



Hub and Spoke Model

Source : wikipedia.org/wiki/File:Airline_hub-1995.svg



Hub and Spoke Model

Benefits :

1. The small number of routes generally leads to more efficient use of

transportation resources. For example, aircraft are more likely to fly at

full capacity, and can often fly routes more than once a day.

2. Complicated operations, such as package sorting and accounting, can

be carried out at the hub, rather than at every node.

3. Spokes are simple, and new ones can be created easily.

4. Customers may find the network more intuitive. Scheduling isconvenient for them since there are few routes, with frequent service.



Hub and Spoke ModelDrawbacks

1. Day-to-day operations may be relatively inflexible. It may be difficult or

impossible to handle occasional periods of high demand between two

spokes.

2. Route scheduling is complicated for the network operator. Scarce resources

must be used carefully to avoid starving the hub.

3. The hub constitutes a bottleneck or single point of failure in the network.

Total cargo capacity of the network is limited by the hub's capacity. Delays at

the hub (caused, for example, by bad weather conditions) can result in

delays throughout the network.

4. Cargo must pass through the hub before reaching its destination, requiring

longer journeys than direct point-to-point trips. This trade-off may be

desirable for freight, which can benefit from sorting and consolidating

operations at the hub, but not for time-critical cargo and passengers.



Case Study

Creating a Customer-Driven Supply Chain

TESCO

» ECR Journal | Volume 2 ,No. 2 | Winter 2002



Tesco Facts

@ Wikipedia



Traditional Value Stream



Bull Effect



Flow Value Stream



Thank You.

the bridge from suppliers to customers 1

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