Definitions of Supply Chain Management According to Beamon (1998), "SCM is an integrated process wherein suppliers, manufacturers, distributors and retailers work together in an effort to acquire raw materials, convert these raw materials into specified final products and deliver these final products." According to Christopher (1992), "A supply chain is the network of organisations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services delivered to the ultimate consumer." According to Mentzer et al. (2001), "A supply chain is defined as a set of three or more entities (organisations or individuals) directly involved in the upstream and downstream flows of products, services, finances and/or information from a source to a customer." What is revealed from these definitions? SCM is an integrated process to acquire and convert raw materials into final products and deliver them. It is defined as the integration of the supplier, distributor and customer logistics requirements into one cohesive process. As per the CLM, "Supply Chain Management (SCM) is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole." And as per the Supply Chain Council, "Supply chain management... encompasses every effort involved in producing and delivering a final product or service, from the supplier's supplier to the customer's customer. Supply chain management includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels and delivery to the customer." The traditional view of a supply chain entails raw materials, supplier, manufacturing, distribution, customer and consumer on a linear path where material from supplier to customer moves on in the same order. However, in reality, a supply chain entails movement from and to many warehouses. There are many steps involved, many inventories involved and a lot of time consumed. SCM is actually so vast that it can be difficult to exemplify each and every component of it. As in the example of the assembled computer's supply chain, various supply chains are connected to each other through links, forming yet another case of SCM. Each added link of the supply chain brings more competence. When all of the links are in place, and when the information, goods and finances are flowing properly, the benefits are huge. Executives from a group of multi-national companies formed the Global Supply Chain Forum (GSCF) and included in their framework the following SCM processes. Posted by Dr. Parikshit Joshi at 9:54 PM 0 comments Mc Donald's Supply Chain In India The lure of 300 million consumers, coupled with a wide range of economic reforms, brought McDoanld Corporation of USA to India in the mid 1990’s. Companies like McDonald’s, whose operations are centered on supply chain efficiency, are rapidly expanding their outlets in India. Apart from speedy expansion, the company is also focusing on delivering high quality food to its customers. It is putting all its efforts into managing the supply chain and ensuring that the products reach the outlets in the best condition. The various ingredients that the company requires for its fast food items come from different local sources. For example, iceberg lettuce comes from Talegaon near Pune, Nainital and Ooty; cheese from Dynamix Dairy Industries in Baramati, Maharashtra; buns from Phillaur in Punjab and Khopoli near Mumbai; and chicken, vegetable patties, pies and pizza puffs from Taloja near Mumbai. Since all the 60 outlets are situated in the north and western parts of India, the company is sourcing its raw materials from these regions to ensure maximum efficiency. Although the company started searching for suppliers way back in 1991, it took around six years before it was able to set up its first outlet in India. During this period, the company spent around Rs 500 million to set up a proper supply chain. Before actually deciding to enter the fast food business in India, McDonald’s did a lot of ground work. For instance, it studied the local tastes, analyzed the government regulations on food and health, and conducted soil and climate tests, to ensure the feasibility of the fast food business in India. It was a tough job for the company to identify local suppliers who would match international standards, by delivering quality raw materials in good condition regularly and on schedule. It procured refrigerated trucks to transport vegetables and meat. These trucks maintain temperatures between one and four degrees centigrade and are fitted with tracking devices that monitor the temperatures at all times. Further, the quality of the materials is checked at various points. These trucks transport the products to distribution centers from where they are delivered to the outlets. In addition to the refrigerated trucks, the distribution centers are equipped with non-refrigerated trucks to transport paper cups, napkins, and plastic cutlery. And as McDonald’s grows in India, its suppliers face new supply chain management challenges. Questions: What took McDonald to invest Rs.500 million before its launch? Design the transportation network used by McDonald