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Faculty
Articles
Supply Chain & Operations
Supply Chain is a chain of function, distribution management etc. Toyota
various organizations, right developed a reliable supply chain of vendors and
from suppliers to producer and produced goods with minimum cost. Products that are
further to consumers via assembled started outsourcing components,
distribution channel of dealers, subcomponents from those organizations which have
distributors, sub-dealers and core competencies in designing and developing those
retailers. components. Further, Liberalization, Privatization
Dr. Abhijeet Shivane This chain ensures accurate and Globalization (LPG) changed the businesses
flow of material, information and money in the chain world over. LPG and ICT together have opened many
of organizations with the help of information & avenues for manufacturers to go for global
communication technology which includes internet, procurement, processing and distribution of goods.
application software like ERP, Websites, Portals, etc. In B schools, Production Management was taught.
ICT has developed user friendly platforms and Later on, because of growth of service organizations,
reengineered the entire business processes. Operations Management was evolved which covers
Production (means converting raw material to finished both manufacturing as well as service organizations.
goods) was the dominant function in the beginning of Now as Production or Service Process has become a
industrial revolution. Many pioneers enjoyed subset of Supply Chain Management, the vogue
monopoly of their organizations. Competition was not concept is Supply Chain Management.
there and companies used to sell the products very Following diagram shows Porter’s model of value
easily. Later on, competition increased, product price chain which explains the linkage of processes in an
& quality of products became important. Timely organization. Number of such chains form the supply
delivery of goods became important. Supply of raw chain of organizations. Hence in IMDR we have
materials, components and distribution of finished changed the title of the specialization from Operations
goods started gaining importance. It led to serious to Supply Chain & Operations for operations is a
study of materials management, procurement subset of value chain of an organization.
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