BUSINESS SKILL DEVELOPMENT COURSE INTERNSHIP REPORT

ON

“A STUDY OF SUPPLY CHAIN MANAGEMENT” IN

LENS AND MEDS (OneGen Healthcare Pvt Ltd)

INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT OF BACHELOR OF COMMERCE DEGREE IN
BENGALURU UNIVERSITY

NAME: DEV KISHORE V

REG NO: U03KQ21C0014
INTERNSHIP CERTIFICATE
 ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and
assistant from many people and I am extremely fortunate to have their support till
the completion of my report work.

The internship opportunity I had with LENS AND MEDS was a great chance for
learning and professional development.

I would like to express my special thanks of gratitude to our faculty co- ordinator
Mr NAVEEN as well as our principal Dr. Anand Jumle who gave me the golden
opportunity to do internship, which helped me in learning a lot of new things and
also a warm exposure to the world of accountancy and finance.

I would also like to thank my parents who gave me the permission to complete the
internship and also my friends who always helped me when there was a need of
their help during the project.

Although this report has been prepared with utmost care and deep routed interest,
even then I accept it respondent and imperfect.

It is a great opportunity and pleasure for me to express my profound gratitude to

wards all the individual who directly and indirectly contributed towards
completion of this report.

Thankyou!

DEV KISHORE V

BCOM, 6TH SEM

 INDEX

Sr No Topics Page No

1 Chapter -1 5

2 6

3 7

4 17

5 18

19
6

7 20

8 21

9 22

10 24
 EXECUTIVE SUMMARY

I am Dev Kishore V currently pursuing my graduation in Bachelor of Commerce

at BGS B-School, Bengaluru 560060 KARNATAKA. I was also born and brought
up in Bengaluru. Being a resident of Bengaluru I have completed my 10th from
Narayana E-techno School and 12th from KLE PU college Nagarbhavi.

B Com is an undergraduate course of 3 years (Full time). It is the course that

teaches the fundamentals of accounting and finance practices. Through this
course, an individual can learn the technical skills associated with many of the
procedures of financial analysis and accounting standards.

In last year we have a subject internship in which we have to work under a CA for
a period of month in each semester.

As a part of academic, I did my internship at LENS AND MEDS for 30 days (240 hours). In
this period I
have learnt how the supply chain management works and how they interact with customer
and suppliers for smooth flow of business as it is eye care and med care startup.

This project is about my internship & detail information about the task which had
been undertaken by me during this internship period.
 TITLE OF THE STUDY
SUPPY CHAIN RISK MANAGEMENT IN THE SMALL BUSINESS
CHAPTER 1 INTRODUCTION

Introduction of Title of the study:

What Is Supply Chain Management (SCM)?
Supply chain management (SCM) is the process of managing the flow of goods and services
to and from a business, including every step involved in turning raw materials and
components into final products and getting them to the ultimate customer. Effective SCM can
help streamline a company's activities to eliminate waste, maximize customer value, and gain
a competitive advantage in the marketplace.
How Supply Chain Management Works?

 Supply chain management represents an ongoing effort by companies to make their

supply chains as efficient and economical as possible.

 Typically, SCM attempts to centrally control or link the production, shipment, and
distribution of a product. By managing the supply chain, companies can cut excess
costs and needless steps and deliver products to the consumer faster. This is done by
keeping tighter control of internal inventories, internal production, distribution, sales,
and the inventories of company vendors.

 SCM is based on the idea that nearly every product that comes to market does so as
the result of efforts by multiple organizations that make up a supply chain. Although
supply chains have existed for ages, most companies have only recently paid attention
to them as a value-add to their operations.

How does the Supply Chain Work in the Pharmaceutical Industry?

The Pharmaceutical supply chain includes multiple government agencies, hospitals, clinics,
drug manufacturers, drug distributors, pharmacy chains, retailers, research organizations, and
the FDA. As a result, expectations from the supply chain managers in the pharmaceutical
industry are very high as drugs supplied inappropriately can damage customer loyalty and
public health. The flow of the supply chain in the pharmaceutical industry can be described
in the following steps:

 The drug product is manufactured at the company site

 It is transferred to the wholesale distributors

 Stocked at pharmacies for retail or online purchase

 Subjected to price negotiations and processed through quality and utilization

management screens by pharmacy benefit management companies

 Dispensed by pharmacies and ultimately taken by patients.

How Does the Healthcare Supply Chain Work?

The healthcare supply chain for healthcare consists of numerous stakeholders. Each one plays
a significant role in how the supply chain operates. These stakeholders include:

 Manufacturers: The manufacturers are the labs, biologists and vaccinologists. They
perform the research, development, manufacturing and monitoring. These groups
make medical, surgical and pharmaceutical supplies and watch for shortages.

 Distributors: The logistic partners and wholesale distributors sell, deliver and monitor
products while following proper procedures.

 Providers: Providers include pharmacies, urgent care centers, hospitals, assisted living
facilities, dialysis centers and long-term care facilities. These places receive products
from the distributors so they can prescribe them to patients. They submit orders to
distributors, look for inventory shortages and call in prescription refills.

 Patients: The patients are the people in the community who use these products or
services. They influence the demand for medicines and other products with their
unique needs.
 UNDERSTANDING OF THE INDUSTRY

HEALTH CARE INDUSTRY:

 The healthcare industry (also called the medical industry or health economy) is an
aggregation and integration of sectors within the economic system that provides
goods and services to treat patients with curative, preventive, rehabilitative, and
palliative care. It encompasses the creation and commercialization of products and
services conducive to the preservation and restoration of well-being. The
contemporary healthcare sector comprises three fundamental facets, namely services,
products, and finance. It can be further subdivided into numerous sectors and
categories and relies on interdisciplinary teams of highly skilled professionals and
paraprofessionals to address the healthcare requirements of both individuals and
communities.
 The Indian healthcare sector is expected to record a three-fold rise, growing at a
CAGR of 22% between 2016–22 to reach US$ 372 billion in 2022 from US$ 110
billion in 2016. By FY22, Indian healthcare infrastructure is expected to reach US$
349.1 billion. The healthcare sector is expected to generate 27 lakh jobs in India
between 2017-22, over 5 Lakh jobs per year.
 India’s public expenditure on healthcare touched 2.1 % of GDP in FY23 and 2.2% in
 The e-health market size is estimated to reach US$ 10.6 billion by 2025.
 India’s healthcare sector is extremely diversified and is full of opportunities in every
segment, which includes providers, payers, and medical technology. With the
increase in the competition, businesses are looking to explore the latest dynamics and
trends which will have a positive impact on their business. The hospital industry in
India is forecast to increase to Rs. 8.6 trillion (US$ 132.84 billion) by FY22 from Rs.
4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16–17%.
 India is a land full of opportunities for players in the medical devices industry. The
country has also become one of the leading destinations for high-end diagnostic
services with tremendous capital investment for advanced diagnostic facilities, thus
catering to a greater proportion of the population. Besides, Indian medical service
 consumers have become more conscious towards their healthcare upkeep. Rising
income levels, an ageing population, growing health awareness and a changing
attitude towards preventive healthcare are expected to boost healthcare services
demand in the future. Greater penetration of health insurance aided the rise in
healthcare spending, a trend likely to intensify in the coming decade.
 The Government aims to develop India as a global healthcare hub and is planning to
increase public health spending to 2.5% of the country's GDP by 2025.
EYE CARE INDUSTRY:
 In the year 2024, the revenue generated in the Eye Care market market in India
amounts to INR US$67.53m.
 It is projected that the market will experience an annual growth rate of 5.18% from
2024 to 2029 (CAGR 2024-2029).
 When compared globally, the in the United States generates the highest revenue in the
Eye Care market market, with a total of INR US$1,256.00m in 2024.
 In terms of per capita income, the revenue per person in India is estimated to be INR
US$0.05 in 2024.
 India's eye care market is witnessing a growing preference for over-the-counter
(OTC) pharmaceuticals, driven by increased awareness and accessibility of these
products.
 The Eye Care market in India is experiencing significant growth and development due
to various factors.

E-commerce Health Care:

  The Indian Health Care eCommerce market is predicted to reach US$3,316.2 million
by 2024 and accounts for 38.3% of the Care Products eCommerce market in India. It
is expected to increase over the next years. The expected compound annual growth
rate for the next four years (CAGR 2024-2028) will be 17.4%, resulting in a
projected market volume of US$6,298.1 million by 2028.
 The Health Care eCommerce market is a sub-market of the Care Products market.
Further categories within the Care Products market are: Household Care, and
Personal Care.
 The online share refers to the proportion of the retail volume that is transacted via the
Internet. It includes purchases via desktop PC, tablet or smartphone, both via website
or app. Only retail of physical goods is taken into account.
 In the Indian Health Care retail market, the online share is 6.0% and will increase by
an average of 5.8% to 7.5% by 2028.

E-commerce Eye Care:

 The Indian Eye Care eCommerce market is predicted to reach US$444.3 million by
2024 and accounts for 13.4% of the Health Care eCommerce market in India. It is
expected to increase over the next years. The expected compound annual growth rate
for the next four years (CAGR 2024-2028) will be 13.4%, resulting in a projected
market volume of US$734.6 million by 2028.

 The Eye Care eCommerce market is a sub-market of the Health Care market. Further
categories within the Health Care market are: Medical Products, Nutrition, Other
Health Care, and Pharmaceuticals.

 The online share refers to the proportion of the retail volume that is transacted via the
Internet. It includes purchases via desktop PC, tablet or smartphone, both via website
or app. Only retail of physical goods is taken into account.
 In the Indian Eye Care retail market, the online share is 6.1% and will increase by an
average of 7.0% to 7.9% by 2028.
E-Pharmacy:

 A web-based pharmacy is an online system that provides a platform for customers to

purchase medicinal drugs and E-services online, allowing the customer to receive
medicines/services in the comfort of their homes within a short time. In this article,
we aim to provide valuable insight into the online pharmacy sector in India.
 The Indian drug market was assessed to be at US$ 41 billion in 2021 and remained
the third biggest market as far as the amount/volume and the thirteenth biggest in
terms of value.
 E-pharmacy is a highly unexplored sector and rose to popularity because of several
entrepreneurs who aimed at delivering quality healthcare to every citizen in India at
affordable rates. The preference for E-pharmacy rose from 23% in 2013 to around
59% in 2018.

Diagnostic industry:
 The Indian medical diagnostic industry is expected to grow at around 14 per cent
touching $20 billion by 2026 from $10 billion in 2021, estimated a report released by
Praxis Global Alliance, a global management consulting and advisory services firm,
on Tuesday.
 The diagnostic industry is characterised by a high degree of fragmentation with over
100,000 labs. This fragmentation challenges the capability, scalability, and quality of
labs. On the other hand, it also provides an opportunity to consolidate newer business
models to evolve.
  The report highlighted the phenomenal rise in the use of technology, and has become
an integral part of the sector's efforts to improve customer experience, and to support
clinical decisions. It has also become a backbone of the business.

ORGANISATIONAL PROFILE

Name of the Company: LENS AND MEDS

Legal Name: OneGen Healthcare Pvt Ltd

Address: Shop No, 37, 38, 15th Cross Rd, 1st Stage, Kumaraswamy Layout,
Bengaluru, Karnataka

Founding date: November 2019

Business Mode: B2B and B2C.

Email id: [email protected]

Core team:

1. Rajesh Khanna D - CEO & Founder

Over 20 Years of experience in the Healthcare and Startup Industry. With a proven
track record in Pharma, Eyewear and the Retail sector, his commitment is to make
Lens & Meds a brand that provides access to premium Eye-Blood-Medcare for all
Indian citizens, and his dedication is to make a positive impact in this field.

2. Rajesh V- CSO & Co-Founder

With over 20 years of experience in the Financial services industry, his hands-on
approach to Wealth Management operations - covering Customer onboarding, KYC,
OMS, Core Fund operations, Sales and support, Fundraising, Strategy, Equity &
mutual fund research, Client co-ordination & Team management - is a great strength
in building Lens & Meds.

3. Praveen K R- COO & Co-Founder

Has extensive experience in the eyecare industry, and is renowned for his profound
knowledge and expertise. With a successful career spanning 15 plus years, he has
established himself as a leader in Retail eyecare. His dedication to innovation and
advancements in Retail Eyecare has significantly contributed to Lens & Meds.

4. Suryanarayan A - Mentor

Over 40 years of experience in various functions in the Indian Healthcare Industry.

Serial Entrepreneur, Start-Up Evangelist, Angel Funder and Mentor.
 UNDERSTANDING ABOUT THE ORGANISATION

Basic Information:

Southeast Asia’s first Medical and Optical store under one roof. Customer satisfaction is
our number one priority, always close to heart. If a customer is not satisfied, it’s our loss
and a lesson to learn from.
Lens and Meds is a healthcare disruptor, passionate to grow to be earth's largest
healthcare company by serving the largest number of customer base under its medical
aggregation. Its business model includes complete healthcare including eye and body. It
is in the process of adding a network of pharmacies to serve 1.38 billion Indians.

About Lens and Meds:

 Lens and Meds is a tech-based asset light network uniquely positioned to help
both the Eyecare and Healthcare industries.

 Lens & Meds uniquely addresses India's healthcare challenges with integrated
solutions for timely, comprehensive care.

 It is India’s fastest-growing startup franchise in which serves fastest growing

fields healthcare retail and eyewear.

 Lens and Meds assist individuals who prefer to be self-employed, entrepreneurs,

those wishing to establish a business, and established pharmacists struggling to get
profits in achieving success in the pharmacy and eyewear business by assisting in
the establishment of Lens and Meds and training them in making profits.

 Lens&Meds is India's First chain of Unique Optical showrooms where we are

solving real eyecare problems.

 They have more than 50 Plus years of Experience in Eyewear Industry

 Lens&Meds has started Shop in Shop franchising after having detail research to
get expertise in this segment.

 Lens&Meds has complete infrastructure to support this business that includes

 frames procurement, supply chain, lens fitting and delivery, trouble shoot and
after sales support.

 Lens&Meds has a large pool of resources such as Optometrists, Marketing team,

Merchandisers, Developing Retail Store Managers, Area Managers, Data Analysts
etc.,

Service provided to the customers

 Opticals: Certified Eye testing, provided both at their multiple centres and at home,
by experienced optometrists. Eyewear choices ranging from luxurious and stylish to
budget-friendly and, surprisingly, stylish.

 Medicals: Customer can get expert and express service on medicines, including
prescription, OTC and generic medicines, for their long-standing pharmacists at our
centres. Find a variety of medical and surgical products.

 Diagnostics: They Providing multiple diagnostics packages consisting of the most

common tests requested at the best rates. Testing done by NABL accredited Labs,
avail home sample collection and express report delivery.

 Clinic: Customers can get an easy consultation with their network of Doctors placed
at our multiple centers. Book an appointment with their specialists and don't worry
about wasting any time in lines. Telecalling and Telemedicine.

 Gold Membership: A bonanza of offers on all our services, for all family members,
and expert health monitoring. We help keeping track of health with our specialised
health book, maintaining daily body vital checks.
Snip from the Lens & Meds Website indicating the services offered by them:

Objective of the Organisation:

 Simplifying optical problems by offering personalized solutions, from precise eye

examinations to a wide range of quality eyewear, ensuring optimal vision and eye
health for our customers.

 Tackling medicical problems by offering a diverse range of pharmaceutical

solutions, ensuring accessibility, affordability, and personalized care for individuals'
health needs.

 Resolving diagnostics problems by offering a comprehensive range of advanced

testing services, ensuring accurate and timely results for informed healthcare
decisions and improved patient outcomes.

 Addressing clinical problems by providing integrated healthcare services, offering

timely consultations, expert medical care, and personalized treatment plans, ensuring
optimal health outcomes for our patients.
Vision of the Organisation:

 Quality & Stylish Glasses for all 8 billion.

Mission of the Organisation:

 Their mission to Provide Access to Quality glasses that don’t cost much.
Organisation is addressing:
The 1.3 billion people, over 60% of Indians encounter healthcare challenges: delayed
diagnoses, limited access to specialized care, and fragmented health records (National Health
Profile 2022).
Lens & Meds uniquely addresses India's healthcare challenges with integrated solutions for
timely, comprehensive care.

Here are the Pictures of Lens and Meds store:

Franchise Locations:

Lens & Meds is India’s fastest-growing startup franchise in which serves fastest growing
fields healthcare retail and eyewear

Lens and Meds assist individuals who prefer to be self-employed, entrepreneurs, those
wishing to establish a business, and established pharmacists struggling to get profits in
achieving success in the pharmacy and eyewear business by assisting in the establishment of
Lens and Meds and training them in making profits.

Eyewear Industry in India

The eyewear industry in India has today turned into one of the fastest growing retail sectors
in the country. In 2016, the Indian eyewear market was estimated around Rs.8,400 crores and
is projected to grow to Rs.12,600 crores in the coming years. So, taking advantage of the
above exponential growth in the eyewear industry, entrepreneurs can start a Lens&Meds
franchise to make use of franchise opportunities.
Organisation Timeline:
Target Customer for the Organisation:

B2B:
We wanted to Enable 1% of existing 10 Lac Pharmacies in INDIA under our Lens and Meds
aggregation, first with optical then with medicine delivery, followed by diagnostics,
homecare services and Telemedicine.

 Client Segment: Consumer, Services, E-Commerce, Insurance, Logistics

 Target Companies: Small Enterprise
 Target Geography: India, Global, Asia Pacific

B2C:
Personal health record of Indian consumers are very poor, even chronic diabetic patients
doesn't have accurate health data. we from lens and meds will not only gives medicine at
discounted rate at home also gives monthly health-check for our members.

 User Age: 26 to 34, 35 to 45, 46 to 60, More than 60

 User Income: Lower Income, Lower-middle Income, Upper-middle Income, High
Income
 Location: India, India Tier 1, India Tier 2, India Tier 3, Global, Asia Pacific.
Revenue Stream for the Organisation:
 Clinic

 Selling Data:
 Subscription:

 E-Commerce Products: Medicines, Drugs, Eye wear, etc.

  Physical Commerce:

SWOT ANALYSIS OF THE ORGANISATION

Strengths of the Organisation:

 Strong government support: The pharmaceutical sector in India continues to develop
with Government initiatives and the involvement of the private sector. The Ministry
of Health and Family Welfare has undertaken several steps to ensure drug quality is
available in India. The government ensures a licensing opportunity for all drug
companies, patent policies and clinical trials and promotes research and development
(R&D) in pharmaceutical sectors. The government of India discussed upholding
construction factory authorizations along with the necessary clearances from the
Ministry of the Environment and giving the electricity subsidies endorsing hubs for
pharmaceutical development.

 Widespread usage of IT: Recently HSCM has experienced systemic shifts in the
healthcare delivery structures, leading to the ongoing usage of information
system/information technology. Healthcare organizations have started using
customized high-end hardware and software for billing, patient scheduling and
medical recording. Integrating this system with SCM can make the process more
convenient and user-friendly. Implementation of information and communication
technology can improve healthcare services in private hospitals and increase patient
satisfaction. One of the prominent examples is the use of radio frequency
identification to identify counterfeit drugs. Science and technology play a significant
part in the battle against counterfeiting. RFID technologies and copy radio waves of
the nuclear quadruple resonance spectrum can be used to recognize solid materials’
chemical composition and overcome counterfeit drug problems. Furthermore, the
regulatory authorities and the players are implementing several schemes linked to the
recording and maintaining of electronic medical records, mobile health services and
telemedicine in a big way across the country.

 Online and Offline Presence: While initially starting as an e-commerce platform, Lens
& Meds expanded its presence into brick-and-mortar retail with physical stores spread
across various Indian cities. These offline stores sell products and offer eye tests and
consultations.
  Home Eye Check-Up: Lens & Meds offers services where customers can book an eye
test, and an executive visits the customer’s home to conduct the test. This facilitates
convenience and ease for the customer.

 Integrated Model: Lens & Meds controls its supply chain for pharmaceutical eyewear
and assembly units. This gives them an edge in ensuring quality control, quicker
delivery, and inventory management.

 Diversified Products and services: Lens and Meds offer wide range of products and
services like Eyewear’s , Eye test , Diagnostics, Clinic’s , Medical’s and more
ensuring that different customer segments can find products to their liking.

 Customer-Centric Initiatives: From easy returns to warranties on products, Lens &

Meds rt has always focused on building trust and ensuring customer satisfaction.

 Other Strength’s: Growing population with increasing eye problems ,rising awareness
about eye health and increasing disposable income, growing demand for trendy and
fashionable eyewear and rising e-commerce sector and increased online sales.

Weakness of the Organisation:

 Procurement risk: Over the past few years, concerns with the quality of material
have drifted, giving rise to batch failures, slowdowns in manufacturing and a
shortage of available resources all over the industry. On the other hand,
inadequate quantification, fraudulent procurement procedures, tendering practices
and poor financial management and payment are some of the major issues faced
during the procurement process in different Indian hospitals. This often results in
a shortage of medicine that interrupts the process of providing high-quality
healthcare.
 Complex and unequipped distribution network: Interruptions in distribution and
inventory scarcities have become a regular phenomenon in the Indian
pharmaceutical SCM. The critical factor behind this matter is the highly
decentralized distribution system, inadequate warehouses and various drug
transport requisites, including the cold storage facilities and the augmentation
system. Poor infrastructure, the absence of efficient records monitoring systems,
scarcity of warehouses and clinics with no safe storage room have rendered the
material processing and delivery network more disruptive. Inadequate indenting
processes, uncoordinated inventory management and material processing are
frequently confused within SCM. Additionally, Wendt et al. (2018) found that
officials and storekeepers fail to maintain buffer stocks or extra stock retained to
minimize stock-outs between purchases, resulting in medicine shortages among
rural patients. Even in the case of vaccine, inadequate stock control, insufficient
planning and cold chain delays often causes vaccine wastage and create a high
risk of health hazard. The inadequate storage options are yet another significant
flaw in the distribution process. Moreover, insufficient transport facilities and
weak road and rail services are other challenges in distribution networks.

 Long lead time:One of the most critical shortcomings of the Indian

pharmaceutical SCM is the long lead time. This includes time for new product
development, competency acquisition, procurement, manufacturing, delivery,
regulative process and cash-to-cash cycle time. The long lead times reduce the
reliability and responsiveness of the PSC capabilities and may degrade PSC’s
agility and market share and increase total costs. Due to the extended shipping
period, several studies have reported significant scarcity (stock-out) of medicines
such as folic acid in different levels of healthcare institutions such as hospitals,
community health centers, primary health centers and sub-centers. As a result, a
vast Indian population remains underserved.

 Quality issue: Accessibility, availability, the standard of medicines and other

medical equipment are the key factors influencing the provision of adequate
 health care among the rural population. However, shortage and substandard
treatment quality is India’s primary concern. There is also an increasing
occurrence of pharmaceutical recalls, reports of counterfeit products and problems
relating to insufficient supply in foreign and domestic markets. India’s issue with
counterfeit medicines has contributed to negative worldwide publicity. Illegally
manufactured, diverted, counterfeited, or adulterated products have quicker
exposure across the black market to the delivery network. People often buy loose
tablets instead of complete strips. As a result, neither barcode solution nor
hologram and other methods like this fit here. The Indian Ministry of Health
assessed that 5% of India’s medicines are counterfeit, whereas 0.3% are spurious.
In the US$5 billion Indian pharma market, 20% are false medicines. Moreover, no
successful steps exist to battle the country’s counterfeit medicine drug cartel
system. The healthcare industry stakeholders had to operate among themselves
under an authenticity-deficit relationship.

 Certification and handling issues: International pharmaceutical companies

established firmer legal grounds for launching new medicines in India. Besides,
today’s fast-changing laws and legislation fuel the demand from regulatory affairs
practitioners to meet the industry’s current needs of international markets to
successfully introduce their drugs to the pharmaceutical market. However, there is
insufficient coordination with the international accreditation program for Indian
organizations and a uniform national accreditation framework. These constraints
on certification serve as an obstacle to international trade. Because of this
incoherence, a regulatory mechanism has become more challenging, and it may
require a year or more to approve new products for marketing.

 Lack of expert workforce: India’s healthcare industry provides for a growing

population, and the business is expected to expand above previously estimated
levels of 10–12%. But, recent studies show a massive shortage of qualified
healthcare executives and supervisors employed with clinics, pharmaceutical
firms, health insurers, third-party management and other healthcare providers. For
example, stores are one of the hospital’s most important units. It carries out
 essential tasks, including purchasing, obtaining, inspecting, warehousing, storing,
billing and delivering equipment and services to all hospital departments. Thus,
stores in charge must be well acquainted with accounting or instructed for the
same purpose.

 Lack of training facilities: The majority of the pharmaceutical organization did not
provide enough training and knowledge-sharing programs for their employees.
Studies showed that storekeepers did not undergo instruction in stock
management. Gaps in pharmacy education and training and lack of resolution on
pharmacist roles pose challenges in health services. Additionally, most people in
the PSC have little knowledge about e-medicine SCM. Besides, many staff feel
reluctant to use information technology (IT) systems for data management due to
a lack of knowledge and skill. They also fail to choose the right technology
platform resulting in a disastrous effect. Additionally, mainstream pharmaceutical
companies and hospitals in India are still lagging in applying the green supply
chain management (GSCM) model. Because of that, companies would have to
answer concerns on the ecological aspects of their development practices and
supply chain, their carbon emissions and the recycling process, which seems to be
an additional weakness that needs to be sorted out in the future years. The
COVID-19 pandemic highlights the value of awareness, preparation, capacity
building and infrastructure growth in India for Emergency Preparedness &
Response (EP&R).

 Operational Challenges: While being a strength, the hybrid model of both online
and offline stores can also present operational complexities. Managing inventory,
logistics, and a uniform brand experience across both platforms can be
challenging.

 Dependence on Discounts: Lens & Meds, like many e-commerce platforms, often
relies on discounts and offers to attract customers. This can potentially erode
profit margins and set a discount-oriented customer expectation.
  Competition: The eyewear market, both online and offline, is becoming
increasingly crowded. Competing brands, especially well-established international
ones, could pose a challenge.

 Physical Store Overheads: The overhead costs associated with maintaining and
operating physical stores can be high, especially in prime locations. This might
impact the overall profitability.

Opportunities of the Organisation:

 Growing Eyewear Market: The increasing awareness about eye health and the rise in
disposable income in countries like India indicate a growing market for eyewear.

 Digital Penetration: As internet usage continues to soar, especially in developing

countries, the potential customer base for online eyewear purchases is expanding.

 New Product Lines: Diversifying into related product segments, such as specialized
sports eyewear, luxury segments, or smart eyewear, could offer new revenue streams.

 Expansion in Tier 2 and Tier 3 Cities: There’s a significant potential in smaller cities
and towns where branded eyewear penetration is lower compared to metropolitan
areas.

 Global Expansion: Beyond existing international markets, Len&Meds can explore

other countries, especially those with a young demographic or an increasing
preference for online shopping.

 Technological Innovations: Continued investment in AR, VR, or AI can further

enhance the online shopping experience, making virtual try-ons more realistic and
personalized.
 Health and Wellness Integration: Collaborating with health tech apps or platforms,
especially those focused on eye health, can offer cross-promotional opportunities.

 Subscription Models: Offering subscription-based models for products like contact

lenses, where customers require regular replenishments, can ensure a recurring
revenue stream.

 Population growth: India is predicted to overshadow China as the most populated

country in the world over the next decade due to an even higher fertility rate. India
will be a home for around 1.5 billion citizens by 2025. Consequently, the patient
population will grow by more than 20% over the next ten years. This will result in a
growing demand for treatment and medication, which poses an outstanding
opportunity for the Indian pharmaceutical industry.

 Wide range of adaptive policies for sustainable inventory management: The PSC
comprises many supply chain parties, such as principal manufacturing plants, delivery
centers, wholesalers and hospitals. The interrelationships among these elements and
the resilience of generic drugs need advanced strategies for managing the supply
chain. Pharmaceutical companies are fastidiously searching for innovative ways to
achieve additional benefits in inventory management. Several new policies have been
formulated to make the different phases of SCM easier. One of them is periodically-
affine policies, which allow decision-makers to efficiently monitor and regulate large-
scale newsvendor networks in the face of volatile demand without needing delivery
forecasting.

 Rise in disposable income: In India, the disposable income is projected to increase for
households was INR 200,000 per year, from 14% in 2009-2010 to 26% in 2014-2015.
Increased earnings will push 73 million households into the middle class over the next
ten years, making healthcare more affordable. This growing trend provides
 tremendous potential for the healthcare sector for the open market. Also, it raises
high-end consumer demand generating more enormous business opportunities.

Threats of the Organisation:

 Intensified Competition: The eyewear industry has both well-established players and
emerging competitors. The rise of other online eyewear platforms, as well as
international brands entering or expanding in the Indian market, can pose significant
competition.

 Changing Consumer Behavior: While online shopping is growing, shifts in consumer

preferences, especially post-pandemic, can impact purchasing patterns.

 Regulatory Challenges: Changes in e-commerce regulations, import/export rules, or

health standards in countries where Lens&Meds operates might pose challenges.

 Economic Volatility: Economic downturns or uncertainties can lead to reduced

discretionary spending, affecting purchases of non-essential items like fashion
eyewear.

 Technological Disruptions: Rapid technological advancements mean that newer,

potentially disruptive technologies could change the eyewear market dynamics or
make certain services obsolete.

 Supply Chain Vulnerabilities: Disruptions, be it due to geopolitical tensions,

pandemics, or natural disasters, can impact the supply chain, leading to inventory
issues or delivery delays.

 Quality Control: As the company scales and diversifies its product range, maintaining
consistent quality across all products can be challenging, and any lapse can impact the
 brand’s reputation.

 Price Wars: With competition in the e-commerce space, there’s always a threat of
price wars, which can erode profit margins.

 Reliance on Discounts: If customers become conditioned to expect heavy discounts,

selling products at regular prices can be challenging, impacting profitability.

 Counterfeit Products: The rise of counterfeit or imitation products can not only eat
into the market share but also damage the brand’s reputation if consumers cannot
distinguish between the original and fake products.

 Poor supplier service: In terms of APIs, Indian pharmaceutical companies extensively

depend on China. Around 70% of the total raw material is imported from China.
Therefore, it creates considerable uncertainty and vulnerability to disruption in the
SCM, especially during the global crisis. This problem became acute when China was
locked to seek to stop the COVID-19 disease. Pharmaceutical firms and the
Government of India are deeply worried about the insecurity of the Indian PSC.

 Uncertainty in demand: The heterogeneity of customers leads to substantial volatility

in drug demand. Pharmaceutical settings are typically highly diversified in the real
world, with numerous products and decision-making phases. It becomes more crucial
for the vendors due to these uncertainties in demand. For online pharmacy services,
significant fines are sometimes imposed when consumer demand is unmet. Thus, it
acts as a potential threat to retailers.
Chapter 2 Design of the study

Objective of the study:

 To Understand how the supply chain management works in the small business.
 To understand the risk and problems faced by business in supply chain management
 To understand how the coordination takes place between various Cash generating
units and other departments.
 How the Cost is affected and controlled by efficient supply chain management
 How to Cutdown cost and increase the return of the business by efficient working of
supply chain management
 Advantages and Disadvantages of supply chain management.
 How supply chain management works when there are two or more services and
products provided by the business and how the cost is allocated for the same.
 Managements key roles and responsibility for supply chain management.
 To understand the measures and strategies taken by the management to overcome the
deficiencies and ensure smooth run of the business
 To understand how to maximize overall value generated that means the higher the
supply chain profitability or surplus, the more successful is the supply chain.
 How the objective of supply chain management works to achieve cost quality balance
and optimization.
 How the Supply chain management helps to reduce the time required for ordering and
fulfilling the same.
 To study how proper supply chain management, marketer or distributor can supply
products or material to the market with faster speed.
 To understand how to meet consumer demand for guaranteed delivery of high quality
and low cost with minimal lead time.
 How to manage the demand and supply as it is a key and challenging task for
company or management personnel. Supply chain management plays crucial role in
the fulfillment of customer demand through efficient resources.
 How to optimize pre-production and post-production inventory levels.
  In the bottom line to understand how the company or manager understands the
importance and benefits of supply chain management ,how it can be used to improve
overall business performance and to gain competitive advantage. And most
importantly, how all these achievements can be done without sacrificing the desired
level of customer service.

Source of the Data:

 My internship report Contains both Primary and Secondary data.

Scope of the study:

 Understanding and Study of the supply chain risk management in Lens & Meds
(OneGen Healthcare pvt ltd).

Limitation of the study:

 Understanding how the supply chain management works and risk in supply chain
management pertaining only to Pharma and Eye Care Industry and not all the
industries/business as a whole.

 So following the Narrow approach of study and Wide approach my concentrating how
supply chain works and managed in one industry.

 Understanding only the demand and supply management in the business and not other
areas like marketing, finance, Human resource etc.
 CHAPTER 3 DISCUSSION ON SUPPLY CHAIN MANAGEMENT

Meaning of Supply Chain:

 A supply chain is an entire system of producing and delivering a product or service,

from the very beginning stage of sourcing the raw materials to the final delivery of the
product or service to end-users.

 The supply chain lays out all aspects of the production process, including the
activities involved at each stage, information that is being communicated, natural
resources that are transformed into useful materials, human resources, and other
components that go into the finished product or service.

Reason for understanding of Supply Chain:

 Mapping out a supply chain is one of the critical steps in performing an external
analysis in a strategic planning process. The importance of clearly laying out the
supply chain is that it helps a company define its own market and decide where it
wants to be in the future. In developing corporate-level strategies, a company often
needs to make decisions on whether to operate a single line of business or enter into
other related or unrelated industries.
  Each stage of a supply chain is essentially a different industry, for example, raw
material extraction and manufacturing. The supply chain enables a company to
understand others that are involved in each of the stages, and thereby provides some
insights on the attractiveness or competitiveness in industries the company might
want to enter in the future.

Supply Chain Examples:

Generally, there are two different examples of a supply chain:

Generic Supply Chain

 The generic supply chain begins with the sourcing and extraction of raw
materials. The raw materials are then taken by a logistics provider to a supplier,
which acts as the wholesaler. The materials are taken to a manufacturer, or
probably to various manufacturers that refine and process them into a finished
product.

 Afterward, it goes to a distributor that wholesales the finished product, which is

next delivered to a retailer. The retailer sells the product in a store to consumers.
Once the consumer buys it, this completes the cycle, but it’s the demand that then
goes back and drives the production of more raw materials, and the cycle
continues.
Supply Chain for an e-Commerce Company

 In this example, the e-commerce company operates a website, and that website
sells various products. When a customer places an order for a product, the
product order is being processed by technology such as a checkout cart, an order
system, or a third-party product such as Shopify. The payment processors then
come in and deal with payment transactions for the order, which actually opens
up a new supply chain.

 The payment processors use their own systems but, in most cases, third parties
such as PayPal and Stripe are employed, and they involve banks and other
providers. When a product order is placed, the warehouse receives the order and
ensures the product is ready for delivery. The warehousing company can be
either in-house or a third-party logistics provider.
  The order then goes from the warehouse to the shipping company. Once again,
the shipping may be in-house or a third-party shipping company. After shipping,
the package arrives at the customer’s door and the customer receives it.

Components of Supply Chain:

An effective supply chain ensures that products, goods and materials deliver on time and
within budget. Here are the components of supply chain management:

1. Planning

Planning involves thinking through all the facets and details of supply chain
management so you're prepared for how the entire process commences. The planning
stage is where you ask questions, including:

 Will we manufacture the product ourselves or outsource that part of the process?

 Will we make products to order or keep a stock of our goods?

 Should we use a supplier for our products? If we do, should they be a domestic or an
international supplier?

 Will we configure our items to order or engineer them according to customers'

specifications?

During planning, you develop supply chain strategies that match your overarching
company objectives and strategies, build communication channels that support the
supply chain, determine how productive the business needs to be to meet customer
and supplier expectations and establish performance measurement guidelines and data
gathering methods.

2. Information

Securing a method to gather and organize information is an important part of supply

chain management. This component may include completing market trend research
and assessing the current supply and demand. Consider integrating data storage and
analysis into your supply chain management approach to help with decision-making
and avoid mistakes and delays.

3. Suppliers and vendors

The second component of supply chain management is the sourcing of goods and
materials. This involves finding suppliers and vendors that you can work with to
complete your supply chain process. Consider performing research on potential
suppliers and vendors, negotiating your contracts with them and making sure they are
able to support your company's business needs. It's also important to make sure that
any other company you source from can meet your production demands and manage
inventory accordingly.

4. Inventory build-up

Understanding demand can help you plan for inventory, and having too much
inventory can be costly. Comparatively, if you don't have enough inventory to meet
demand, you can upset customers or have to spend more money or a premium to
 increase production in the short term.

Build up your inventory based on your demand forecasting so you can have products
available for purchase, staying a little ahead of demands to avoid any issues with
production and maintenance.

5. Production

Another component of supply chain management is your production activities. This is

when you schedule production and test your production plans to make sure they
support your product demands and the company's goals. The production stage also
includes the packing of products, complying with rules and regulations for your
industry, data storage and developing production performance standards.

6. Storage

Just as inventory is important, so too is the storage of that inventory. Explore

warehouses or smaller offices that can house your inventory based on your current or
projected product demands. Consider the size of your storage space, if your products
require air conditioning, if you share the space with other companies and any other
factors that are important to keep in mind as you source a place for your inventory.

7. Distribution

This is one of the first major components where customers get more of a hands-on
experience with your product. Distribution includes transporting goods, materials and
products from one location to another, typically from the warehouse or manufacturing
plant to a store or the customer's home. Set up the transportation process to meet your
needs.

For example, determine if you need to acquire or hire an air-conditioned vehicle and
how big the vehicle should be based on projected sales. You may also want to check
the safety reports and delivery times for the companies you're considering working
with.

Customer service is also part of the distribution process in which you handle customer
inquiries, decide how to distribute your products, choose self-distribution or opt for a
 company to handle the majority of the process for you, activate a warranty period and
process invoices and payments.

8. Product returns

This part of the supply chain stems from the customer or business to which you
provide goods or products. It's important to prepare for a situation where your
customer wants to return the product they've purchased from you.

Because returns are a normal part of business when you provide a good or product to
another party, the more you're able to develop a process for returns, the more prepared
you are for the inevitability. These are some factors to consider when creating a plan
for product returns:

Reasons for return

Here are some reasons a customer may request a return:

 The product is defective.

 Their purchase didn't meet expectations.

 They bought the product for cheaper elsewhere.

 They no longer need the product.

9. Customer service

Most customers expect a fairly smooth process to return products they no longer want
or need, and the same for any exchange process they choose to go through to get a
replacement product. This includes the process of communicating with any customer
service representatives about their request.

Because there are established expectations, it's important to meet or exceed those
expectations wherever possible so you can retain your customers and provide the kind
of service that results in increased sales, hopefully influencing your customers to
share their experiences with others.
 10. Returns planning

Consider how you process returns, including how you accept returns and what
instructions you provide to customers, how you manage exchange requests and how
you handle products you receive from customers. During the return stage, monitor
how often you receive returns and why, manage your inventory of the products you've
received from customer returns and provide refunds.

Supply Chain Modelling:

 Supply chain modeling is a process used to evaluate and optimize the flow of goods,
information and money in a supply chain. It can be used to find bottlenecks, optimize
transportation routes and identify opportunities for cost savings. There are different
types of supply chain models, each with its advantages and disadvantages. The most
popular models are the bullwhip effect, the Beer Game and the newsvendor model.
This blog post will explore each of these models and explore some of the best
practices for supply chain modelling.

 Supply chain modeling is designing and analyzing a supply chain to identify potential
improvements. A supply chain model can be used to simulate different scenarios to
determine the most efficient or practical course of action.

 There are many supply chain models, including static, dynamic, and Monte Carlo
simulation models. The most appropriate model for a particular situation depends on
the certain goals and constraints of the business.

Benefits of supply chain modelling include:

 Reduced costs
 Increased efficiency
 Improved customer satisfaction
 To learn more about supply chain modeling, check out our course Advanced
Certificate in Operations, Supply Chain and Project Management to learn more about
supply chain management.
8 Major Components of Supply Chain Modeling:

1. Inventory: This is the most critical component of supply chain modeling as it directly
affects the bottom line.
2. Transportation: This includes all modes of transportation such as road, rail, air and
water.
3. Warehousing: This is important for finished goods as well as raw materials. It
includes storage, retrieval and packaging.
4. Manufacturing: This converts raw materials into finished products. It includes
processes like assembly, testing and quality control.
5. Procurement: This involves sourcing raw materials and components from suppliers. It
also includes contract negotiation and management.
6. Distribution: This covers the delivery of finished products to customers through
wholesalers, retailers or direct sales channels.
7. Customer Service: This comprises activities like order taking, invoicing, returns
processing and after-sales service.
8. Information Technology: IT is critical in all aspects of supply chain management,
from planning to execution.

Significance of Supply Chain Modeling:

  In any business, supply chain management aims to minimize costs while maximizing
customer service. To accomplish this, managers must plan and control the flow of
materials, information and money across the entire supply chain—from suppliers to
manufacturers to wholesalers to retailers to customers.

 Supply chain modeling is a tool to help managers make better decisions about how to
run their supply chains. By creating a model of the supply chain, managers can
experiment with different scenarios and see what effect they would have on costs and
customer service.

 There are many different types of models for supply chain modeling. The most
popular type is the linear programming model, a mathematical model that helps
managers find the best way to distribute resources to achieve specific objectives.
Other types of models include simulation models, queuing models and statistical
models.

 The best way to choose a model is first to identify the specific problem you are trying
to solve. Once you know what you want to optimize, you can select the type of model
that will best help you find a solution.

Types of Supply Chain Models:

The Continuous Model

 A supply chain is defined as a system of facilities and distribution options that

receives goods from suppliers and delivers products to customers. The main objective
of supply chain management (SCM) is to minimize the total cost of ownership while
maximizing the customer service level.

 The continuous model is a type of supply chain in which materials flow continuously
and constantly through the production process. This type of supply chain is often used
in manufacturing industries with a high demand for products and a need for consistent
output.

 One advantage of the continuous model is that it allows for just-in-time production,
which can save on inventory costs. This type of production also eliminates waste, as
materials are only produced when needed. A disadvantage of this model is that it can
be challenging to change or adapt the production process if there is a sudden change
in demand.

 If you are considering using the continuous model for your business, it is essential to
weigh the advantages and disadvantages to see if this type of supply chain is right for
you.
The Fast Model

 The Fast Model is a supply chain model designed to help businesses make decisions
quickly. This model is based on the principle that the faster a business can make
decisions, the better off it will be. The Fast Model is designed to help companies to
make decisions about inventory, production, and other aspects of their operations.

The Inventory Model

 In business, the term “supply chain” is about transforming raw materials into finished
goods and then getting those finished goods into the hands of the customer. The
supply chain encompasses everything from the sourcing of raw materials to the
manufacturing of products to the distribution and delivery of those products.

 There are various inventory supply chain models that businesses can use, depending
on their specific needs and goals. The three most common types of supply chain
models are make-to-stock (MTS), make-to-order (MTO), and assemble-to-order
(ATO).

 The make-to-stock (MTS) model is the most common type of supply chain. In this
 model, finished goods are manufactured and stocked in anticipation of customer
demand. When a customer orders, the finished product is simply pulled off the shelf
and shipped out. This type of model is often used for fast-moving consumer goods
(FMCG) like food and beverages, where customer demand is relatively easy to
predict.

 The make-to-order (MTO) model is similar to MTS, but businesses only stock raw
materials or components instead of finished stocking goods. When a customer places
an order, the necessary components are pulled from inventory and assembled into a
finished product before being shipped out. This type of model is often used for
customized products or products with a long lead time, like furniture or big-ticket
items.

The Custom-Configured

 A custom-configured supply chain model is designed specifically for a company’s

individual needs. This type of model takes into account the specific products,
services, and materials that a company uses, as well as the unique way in which its
supply chain operates. Custom-configured models are often used by companies with
very complex or unique supply chains, such as the automotive or aerospace industries.

 There are several benefits to using a custom-configured supply chain model:

 It ensures that a company’s supply chain is optimized specifically for its products and
processes.
 It allows a company to take into account changes in its business environment, such as
new legislation or market conditions.
 Custom-configured models can be adapted over time to reflect changes in a
company’s business model or operations.
 The downside of custom-configured models is that they can be very expensive and
time-consuming to develop. In addition, they require close collaboration between the
modeling team and the company’s decision-makers to succeed.

The Flexible Model

 The Flexible Model is a type of supply chain model designed to adapt to changing
conditions. This model focuses on flexibility in all aspects of the supply chain, from
manufacturing to distribution. The Flexible Model aims to provide a greater level of
customer service while still being able to respond quickly to changes in demand.

 Many businesses use the Flexible Model as their primary supply chain model. The
Flexible Model allows businesses to keep inventory levels low, which can reduce
costs and increase profits. This model is especially popular in industries where
 demand can change rapidly, such as the fashion industry.

 The biggest advantage of the Flexible Model is its ability to adapt to changing
conditions. This flexibility can help businesses avoid stockouts and disruptions in the
supply chain. The Flexible Model can also help companies to save money by reducing
the need for safety stock.

 There are some challenges associated with using the Flexible Model as your primary
supply chain model:

1. This model requires close coordination between all supply chain members.
This can be difficult to achieve, especially if your suppliers are worldwide.
2. This model can be expensive to implement since it requires more resources
and infrastructure than other models.
3. The Flexible Model may not be suitable for all types of products or
businesses; for example, it may not work well for products with long lead
times or high levels of customization.

Meaning of Supply Chain Management:

 In commerce, supply chain management (SCM) deals with a system of procurement

(purchasing raw materials/components), operations management, logistics and
marketing channels, through which raw materials can be developed into finished
 products and delivered to their end customers. A more narrow definition of supply
chain management is the "design, planning, execution, control, and monitoring of
supply chain activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronising supply with demand and
measuring performance globally". This can include the movement and storage of raw
materials, work-in-process inventory, finished goods, and end to end order fulfilment
from the point of origin to the point of consumption. Interconnected, interrelated or
interlinked networks, channels and node businesses combine in the provision of
products and services required by end customers in a supply chain.

 SCM is the broad range of activities required to plan, control and execute a product's
flow from materials to production to distribution in the most economical way
possible. SCM encompasses the integrated planning and execution of processes
required to optimize the flow of materials, information and capital in functions that
broadly include demand planning, sourcing, production, inventory management and
logistics—or storage and transportation.

 Supply chain management strives for an integrated, multidisciplinary, multimethod

approach. Current research in supply chain management is concerned with topics
related to resilience, sustainability, and risk management, among others. Some
suggest that the "people dimension" of SCM, ethical issues, internal integration,
transparency/visibility, and human capital/talent management are topics that have, so
far, been underrepresented on the research agenda.

 In simple terms, Supply chain management (SCM) is the active management of

supply chain activities to maximize customer value and achieve a sustainable
competitive advantage. It represents a conscious effort by the supply chain firms to
develop and run supply chains in the most effective & efficient ways possible. Supply
chain activities cover everything from product development, sourcing, production,
and logistics, as well as the information systems needed to coordinate these activities.
The Evolution of Supply Chain Management:

Early Trade

 To find the origins of trade you would have to travel back to around 3000 BC.
Ancient Mesopotamians and Egyptians are known to have traded valuable materials
such as cloth, spices, and metals.

 The trade developed as civilizations grew. Over time, cities began to trade with one
another based on the natural resources they had at their disposal.

 The development of transportation also played a part in the history of trade. Sea
routes were exploited by the ancient Greeks who could travel further to trade their
goods.

 The ‘Silk Road’ was a route network used by traders from the Roman Empire, India,
and China. The routes remained popular until the 15th century.

 The age of exploration followed between the 15th and 17th centuries. European
explorers traveled the seas in search of new lands.

 Exploration and the “discovery” of different territories brought a range of issues. The
spread of disease, war, and colonization were all a result of this.

 One positive aspect to come from this was expanded trade routes. Developments in
shipbuilding and navigation during this time also helped.

 These trade routes opened up trade between areas that had access to materials and
other natural resources that others didn’t. This supply and demand facilitated the
 growth of trade and trade routes.

The Industrial Revolution

 Early supply chains typically took place in local communities. Improved

transportation allowed this to spread further afield.

 The industrial revolution took place between 1760 and 1840. This saw manufacturing
and production move from hand-made products to machine-made ones. Improved
efficiency allowed higher production levels. Mass production was born and helped
supply chains grow.

 During this time, U.S. railroad infrastructure improved and created new trade routes
across the country.

 The efficiency of the routes defined by the Age of Exploration improved trade. One
example of this is The Suez Canal which was completed in 1869. This meant
merchandise could be moved between Africa, Asia, Europe, and the Americas more
easily.

 The Panama Canal’s creation in 1914 is another example of how trade routes
developed.

The Post-World War II Era

 Supply chain management developed following World War II thanks to military

logistics developments.

 The combination of industrial engineering and supply chain operations created supply
chain engineering.
  Transport management and intermodal container development made the transportation
of containers easier. It meant that the same containers could be transported by truck,
train, and ship.

 Global supply chains benefitted from intermodal containers and allowed a more
efficient way for products to be moved on land and sea.

 The National Council of Physical Distribution Management was formed in 1963. This
was because road transportation grew to be the most popular option in America.

 Physical distribution is closely associated with transportation. It is the distribution of

finished products from the distribution networks to the consumer or end user.

 Logistics providers like UPS, FedEx, and DHL made physical distribution easier by
the 1970s.

 Warehousing management also took a leap forward in the ’70s. This is when JC
Penney introduced the first WMS (warehouse management system). Efficient
warehousing allowed real-time stock inventory updates.

 Stock inventory management data provides supply chain managers with valuable
information. It allows warehousing costs to be reduced and makes finding stock
easier.

 Global supply chains and international trade grew exponentially during this period.
Improved technology helped with efficiency and communication leading to this rise in
trade.

The 1980s and 1990s

 In 1982 the term “supply chain management” was first introduced by Keith Oliver.
While the processes had been in place for years, this was the first time it was called
this.

 The introduction of computers in the ’60s and ’70s laid the groundwork for
developments during the ’80s and ’90s.

 GeorgiaTech formed a range of research centers to explore how useful computer

technology could be and how to apply it. The research centers included:

1. The Material Handling Research Center

2. The Production and Distribution Research Center

3. The Computational Optimization Center

 Improved computer technology and access allowed greater supply chain efficiency.
Logistics planning also benefited from this.

 Streamlining and improving supply chain management were made significantly easier
with improved technology. It made data gathering and analysis easier. This allowed
supply chain managers to identify areas that were not performing to a high standard.
Automation also improved efficiency and real-time visibility.

 The National Council of Physical Distribution Management changed its name in 1985
to the Council of Logistics Management (CLM). This reflected the developments in
the supply chain industry. It covered the reverse flow of products as well as inbound
and outbound operations.

 The developments made in the 1980s and ’90s facilitated integrated supply chain
management. Integrated supply chain management is when a centralized system
 manages:

1. Supplier relationships

2. Distribution

3. Logistics processes

 Electronic data interchange (EDI) allowed more efficient communication between

businesses. Purchases and invoices could be transferred electronically. This improved
speed and reduced the physical storage of documents.

 Improved technology also allowed real-time needs to be met. This allowed a more
efficient process known as just-in-time (JIT) manufacturing to be implemented.

 JIT manufacturing is also known as lean manufacturing. This is when manufacturers

provide consumers with products as they are needed. It moved away from traditional
processes that would supply customers with existing stock.

 This way of thinking helped to streamline processes and minimize excess stock and
warehousing costs.

The 2000s and Beyond

 Supply chain design underwent further improvements with risk management being a
major implementation.

 By implementing a forecasting system, supply chain managers could get a better idea
of potential market needs. Advanced planning allows supply chains to meet market
demands.

 Risk management is also used to vet potential suppliers and mitigate the risk of
 disruptions.

 Supply chain disruptions can be caused by a variety of internal factors. Issues with
one link in the chain can lead to significant delays and costs to the entire supply chain.

 External factors must also be considered. The political stability of nations involved in
the supply chain can lead to delays or rising costs. Global pandemics and natural
disasters can also create significant problems for supply chains.

 Supply chain managers create contingency plans to mitigate risks. Contingency plans
are based on data analysis. They can include alternative suppliers or logistics
solutions.

 The growth of e-commerce and omnichannel retail has changed the face of sales. It
allows people from all around the world to access products and is another example of
supply chain globalization.

 E-commerce and omnichannel retail require fast-moving supply chains. Strategic

coordination is required to keep up with this demand. The latest technologies will help
supply chain management professionals manage these needs.

 Big data analytics discovers trends and patterns, which can be used to supply chain
management professionals predict market needs.

 Enterprise resource planning (ERP) systems allow real-time business process

management. These systems use developing technology and software to automate
performance. It can also help with optimization.

The Future of Supply Chain Management

 The future of supply chain management is yet to be determined. However, the use of
emerging technologies like AI and automated systems looks to be a part of it.

 AI can be used to study large amounts of detailed data to provide accurate forecasts. It
can also help to improve efficiency by identifying performance issues.

 This will allow supply chain managers to come up with solutions that will benefit the
supply chain as a whole.

 Automated warehouse management and fulfillment will also help to reduce costs and
minimize the risk of human error.

 Automation allows real-time visibility across the supply chain. Supply chain
managers, stakeholders, and customers all benefit from greater visibility.

 AI is an emerging technology that is developing rapidly. Because of this, it is essential

for supply chain networks to keep up with emerging trends and technology.

 The future of supply chain management will also be affected by sustainability.

Corporate social responsibility should also be a consideration.

 Supply chain globalization provides the opportunity to benefit from cheaper materials
and labor. It is essential that supply chains do not exploit workers in countries where
they do not have the same rights.

 Supply chains will also have environmental responsibilities to consider. Governments

and customers are demanding that businesses minimize their carbon emissions.
Because supply chain management relies on freight transportation, this can be
challenging.
  Sustainable suppliers and environmentally friendly processes will be a part of supply
chain networks in the future.

The Conclusion of SCM Evolution

 Supply chain management history is long and varied. From the beginnings of trade,
rudimentary supply chains were created. These early forms of supply chain networks
were based on supply and demand as well as barter.

 Trade networks rapidly expanded from local to global and supply chains adapted to
facilitate this as efficiently as possible.

 The industrial revolution was the catalyst for rapid change. This escalated to the
technological changes of the 80s and 90s. Since then, technology has continued to
improve. This has allowed supply chain management to further improve efficiency.

 Understanding the history of supply chain management can help supply chain
professionals. It will make it easier to determine potential future developments.

 This will allow supply chain management to improve. This is great news for
consumers that want products to be delivered quickly. It can also help with the overall
cost of the end product and profitability for the businesses involved.
Functions of Supply Chain Management:

The five functions of supply chain management include the following:

1. Purchasing:

 The first function of supply chain management is purchasing. In the manufacturing

process, raw materials are required to produce goods and products. It is important that
these materials are procured and delivered on time so that production can begin. For
this to occur, coordination with suppliers and delivery companies will be required to
avoid any potential delays.
  It pertains to procuring raw materials and other resources that are required to
manufacture the goods. It involves coordination with suppliers to deliver the materials
without any delay. It is not a simple act of buying things. There are various aspects
one needs to consider when purchasing raw materials or other items needed to
manufacture finished goods. All purchasing activities can have a significant impact on
the sales and profitability of a company.

 When sourcing raw materials, it is necessary to ensure that they are of a quality that is
most suitable for that company. It is a function of Supply Chain Management (SCM)
to ensure that only such materials are purchased. It is not enough to check this once.
They must regularly test these items to ensure consistency. Raw materials of
inconsistent quality could adversely affect finished goods production. This can result
in the product losing its salient features. A small error in purchasing can damage an
organization’s reputation.

 The timely arrival of materials is necessary to ensure that all order fulfillment occurs
as required by customers. It is necessary to ensure no disruption in supply of materials
to have continuous production without any interruption. Purchasing in excess can
result in unnecessary blocking of money and usage of space. Hence, purchase
managers must have up-to-date information about orders and what materials will be
needed to execute them on time.

2. Operations:

 Demand planning and forecasting are usually required before materials can be
procured, as the demand market will dictate how many units to be produced and how
much material is required for production. This function is important in supply chain
management as organizations must accurately forecast demand to avoid having too
much or too little inventory that will lead to losses in revenue. Therefore, demand
planning and forecasting must be tied in with inventory management, production, and
shipping to avoid such mistakes.

 The operation team engages in demand planning and forecasting. Accordingly, it

further sets the ball rolling for inventory management, production, and shipping.
 Before giving a raw material purchase order, the organization must anticipate the
possible demand for a product and the number of units it needs to produce. If the
demand is over anticipated, then it could result in excess inventory cost. If the demand
is under anticipated, the establishment wouldn’t be able to meet customer demand,
thereby leading to revenue loss. So, the operation is a critical function of supply chain
department.

 Operation managers are responsible for planning production in relation to demand.

These officials will have to arrange for raw materials and ensure that manufacturing
will be done on time to ensure prompt delivery of goods to customers. They must
make sure that all machines function properly without failure to complete production
of goods on time. They must also ensure that all other items like packaging materials,
labels, and stickers are kept ready for those products that need to be delivered to
customers.

 The other important function of Supply Chain Management (SCM) that falls under
operations is the organizing of space. Storage space is a costly commodity
considering that real estate is very expensive in most Indian cities. Supply Chain
Managers must manage available storage space very efficiently to ensure that they
store only essential goods in company warehouses. This will require them to plan both
raw material and finished goods availability very cleverly to ensure no excess or less
stock.

3. Logistics:

 Logistics is the part of supply chain management that coordinates all aspects of
planning, purchasing, production, warehousing, and transportation so that the
products will reach the end-consumer without any hindrances. It is helpful to have
adequate communication between multiple departments so that products can be
shipped to customers quickly and at the lowest cost.

 This is a supply chain management function that requires immense coordination. The
manufacturing of products has commenced. It needs space for storage until it is
shipped for delivery. There is a need for making local warehouse arrangements. Let’s
 say; the products are to be delivered outside the city, state, or country limits. This
brings transportation into the loop. There will also be a need for outstation
warehouses. Logistics ensures that products reach the end-point delivery without any
glitches.

 Arranging for transport for goods is not an easy job. If this includes shipping to other
countries, it is essential to ensure that staff members do all documentation properly.
Incorrect sets of papers could cause problems at both exporting and importing ports.
This can cause delays in goods reaching customers. The logistics manager must be
familiar with formalities that establishments must follow when sending goods to
different countries. Various countries also have testing requirements for different
products.

 Even in local transport of material, there can be unexpected problems. Vehicles can
get delayed due to mechanical issues. Supply chain managers must be able to arrange
for an alternative conveyance immediately. Weather and road conditions can delay
materials. The person must know such information and make arrangements to ensure
goods arrive on time. There must be a proper tracking mechanism in place to inform
customers about their order status.

4. Resource Management:

 Production consumes raw materials, technology, time, and labor. Resource

management ensures that the right resources are allocated to the right activities in an
optimized manner. This will ensure that an optimized production schedule is created
to maximize the efficiency of the operations. When calculating the available capacity,
you should consider the capabilities of each resource and determine whether they can
perform the work that is scheduled on it. This will ensure that you are not over-
promising orders and that your production schedule is feasible and accurate.

 All firms need raw materials, technology, time, and labor. However, all the processes
need to be efficient and effective. This phase is taken care of by the resource
management function team. It decides the allocation of resources in the right activity
at the right time to optimize the production at reduced costs. A major duty here is to
 properly allocate people for various jobs to ensure that all work is done on time. The
workforce is essential in moving goods and ensuring the proper execution of orders.

 Managing resources is challenging in factories where they use the same machines for
making different products. Resource managers must know how many orders in each
item are to be executed to allocate machines for each of them. Various other pieces of
machinery are needed to complete finished goods manufacturing. Arrangement of
devices for packing and labeling of goods are also part of supply chain department
functions.

 Time is another constraint when there are large volumes of orders to be executed.
These professionals must see whether a single shift is enough to complete a job or
more shifts will need to be included. Hence, they must make sure people are available
to work more hours. These managers must also calculate the cost involved in using
more resources for increasing production and ensure it doesn’t affect profitability.

5.Information Workflow:

 Information sharing and distribution is what keeps all of the other functions of supply
chain management on track. If the information workflow and communication are
poor, it could break apart the entire chain. Many disruptions that arise in supply
chains can be prevented by increased visibility and communication. Having a
consistent system that is used by all departments will ensure that everyone is working
with the same set of data and will prevent miscommunications and time spent
updating everyone on new developments.

 Information sharing and distribution is what keeps all other functions of supply chain
management on track. If the information workflow and communication are lacking, it
could break apart the entire chain and lead to mismanagement. Data must flow in both
directions as far as logistics are concerned. Regular exchange of information must
also happen between external and internal entities in this process.

 Information from downstream will include details of orders in hand and market
trends. These details are crucial for ensuring that enough quantities of raw materials
are made available. Knowing market trends from retailers and distributors will help to
 formulate sales forecasts. Without such predictions, companies cannot plan for
production. Organizations must also arrange for finance if there is a need to increase
production because of a sudden demand increase.

 Arranging for raw materials is among the essential roles of supply chain management.
To perform this perfectly, the official in charge must have accurate information about
the availability of various materials. Advance information of any shortage will help
them purchase excess and ensure production continues smoothly.

Importance Of Supply Chain Management:

1. Higher Efficiency
Supply chain management uses various strategies to optimize the overall operations by
improving the flow of products, materials, and information. It enhances the efficiency of
businesses by accurately analyzing the demand and sales forecasting. Therefore, investing in
SCM leads to the timely delivery of finished goods or services to the customers. The delivery
that is strategically planned and executed also improves customer satisfaction. In addition,
supply chain management enables seamless information flow which is beneficial for business
growth.

2. Reduced Overall Operational Cost

Organizations are investing in effective supply chain management as it can minimize the
expenditure by analyzing the real-time data to decrease the purchasing and production costs.
The supply chain tends to monitor financial inflows and outflows which is a major advantage
for the smooth running of businesses. Therefore, realizing the importance of supply chain
management can allow the organization to keep a watchful eye on the operations to control
costs and allocate resources.

3. Risk Assessment and Mitigation

Identifying and assessing the risk beforehand can allow companies to handle the disruptions
efficiently. The supply chain tends to deploy predictive analysis which offers end-to-end
visibility which detects the issue and mitigates the risk. Businesses can take corrective actions
to enhance flexibility, accuracy, and efficiency across the processes like product
development, demand, and supply planning, etc. Therefore, it optimizes the value-chain
nodes which can create a positive impact on business.

4. Enhance Customer Experience

Supply chain management is important to effectively manage and execute the tasks to help
businesses enhance customer experience. It is focused on driving better customer services by
responding to their needs in real-time and providing on-time delivery. Prioritizing the
customer’s wants is foremost essential as it is useful in customer retention and even
establishes the strong reputation of the company. Moreover, having an interconnected
network of suppliers and distributors can allow the quick and accurate delivery of products
and services to customers.

5. Improved Relationships
Fostering synergic and profitable relationships through effective communication is one of the
major benefits of an effective SCM. In volatile market conditions, businesses should
seamlessly share the information in real-time to build a growth-based environment with
suppliers or vendors. Therefore, retaining productive relationships is valuable to control the
cost and ensure the long-term sustainability of the business.

6. Quality Control
Managing the supply chain efficiently can ensure strict quality control. It tends to monitor the
most essential tasks such as timely delivery, the quality of the final product, conducting
supplier quality assessments, checking compliance, and so on. Maintaining the quality of a
company’s products and services is crucial for providing a delightful customer experience.
SCM enables businesses to follow government standards and guidelines for ensuring that
quality control problems can be detected and resolved.

7. Reduced Delays
A smooth functioning of the supply chain can result in reduced logistical errors and make the
distribution process more consistent. SCM provides you with real-time data to minimize
delays of goods and services to the customers. Reduced delays are one of the most important
benefits of supply chain management processes as businesses should remain agile and
resilient. Also, effective coordination and collaboration can optimize the shipping processes.

8. Manage Supply & Demand

Getting deep insights into the overall supply chain ecosystem enables organizations to predict
demands better and adequately. Crafting innovative strategies has now become necessary for
businesses to respond to the changing market trends. In the contemporary world, an overview
of everything across your supply chains enables businesses to be agile and highly responsive.

9. Embrace Technologies
New-age technological trends have the ability to enhance the functionality of supply chain
management. Managing the overall operations using automation tools can be extremely
beneficial to scaling your business. Undoubtedly, implementing the new-age technology can
optimize the processes and provide your businesses with a competitive advantage.
Technology plays a vital role to strengthen the overall functionality of supply chain
management which allows businesses to scale.

10. Business Agility

Supply chain management enables businesses to be more resilient and adaptive to
opportunities. Nowadays, forward-thinking companies are focused on creating the logistics
process efficient by growing with changing market trends and providing enhanced value to
customers. Supply chain agility tends to meet actual and unexpected demand changes as it
implements new-age technologies like Internet of Things, Big Data, Artificial Intelligence in
Logistics and so on. Therefore, understanding the importance of supply chain management
can enable stronger cash flow and shipping optimization enabled with the right technology.

Final Thoughts
In the contemporary world, businesses are highly dependent on a well-versed supply chain
strategy. It deals with potential problems and allows organizations to make meaningful
decisions. Therefore, optimal execution of all the events and real-time transparency in the
supply chain ensures organizations’ growth. Businesses should understand the importance of
supply chain management as it reduces production costs and increases responsiveness to
customer needs.

Having an enhanced supply chain is important in the long run as it helps the organizations to
prepare beforehand for any deviation. It eliminates the lack of synchronization in workflow
by increasing transparency and strengthening the relationship between suppliers and buyers.
Therefore, effective supply chain management can improve revenue and enable businesses to
gain a competitive edge.

Advantages of Supply Chain Management:

 Cost Efficiency

Supply chain management assist in attaining cost efficiency within the organization. It
aims at optimizing all process of business which bring down the production cost,
packaging cost, warehousing and transportation cost and avoids any wastage of goods
by facilitating timely delivery. It minimizes the overall operating expenses and
enhances the overall profitability.

 Enhance Output

The concept of supply chain management aims at maximizing the overall productivity
of business. Supply managers monitor all production processes and ensure that all
 resources are efficiently utilized. Any wastage of resources is avoided which lead to
maximize the overall output.

 Avoids Delay In Process

Preventing any delays of business process is one of the major advantage of supply
change management. Supply chain manager ensure that all materials are timely
acquired for facilitating uninterrupted production of products. Also, they regulate all
delivery and logistics services of business which promote delivery at right time at
right location thereby avoiding any delays.

 Easily Identify Problem Areas

Supply chain management enable business in recognizing its issue that are adversely
affecting its reputation and profitability. Managers can easily track the performance of
every department and identify which one is lacking in delivering its duties. In absence
of this concept, it will be difficult to detect the issue and every department will blame
each other for any problem that erupts.

 Better Collaboration

Process of supply chain management bring better collaboration among distinct parties
of business. It focuses on developing a proper communication channel within the
business for avoiding any confusion or disputes. Smooth flow of information among
all stakeholders like employees, customers, suppliers and distribution enhance
understanding which leads to create a better collaboration.

Disadvantages of Supply Chain Management:

 Expensive To Implement

Major limitation of process of supply chain management is that it is quite expensive to

implement. It requires large investment in terms of time, money and other resources
that become unaffordable for small businesses.
 Complicated

Process of supply chain management involves numerous complexities as it involves

several departments within the organization. It may lead to create confusion and
hamper the normal functioning of business. Employees may feel hesitant and
demotivated to accept this concept as it is new to them thereby giving rise to several
other difficulties.

 Lack Of Co-Ordination Among Departments

The concept of supply chain management functions properly only if there is better
coordination among departments of departments. Establishing a coordination among
several departments within big corporate is a quite difficult task where this concept
may eventually fail to perform.

 Requires Trained And Personalized Staff

Supply chain management requires qualified and trained human resources for its
effective executive within the company. Company need to incurs heavy expenses for
acquiring such taskforce that is professional and highly skilled. Small companies may
find it unfavorable for their implementation.

 Lack Of Reliability

Supply chain management lacks of reliability as it is completely dependent upon the

mode of information exchange among several departments. If there is any instance of
inaccurate information sharing by any of the department, then it will have adverse
effects on performance of whole supply chain.

 Improper management and implementation:

Modifying and deploying a new supply chain strategy takes substantial financial
investment, resources, and time. When improperly implemented, wasted labour,
redundancy, and inability to fulfill orders occur. All of these result in major losses that
 can drown a business. Thus, to avoid these unnecessary costs, well-trained logistics
partners always conduct thorough research before implementing changes to the supply
chain. It ensures that the client’s last-mile logistics, consolidation chances, and freight
timelines are well-planned before developing and deploying a new system.

 Insufficient training and inadequate specialisation:

ell-trained personnel are an essential part of any successful supply chain. The lack of
properly trained personnel can create complexities in the workflows and usually needs
restructuring of the overall process. When complexities are not immediately resolved,
they often cause bigger disruptions in the supply chain process, making it impossible
to meet consumer timelines. This problem occurs as the supply chain process is
complicated and training personnel is not easy.

 Short-sighted view:

Several logistics businesses are often clouded by business myopia. They tend to focus
on gaining business and forget to consolidate opportunities to improve their processes
and efficiencies. When they begin to skimp on these, they lose out on growing and
developing. This stagnates the logistics processes, hindering the overall supply chain
processes. Companies will slowly start sinking due to several backorders and
improper order fulfillment.

Process of Supply Chain management:

Planning

 Supply Chain planning lays the foundation for the Supply Chain Process. It is a
structured way of delivering goods, commencing the delicate art of demand
forecasting. It is predictive magic that foretells market preferences and consumer
desires. This knowledge becomes the cornerstone upon which decisions are crafted,
from inventory planning that prevents stockouts to production scheduling that ensures
seamless operations. It involves the following components:

a) Demand forecasting: Accurate demand forecasting is the cornerstone of

effective planning. By analysing historical data, market trends, and external
factors, businesses can anticipate customer demand for their products. This
enables them to adjust production levels, inventory levels, and resource
allocation accordingly. Robust forecasting minimises the risk of
overproduction, leading to cost savings and improved customer satisfaction.

b) Production planning: Production planning involves determining how much to

produce and when to produce it. This entails creating production schedules
that align with demand forecasts while considering factors such as production
 capacity, lead times, and resource availability. Efficient production planning
helps businesses optimise their manufacturing processes and reduce
production costs.

 For example: In the world of Supply Chain Management, inventory is both an

asset and a potential liability. Striking the right chord between scarcity and
surplus is the goal of inventory planning. Effective inventory planning ensures
that the Supply Chain flows smoothly, without bottlenecks or overstocked
shelves.

Sourcing:

 Sourcing involves procuring the necessary raw materials, components, and goods
required for production. Building strong relationships with suppliers is crucial, as it
fosters reliability and consistency in the Supply Chain.

 Efficient sourcing involves evaluating suppliers based on factors such as cost, quality,
lead times, and ethical practices. Implementing strategic sourcing strategies can lead
to cost savings and improved product quality. It involves the following key elements:

a. Supplier relationship management: Strong supplier relationships are essential

for a seamless Supply Chain. Open lines of communication, trust, and
collaboration create a foundation for successful sourcing. Regular
communication helps businesses understand supplier capabilities, address
potential issues, and identify opportunities for improvement. Developing a
partnership mindset fosters mutual growth and innovation.

b. Strategic sourcing: Strategic sourcing involves looking beyond immediate cost

considerations and evaluating the long-term value that suppliers bring to the
table. It's about considering factors such as quality, innovation, and the
supplier's ability to adapt to changing business needs. Businesses aim to strike
 a balance between cost-effectiveness and maintaining the desired level of
quality.

 For example: Businesses that maintain open lines of communication with

suppliers can swiftly address potential issues, negotiate favourable terms, and
align their sourcing strategies with the supplier's capabilities. A robust supplier
relationship management system helps in ensuring the availability of high-
quality materials while minimising disruptions.

Manufacturing:

 This stage is where the raw materials and components sourced from suppliers undergo
transformation, culminating in the creation of the final products that will eventually
reach consumers. This critical phase involves intricate processes, quality control
measures, and strategic decision-making to ensure efficient and high-quality
production.

a. Quality control and assurance: Quality control involves systematic

inspections, testing, and validation to ensure that products meet predetermined
specifications. Quality assurance, on the other hand, focuses on establishing
processes and standards that prevent defects from occurring in the first place.
Implementing robust quality control and assurance practices enhances
customer satisfaction, reduces returns, and safeguards the brand's reputation.

b. Capacity management: Underestimating capacity can lead to missed sales

opportunities while overestimating can result in excess inventory costs.
Advanced capacity planning tools and data analytics enable businesses to align
production capacity with real-time demand fluctuations. This flexibility helps
businesses adjust production levels efficiently and respond to changing market
dynamics.
Logistic and distribution:

 This phase involves a complex network of transportation, warehousing, and order

fulfilment activities that work in tandem to ensure the timely delivery of products.
Let's delve into the intricacies and significance of the "logistics and distribution" stage
within the Supply Chain:

a. Transportation management: For goods to be moved via road, rail, air, sea, or
a combination of these, the goal is to optimise efficiency and minimise transit
times. Factors such as distance, volume, urgency, and cost considerations
influence transportation decisions. Leveraging technology and route
optimisation tools enhances the accuracy and reliability of transportation
management.

b. Warehousing and inventory control: Warehousing serves as a hub for storing

products before they are dispatched to their final destinations. Efficient
warehousing practices involve organising products for easy retrieval,
employing proper inventory control systems, and reducing storage costs.
Businesses often adopt just-in-time inventory strategies to minimise holding
costs while ensuring products are available when needed.

c. Order fulfilment and packaging: Order fulfilment involves processing

incoming orders, picking products from inventory, packing them securely, and
preparing them for shipment. Accuracy and speed are crucial in meeting
customer expectations. Innovative packaging solutions that are both
sustainable and protective are gaining traction.

Retail and customer delivery:

 Effective returns management includes processing returned items, assessing their

condition, and deciding on appropriate actions, such as restocking, refurbishing, or
disposal. Streamlining the returns process contributes to customer trust and
 operational efficiency. It can be performed through the following steps:

a. Distribution network design: Designing an optimal distribution network

involves strategically locating distribution centres and warehouses to minimise
transportation costs and delivery times. Businesses need to consider factors
such as geographic reach, proximity to customers, and the flow of goods
within the network. Moreover, data analysis helps in making informed
decisions about the number and location of distribution centres.

b. Last-mile delivery: Last-mile delivery is where products are transported from

the distribution centre to the customer's doorstep. This phase is critical in
creating a positive customer experience. Rapid urbanisation and the rise of e-
commerce have heightened the importance of efficient last-mile delivery.
Businesses are exploring innovative solutions, such as drone deliveries and
crowd-sourced delivery platforms, to enhance the speed and convenience of
this process.

Monitoring:

 This phase involves continuous tracking, analysis, and assessment of various Key
Performance Indicators (KPIs) to ensure that the Supply Chain is operating optimally
and meeting its objectives.

a. KPI tracking and analysis: KPIs serve as the compass guiding Supply Chain
performance. These metrics encompass demand forecasting accuracy,
inventory turnover, on-time delivery, production cycle times, and supplier
performance. By tracking and analysing KPIs, businesses gain insights into
their Supply Chain's strengths, weaknesses, and areas for improvement.

b. Real-time visibility: Advanced technology and digital solutions offer live data
feeds that provide up-to-the-minute information about inventory levels,
 production progress, and transportation status. Real-time visibility empowers
businesses to respond promptly to deviations from the plan and proactively
manage potential disruptions.

Conclusion:

 The Supply Chain Management Process is an interconnected and complex journey

that involves multiple stages, stakeholders, and considerations. From initial planning
to final delivery, each phase contributes to the overall efficiency, resilience, and
customer satisfaction of the Supply Chain.

Meaning of Supply chain risk management:

 Supply chain risk management (SCRM) is the process of finding and addressing
potential vulnerabilities in a company’s supply chain. SCRM aims to minimize the
impact of these risks on a company's operations, reputation and financial
 performance.

 Supply chain risk management (SCRM) is "the implementation of strategies to

manage both everyday and exceptional risks along the supply chain based on
continuous risk assessment with the objective of reducing vulnerability and ensuring
continuity".

 SCRM applies risk management process tools after consultation with risk
management services, either in collaboration with supply chain partners or
independently, to deal with risks and uncertainties caused by, or affecting, logistics-
related activities, product availability (goods and services) or resources in the supply
chain.

Why is supply chain risk management important?

 Supply chain management is essential to business operations. But amid globalization,

supply chains have become increasingly complex and interconnected. Companies rely
on a vast ecosystem of suppliers, manufacturers, distributors and logistics
professionals to deliver goods and services to customers around the world.

 However, this complexity also means that there are more points at which supply chain
disruptions can occur—a lesson learned by many during the global COVID-19
pandemic. Such disruptions can slow operations, lead to shortages of materials or
resources, damage brand reputation or hurt profitability.

 Implementing a supply chain risk management strategy is a way for companies to

build the resilience to navigate uncertainty and ensure business continuity. With
proactive preparedness, companies can avoid or minimize disruptions, reduce costs,
improve quality and enhance customer satisfaction. SCRM also helps companies
comply with regulations, protect their brand reputation and foster sustainability.

What are the challenges of supply chain risk management?

 Implementing SCRM can be challenging for companies due to several factors.

 Modern global supply chains are deeply complex, making it difficult to track details
closely at every step from start to finish.

 Furthermore, if a company does not have access to reliable data on its suppliers, it
won’t be able to fully and accurately assess risks. Some suppliers may be reluctant to
provide data due to privacy concerns or a fear of losing a competitive advantage. And
even if they provide enough data to identify risks, they may be unwilling to adopt new
practices or alter existing ones.

 It also comes with costs: new technologies, training and hands-on monitoring require
financial investment that can sometimes prove too much for smaller businesses to
accommodate. The more stakeholders involved, the larger the budget required to
maintain due diligence across them all.

How can technology contribute to supply chain risk management?

 Tracking and monitoring

Sensors, GPS and Internet of Things (IoT) devices can provide a wealth of real-time
information at every stage of the supply chain. These devices help track each phase of
the product lifecycle from raw materials procurement to production to distribution and
end use. Supply chain data collected from various points can drive optimization by
providing insights into operational efficiencies, potential risks and areas for
improvement.

 Automation

Automation tools and robotics technology can increase efficiency in the supply chain
by reducing human error. Automated systems can also operate in hazardous
conditions, thereby reducing risk.

 Blockchain

As an immutable, accessible ledger, blockchain can enhance transparency and

traceability across the supply chain, making it easier to verify the authenticity of
 products and track the movement of goods.

 Artificial intelligence

Artificial intelligence (AI) and machine learning (ML) algorithms can analyze vast
amounts of data to identify the most efficient transportation routes, spotlight potential
disruptions or inconsistencies and gain insight into environmental impact. Simulation
software can help with modeling potential scenarios to predict risk and develop
contingency plans.

 Cloud computing

Cloud computing can provide scalable solutions for data storage and sharing that
make it easier to collaborate and exchange information at every stage of the supply
chain.

How is supply chain risk management related to sustainability?

 SCRM is essential to efforts to promote sustainability in business. It helps companies

identify and address environmental and social risks in their supply chain, including
issues related to environmental impact, waste, energy use and labor practices. For
example, implementing technologies that track energy use can lead to significant
reductions in carbon emissions.

 SCRM can also help companies promote circular economy principles by reducing
waste. By fully assessing risk, companies are in a better position to make decisions
that align with their goals and values.

 Having contingency plans for potential disruptions helps companies prevent situations
that create waste and allows them to maintain their pursuit of sustainability goals even
amid unexpected changes. A thorough risk management program can bolster a
company's reputation for corporate responsibility, which can be critical to its brand
image. As a result, supply chain risk management is a key part of a complete
 sustainability strategy.

Risks that effect Supply change management:

 Global events

Natural disasters such as earthquakes, hurricanes or floods can upend supply chains.
So can political and economic developments, including war and geopolitical
instability, trade disputes, strikes and fluctuations in everything from currency
valuation to fuel prices. Risk management processes put contingency plans in place
that can limit the impact of such events.

 Supplier risk

Healthy supply chains rely on healthy supplier partnerships. Weaknesses in a

provider’s financial stability, capacity constraints or other issues could create
instability. If a supplier’s reliability is in question, companies that rely on it may
decide to diversify their sources or investigate backup options to ensure a steady flow
of materials or components.

 Cybersecurity threats

Digital systems and communication technologies are often employed to manage

orders, inventory and distribution, leaving supply chains increasingly vulnerable to
cyberattacks. Ransomware attacks and malware can halt production, delay
distribution and prove costly. Breaches of sensitive supply chain data can expose
proprietary information or customer data, leading to reputational damage and legal
consequences.

Cyberattacks may also be used to disrupt transportation and logistics, damage critical
infrastructure, steal intellectual property, create counterfeit products or perpetuate
financial fraud. SCRM assesses vulnerabilities in digital systems and data privacy,
helping organizations develop security and response plans.

 Demand fluctuations

Consumer demand is changing faster (and more unpredictably) than ever, as needs,
 preferences and options evolve. Accurately predicting demand can have a major
impact on profitability, so risk mitigation might include optimizing inventory levels
and enabling flexibility in production schedules and distribution channels to meet
varying demand.

 Ethical and social responsibilities

Visibility into the supply chain is essential to identifying unethical practices related to
human rights, labor violations and environmental impact. When a supplier’s behaviors
are out of line with international regulatory standards, or a company’s values, it can
have consequences for all. Risk management in this area requires due diligence in
assessments of practices throughout the supply chain and thorough evaluations of
alternatives.

 Rising Inflation

High inflation creates unpredictable price increases, making it more difficult to

effectively plan and manage cashflows. It also causes complications and delays when
negotiating prices with suppliers.

 Reputational Risk

This can result from many risk factors. One such driver can be unsatisfactory
environmental, social and governance (ESG)-related practices among suppliers –
including poor working conditions and labor relations.

Reducing supply chain risk:

Identify:
Companies will want to spot potential problems or weaknesses that may affect the strength of
their entire supply chain. Risk identification can be done by conducting a risk assessment that
considers internal and external factors, such as suppliers' location, transportation routes,
political stability and weather patterns.

Assess:
Once potential vulnerabilities are identified, companies can then determine how likely they
are to occur and what their short- and long-term impact on the supply chain might be. Data
and research can help with supply chain risk assessment: quantitative and qualitative
methodologies, such as risk scoring, scenario analysis and expert judgment can be useful in
comparing historical data and forecasting in light of current metrics and risk factors.

Mitigate:
Once the risks are known and analyzed, companies may decide to come up with strategies to
address them, targeting the most significant issues quickly. Risk mitigation strategies can
involve diversifying suppliers, improving inventory management, enhancing communication,
investing in technology and developing contingency plans.

Monitor:
SCRM is a continuous process, meaning companies may want to keep a close eye on supply
chain operations and review policies and SCRM procedures regularly. This approach can
involve tracking key performance indicators, conducting audits, building strong supplier
relationships and engaging stakeholders. The goal is to limit risk exposure and ensure
informed decision-making.

Chapter 4 Learning Outcomes

In Lens and Meds during my internship I got the understanding on how the supply chain
management is done, risks and challenges faced during the management and what are the
steps taken to mitigate the risks and challenges of the supply chain to ensure smooth running
of the business.

As said earlier during the organization understanding, Lens & Meds provided wide range of
services that is sale of trendy and stylish Opticals, Provided eye test for the patients, Service
on medicines including prescription, OTC and generic medicines with expert suggestions,
Provides multiple diagnostics packages consisting of the most common tests requested at the
best rates, Easy Doctor consultation and also Membership services. So the supply chain
becomes very complex as they have many cash generating units and each shall have their
own supply chain but also all the separate supply chain shall we coordinated with each other
for smooth flow of business as a whole. Major importance on of the services and not so
importance for other services leads to operation losses and inefficiencies of the business so
effective supply chain management is a must for reducing the cost and to increase the Income
or profit.

Here are my understanding on supply chain of each service provided by the organization:

1.Supply chain in Medicals (Pharma):

 The pharmaceutical supply chain poses risks and challenges to both providers and
consumers. But in the context of a health-conscious society, managing pharmaceutical
supply chains presents several complexities because it involves many key components
and stakeholders to efficiently deliver life-saving medicines that are vital to patients.

 The pharmaceutical supply chain involves the process of sourcing raw materials,
manufacturing or purchasing from other suppliers, performing clinical trials, research
and developments, transporting and distributing to various franchise of Lens and
Meds based on the requirement , demand and supply then delivering medications to
patients. Because the pharma supply chain network comprises various stakeholders, it
requires careful coordination and adherence to regulatory guidelines at every stage to
ensure patients receive safe and effective medications.

 The pharmaceutical supply chain in Lens and Meds faces several challenges and risks
which are as follows:
  With the increasing changes in business environment, firms have to supply
high quality products, deliver fast responses, and make their dynamic
competencies better.

 The challenges that pharma companies are involved in are complicated and
have an extensive range including political, economic, social, technical, and
legal considerations.

 efficiency of R and D processes, products’ declining life cycle and patent life
exclusivity, increasing generic competition, production compliance, and costs,
are some of the major complications that pharmaceutical companies
encounter.

 Seasonal products have a limited shelf life. At the end of the season, retailers
typically scrap these products or sell them at deep discounts which should be
reduced by proper using forecasting techniques which can improve margins.

2.Supply chain in Eyewear :

 Lens&Meds has started Shop in Shop franchising after having detail research to get
expertise in this segment.

 Lens&Meds has complete infrastructure to support this business that includes frames
procurement, supply chain, lens fitting and delivery, trouble shoot and after sales
support

 Lens&Meds has a large pool of resources such as Optometrists, Marketing team,

Merchandisers, Developing Retail Store Managers, Area Managers, Data Analysts
etc.,

 Lens&Meds manufacture there eyewear and also purchase from other wholeseller and
suppliers. They sell to customers and take the position of retailers in the eyewear
market.

 As Lens&Meds is still a startup they face inventory shortage and also other risks and
challenges like shortage of labor.
  Lens&Meds operate in both online and offline so they also have good logistics
support like transportation, packing and warehouse facility for effective delivery to
the customer.

 The eyewear supply chain in Lens and Meds faces several challenges and risks which
are as follows:
 Shortage of products in both online and offline stores

 Should improve the transportation and packing for effective online delivery to
customers so that the brand value will be increased and also leads to creation
of strong customer relationship.

 Leadtime shall be decreased for availability of eye wears in stores from

warehouse or manufacturing unit in order to fulfill the shortage of inventory in
both online and offline stores.

 Needs to improve in the inventory management according to demand and

supply in the market.

Supply chain in health care:

 A healthcare supply chain refers to the network of systems, companies, and

individuals involved in the healthcare industry and health services.

 Lens and Meds provides Diagnostic services eyecare and eye test services which is
100% Safe and Hygienic

 The prospect of spending hours in a queue at the diagnostic lab or the hospital deters
many or at least prompts them to defer stepping out for diagnostic tests, Appreciating
the importance of health tests and understanding the need for making diagnostic
services user-friendly, Lens&Meds Diagnostics offers the sheer convenience of
Home.

 On receiving a call, Lens&Med’s trained technicians arrive at the doorstep of the

patient to collect samples. Reports can be collected at their centre or can be delivered
at home (On Chargeable Basis) the very next day.
  Lens&meds Diagnostics has already put in place a network of technicians and an easy
call facility to ensure patients get the best of services within the comfort of their own
homes.
 Customers can also View and Download their Reports of eye and diagnostic service
in online website.
 Customers and also upload their prescriptions and get their personalized test packages
at the best process.
 They have also introduced free eye test at home, allowing us to undergo our eye test
in the comfort of our own home.
 The healthcare supply chain in Lens and Meds faces several challenges and risks
which are as follows:
 The lack of resiliency across healthcare organizations often stems from poor
visibility, specifically a lack of quick access to centralized, consumable, real-
time data from dispersed data sources and siloed systems. This makes it
difficult to determine what’s needed, what’s in stock, and the scope of future
demand. Ultimately, you can’t manage what you can’t see and measure.
 Supply expenses are forecasted to surpass personnel costs as the biggest
expense in healthcare.

Learnings from the study of Supply Chain Management in Lens and Meds:

 Supply change management aligns product supply with customer demand. As the
world becomes more interconnected and manufacturing resources are spread across
the globe, supply chain management ensures production remains cost-effective,
customers remain happy, and deliveries are consistent.

 If we enjoy looking at the bigger picture and have a knack for helping companies run
efficiently, you might consider a career in supply chain management.

 An evaluation of supply chain performance can only be carried out with prior
identification of value creation for the customer, the company itself and all actors
across the chain.

 A company’s problems in implementing its supply chain operations and strategies can
be easily resolved by using evaluation models that take account of their interests and
final objectives, especially if they are ultimately focused on value creation.

 The whole discussion concludes that strategic fit between competitive strategy and
supply chain management is possible through appropriate management of capabilities
 and strengths of internal resources. Key obstacles can be tackled in Lens&Meds by
the increase in innovative produces and low product obsolescence. The research used
multi-case approach to identify the impact of flexibility strategy on the supply chain.
These strategies work according to several proposed conceptual framework. By using
flexibility, the responsiveness of the supply chain can be improved in the volatile
market environment. the supply flexibility in the supply chain can be introduced to
successful overcome for different barriers of inventory management and supply chain
management.

 Supply chain management is strategic in orientation and recognizes that the

competitive strength of a firm is not only determined by its products but also by the
operations and activities that place the products into customers’ hands and provide
supporting services. Efficient and effective supply chain management enhances firm
performance and adds value by increasing asset utilization to gain competitive market
advantage. The responsiveness and efficiency of a company’s supply chain arising
from its design and management is integral to the firm’s ability to successfully
compete in the global marketplace.

 This is an integrated approach to planning, implementing and controlling the flow of

information, materials and services from raw material and component suppliers
through the manufacturing of the finished product for ultimate distribution to the end
customer. It includes the systematic integration of processes for demand planning,
customer relationship collaboration, order fulfillment/delivery, product/service
launch, manufacturing/operations planning and control, supplier relationship
collaboration, life cycle support, and reverse logistics and their associated risks. These
processes, which employ a combination of people, systems and technology, can be
performed by the firm itself or in collaboration with external supply chain partners.

 As a conclusion, supply chain management (SCM) can help people to joint

collaboration between outsourcing partners, suppliers, and customers. It can also
comprises the transformation of goods from raw materials through to the delivery of
the finished product. Whenever, SCM also involves the integration of these activities,
thats can improve relationship between the various parties. As we know, SCM is
closely linked with enterprise resources planning (ERP) and electronic commerce
system. So, it can give benefit to make an easier supply form other parties.