What is Supply Chain Management

DEFINITION

Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology.

HOW SUPPLY CHAIN MANAGEMENT WORK?

HOW DOES SUPPLY CHAIN MANAGEMENT (SCM) PROCESS WORK?

PRODUCT MOVEMENT

The movement or work flow of the product plays the vital role in designing SCM model. Movement of the product needs to be managed well to achieve success in any business. Timely movement of a product from one unit to another, appropriate quality check at each point and quick delivery are the key components to completely satisfy customer’s needs. SCM must help to define the process of product movement.

INFORMATION SHARING AND COMMUNICATION

Inappropriate communication can lead to disaster in businesses. SCM model should be designed such that it has an appropriate flow of information movement from one point to another while conducting business.

TIMELY ORDER TO DELIVERY

Supply chain management model must meet the deadlines well from the beginning till the end. Organization’s success is solely depending on how successful the delivery of the product is when it reaches the customer’s hands. Right from the order processing to manufacturing, receiving, quality checks and until delivery to the customer, SCM model must be fine-tuned appropriately.

SERVICE AFTER DELIVERY

Performance management is another important aspect to be considered to gain long term success. SCM model should have a system to regularly conduct performance reviews, quality checks after delivery so that the service after delivery is well taken care. The continuous business growth needs to be considered while designing supply chain management system.

FINANCE

Supply chain management also includes managing finances of the organization. Accounts payable, inventory management, billing accuracies, possibilities of sharing costs across facilities are the few key finance activities that need to be defined well in the SCM model.

INTEGRATED SUPPLY CHAIN MANAGEMENT

Strategic integration of various functions within the organization or stakeholders is essential to manage the work flow and in turn the success of the organization. SCM model must integrate the functions and stakeholders well so that the long term goal of the organization can be achieved. Supply Chain Management can bring in lot of benefits to the organization and help to fulfill its long term goal intern to achieve business success.

WHY RENTING LEAP'S ASSETS IS BENEFICIAL FOR ITS CLIENTS

 

Depending on the load to be transported, it can be very expensive to buy and upgrade a pallet fleet. Managing and tracking an owned fleet can be a cumbersome process and it can result in significant losses if the goods cannot be transported when needed. Further, they can eliminate the expensive distraction of owning and maintaining an inventory of pallets/FLC’s. Clients can deploy their investment and day-to-day focus, on their core business.

At most of the times, owned pallets are used to carry one way loads and are returned empty or discarded. This leads to underutilization of assets. Once emptied by the users, the pooled pallets are returned to the nearby depot of the vendor, from where they re-start their journey with a return load, thereby enhancing the asset utilization level.

Once purchased, pallets will need to be continually repaired and cleaned in between usage – requiring the manpower, space and equipment for the same. Maintenance and cleaning are entirely LEAP’s responsibilities.

When not in use, pallets can take up lot of space, which is inefficient and costly. Excess pallets can be notified to LEAP, thereby freeing up the space as well as efforts in managing the pallets.

If a client suddenly has an increased order or an order that requires a special type of pallet, then buying them just for these rare occasions is wasteful, as for the rest of the time the overflow will just be gathering dust in storage. Additional pallets can be quickly supplied to meet urgent needs and “Pooling” removes all these hassles as the vendor shall handle these background tasks. season demand, without any hassles to the end customer.

Owning the pallets necessitates maintaining separate pallet inventories by all the clients, which puts pressure on wood supply and in turn risks our environmental balance. LEAP Pallet Pooling is environment friendly as total no. of pallets are minimized & pallet components are recycled.

LEAP – An Emerging PAN-India palletization & pooling services player, is unique in the pallets/FLC industry offering Pooling solutions in India with multiple manufacturing and service tie-ups. LEAP will be able to procure the best of pallets to service its customers efficiently besides being able to meet the peak demand with ease. Early mover advantage, Quality Assets, PAN India converage, Integrated strong IT system & control with experienced professional to manage assets (Pallets & FLC’s) across Indian cities have helped LEAP in establishing a strong foothold in the industry.

VALUE ADDED SERVICE

Company also provides customized pallets (in addition to standard size and shapes) & pooling solution as per industry & customer requirements. Company offers transportation solution, at client request.

ORGANIZED PAN INDIA PLAYER

Professional Team with vast Domain Expertise

LEAP’s team has extensive knowledge and experience in Pallets & Pooling business whereby servicing a large number of customers in India. Company boasts of a professional and experienced management team that has vast exposure to pallets industry, supply chain management, business development and other related functions.

 

 

FREQUENTLY ASKED QUESTIONS

  • Why Choose Reusable?

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    Leading companies in a wide variety of industries across the globe implement reusable packaging for the economic, social and environmental value that re-use provides across the entire supply chain. Reusable pallets, hand-held containers, bulk containers, dunnage and other transport packaging items are used for the efficient storage, handling and distribution of products throughout the supply chain.

    Reusable packaging products are manufactured in plastic, wood, steel or other durable material and are specifically designed for multiple trips and extended life. These products typically replace single-use transport packaging and are ideal for closed loop or well managed open-loop systems. Due to their reusable nature, they offer a rapid return on investment and a lower cost-per-trip than single-use packaging products.

    “Companies that have made the switch to reusable packaging experence lower shipping and labor costs, better product protection, more productive flow of goods through distribution channels, plus better ergonomics and improved worker safety. These companies have also reduced their waste management costs and positively impacted the environment by generating less waste and reducing the need to build expensive disposal facilities or more landfill.

  • What is Reusable Packaging?

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    Pallets, containers and dunnage designed for re-use within a supply chain. They are constructed for multiple trips and extended life. Due to their reusable nature, they offer a rapid return on investment and a lower cost-per-trip than single use packaging products. Reusable pallets, hand-held containers, bulk containers and dunnage are used for the efficient storage, handling and distribution of products throughout the supply chain.

  • How is reusable packaging typically used?

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    • Inbound shipments
    • Outbound shipments
    • Work-in-process
    • Assembly/fabrication
    • Filling
    • Processing
    • Re-Packing
    • Picking
    • Storage
    • Distribution
  • What are the economic, social and environmental benefits of reusable packaging?

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    Economic 

    Reduces overall packaging costs

    Rapid Return on Investment (ROI)

    Reduces costly product damage

    Reduces labor costs

    Reduces inventory, requires less space

    Reduced cost-per-trip

     

    Social 

    Recyclable

    Improves workplace safety

    Improves workplace efficiency

     

    Environmental 

    Improves transportation efficiency, resulting in fewer trips and reduced fuel costs

    Prevents waste from entering the solid waste stream Reduces greenhouse gas emissions

    Supports source reduction

    Requires less energy

  • What industries use reusable packaging?

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    Automotive

    Food/Grocery

    Pharmaceutical

    Electronics

    Aerospace

    Chemicals

    Textile

    Beverage

    Produce

  • When does reusable packaging make sense?

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    A systematic, well-planned reusable packagng program makes sense for many types of applications, particularly those with the following:

     

    High volumes of solid waste

    Frequent shrinkage or product damage

    Expensive expendable packaging or recurring single-use packaging costs

    Underutilized trailer space in transportation

    Inefficient storage/warehouse space

    Worker safety or ergonomic issues

    Significant need for cleanliness/hygiene

    Need for unitization

    Frequent trips

  • LEAP Terminology

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    Allotment Fee (AF)

    Per Day Rent (PDR)

    Transport Charges (TC)

    Missing Pallet Charge (MPC)

    Broken Beyond Repair (BBR)

    Movement Fee (MF)

    Movement Cost (MC)

    SRC Model: Sorting, Repairing and Conditioning Model

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