Company objective
Business functions
HUMAN RESOURCE MANEGEMENT
MARKETING
FINANCE MANAGEMENT
Financial supply chain management (FSCM) is a set of software tools and
processes designed to enhance an organizations product flow,
maximizing profitability and minimizing expenses.
SCM in coordination with Finance prepares the Capital Budget and
approaches the management for approval to seek further investment.
SCM also coordinates with Finance to finalise the payment terms for
various capital suppliers
THERE is direct link between financial status of a firm and supply chain
management. Finance department always try to reduce cost incurred
during different operational phases and effective supply chain
management enables to reduce cost incurred during different phases of
operation. Responsiveness and efficiency are the important factors on
which supply chain management focuses .by providing the required
amount of responsiveness to the customers at the minimum cost, an
organisation can out beat its competitor. We can see that the focus of
finance department and supply chain department are naturally aligned,
that is both focus on reducing cost
The allocation for allocating more funds for purposes of expansion,
establishment, renovation and diversification can be compensated
through a responsive supply chain. In the case of Havmor as the
customers are geographically separated and are with varying interest we
require a supply chain which can satisfy all sorts of costumer with the
required level of responsiveness
SCM in coordination with Finance prepares the Capital Budget and
approaches the management for approval to seek further investment.
SCM also coordinates with Finance to finalise the payment terms for
various capital suppliers.
Production
1. Facilities
Facilities include all locations in the supply chain to store, assemble, or
fabricate inventory.alaso they have production unit and warehouse. Their
production unit and warehouse are situated in one place. Because they
are producing ice cream products .Havmor major two facilities are
production sites and storage sites. Decisions regarding the role, location,
capacity and flexibility of facilities have a significant impact on the supply
chain's performance. Havmor striving for responsiveness could have many
Warehousing facilities located close to customers even though this
practice reduces efficiency. Centralization of facilities uses economies of
scale to increase supply chain efficiency so HAVMOR can improve their
supply chain by using this Centralization of facilities.
2. Inventory
Inventory encompasses all raw materials, work in process, and finished
goods within a Supply chain. Changing inventory policies can dramatically
alter the supply chain's efficiency and responsiveness.
3. Transportation
Number of decisions has to take in designing a supply chain regarding
transportation. This are things are happening Havmor. Havmor supply
their product in many regions .The main mode of transportation of
Havmor is road, rail and air. Havmor is engaged in ice cream selling
business so transportation plays an important role in their day to day
business activities. (Havmor using A.C. isolated vehicles)
Transportation entails moving inventory from point to point in the supply
chain. Transportation can take the form of many combinations of modes
and routes, each with its own performance characteristics. Transportation
choices have a large impact on supply chain responsiveness and
efficiency. Distribution network strategies address the issues like location
of warehouse and their capacities etc. It establishes the basis how should
management maintain flows between facilities, this flow includes between
production house to warehouse and warehouse to retailer. It helps to
reduce the total holding and logistics costs. Different information
technology packages are used to assist while making these complex
decisions making.
4. Information
Information consists of data and analysis concerning facilities, inventory,
transportation, costs, prices, and customers throughout the supply chain.
Information is potentially the biggest driver of performance in the supply
chain because it directly affects each of the other drivers. SCM Globe
simulates real-time information sharing between all participants in a
supply chain by making data about operating costs and on-hand inventory
available for all the facilities in the supply chain.
Information serves as the connection between various stages of a supply
chain, allowing them to coordinate & maximize total supply chain
profitability.
5. Pricing
Pricing determines how much a firm will charge for goods and services
that it make available in the supply chain. Pricing affects the behaviour of
the buyer of the good or service, thus affecting supply chain performance.
Havmor Food Pvt. Ltd. Have 2 factors affecting to price decision.
A. Internal factor affecting to the pricing decision.
Marketing mix strategy: - Havmor has made own marketing mix strategy, price
is only one of the marketing mix tools that a company uses to achieve its
marketing objectives. Cost: - Havmor has estimate the cost set the floor for the
price that the company can charge for its products. The both cover all lots costs
for producing, distributing, and selling the products and deliver a fair rate of
return for its efforts and risk. Organization Consideration: - Havmors
management must decide who within the organization should set prices.
B. External factor affecting to the pricing decision.
Pure Competition: - A markets in which buyer and seller trade in a uniform
commodity no signal buyer or seller has much effect on the going market price.
Monopoly Competition: - A market in which many buyer and sellers trade over a
range of pricing rate than a simple market prices. Competitor: - Havmor Icecream has selecting price of the product economic factors are affecting in such
as boom or recession. In flatirons and in terse rate affect both the producing a
product and consumer perception of the product and consumer perception of the
products price and value
PRODUCTION PROCESS
The Process for manufacturing ice-cream passed through various stages the
chart given bellows shows the ways in which ice cream reaches us after
manufacturing stages
Marketing Channel
Cold storage
Distributors
Dealers
Customer
Information technology has an inevitable role in the effective supply chain management. No
doubt todays the most advanced form of supply chain management is just possible due to the
assistance available from the information technology. Information technology addresses almost
every part of the supply chain from production to logistics, and order placing to inventory control.