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Lecture 22 : SC Operations: Manufacturing versus Service SC — Transcript

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0:01[Music]
0:22[Music]
0:25so hello dear participants welcome back
0:27to nptl online course on Logistics and
0:29supply chain management so uh as we
0:32started discussing on the basic
0:34fundamentals of Supply Chain management
0:36and we also discussed about how this
0:39Supply Chain management uh is different
0:42from the logistics management and where
0:45the logistics functions are required and
0:47very much part of your Supply Chain
0:49management so today we'll uh go through
0:53again uh with the Supply Chain
0:54management and uh because uh if we'll uh
0:58divide this uh over overall industry
1:00into two parameters one is as providing
1:03the product physical products and
1:05another one is as based on providing the
1:07services so we'll see uh what are the
1:10implications uh how it will change the
1:13scenario when we are talking about the
1:14overall Supply Chain management as far
1:17as your Product Industry is concerned or
1:19your services industry is concerned so
1:22we'll start discussion today on supply
1:25chain operations what are the different
1:27concepts under that and then we'll see
1:30how this uh Supply Chain management is
1:32different for Product Industry and for
1:34services industry and what are those
1:36common points which are you know
1:38relevant for both these kind of
1:40Industries right and we'll take some
1:43examples also from each of the industry
1:45I'll show you one small video where you
1:47can see how this Services industry is
1:50different from the manufacturing
1:52industry and when uh in the towards the
1:55end of this uh session I have included
1:57one case study uh of
2:00where they are providing you you know
2:03the product as well as the services
2:06right so we'll see that case study so
2:09starting with just I'll introduce you
2:11what are the supply chain operations so
2:15uh if you'll go through different
2:17definitions many are saying that
2:19researchers admissions experts they are
2:21saying as supply chain is part of your
2:24operation management and many are saying
2:26that operation management is part of
2:28Supply Chain management but but my
2:30personal view is that under your
2:32complete supply chain there are many sub
2:34functional where your operation
2:36management is working right so with that
2:39context maybe this the very first slide
2:42will you know make more sense in that
2:44way if I'm talking about let's say uh
2:47you're generating the raw material that
2:50is one functional area how you are
2:52generating the raw material then if I'm
2:54talking about Transportation
2:56Transportation operation is one other
2:58area under complete Supply management
3:00then I'm talking about converting the
3:02raw material into finished one again
3:04operational area we are uh looking into
3:07distribution again distribution
3:09operation how we are managing the
3:10distribution how we are managing the
3:13warehousing operations right where we
3:15are keeping the stock we are rotating
3:17the stock we are managing the inventory
3:19on the shelves and then retail
3:21operations right so how we are providing
3:23that so if you'll go through all these
3:25subf functional areas under complete
3:28supply chain you can see that this makes
3:30more sense that operation management is
3:32part of your Supply Chain management but
3:34whatever it is right because many
3:36different definitions are there but
3:38we'll talk about what are the components
3:40right so if we'll talk about supply
3:42chain operation first is your supplier
3:45sourcing now sourcing is for the Tim
3:49being sourcing is different from the
3:51purchasing when we are saying that
3:53sourcing that means we are setting up
3:55the supply chain we are looking the
3:57stakeholders we are looking for those
4:00long-term stakeholders which will be
4:02part of our supply chain once your
4:04long-term uh that relationship is
4:07established then your regular supply of
4:09the raw material can be ured through
4:12your repetitive purchase orders right so
4:14that is purchasing talk about supplier
4:17purchaser collaboration it's again very
4:20important because now this is another
4:22functional area under your Supply Chain
4:24management if we talk about these are
4:27the raw material suppliers very basic
4:29definition we we have been considering
4:30from the very first lecture so this is
4:33how we draw our supply chain and through
4:37your this we are reaching to your end
4:40customers and obviously in between we
4:42have the long distribution
4:45chain right so if we talking about
4:48supplier purchaser collaboration here it
4:51is very important because if as long as
4:54you are running the same product or
4:56model you need same type of components
4:58you you have been sourcing purchasing
5:00from the same supplier but then you are
5:04renovating your product with the market
5:06fluctuations considering all the
5:08dynamism in the market and then you are
5:10coming up with new design so then again
5:12that supplier you have to collaborate
5:14that take that supplier in confidence
5:17that now you need to generate the new
5:19type of raow material maybe the design
5:22are changed maybe the parameters are
5:24changed maybe your uh the uh raw
5:27material component which you were using
5:30maybe you need to change the raw
5:31material as well earlier you were using
5:34copper now aluminium or some other metal
5:37if you are using in that if you are in
5:39that type of Industry right supplier
5:41Information Management this is important
5:44as far as your order management is
5:46concerned because based on this how many
5:50different suppliers you have let's say
5:52S1 S2 S3 how many orders particular
5:56supplier is supplying what is the so
5:59that information you need to uh always
6:02you need to process first information is
6:05required what is the pricing of that
6:07supplier second it what is the quality
6:10of that supplier third maybe what is the
6:13uh durability of the material he is
6:15providing right fourth maybe what is the
6:19um how frequently he is making the
6:24deliveries how responsive he is if you
6:27are changing something how he is
6:30changing at his end because your any
6:32change in the product will only be
6:35insured when your supplier will provide
6:37you the you know new material okay so
6:40then again purchase order management
6:42this is another functional area where we
6:44are doing the operations we are
6:46recording the order
6:49first we are processing the order in
6:52terms of locating where the product is
6:55Inventory management all those things
6:56will come then we will pack the order
6:59and we will ship the order and then in
7:02the final the final distribution of that
7:05order in terms of last mild delivery
7:09will happen so this is you know again
7:11operational area we can talk about
7:14Inventory management again functional
7:17area of Supply Chain management but
7:18within that inventory operations are
7:20there how you are keeping the inventory
7:22of your raw material how you are keeping
7:24the inventory of your semi-finished
7:26goods how you are keeping the inventory
7:28of finished goods not only that how you
7:30are keeping the inventory of your
7:32rejected material then rejected maybe
7:35your during process you rejected during
7:39Zero Hour rejection we discussed about
7:41that right or sometimes if the pro
7:44rejection is coming from the market as
7:46Market complete in terms of warranty
7:49warranty period right so that how you
7:51are managing the inventory how again you
7:54are you know uh reselling the product or
7:57refurbishing the product or recycling
7:59the the product right so those all
8:00operations will come under Inventory
8:02management then warehouse and
8:04transportation management transportation
8:06management is another functional area in
8:08between where you are you know storing
8:10the product as temporary location or you
8:12are doing cross docking we discussed
8:14about that different Warehouse
8:15operations right so those will be part
8:17of your uh Warehouse operations and
8:20transportation operation supply chain
8:23planning supply chain planning uh again
8:25we discussed at three level in the very
8:27first introductory lecture of supply
8:29chain management so supply chain
8:31planning we can divide again as per the
8:33level of the management let's say uh top
8:35level management or middle level
8:37management or lower level management so
8:40we have seen that top level management
8:42is uh directly interested in you know uh
8:46taking those strategic decisions where
8:48we will set up the uh facilities
8:50facilities in term of your uh maybe
8:52production facilities maybe warehousing
8:54facilities right what type of product or
8:57Services you are going to offer in the
8:58market these are long-term decision
9:00medium-term decisions means where the
9:02middle level management is involved
9:05right then you are you know the time
9:06orison in that way maybe up to one year
9:08or two year so how you will keep your
9:11inventory how you'll go for
9:12subcontracting these are the decisions
9:14which we discussed under your uh
9:17medium-term decision making process and
9:19then lower level how we are dealing the
9:21day routine uh you know purchase orders
9:24how we are recording the orders how we
9:25are supplying the orders how we are you
9:27know man managing those uh orders coming
9:30either in uh few quantity or number of
9:33quantity and then shipping is another
9:35operation where we have you know if you
9:38have also so many shipping partners are
9:40there shipping agents are there they are
9:42taking from your one Distribution Hub to
9:44maybe other Distribution Hub near to the
9:46customer and then the last mile delivery
9:49is also being done through those
9:51shipping Partners so this is all about
9:54your supply chain operations where we
9:56have seen different operational area
9:58under the same supply chain so operation
10:00Management in supply chain we can see
10:03while producing and distributing goods
10:05and services so whatever activities you
10:07are doing in between either you are
10:09going for sourcing purchasing and then
10:12raw material converting the finished one
10:14inventories you are managing warehousing
10:16operation all those activity final
10:18distribution and then in a effective and
10:21efficient way you are reaching with your
10:23product or services to the End customer
10:26so these all are operational areas so if
10:28we'll talk about the main function of
10:30operation management obviously planning
10:32is the first one planning of how you
10:35will you know ensure the smooth flow of
10:38resources that will only happen when you
10:40will channelize your inventory in that
10:42way okay schuling so when you will
10:46produce how much you will produce right
10:49so that I I talked about the operation
10:51management concept where we are
10:53discussing about what type of product or
10:56Services you are going to produce where
10:58you are going to produce inhouse or
11:00Outsource then how much you are going to
11:02produce when you are going to produce in
11:05what order you are going to produce
11:06order means if you are having different
11:08products right under one category let's
11:10say maruti Suzuki is coming with grand
11:13bitara so Grand bitara now so many
11:16different models are there so in petrol
11:18maybe the base version is there the
11:19middle version is there then top version
11:21is there right then maybe same are for
11:24the diesel variants also same are for
11:26the maybe the hybrid version also same
11:28for C NG so then in different colors
11:31right and different engine capacities
11:33are also sometimes coming right so that
11:35means the this is the total overall
11:38product basket so so then you need to
11:40schedule when you are going to produce
11:42how much of that particular order middle
11:45level petrol variant how many units you
11:47need to produce today depending upon
11:50again the information you are getting
11:52from your retail chain then you will
11:55process your inventory control again
11:58monitoring the progress and making the
12:00changes so for any Control process first
12:04you need to set up the standards right
12:07for setting up the standards you need to
12:09identify the key performance indicators
12:12right when you will set up the key kpis
12:15then you'll see what is the Benchmark in
12:17that industry right we discussed about
12:19these kpis and then you can say that we
12:23this this is the industry standard maybe
12:25you are right right now you are here so
12:27this much Gap you need to cover
12:29so let's say plan phase wise in the
12:32first phase we'll cover this much in the
12:34second phase we'll try this much third
12:36phase we'll go for this much right so
12:38this is how you will ensure the
12:40controlling and in Improvement so that
12:42you can uh be more eff efficient and
12:46effective uh as per your uh the
12:48competition is concerned in the industry
12:51the significance of supply chain in
12:53operation management now let us uh look
12:57this same concept in different way where
13:00uh the you know the the other team is
13:03saying that where the supply chain is
13:05part of operation management now see if
13:07I'm saying that at manufacturing
13:09facility we are converting the raw
13:12material into finished one right so this
13:14is your manufacturing facility we are
13:17getting the raw material and we are
13:19getting the finished goods out of this
13:21right so here what we are doing we are
13:23doing some assembly process we are
13:24treating that those you know uh raw
13:27material components we are fixing them
13:28assembly
13:29is being done so then we are ensuring
13:31the final good so this will only happen
13:34when you can ensure the smooth supply of
13:37the raw material through your supply
13:39chain this is the role of supply chain
13:41for any operation management even if we
13:44are talking about your suppliers maybe
13:46those suppliers are getting supplies
13:48from other suppliers right so within
13:51their uh manufacturing facility how they
13:54are converting their supplies into the
13:57finished one which are going to their
13:59finished product is going to this
14:01manufacture as raw material right so
14:05when we are talking about supply chain
14:07in operation management obviously we
14:08need to tap all these stakeholders
14:10suppliers manufacturer Distributors and
14:13retailer so that that smooth chain can
14:16be ensured smooth chain means we need to
14:18ensure the smooth flow of the resources
14:21right and then uh you need to focus uh
14:25as Supply Chain management which if
14:27we'll consider it right now we are
14:29considering it as subset of operation
14:31management right so then we'll say how
14:33efficiently we can ensure the either the
14:36material flow through that supply chain
14:38or the information flow forward or
14:40reverse or the finance flow forward or
14:42reverse right so if we'll see impact on
14:45operations if our supply chains are
14:47efficient so then we can improve
14:50efficient in terms of delivering the
14:52quality of the product they are taking
14:54from one end and then you know
14:56Distributing to the other end in that
14:58process process our supply chain should
15:01not deteriorate the quality of the
15:03product this is one way you can do that
15:05another way how they can minimize the
15:07waste during that complete supply chain
15:09they are not maintaining higher
15:11inventory just to you know be on the
15:14safe level so that stock out should not
15:16be there but then they are keeping so
15:18much excess inventory then also that
15:21then in that way they are adding extra
15:23cost how you can be cost efficient in
15:25that way how quickly you can respond to
15:27your demand from the customer if
15:29customer is you know looking for some
15:31other preferences other specification
15:34how quickly your supply chain is
15:36recording that information and is being
15:38supplied to your R&D team where R&D team
15:41will work on that in that operation
15:44management under operation management
15:45and we'll come up with new prototype
15:47right and then we will Source the
15:50supplies as per the new prototype right
15:53after testing and everything so this is
15:55how we can see the role of Supply Chain
15:57management in your operation management
15:59so let us now talk about the product
16:01versus Supply Services Supply Chain if
16:04we'll talk about the basic differences
16:07between the product and uh your uh
16:09services so product is tangible services
16:12are intangible so that means that
16:14concept of you know uh when you are
16:17physically touching the product feeling
16:19the product and then you are taking that
16:21concept is not there as for as you are
16:23talking about the services industry
16:25right but there are Industries who are
16:27making their presence right they want as
16:30customer they want us to feel their
16:32presence as tensible so they are trying
16:34to give some tensible experience through
16:37that your services only if you are
16:40talking about you you're going to any
16:42hotel right you are staying there let's
16:44say so when you are staying there in
16:46terms of you are getting the services
16:47only but in terms of tangible experience
16:50what extra you are getting right so
16:52those those extra uh experience like
16:55maybe uh how they have decorated the
16:58room maybe how they are providing the
17:00other amenities right your swimming pool
17:02spa or gym facilities so those kind of
17:04experiences they are just adding to
17:07perishability so perishability means
17:09product today produce you can uh consume
17:13that product later on but services are
17:15perishable in nature if you are
17:17producing means that cannot happen that
17:20you are producing right now and you will
17:21deliver later on that Concept
17:24heterogenity in Services industry it is
17:27completely heterogeneous right right
17:29product is once standardized we are
17:31always targeting to reach at
17:33standardization position so that we can
17:35standardize the whole production process
17:37and the overall cost can be minimized
17:39but in case of services this is not
17:42possible so if any uh B shop you are
17:45visiting from maybe morning to evening
17:48500 customers are visiting the haircut
17:50for all 500 will be in some or other way
17:52will be different right because there is
17:55continuous involvement of the customer
17:57customer participation is very very
17:59important and this the generation of the
18:03services the production of the services
18:04will only happen when customer arrives
18:07at your location right before that
18:10nothing can happen but in Product
18:11Industry there is no as such role when
18:14you are producing the product customer
18:16is not visiting the your uh uh your
18:19manufacturing facility inseparability so
18:23production and uh final delivery cannot
18:26be separated in case of your industry
18:29but Product Industry production is
18:31happening somewhere in let's say in uh
18:34Delhi and the product is being consumed
18:36here in Kolkata right so that that way
18:39it can be separated so these are some of
18:41the basic points when we'll talk about
18:43product and services industry and will
18:45be very very important as far as the
18:47implications of this these are concerned
18:49so uh just before going further I'll
18:52show you one video quick video where you
18:54can see how these production uh selling
18:57products and you know supplying products
19:00through the same supply chain and
19:01supplying Services through the same
19:03supply chain how can it can be different
19:06and what are the different challenges so
19:08here I have included some uh video links
19:11you guys can just quickly go through
19:13these videos okay so now let's uh after
19:17just you had a look on this video and
19:19you can see and you can somewhere relate
19:21now these concepts of what I was talking
19:23about related to product supply chain
19:26and services supply chain and how it is
19:28is you know making a big difference when
19:30we are handling all those operations
19:31within that supply chain so quickly
19:33going through manufacturing supply chain
19:35already we have discussed a lot on you
19:38know uh Distributing your raw materials
19:41processing your raw material in in
19:43transit you are storing in the
19:45warehouses storage centers and
19:47distributing uh the uh final product
19:50through your end mile delivery right to
19:52the End customer so then it is ensured
19:55through production assembly packaging
19:57and distribution these are some of the
19:58activities when we are talking about
20:00manufacturing supply chain product
20:02supply chain and when we are saying this
20:04because we are highly standardized in
20:06providing the product as long as you are
20:08buying a particular product let's say
20:10this marker pen so then this is
20:12standardized right so when it is
20:14standardized you are not doing anything
20:16means variability in the production
20:18process is not supposed to be right so
20:21you you are supposed to be more
20:23efficient effective in terms of quality
20:25minimum rejection you should produce and
20:27then the Prof margins can be ensured so
20:31this you can see main supplier is one
20:34stakeholder going to manufacturer and
20:36then we are doing all the quality checks
20:38if it is not okay we are segregating the
20:40material whatever is okay we are finally
20:43shipping the material to the retailer if
20:45all the items are okay directly shipped
20:47to the retailer if something is coming
20:49back in terms of rejection then it is
20:51going back to the manufacturer or for
20:53maybe they will again remanufacture so
20:57different models we have discussed about
20:59but the basic thing here is you have
21:01suppliers manufacturers retailers and
21:04customer is finally taking the product
21:06from your retail outlet right so this is
21:09one way of looking into your
21:11manufacturing oriented supply chain
21:13model let's talk about the services
21:15supply chain where there is no
21:17tangibility of things right and we are
21:20just delivering the experience to the
21:22customers in terms of services right so
21:24talking about different uh Services
21:26industry Healthcare Services indust
21:28indry or lawyer giving the uh you know
21:32uh the legal advice to you is another
21:34service industry you are going to you
21:36know prop property dealer they're giving
21:38you all those kind of services giving
21:40you you know Maps giving you the
21:42location of the property documentation
21:44all those things again kind of services
21:46industry transportation if you are
21:48flying through uh air from one end to
21:50other end you are not getting any you
21:52know physical product right so yeah that
21:54is there that this Services industry is
21:56also supported by uh your Product
21:59Industry because no as such that pure
22:02Services industry can exist some way
22:04while delivering the services we are
22:06using product if taking the example if
22:08you're flying from Kolkata to Delhi on
22:10the way maybe you are consuming
22:12something in terms of short meal or
22:14bages or anything you are taking right
22:17so that also is adding to your
22:19experience of getting the services so if
22:21maybe you enjoyed that meal so whether
22:25while you were rating your uh you know
22:28the service partner you will keep that
22:30in mind which product you consumed right
22:33and then you are evaluating the uh
22:35player for their services right but
22:37actually you consume the product right
22:39but if you are going to restaurant then
22:41again you are getting the services you
22:43are consuming the services as well as
22:45the product in terms of meal right so
22:48these are some of the things but yes if
22:50you're taking only legal advice right so
22:53uh then if you're going visiting to
22:55lawyer then you are taking only legal
22:57advice can be we can keep on the extreme
22:59end of your uh where we can say the pure
23:02Services industry but then again uh they
23:04are also using many product in terms of
23:06you know providing you they are using
23:08all the law books they are using all the
23:10law records and then preparing those
23:12documents they are handling over those
23:14documents to you or those things are
23:17there right so uh the basic Point here
23:21is whenever we are talking about the
23:23services supply chain there has to be
23:26you know one platform where we are in
23:28integrating customers and the service
23:30provider at one stage both are part of
23:32your that supply chain right so you can
23:35see this service supply chain where we
23:38uh as as suppliers you are getting
23:40demand from the customer right and then
23:43information is being shared because this
23:45is very kind of customized industry so
23:48every order is different right so
23:51accordingly you are preparing uh your uh
23:54let's talk about the barber shop so we
23:56visited Barber Shop let's say for for
24:00haircut right so during that haircut
24:03let's say additional Services you are
24:05using or that can be one information for
24:08the supplier let's say you are using one
24:10particular shampoo so then that product
24:13needs to be insured you are using during
24:16head massage you are using some while
24:18that product you need to ensure you are
24:21using head massager that machine you
24:23need to ensure through your product
24:25supply chain so that is what I'm saying
24:27that service industry are also supported
24:29by your product industry but as a
24:32customer when you are visiting that
24:34location Barber Shop are you carrying
24:36any product physically with you no you
24:38are not carrying anything what you are
24:39carrying with you is only the experience
24:42right how that that how long you spend
24:45with that uh service station right so
24:48that experience if even if you were
24:51waiting during the you know there was
24:53long queue and you were waiting in that
24:55show uh showroom or that shop right
24:58right so during that time uh what was
25:02your experience whether they were
25:03providing you any extra information or
25:05any extra amenities you enjoy during
25:08that stay right where you were waiting
25:10for getting the services you were
25:12waiting in the queue so that complete
25:14supply chain right so this information
25:16is directly coming from the customer
25:19right and then customer is actually part
25:22of this production process and
25:25production will start only once the
25:27customer is reach reaching at your door
25:29so at your shop so then only you will
25:32start delivering the services okay so in
25:36that way every service will be unique
25:38right so if you'll talk about Service
25:40Supply Chain so uh we we need to you
25:43know come up with some strategy where we
25:46need to you know balance competitive
25:47service requirement uh with cost and
25:50investment what whatever value
25:53proposition we have right core
25:55competencies we have in terms of that so
25:57how we can can provide that in more
25:59effective and efficient way so while
26:02talking about Services Supply Chain uh
26:04or any Supply product supply chain we
26:06have five different
26:09concepts uh uh first is uh
26:13plan
26:15Source
26:17make
26:19deliver and return if you talk about
26:22very basic model of supply chain
26:24operation reference model given by
26:25Supply Chain management Cil right so
26:27this is score model that says there are
26:30five different stages right first you
26:32need to plan so in that case whether you
26:35are talking about Services industry or
26:36Product Industry you need to plan the
26:38for the product for the supplies for the
26:41distribution for the storage for the
26:43inventory for the production second is
26:46Source now you need to find out the your
26:49sourcing Partners the raw material
26:51suppliers the shipping Partners the
26:54co-manufacturers right the warehousing
26:56partner the distribution partn Partners
26:58so that is Source third is make then you
27:01will come up with your prototype that
27:03this is your model how you can develop
27:05that product so then make during
27:07production you will ensure and finally
27:10you will deliver the product and
27:12services to the customer and return if
27:14anything is rejected will come back to
27:16you right that is the very simple model
27:19but in case of services industry this
27:22make return make uh return and make and
27:26deliver are not too different different
27:28stages right you are making while you
27:30are delivering so because customer is
27:33already there uh in your shop taking the
27:37uh head massage or haircut so that
27:39during that time only you are making the
27:41services and you are delivering right so
27:44before that you cannot produce the
27:46services so that means you cannot
27:49inventor the
27:51services Inventory management is not
27:54there but in this case you are talking
27:56about long Q use in front of your shop
28:01right so that you need to manage how you
28:03can do under Q management concept there
28:06is separate chapter how we are managing
28:08the long cues right we can open the
28:10temporary you know service channels so
28:12that the traffic can be diverted in that
28:14way so but in when we are talking about
28:17your Product Industry this make return
28:19deliver all five stages are possible and
28:22that way we are delivering the product
28:25right so this will help you for decision
28:27making
28:28and we are getting the information which
28:30are developing again we are coming up
28:32with the policy and in the end we will
28:34be evaluated based on this model how
28:37efficiently and effectively we are
28:38delivering the product and services that
28:41performance will be evaluated quickly
28:43talk about the services supply chain
28:45Healthcare Medical Services uh you are
28:47taking the doctor advice you are you
28:49know uh help uh doctors are helping you
28:52to diagnose your problem they are
28:54suggesting some treatments again when
28:57Medical medicines you they are
28:59prescribing some medicines again that is
29:01pharmaceutical industry Product Industry
29:03so this is again hybrid kind of industry
29:05if you are talking about hospitality and
29:07tourism so then hotels restaurant travel
29:09agent all they are providing you the
29:11services right you can travel through
29:13their services they are providing you
29:15the air tickets and all those things
29:17right but in that uh Journey you are
29:20consuming the products as well Financial
29:22Services you are coming to me for
29:24insurance then again they are providing
29:26the insurance services investment plans
29:28they are coming with or normal your
29:30savings schemes they are coming with and
29:33providing you those kind of services
29:34educational and training so then this is
29:37again can be considered as one uh kind
29:40of pure Services industry but again then
29:42I'm using so many products camera is
29:45there screen is there this Spen is there
29:47mic is there I'm using all those
29:49products lighting lighting equipments
29:51are there so all those you know product
29:54I'm using to deliver this lecture right
29:56but in the end you are not you know
29:58carrying any of these product right so
30:00uh you are just carrying the experience
30:02how uh beautifully the backhand team of
30:05nptl is working to record that lecture
30:08you know to erasing all the errors done
30:10by me and then the beautifully they are
30:12compiling in the end the the you know
30:14complete video right so this experience
30:18you will carry in the end and then you
30:19will evaluate let's talk about you will
30:21evaluate for my performance how I have
30:24delivered this lecture to you right
30:27whether it was informative for you the
30:29content was good all those things were
30:31there but you are never going to
30:33evaluate for the backend team who are
30:35doing this whole operation they have
30:37done this Arrangement right so means
30:40everything if that that recording is
30:42done perfectly the material is
30:44communicated to you perfectly right so
30:46that is another one one best example you
30:48can relate with this then Professional
30:50Services already talked about if you
30:52visiting lawyer doctor or property
30:55consultant you are taking uh those uh
30:57Serv Information Technology again in
31:00terms of software you are using earlier
31:02we were purchasing simple antivirus so
31:04we were purchasing the CDs and then we
31:06were installing now what you are doing
31:08you go through online and then you buy
31:11the key and just download the software
31:13you just put your key there is no
31:16Hardware is involved right so that means
31:18again Services industry transportation
31:21services again we are carrying physical
31:23products but those shipping agents are
31:25not doing anything value adding activity
31:27they are are just carrying the product
31:29from one end to other end so that means
31:30they are providing the services
31:32entertainment you are watching movie you
31:34are not taking any product out of that
31:36but yes you are taking the experience
31:38when you are coming out of that uh
31:40theater or your uh movie hall right
31:43retail retail you just imagine it's not
31:46Product Industry but providing products
31:48retail is organizing all the products
31:51ensuring that there is enough inventory
31:54on the Shelf so that means Retail
31:56Services industry they are providing
31:58those services but product is being sold
32:00by if you're visiting big Bazar now big
32:02Bazar is coming with their own products
32:04with the name of I think cor or
32:06something like that right but if you
32:08talking about Vishal MegaMart and all
32:10those they are not manufacturing the
32:11products right so now because they
32:14started backward integration but earlier
32:16they were not manufacturing they were
32:18selling this is one kind of multibrand
32:19store they are selling all the Branded
32:22products right and then Property
32:23Management another kind of industry
32:25where you can see you can relate the
32:27product and services so quickly going
32:29through manufacturing versus product uh
32:31supply chain if will talk about supply
32:33chain input so supplier uh material and
32:37forecast information right so here
32:39customer input will be your customer
32:42whatever customer information is
32:44providing then you will start processing
32:46that customer wants shampoo before going
32:49for haircut and this brand shampoo they
32:51want right so then only you you can you
32:54know Source the shampoo although you are
32:56not purchasing at that moment but that
32:58inventory you are keeping with you value
33:00add is process the physical production
33:04right when you are converting the raw
33:06material into the finished one when you
33:07are adding features to their product
33:09that is value process adding process in
33:12case of services value adding when
33:14actually you are receiving the services
33:16that is value adding time but yes during
33:18that queue how we can improve your
33:21experience those so that you should not
33:23you know uh feel bored there so they are
33:26providing you magines they are they are
33:28coming up with so many screens so that
33:29you can watch movies or all those things
33:31just to keep you engaged very quick
33:33example or beautiful example you might
33:35have seen in multi-story building when
33:37you are going from uh you know uh from
33:41first floor to the last floor so in the
33:45uh those elevators they have installed
33:47some you know mirrors so that it will
33:49keep you engaging that you are looking
33:51how you are you know you are just uh
33:53looking into that mirror and just you
33:56know uh dressing yourself in that way or
33:59preparing yourself when you will be out
34:00of that you know uh uh that elevator so
34:04that lift anyhow obviously you you got
34:07the service but during that time the
34:09waiting period you forgot the waiting
34:11period because you were engaged in you
34:13know setting your shirt t-shirt or
34:15whatever right so hairs so that that is
34:18one kind of experience they how they
34:20they are improving this thing very small
34:21step but is still engaging to the
34:24customer then demand ality in case of
34:27this we talk about Inventory management
34:29because in product we can produce and
34:31keep in the inventory for later sales
34:33right but in case of this we cannot
34:35produce anything before customer reaches
34:38so then only your when customer is there
34:41then only it starts so that maybe for
34:43first two hours there is no customer you
34:45are sitting idle with your workstation
34:47but then next 5 minutes five customers
34:50are coming you know at the same point so
34:53then they will be in que so how you can
34:55manage those que and in talk about
34:57Supply chain output this is very
34:59standardized but this is hetrogeneous
35:01because customer is part of your
35:03services that's why it is hetrogeneous
35:05taking two different examples
35:07manufacturing supply chain and after
35:09sales Services Supply Chain although
35:10this is not pure Services industry
35:12because when you are providing after
35:14sales Services I got the vehicle from
35:16maruti Suzuki after Sal Services they
35:18are uh serving my uh you know vehicle
35:22they are putting the engine while brake
35:23while they are checking all the bolt nut
35:26replacing some of the
35:28AC filter and all those things so that
35:29means that is kind of products right but
35:32yes uh let's take it as Services
35:34industry right so nature of demand very
35:36predictable but it is not predictable
35:38right so it can come any time and maybe
35:42for some time there is no demand
35:44required response very standardized
35:46because in product you can ensure that
35:50smooth Flow by maintaining inventory but
35:53in case of services as the customer is
35:55reaching at your end I want my bike or
35:58car should be serviced immediately I'm
36:00reaching there right and then number of
36:03skus maybe in terms of product limited
36:06only one service station uh sorry retail
36:08outlet you will get when you are in that
36:10particular City one or two but if you'll
36:13see how many you know uh service centers
36:17garage are there local or maybe from the
36:20same uh brand you you bought that
36:22vehicle right so in that way uh if
36:25you'll talk about product portfolio it
36:28is largely homogeneous it is always
36:30heterogeneous we talked about in
36:32Services industry delivery Network
36:34depends upon the nature of product and
36:36multiple Network necessary okay that is
36:38obvious uh with same supply chain you
36:42cannot deliver all the product maruti
36:43Suzuki now coming with two different
36:45supply chain one is under Nexa another
36:47one is your uh your traditional maruti
36:49Suzuki supply chain right so because
36:52they want to change their brand image so
36:54that's why their luxury products are
36:56coming under one chain under Nexa and
36:59the uh the traditional are coming under
37:02the other chain Inventory management we
37:04talked about right here we are managing
37:07inventories of all those supporting
37:09products which are required to you know
37:10deliver the services reverse Logistics
37:13if it is forward supply chain we are not
37:15handling but yes in Product Industry
37:17reverse supply chain is important but in
37:19Services industry reverse supply chain
37:21is not important but because we have
37:23taken here your after sales services
37:27that then we need to handle the repairs
37:29as well if your uh bike is coming under
37:32warranty and something goes wrong with
37:33the engine something goes wrong with the
37:35clutch plates something goes wrong with
37:37some other part of the component so it
37:39will be replaced right so uh performance
37:42metric how quickly you are filling it
37:44the inventory and product availability
37:46your services availability right
37:48inventory turns usually we the more
37:51inventory turns that means we are more
37:53efficient but in case of services we
37:56need to be limit in that only one to
37:58four a year can be considered but then
38:00again that depends upon the services
38:02right so if we'll talk about the factors
38:05production system it is push system you
38:07will keep on producing and finally you
38:09will push in the market but it will be
38:11pull system pull means first I will
38:13record the information from the customer
38:15their demand then I will sell the
38:17product and suppliers responsiveness
38:20here it is not critical but here it is
38:22very critical as soon as I'm asking for
38:25some special shampoo so then supplier
38:28need to provide the special shampoo
38:30right customer relationship here we are
38:33maintaining the relationship but not
38:35that level but here we need to maintain
38:38the relationship with the customer you
38:40talk about Airlines industry how they
38:41are maintaining the relationship you
38:43talk about the hotel industry how they
38:45are maintaining the uh relationship
38:47labor intensive it is low it is high
38:50because you are directly interacting
38:51with the customer customer involvement
38:53is nowhere when you are producing the
38:55product but it is very here when uh High
38:58when you are producing the services we
39:00talked about the heterogenity level we
39:02talked about quality because it is easy
39:05why because here we have standardized
39:08the product design standard product
39:10design Standard Process design so we can
39:12talk about that but here it is very hard
39:16right because the variance is huge and
39:18inventory exist here here inventory does
39:21not exist here we talk about the Q right
39:25so so here are the of the examples of
39:28manufacturing and services sector you
39:30can see all this list of manufacturing
39:33Automotive food processing Electronics
39:36heavy engineering we talk about these
39:38kind of services Hotel industry third
39:40party logistic services you are taking
39:42right heat treatment Hardware retail you
39:44are doing those are the things we talked
39:46about the value adding activities where
39:48we talked about how you are converting
39:49the raw material into finished one
39:51packaging right so all those things are
39:53value adding activity but in case of
39:56this when we are Distributing the
39:57services when the part that customer is
40:00part of your service network then we
40:02talk about the value adding activity so
40:04quickly we go through this very famous
40:07case of Amazon why I have included
40:09Amazon because here they are selling
40:11products as well as Services we'll see
40:13how beautifully they have converted some
40:15of the product into services so that
40:17they can reduce the transportation cost
40:19right you can just imagine if I'm
40:22producing something here you are placing
40:24order from some other part of the world
40:26so I need to ensure the supply of that
40:29product what if that same I can provide
40:31you through online right the antivirus
40:34example I quoted right so now I need not
40:37to ship the CD from my manufacturing
40:39facility to your uh location simply I'll
40:43provide you the key uh right so through
40:46your email uh which is again uh password
40:49protected so that safety can be ensured
40:52and then you are installing through our
40:54website and then it can be done so this
40:56is all the products you cannot you know
40:59digitalize but there are some things we
41:01can digitalize so quickly going through
41:03Amazon so you know uh based in
41:06Washington earlier what they were doing
41:09they were filling orders from the uh
41:12Distributors so they were collecting the
41:14orders and then they as far as the order
41:17is coming they were rooting it through
41:19their uh distributor but the problem was
41:21it is take time taking obviously so when
41:24they realize that this is time taking
41:26they start their own warehouses they set
41:29up their warehouses inside United State
41:31and other countries as well where they
41:34started you know building up the
41:35inventories now the order is coming as
41:37soon as it is coming I can ship the book
41:39right this is one thing they did and
41:42they then they introduced some career
41:44Partners as well right but the next very
41:47amazing step was they uh with Kindle now
41:52delivering physically those books they
41:54converted those books into digital books
41:57now you can see they were offering now
42:00they are offering more than 4 lakh
42:0260,000 digital books that means that
42:05physical delivery is not required and
42:07just to increase the customer experience
42:09they are adding audio and video video
42:12content in that same way I have also
42:14tried to you know add some videos so
42:16that it will make more sense you can
42:18relate the concepts with the uh with the
42:20actual practical things which are
42:22happening in the real world so so same
42:24way they try to you know Engage The read
42:27in that way and provided the content so
42:30after that beside books they started
42:32selling music through online right and
42:35then product categories are always there
42:37so you can see by just digitalizing
42:40those things books into digital form now
42:43easily they can provide right and if you
42:46talk about the Product Industry they uh
42:49they acquire japos and online shoe uh
42:53retailer right so then you can see how
42:56many product directly they added then
42:58again they acquired diapers.com so they
43:01Diversified into different field so the
43:03point here is how you can manage the
43:06product and services so that you know
43:09just by doing this converting the
43:11physical product books into distal
43:13records how easily they can provide the
43:16uh information to the customer to the
43:18readers and in that way they are not in
43:20physical book you cannot provide the
43:22audio video video visuals right so that
43:25you can provide in a better way so uh uh
43:29you can just we we can conclude here we
43:31have seen so many differences between
43:33you the basic differences when we are
43:35talking about Inventory management in
43:37Product Industry and we are talking
43:38about the Q Management in Services
43:40industry but yes both are parall working
43:43towards how we can you know go for
43:45inventory management process
43:47optimization and customer satisfaction
43:50with you know Effectiveness and
43:53efficiency that is the ultimate
43:57objective of any supply chain when you
43:59are talking about the you know Product
44:01Industry or Services industry so these
44:04are some of the references from where
44:07the content has been prepared you can go
44:09further for for uh you know uh better
44:11understanding so that's all thank you
44:13very much

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