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The IUP Journal of Supply Chain Management

Focus

This issue deals with the logistics theory in general and logistics optimization in the dairy industry. Hence, it contributes to both, theory development and practical application. There are three papers which deal with `logistics'. Two of these papers exclusively deal with bringing out certain logistics optimization models viz., lot sizing decision and Cost Analysis Model (CAM) for the dairy industry, which are also applicable to other related industries involving rural supply chains. Before presenting these, a special paper on `logistics theory development' has been included in this issue as a curtain raiser to provide new conceptual insights and also to set the tone. However, a different perspective is also offered in the form of a research paper that deals with the framework for assessing the supply related risk in supply chains, based on an exploratory study. Importantly all these research articles provide detailed research insights to the reader.

The curtain raising research paper, "Logistics Theory Building", discusses how different research paradigms and research approaches contribute to theory building. It proposes a framework that can be used for positioning studies aiming to build and articulate the core logistics theories. Initially, the discussion brings out the most common paradigm in logistics, namely positivism, and then proceeds through scientific realism to interpretivism as part of the research paradigm's contribution to the logistics theories. Later, the paper outlines three different research approaches in the order of their usage in logistics viz., deduction, induction and abduction, before presenting a framework of their application for theory building within different research paradigms.

The subsequent paper, "Lot Sizing Decision: A Case Study of an Indian Dairy Supply Chain", presents a mathematical optimization approach of lot sizing decision for coordination of multiple milk collection centers, milk plant, and multiple milk booths in an Indian dairy supply chain. The paper introduces the network structure and analyzes the strengths, weaknesses, opportunities and threats of the Indian dairy supply chain based on certain practical considerations, such as Total Cost of Ownership (TCO) associated with the milk collection centers, milk plant and milk booths. As part of validating the model, the paper illustrates three different cases.

The next paper, "Developing a Cost Analysis Model for the Optimization of Milk Collection Process at Dinshaw's: A Study", proposes a model for the optimization of milk collection process so that the transportation cost and associated overheads can be reduced. Cost Analysis Model (CAM) is a generic model for the analysis of the existing routes as well as new routes with various related factors to decide on the optimum route. This paper is based on the study carried for Dinshaw's Dairy Foods Ltd. to implement CAM. It describes the products and milk procurement process of Dinshaw's while highlighting the associated cost structure and constraints involved in the procurement of milk. In the process, the paper also examines and analyzes the cost reduction alternative `owning/renting of vehicle.' The application of the CAM for Dinshaw's has been illustrated, on the whole.

The final paper, "A Framework for Assessment of Supply-Related Risk in Supply Chain", throws light on the importance of evaluating supply side risk in the supply chain and presents a framework for assessing such a risk. A conceptual model for assessment of supply side risk was proposed based on the insights gained from the related exploratory study, after exploring the various possible research dimensions of supply side risk. It also advocates the development of a fuzzy decision methodology that can provide an alternative framework to manage supply chain uncertainty. It also provides future directions for research in this area.

- S Jaya Krishna
Consulting Editor

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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Supply Chain Management