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The IUP Journal of Supply Chain Management

September '11
Focus

This issue brings you several interesting developments in the area of the Supply Chain (SC). The papers published here offer theoretical and practical insights that hold immense value to the practice and research of SCM. The first paper titled,

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Agriculture Supply Chain Management: A Review
Buyer-Supplier Relationship in SMEs
Supply Chain Orchestration for the Luxury Alcoholic Beverage Sector
An Economic Analysis of Value Chain of Banana in Western Tamil Nadu
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Agriculture Supply Chain Management: A Review

-- Deepak Bhagat and U R Dhar

The concept of agriculture supply chain management is relatively a recent idea in agribusiness management literature, though supply chain as such is few decades old. Efficient and fair agriculture supply chains can result from stable networks and common relations between input suppliers, producers, processors, traders and retailers. In recent years, crucial growth has been made in the development of new approaches for analyzing the arrangement and dynamics of agriculture food chains and networks. The objective of this paper is to investigate the critical factors that affect agriculture supply chain management by consolidating research from diverse disciplines of agribusiness, and to explore the relationships and associations that will enhance effective management of agriculture supply chain. The paper also reviews various research models to provide a better understanding of logistics, networks and relationships in agriculture supply chains. In its entirety, this study provides a healthier understanding of the critical elements of agriculture supply chain management and the effect of their interrelationship on supply chain, value chain and network performance.

Article Price : Rs.50

Buyer-Supplier Relationship in SMEs

-- Rohita Kumar Mishra

In today’s world, relationship has immense value for all organizations. The status of relationship is not limited to the internal partners alone, but the thinking is much beyond that. Supplier is an important partner in any organization, and hence, maintaining relationship is important for an organization who is an industrial buyer. Considering supplier as a part of the organization, it is a crucial task for the organization to build a relationship between the buyer and supplier because the status of relationship depends upon the operating practice of the organization. In other words, we can say that the relationship model must fit with the organization’s operation system. This paper explores customer and supplier relationships from the perspective of Small and Medium Enterprises (SMEs). A critique of supply chain literature highlights some key problems when such theory is applied to understanding the purchasing behavior of SMEs. This paper sets out an alternative rationale for exploring what SMEs ‘do’ in terms of building a buyer-supplier model.

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Supply Chain Orchestration for the Luxury Alcoholic Beverage Sector

-- Jean Noel Dollet and Angel Díaz

This paper proposes a framework for choosing network strategies corresponding to the luxury goods market in general, and more specifically, the luxury alcoholic beverage sector. Its focus on the network orchestration models is an extension of the previous work of Dollet et al. (2010) and Dollet and Díaz (2010). The existing literature on luxury items, supply chains and network orchestration are considered, and in-depth case studies of Heineken, Baccardi-Martini, Diageo and Moët Hennessy (MH) are developed. Finally, from these case studies, a framework is induced to help companies determine and implement their supply network orchestration strategy.

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An Economic Analysis of Value Chain of Banana in Western Tamil Nadu

-- M Umagouri and M Chandrasekaran

India is the largest producer of banana in the world, accounting for 20.08% of the world production (15.9 million tons). Banana farming has become an important source of income for millions of rural families and provides employment for more than a million. The present study was undertaken to understand the value chain of banana sector in western Tamil Nadu. Cost, returns, post-harvest losses, price spread and marketing efficiency indices were worked out and discussed for different varieties of banana—Nendran, Poovan, Kathali and Robusta. The total cost of cultivation per hectare for these varieties ranged between 86,624.62 and 113,596.18. The net income realized ranged between 74,975.38 and 101,016.70 per hectare. The marketing efficiency for Nendran (2.4) was higher in Channel 1, and for the other varieties, the efficiency was higher in Channel 2—Poovan (1.89), Kathali (1.97) and Robusta (2.77). Thus, the analysis implied the following: to prevent the post-harvest loss there is need for training in post-harvest handling of fruit bunches; to improve the marketing efficiency, the growers should sell their produce directly to the wholesaler or tie up with the processor or retailer wherever feasible; and farmers must have the latest market knowledge, for taking better sales decision.

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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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