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The IUP Journal of Supply Chain Management
Focus

This issue contains four papers which contribute to the existing literature in the
area of supply chain management and related areas by presenting new frameworks and case studies.

The first paper, “Optimization of Resources in Supply Chain by Linear Programming: A Case of India’s MSME”, by Lokesh Vijayvargy, analyzes the strategies adopted by Micro, Small and Medium Enterprises (MSMEs). The paper highlights that large-scale industries are implementing strategies like outsourcing, optimization of operations, partnership, just in time and inventory reduction to cut the cost to enhance the market share at a satisfactory level, but MSMEs are still struggling due to lack of industrial skill, visibility, financial support and control over business issues. Therefore, special attention is required to understand the problem of MSMEs and to develop strategies to manage business. The paper provides an idea about the optimization of one actor in the supply chain. It also compares the present manufacturing scenario with future changes possible in this direction in small-scale industries (here tiffin manufacturing firm) through optimization of the production process of the industry. Firstly, the current situation is analyzed using Integer Linear Programming (ILP) model, and sensitivity analysis is done to track the changes. The paper presents an overview of and guidance for MSMEs in the area of productivity improvement. It also presents a SWOT analysis of MSMEs.

The second paper, “A Case Discussion on Vendor Selection in Public Distribution System in Odisha: A Multicriteria Decision-Making Approach”, by Barada Prasanna Mohapatra and D K Mahalik, analyzes the process to improve the selection of vendors or Fair Price Shops (FPS) to minimize the problems in Public Distribution System (PDS). The paper highlights that in India, where 40% of the people are still below the poverty line, feeding the poor is a challenge. The government is taking lots of initiatives to feed the poor section of the society. In this connection, the Government of India has implemented PDS to supply the required food grains at a subsidized rate through vendors or FPS. The selection of vendors and vendor’s responsibility play a vital role in the PDS system, which is also a reason for the dissatisfaction among consumers. This paper suggests a method for selection of vendors for PDS with multicriteria decision-making tools, i.e., Analytical Hierarchy Process (AHP).

The third paper, “Consumers and Product Returns in Reverse Supply Chain: A Literature Review”, by Siddhartha Kushwaha, presents an extensive literature review in the area of reverse supply chain. The paper states that consumers are the starting point of a reverse supply chain. They act as supplier of raw material to value adding activities and reverse supply chain activities such as remanufacturing and recycling. Though reverse supply chain literature acknowledges the significance of consumers, the degree of influence of consumers on the reverse supply chain is still unexplored. The study explores the role of product-related and environment-related factors on product returns from consumer through an extensive survey of literature.

The last paper, “Bikanervala: A Delicious Blend of Traditional Recipes and Modern Systems”, by Anita Kumar, presents a case study of Bikanervala, chronicles the journey of a traditional Indian halwai to a global chain specializing in Indian ready-to-eat sweets and namkeens. The paper highlights that generally traditional family-run businesses are perceived to be strong in entrepreneurial skills, family values and customer responsiveness, but lack professionalism in building technological, operational and management capabilities needed to compete in a global market. However, Bikanervala has effectively and innovatively blended heritage recipes with modern product and process technology till date but now faces expansion and supply chain challenges. This case has been written with twofold objectives in mind: 1) to illustrate the effectiveness of the supply chain strategy adopted by the company to gain necessary competitive advantage in an unorganized industry; and 2) to be used for discussing the current challenges faced by the company and prospective growth strategies. The data collection in the case is through secondary sources (website and historical documents) and open-ended and semi-structured interviews with the management staff.

--Nikhat Afshan
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.

more...

 
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Supply Chain Management