Operations & IT Articles

The process by which a company manages the procurement and sourcing of inputs, manufacturing of products and services and the delivery of finished product and services to the customers is known as the supply chain management. The main objective of supply chain management is to meet the demand of consumers by efficiently using the resources which comprises of inventory, labour, and stock. Aim of supply chain management is to synchronize the business process and functions of the companies which will result in high performing and cohesive business model which can act react quickly with the rapidly changing market demands.

Warehouses are used for storing goods. It provides the storage facilities for the goods, where goods are stored until they are dispatched to customers or end users. Whenever any goods are produced, it requires time to be get used/consumed by an end user. For that specific period, it is necessary to store goods, and warehouse provides the platform for storing. Suppose, some goods are produced throughout the year, but its requirement is only for some specific period.

Sustainable operations are important in business growth Managers, Corporates have and are investing significant continuous effort to sustain financial, resource and development flow i.e. Triple Bottom Line. Stakeholders are pressurizing firms to take inclusive decisions considering Sustainability and Profitability. CSR, Environmental Policies, Government Regulations, Customer Satisfaction & maintaining image and reputation of the firm are some of the important enablers for sustainable Operations.

Green supply chain management is an integral part of a business these days focusing on economic, environmental and ecological development and efficiency. There is rising trend among the firms to link green processes with their corporate strategies recently. Realizing the need to incorporate sustainability as part of their strategic intent, companies focus on assessing the economic, social, and environmental impact of their activities and highlighting the relationship between sustainability and performance. According to a report released by UNEP (2011), global manufacturing industry consumes 35 per cent of the total electricity consumed worldwide and is responsible for 20 per cent of the world's CO2 emissions, which is detrimental to all life on earth. There is a dire need for companies, and especially those engaged in manufacturing activities, to act proactively rather than in a reactive manner in this regard. For example, Chinese manufacturers have taken proactive steps in completing the supply chain loop by adopting GSCM practices.

Green supply chain management is the way of the future. With the rapid globalization in the last few decades, the externalities imposed by firms on the environment has also increased significantly. According to a report by Trucost, the environmental damage caused in 2008 by the world’s leading firms is 2.2 Trillion dollars. So firms have been shifting from a linear process flow to the circular economy approach to make their operations eco-friendly.

Engine Inventory Management at Hyundai is studied through this article. Hyundai Motor Company was founded by Ju-Yung Chung and younger brother Se-Yung Chung in December 1967. Hyundai Motors India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea. In India it currently markets nine car models across segments - in A2 segment it has the Eon, Santro, i10, Grand i10 and the i20, in the A3 segment the Verna, in the A4 segment the Elantra, in the A5 segment Sonata and in the SUV segment the Santa Fe.