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Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Somnath Chaudhuri Somnath Chaudhuri Somnath Chaudhuri Somnath Chaudhuri Royal Thimphu College Royal Thimphu College Royal Thimphu College Royal Thimphu College 10/22/2012 1 The predominant sector of the SAARC countries is agriculture. The prime source of income for the entire region comes from this sector, as majority of the population lives in the rural sector and depends upon agriculture for their livelihood. for their livelihood. Currently, this sector is facing several challenges in the entire region, threatening its growth and sustainability. Different physical as well as economic factors are negatively affecting the agricultural activities. 10/22/2012 2 Hence, if the policy-makers need to improve the economic conditions of the nations, then the only way to do that is to improve the agricultural sectors of this region. region. One possible way by which this can be achieved is the successful implementation of Supply Chain Management. 10/22/2012 3 The objective of this paper is thus concerned with the concept of Supply Chain Management (SCM), its effective implementation through SAP ERP and how effectively it can play a vital role in effectively it can play a vital role in developing the agricultural sectors in the SAARC countries. 10/22/2012 4

Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College€¦ · Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College 10/22/2012 1 The predominant sector of the SAARC

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Page 1: Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College€¦ · Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College 10/22/2012 1 The predominant sector of the SAARC

Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Dr. Swati Chakraborty, Somnath Chaudhuri Somnath Chaudhuri Somnath Chaudhuri Somnath Chaudhuri

Royal Thimphu CollegeRoyal Thimphu CollegeRoyal Thimphu CollegeRoyal Thimphu College

10/22/2012 1

� The predominant sector of the SAARC countries is agriculture. The prime source of income for the entire region comes from this sector, as majority of the population lives in the rural sector and depends upon agriculture for their livelihood. the rural sector and depends upon agriculture for their livelihood.

� Currently, this sector is facing several challenges in the entire region, threatening its growth and sustainability. Different physical as well as economic factors are negatively affecting the agricultural activities.

10/22/2012 2

� Hence, if the policy-makers need to improve the economic conditions of the nations, then the only way to do that is to improve the agricultural sectors of this region. region.

� One possible way by which this can be achieved is the successful implementation of Supply Chain Management.

10/22/2012 3

� The objective of this paper is thus concerned with the concept of Supply Chain Management (SCM), its effective implementation through SAP ERP and how effectively it can play a vital role in effectively it can play a vital role in developing the agricultural sectors in the SAARC countries.

10/22/2012 4

Page 2: Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College€¦ · Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College 10/22/2012 1 The predominant sector of the SAARC

� “SAARC Agriculture Vision 2020 should aim at evolving a strategy to achieve stable and efficient output growth necessary for eliminating poverty and hunger, improving food and nutritional security and income of food and nutritional security and income of farmers, and meeting other societal requirements, by making sustainable use of natural resources and availing new opportunities and challenges.”

10/22/2012 5

� One possible way to achieve the above mentioned objectives is the successful application of appropriate technology. One such technology is SCM, which basically deals with the flow of products as well as with the flow of products as well as information between different supply chain members’ organizations.

10/22/2012 6

� A large set of diverse activities like purchasing, quality control, demand and supply planning, material or inventory control, production planning, scheduling, control and many more are part of supply chain management; but all under the same chain management; but all under the same network with two main objectives: timeliness and quality, so that the organizations can avail correct and valid information easily and at the earliest in their premises

10/22/2012 7

� SCM can be effectively implemented in agriculture by using a fully integrated software package like SAP ERP. By the application of this technical tool, SCM can be made more efficient, inventory reduction and lead to time reduction. lead to time reduction.

� The SAP ERP is a complete automated integrated system; it provides real time information available to SCM for quick and pro-active decision making and no duplication of manual efforts.

10/22/2012 8

Page 3: Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College€¦ · Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College 10/22/2012 1 The predominant sector of the SAARC

� SAP ERP helps in input management, HR management, and production, financial and marketing management of any farm.

� It is one of the most advanced and � It is one of the most advanced and comprehensive farm management software solution implemented in the SCM that suits in small, medium to large sized farms.

10/22/2012 9

� The basic concept of SCM is the flow of products as well as information between different supply chain members’ organizations. Now with the help of this organizations. Now with the help of this application software we can maintain the information of all the sectors in a relational database.

10/22/2012 10

� Another feature of SAP ERP that helps in effective implementation of SCM in different agro sectors is the centralized control in all respects. By careful and efficient implementation of SAP ERP we can accelerate SCM by improving logistics, keeping relevant SCM by improving logistics, keeping relevant information of demand and supply for different products in different locality and with varying period of time in order to reduce product losses, identify and correct process inefficiencies, and increase profitability.

10/22/2012 11

� With the help of SAP ERP we can keep track of all the relevant past and present data in the data base. It is easy to retrieve and process those stored data; As a result, it becomes easy for the people in the agro becomes easy for the people in the agro sectors to get a quantitative as well as qualitative comparative-analysis of the present production and the demand supply.

10/22/2012 12

Page 4: Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College€¦ · Dr. Swati Chakraborty, Somnath Chaudhuri Royal Thimphu College 10/22/2012 1 The predominant sector of the SAARC

� The basic features that help in efficient implementation of SCM in the agro sector by using SAP ERP can be pointed out as:

1. It is easy –to-use, user-friendly compliant computer software system, computer software system,

2. It is suited for any sort of agro farm with the facility to manage multiple farms at multiple locations,

3. Maintain and manage the stock and inventory,

10/22/2012 13

4. Production, demand-supply, marketing every details for regular interval of time in different locations is properly maintained in a central database.

5. Financial transactions, assets, liabilities, income, expenses details can be stored to get various financial reports

10/22/2012 14

� The ultimate goal of an effective SCM is to reduce inventory, assuming the fact that products are available when needed. This application of SCM in agriculture using SAP ERP package would help in fostering the ERP package would help in fostering the growth of the SAARC nations.

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