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Introduction to supply chain management

BhartiAirtel understands the importance of partners to remain competitive in a


dynamic business environment. As a step in that direction, the Supply Chain
(SCM) function has been created with a mandate to develop partner relationships to
maximize mutual opportunities for growth and profitability. The SCM organization
has a central core team of supply chain subject mater experts and execution teams
operating under different business divisions across the country.

Supply Chain Philosophy

At the center of BhartiAirtel's Supply Chain http://www.airtel.in/partnerworld/ima


Philosophy is partnership and collaboration. The ges/SUPPLYCHAIN.gif
Supply Chain characteristics have therefore been
defined using the same approach, shown in the
table below.
Supply Chain Characteristics BhartiAirtel Approach

Number & Structure Fewer; Clustered

Procurement personnel Limited

Outsourcing Strategic

Cooperative, positive-
Nature of Interactions
sum

Relationship focus Mutually-beneficial

Relationship focus Performance

Contract length Long-term

Pricing practices Target costing

Price Changes Downward

Quality Designed-in

Delivery Smaller Quantities (JIT)

Inventory buffers Minimized, eliminated


Communication Extensive; multi-level

Communication Collaborative; two-way

Role in development Substantial

Production flexibility High

Technology sharing Extensive

Dedicated investments Substantial

Mutual commitment High

Governance Self-governing

Future Expectations Considerable

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