Case Study of Supply Chain Management in Larsen & Toubro Ltd Essay

Case Study of Supply Chain Management in Larsen & Toubro Ltd - Essay Example In fact, some of the most amazing business successes in the past 20 years are direct results of finding more efficient supply chains in delivering products to customers. Supply chain management emerged only a decade ago together with the emergence of the word "supply chain" in the business scene. This development started from the business world's recognition of the importance of integrating and managing the processes within a business entity. The new revolution in supply chain management significant changed business processes and introduced radical revolutions which promote the operation efficiency of companies and gain competitive advantage in their respective industries. Perhaps, the most successful in revamping its supply chain is Dell Computers. In fact, supply chain management is often referred to as the Dell's model (Cavinato, 2002). Currently, supply chains generally perceived as the "proper blending of physical resources with financial, informational, and relational resources-all within the strategic context of competing in the marketplace (Cavinato, 2002)." Experts argued that there is no "one size fits all" supply chain and that different businesses need to employ unique business models to run their operations. The shift in business model necessitates major changes in a comp... The first section will give a brief profile and background of the company. Next, it will look at the costs of shifting to a more streamlined value chain. Afterwards, it will explore the importance of technology in the new supply chain as well as its long-term collaboration with its supplier's to the system's efficiency. An analysis of the material procurement system of the ECC will be presented. The paper will end with its findings and recommendations. The Company: Larsen and Toubro Limited (L&T) L&T traces its origins by the partnership formed by two Danish engineers Henning Holk Larsen and Soren Kristian Toubro in 1938. The firm is engaged in the manufacture of a wide array of engineering products, earthmoving equipment, chemical and industrial machinery, switchgear valves, welding alloys and cement manufacturing machinery. The ECC division of L&T handled the turnkey industrial and infrastructure projects in civil, mechanical, electrical and instrumentation engineering as well as turnkey construction services. The division is headquartered in Chennai and has operations dispersed in other countries like UAE, Bangladesh, Sri Lanka, Malaysia, and South Africa. The company's thrust of utilizing a business model to integrate the division's operations into a more cohesive one is the driving force in revamping the company's supply chain. From its manual operations, the company opted to employ a web-based SCM solution which took advantage of the recent trend in the information and communication technology (ICT) sector. Thus, the company was able to streamline its supply chain and boost the efficiency of its operation. Challenges in Integrating