scm deepak

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supply chain management

(SCM)Supply chain management (SCM) is the oversight of

materials, information, and finances as they move in a

process from supplier to manufacturer to wholesaler to

retailer to consumer. Supply chain management involvescoordinating and integrating these flows both within and

among companies. It is said that the ultimate goal of any

effective supply chain management system is to reduce

inventory (with the assumption that products are available

when needed).

decompressorare needed to see this picture.


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Supply chain Management

Supply Chain Management is a product which is offered by Corporate

Banking / ECG / FIG / Business Banking / Retail to its clientele for

managing their Trade payments/receivables. These products are being

offered to Suppliers/ Dealers of the Corporate Customers like Mahindra &

Mahindra, TELCO, Shapoorji Paloonji, Asian Paints etc.

In SCM discounting is done on providing accepted bill of exchange by

drawer and drawee, or invoices, request letter, Lorry Receipt.



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In SCM supplier bill / invoices / Dealer bill / invoice is discounted. Purchase

bill / Service bills examples are Asian paints ltd. Service bill discounting

examples are Ansa dego glass.

Product with SB01, SB02, SB05, SB06 are supplier bill where customer is

providing bill of exchange or invoices where drawee is our customer.

Product with SB03 / SB04 / SB07 / SB08 are Dealer bill where customer is

providing bill of exchange or invoices where drawer is our customer.

TB01 is specifically design only for Tata motors where in


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Suppliers Manufacturers Warehouses &Distribution Centers

Customers

Material Costs

TransportationCosts

TransportationCosts

Transportation

CostsInventory CostsManufacturing Costs




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Supply chain ManagementProduct features:Supplier Bill Disc / Invoice Disc

Bills drawn by the supplier and accepted by theCorporate / ECG / FIG / Business Banking /

Retail Customer are discounted and theproceeds are credited to the supplier on Day0.Corporate / ECG / FIG / Business Banking /Here Bill of Exchange has to be submitted fordiscounting.

For Invoice Discounting, No Bill of Exchange isprovided. Corporate / ECG / FIG / BusinessBanking / Retail Customers will provide anauthenticated list of the Invoices eligible fordiscounting.



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Dealer Bill Disc / Invoice Disc

Bills drawn by Corporate / ECG / FIG / BusinessBanking / Retail Customer and accepted by theDealer are discounted and the proceeds arecredited to the Corporate / ECG / FIG /Business Banking / Retail Customer on Day0.

For Invoice Discounting, No Bill of Exchange isprovided. Corporate / ECG / FIG / BusinessBanking / Retail Customers will provide an

authenticated list of the Invoices eligible fordiscounting.



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Customer submits document at counter,give acknowledgement with date and time stamp

Scrutiny

Raise the case to CPU

Inward in Trade Stream

and checklist stamp

If documents are found correct

Filling of documents

If documents are found incorrect

Inform customer / RM for rectification

Revised documents received

Process flow



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Supply chain ManagementSCM PRODUCTS


Product Code Product Description INTEREST COLLECTION

SB01 SCM - Supplier Bill Discounting UPFRONT

SB02 SCM - Supplier Invoice Discounting UPFRONT

SB03 SCM - Dealer Bill Discounting UPFRONT

SB04 SCM - Dealer Invoice Discounting UPFRONTSB05 SCM - Supplier Bill Disc Arrear REAR

SB06 SCM - Supplier Invoice Disc Arrear REAR

SB07 SCM - Dealer Bill Disc Arrear REAR

SB08 SCM - Dealer Invoice Disc Arrear REAR

TB01 TELCO BILL DISCOUNTING

LN29 LOAN FACTORING MONTHLY

INTEREST MONTHLY


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Supply chain ManagementFollowing documents scrutiny done at branch :

Customer signature on request letter

Important points to be checked on Bill of Exchange /

Invoice.

Amount in words and figures

Invoice date should not be more than 90 days old.

Waiver clause of notice of dishonor / presentment

and protest by all parties concerned.

The payee name should be HDFC bank only.

Due date of bill of exchange and tenor should be

cross checked.

Bill of exchange number should present on Bill.



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Declaration of drawer for not taking finance from

other bank against invoice.

Payment terms on invoice to be checked.

Total of all invoices should match with Bill drawn

against the same.


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Supply chain ManagementDocumentation to be verified for Bill Discounting

Covering LetterBill of Exchange ( having all clauses )

Invoice ( Invoices should not be stale i.e. more than 90

days old)

Confirmation about receipt of Goods received in good

condition (GRGC).

The payee name should be HDFC bank only.Declaration of drawer for not taking finance from other

bank against invoice.

Total of all invoices should match with Bill drawn against

the same.

Transport document ie LR / DC etc

Any other documents as mentioned in CAM or approvedby Business / Credit & Mkt risk

List of approved drawee / drawer should be checked


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Documentation to be verified for Invoice DiscountingCovering Letter ( having all clauses )

Invoice ( Invoices should not be stale i.e. more

than 90 days old)

Confirmation about receipt of Goods received in

good condition (GRGC).

Transport document ie LR / DC etc

List of approved drawee / drawer should be

checked

Post Scrutiny of documents, branch to authorize the case in

inward register. Ref number is generated and case moves

to scanning desk. Documents are then submitted toScanning dept