LOGISTICS
As SCM involves not just one or two people or companies, the coordination between the various players in the chain is a key factor in its effective management. Logistics form an important part of the process of SCM as it deals with the integration of information, transportation, warehousing, material handling, and packaging. Some companies have in-house logistics arrangements while many big companies have either partially or fully outsourced their logistics operations. Without efficient logistics providers the entire process of SCM would be a failure.

The issue is not the transportation itself, but to streamline and control the flow through the value adding processes and eliminate non-value adding ones and to meet customer’s requirement. Further, centralized warehousing facility supports smooth working of logistics management.
A logistic partner is important for handling primary transportation, warehousing and secondary distribution of stocks. Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. There is various SCM service providers who play an important role in helping franchisors formulate innovative and efficient plans and execute their supply chain strategies. These service providers should be appointed by firms to assist them.

There are some key elements for SCM which are as follows:
1. Enrichment of inventory management.
2. Enhancement of merchandise planning methodologies.
3. System integration.
4.  Technology up gradation from time to time.
5. Logistics network modification.

SCM is the science of progress and integrates all the sectors of the country. While a number of new practices have been adopted internationally for SCM, Indian players still lag behind. Though in principle SCM is widely accepted in the country, it has yet to be absorbed fully in business. The technologies being used are also fast catching up. They should be put to effective and resourceful use in the times to come.

SCM CONTRACT
Terms should be reasonable to the knowledge before entering the contract, it is also necessary that the terms of the contract should be reasonable enough. If the terms of an agreement are unreasonable and opposed to by the franchisee, then they will not be agreed upon. Courts may resort to the use of the device of strict construction of the contract to give protection. Also, enforcing the terms of the contract sometimes results in the fundamental breach of contract.  In cases where more than one kind of liability arises, exclusion of contractual liability may not negate any other kind of liability. If the parties enter a contract under which they try to exclude liability by an exemption clause, such a clause would not exempt another party from liability because of the rule that the third person is a stranger to the contract and he cannot take advantage of the contract between them. However, there is no specific legislation in India concerning the question of exclusion of contractual liability, though there is a possibility of striking down bargains. It is prudent to have a thorough compliance with regard to the laws. It is advisable to undertake due diligent process before implementing the model.