...Supply chains plays an important role in maximizing the profit in the organization. Success of any product in the market depends on right supply chain model. It’s performance depends on how quickly collecting customer response & reacting to it by using flexible manufacturing, automated warehousing & rapid logistics. Performance can be further improved by using the new technologies by adopting new concepts such as quick response ,effective consumer response ,accurate response ,mass customization ,lean & agile manufacturing. It is being observed in many studies that poor coordination among partners of supply chain resulted into losses because of not able synchronized with customer end demand. Supply Chain based on Nature of product. For functional products which are having predictable demand, satisfying basic needs & available in wide range in retail outlets needs supply chain where we can schedule production a plan for next six month to minimize inventory & maximize production efficiency. Whereas for innovative products where the demand is uncertain based on market reaction, needs to read early market signals & react quickly within the product life cycle, so that we would not lose sale because of short supply. Critical decisions to be made about keeping inventory & capacity not about minimizing cost but about where in the chain to position inventory & capacity in order to fulfill uncertain demand . Suppliers are also chooses based upon...
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...According to Fisher, how can products be classified based on their demand nature and what supply chain strategies match to them According Fisher, product can be functional and innovative; Functional serves mostly basic needs, which does not fluctuate over time and has stable and predictable demand with long term product life cycle. Innovative product serves mostly peoples’ want about additional reason to buy something. It is fact that sometimes, things that are for basic needs can become innovative by continuous improvement and innovative concepts. In this case demand is much more unpredictable with short term product life cycle. with primarily functional products, companies should focus on a physical function of supply. They should use an efficient process for supplying (converting raw materials into products effectively and efficiently without waste and transport them along supply chain). As for Primarily innovative products, companies should focus on a market mediation function of supply and use a responsive process for supplying. The main goal of market mediation is that all products to match consumer needs and wants. 2. Describe the Fisher Matrix and explain how managers can employ it to formulate the ideal supply chain strategy Fisher Matrix is system of four cell, with four probable combination of products and priorities. It supports managers to formulate the ideal supply chain strategy with easily identification whether process of supplying matches to the product type:...
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...What is the Right Supply Chain for your product? -Marshall Fisher Summary prepared by Sunny Bhambhwani for Great Lakes Institute of Management Chennai Need for the Right Supply chain Before judging the correct supply chain for your organisation, we first need to understand what a supply chain is. A supply chain is a system of moving a product/service from supplier to customer. It involves organisations, people, technology, resources and activities. Hence, a right supply chain would be the one that not only delivers the product/service to the customer, but also helps the producer match the demand of the product/service to his supply, thereby causing no excess or shortage of inventory. In the current competitive marketplace, a producer cannot afford to lose any customer due to unavailability of the product when the customer needs it, nor can he afford to bear excess cost for inventory surplus which might be unsold for a long time. Hence, deciding the right supply chain is of prime importance in the operational functioning of the organization. Types of products To judge the right supply chain, the producer first needs to identify his product as functional or innovative. A functional product is the one that generally satisfies basic needs, has a long life cycle and has a predictable demand. Basic commodities fall under this category. Due to the stability in the demand, competition is fierce for functional products and hence, producers tend to differentiate their product from...
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...Business Ethics Case Analysis: Apple Finds Human Rights Violation In Supply Chain. Using the 7-step model of Hartman & DesJardins, which helps examining the Impact of individual characteristics and organisational policies on ethical decisions. I will review an article written by the journalist Chilton Tippin on February 17, 2011, discussing the situation that many employees are experiencing, when working with organisations, where their moral rights are not met. According to the article, Surprisingly 8 months after the scandal suicides at Foxxcon’s Shenzhen factory in China, apple continues finding events where human rights are violated. For the first instance “Human rights violations”, would be the main ethical issue surrounding the case, “however”, I consider indispensable starting the research by firstly giving a clear definition on ethics and the importance of its application in business. Besides from identifying the problem of the case and knowing who is fighting against whom, an analysis of the stakeholders is going to be completed to understand what does the organisation mean for the stakeholder and vice versa. Next process would be weighing the options and finding the available alternative routes of action, while searching how they might affect the stakeholders, this with the use of ethical theories to support each of my arguments. Seek guidance would be the next process on the decision making model, which consist in identifying rules and norms setting initiatives on...
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...Licensed to: CengageBrain User Licensed to: CengageBrain User This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: CengageBrain User Managing Supply Chains: A Logistics Approach, Ninth International Edition John J. Coyle, C. John Langley Jr., Robert A. Novack, Brian J. Gibson Vice President of Editorial, Business: Jack W. Calhoun Editor-in-Chief: Joe Sabatino Senior Acquisitions Editor: Charles McCormick, Jr. Developmental Editor: Daniel Noguera Editorial...
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...Research Publication Date: 12 November 2010 ID Number: G00208603 Case Study for Supply Chain Leaders: Dell's Transformative Journey Through Supply Chain Segmentation Matthew Davis Faced with ever-changing customer needs, product commoditization, unique global requirements and new, low-cost competitors, Dell embarked on a three-year journey to segment its supply chain response capabilities. The company designed its supply chains based on a mix of cost optimization, delivery speed and product choices that customers value, while aligning internally across all functions to execute against this vision. Key Findings Dell's market and business strategies changed, requiring the company to move from a single supply chain to a customer segmentation supply chain approach. A unified, cross-functional business strategy with collaborative, decision-making processes across sales, marketing, product design, finance and supply chain is essential for segmentation. Segmentation is enabled by a cost-to-serve (CTS) methodology to dynamically allocate costs to business decisions, highlight net profitability and drive the right actions for each supply chain. Supply chain segmentation is a multiyear journey enabled by the development and alignment of organizational skills to the needs of the journey's different phases. Recommendations Start with segmentation of your company's customers and channels to understand the different demand rhythms and cycles. Focus on decreasing the time required...
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...The Supply Chain Operations Reference (SCOR®) model provides a unique framework that links performance metrics, processes, best practices, and people into a unified structure. The framework supports communication between supply chain partners and enhances the effectiveness of supply chain management, technology, and related supply chain improvement activities. SCOR is a consensus model. It was developed and continues to evolve with the direct input of industry leaders who manage global supply chains and use it daily to analyze and improve the performance of their organizations. It features an intentionally broad scope and definitions that can be adapted to the specific supply chain requirements of any industry or application. Figure 4 and 5 SCOR model include: • Rapid assessment of supply chain performance • Clear identification of performance gaps • Efficient supply chain network redesign and optimization • Enhanced operational control from standard core processes • Streamlined management reporting and organizational structure • Alignment of supply chain team skills with strategic objectives • A detailed game plan for launching new businesses and products • Systematic supply chain mergers that capture projected savings The SCOR model helps refine strategy, define structure (including human capital), manage processes, and measure performance. Organizations that have applied SCOR to help with supply chain problem solving, process improvement,...
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...The important of supply chain management In the traditional view, the supply chain includes manufacturers, wholesaler’s retailers. For example, the manufacturer could sell directly to an individual for household usage, sell to a retailer for sale to the individual or sell to wholesalers for sale to the retailer, who then sells to the individual. Thus, supply chains consist of all the institutions and all the marketing activities such as storage, financing, purchasing and transportation that are spread over time and geographical space throughout the marketing process. According to Tom McGuffog Supply Chain Management (SCM) is a maximising added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market. Due to globalization and ICT, supply chain management has become a tool for companies to compete effectively either at a local level or at a global scale. Supply chain management has become a necessity especially for manufacturing industry when it comes to deliver products at a competitive cost and at a higher quality than their competitors. The supply chain management process flows consists of 3 main flows that are the product flow, the information flow and the finance flow. The product flow usually involves movement of products from a supplier to a customer, and also the back end process such as any customer returns or service needs. The information flow involves the flow of information on orders and updating...
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...scp-uk.co.uk How Supply Chains Create Shareholder Value by Dr. David Lascelles, Supply Chain Planning UK Limited S upply chain management is no longer a boring Cinderella of the business world. Not since the mid-nineties when enterprises as diverse as Amazon, Cemex, Cisco Systems, Dell Computers and Zara started to create dominant competitive positions, build huge market capitalisations and delight their shareholders through the brilliant management of their supply chains. No, supply chain management has become a hot topic in boardrooms worldwide. The case histories of Internet retailer, Amazon; web systems builder, Cisco; PC giant, Dell; and Spanish fashion retailer, Zara are well documented. But Cemex, a Mexican cement supplier? Well, you don’t need to be in hi-tech or high fashion to reap the benefits of supply chain excellence. The effects can be just as dramatic for a commodity supplier. As a result of its supply chain performance improvement efforts, Cemex enjoys the highest value-to-sales ratio of the world’s six largest cement manufacturers. These enterprises represent just the tip of the iceberg. More than one study indicates that superior performing supply chains increase free cash flows – the key driver of shareholder value – by up to 20% on average. Supply chain excellence is a crucial engine of economic growth. And yet, even though it represents one of the most exciting opportunities to create value and build market share, the supply chain remains one of the...
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...Research Publication Date: 12 November 2010 ID Number: G00208603 Case Study for Supply Chain Leaders: Dell's Transformative Journey Through Supply Chain Segmentation Matthew Davis Faced with ever-changing customer needs, product commoditization, unique global requirements and new, low-cost competitors, Dell embarked on a three-year journey to segment its supply chain response capabilities. The company designed its supply chains based on a mix of cost optimization, delivery speed and product choices that customers value, while aligning internally across all functions to execute against this vision. Key Findings Dell's market and business strategies changed, requiring the company to move from a single supply chain to a customer segmentation supply chain approach. A unified, cross-functional business strategy with collaborative, decision-making processes across sales, marketing, product design, finance and supply chain is essential for segmentation. Segmentation is enabled by a cost-to-serve (CTS) methodology to dynamically allocate costs to business decisions, highlight net profitability and drive the right actions for each supply chain. Supply chain segmentation is a multiyear journey enabled by the development and alignment of organizational skills to the needs of the journey's different phases. Recommendations Start with segmentation of your company's customers and channels to understand the different demand rhythms and cycles. Focus on decreasing...
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...SUPPLY CHAIN AT PFIZER Global pharmaceutical companies are modelled with a supply chain, which ensures that the right drug reaches the right people at the right time and in the right condition. The pharmaceutical firms also ensure 100% product availability at optimum cost by carrying huge inventory, which maintains 100% fill rate. Manufacturers are also trying to cut down development time to save costs. So, pharmaceutical companies today are designing the supply chain to be as responsive as possible to reduce entry time to the market thereby increasing profit margins. PFIZER’S GLOBAL SUPPLY CHAIN Complexity of Pfizer Supply chain can be judged from the following numbers: 3000+ Formulations 89 Manufacturing Sites 200 Transportation Centres 500+ Suppliers 54 Internal Logistics Centres 175 sites for distribution networks A unique feature of the Pfizer’s supply chain is that it operates two very different types of supply chains at all times. One supply chain supports the drug development phase and the other one to sell a successful drug in the market. While one supply chain is focused on facilitating a quick completion of the clinical trials to obtain a quick approval, the aim of the other supply chain is to meet sales targets. As a result the drivers motivating the supply chain design are speed and high availability respectively. After a drug is launched, a completely different set of objectives, drivers, and constraints become dominant. Now, the focus shifts from...
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...Topic: Decision Support Systems for Supply Chain Management and Design A. Summary: Supply chain management (SCM) has evolved to become an integral part of the operations management. SCM can have tremendous impact on organizational performance in terms of cost, quality, flexibility an responsiveness in the global market. Companies are investing in data driven decision support application frameworks to help then response to the changing market condition and customer needs. A more defined organizational structure, performance metrics and decision support systems (DSS) in SCM is required to create competitive advantages for an organization. Since Information Technology/Information System (IT/IS) is an integral component of SCM, DSS is inevitable in making available the right information at the right time so that managers can make timely and more accurate decisions. However, there is no best known DSS type that is required to effectively manage a supply chain. A properly designed DSS will help decision makers to extract useful information from raw data, documents, personal knowledge and/or business models with the objective of identifying and solving problems, and making decisions. Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. The DSS in supply chain management can be a model, communication, data, document and knowledge driven. Three fundamental components of DSS...
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...What is supply chain management? [ A German paper factory receives its daily supply of 75 tons of recyclable paperas its raw material In the 1980s, the term Supply Chain Management (SCM) was developed[5] to express the need to integrate the key business processes, from end user through original suppliers. Original suppliers being those that provide products, services and information that add value for customers and other stakeholders. The basic idea behind the SCM is that companies and corporations involve themselves in a supply chain by exchanging information regarding market fluctuations and production capabilities. If all relevant information is accessible to any relevant company, every company in the supply chain has the ability to help optimize the entire supply chain rather than sub optimize based on a local interest. This will lead to better planned overall production and distribution which can cut costs and give a more attractive final product leading to better sales and better overall results for the companies involved. Incorporating SCM successfully leads to a new kind of competition on the global market where competition is no longer of the company versus company form but rather takes on a supply chain versus supply chain form. Many electronics manufacturers ofGuangdong rely on supply of parts from numerous component shops in Guangzhou The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources...
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...opportunities and threats both economic and political. Some have said there is no “geography” in this current global environment. Some issues for supply chains in a global environment are: 1) more economic and political risk; 2) shorter product lifecycles and 3) the blurring of traditional organization boundaries. Another issue is global competition for sources of supply and demand. Traditionally underdeveloped countries such as China and India have become enabled and can participate in the global economy much more readily. Developing companies such as BRIC and VISTA have developed technology and have been outsourced to these countries. Technology has played a major part in time and distance being compressed. Collaboration opportunities with individuals and companies throughout the globe have increased. Flow of commerce is multidirectional. 2) Mass retailers like Walmart have been growing larger and larger. These organizations develop, design, produce, promote, and distribute their own products are using their size and power to impact the supply chain to their own advantage. Consumer product companies are giving special privileges to these large retailers and offering customized distribution services; allowing them to run more efficiently and more effectively. 3) The impact of the consumer is much more direct for supply chains because the consumer has placed increased demands at the retail level for an expanded variety of products and services. 4) The deregulation...
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...[pic] Unit No: Unit 14 Unit Title: Strategic Supply Chain and Logistics Assignment Title: ‘Concepts & IT Effectiveness of Supply Chain Management and Logistics Improvement’ Name: Nazmul Haque Sumon Course name: PGD Student Id: OCL 0150 Tutor’s Name : Mr Harry Lindsay OPAL COLLEGE LONDON TABLE OF CONTENTS Task:1 1.1 explain the importance of effective supply chain management in achieving organisational objectives 1.2 explain the link between supply chain management and business functions in an organisation 1.3 discuss the key drivers for achieving an integrated supply chain strategy in an organization 2.1 evaluate the effectiveness of strategies used by an organisation to maintain supplier relationships the organization TASK :3 4.1 explain the role of logistics in supply chain management in an organisation 4.2 evaluate procurement practices in an organisation 4.3 discuss the factors that must be considered when improving logistics and procurement practices in an organization 5.1 plan a strategy to improve an organisation’s supply chain 5.2 assess how a supply chain improvement strategy will benefit overall business performance in an organisation 5.3 explain how barriers will be overcome in an organization when implementing a supply chain improvement strategy Task : 1 Introduction: supply chain management operates at three levels. These are strategic, tactical and operational strategic...
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