Premium Essay

Challenges to Supply Chain

In: Business and Management

Submitted By RZee
Words 285
Pages 2
SLIDES

Slide 1 Challenges to supply chain effectiveness
What and how much to ship?
When and where to ship?
Objective: Minimizing inventory and other costs and maintaining or improving customer service.
Slide 2 * Demand variability * Translating forecast into orders * Visibility of purchase volume * Accurately assessing volume * Vendor management * Internal collaboration and cooperation * Inventory management * Retail information systems and organizational challenges

Slide 3 Demand Variability * Building a reliable demand chain forecast * Extrapolating past shipment data * Do not have unified view based on recent sales, current inventory levels, current inventory requirements and lead times. * Buying patterns are random and hard to predict * More predictable patterns: looking at group of stores served by a DC, overall company sales and even item sales across all retailers.

Slide 4 Bullwhip effect
Process whereby even very small changes in perceived demand at the retailer level cause even larger changes when you move up the supply chain * Cause fluctuating demand and lead planners make changes to their order levels * Longer the lead time……..more drastic the changes are * Unfilled customer order, planners place larger orders causing backlog * When inventories, they reduce their orders more than necessary to create balance. * Longer lead times for products * Planners place orders for more products * Planners under pressure to reduce costs may batch order

Slide 5 Counter bullwhip * Placing smaller orders on regular basis * Cumbersome to pace frequent small orders when shipping cost for uneconomic batches is high

Slide 6 * Separate links in supply chain causes hurdles and ads little value * Create barriers to flow of information * Information

Similar Documents

Premium Essay

Vlisco Challenges Supply Chain

...TABLE OF CONTENTS 1.0 Introduction to the main the supply chain and its focal firm................... 1.1 The Vision....................................................................................................... 1.2 The Mission..................................................................................................... 1.3 Key Brands...................................................................................................... 1.4 The Flow Chart of the Manufacturing Process................................................. 1.5 Process Description............................................................................................ 2.0 Demand Planning 2.1 Forecasting---------------------------------------------------------------------- 2.2 planning--------------------------------------------------------------------------- 3.0 Order Management/Service Level 3.1 Method----------------------------------------------------------------- 3.2 Order Status Tracking-------------------------------------------------- 3.3 Technology----------------------------------------------------------------------- 3.4 Reverse Logistics--------------------------------------------------------------- 3.5 Managing Third Party Logistics----------------------------------------- 4.0 Sales and Operations Planning 4.1 Structure and Focus------------------------------------------------------------------ 4.2 Product Run Strategy---------------------------------------------------------- ...

Words: 2323 - Pages: 10

Premium Essay

Proton Supply Chain Challenges

...GLOBAL SUPPLY CHAIN Term Paper : Proton Supply Chain Challenges Table of Contents 1.0 Company Background 1-4 2.0 Problem Statement 5-7 3.0 Significant of Study 8-10 4.0 Proton Supply Chain Weaknesses 11-18 5.0 Recommendation 19-29 6.0 Conclusion 30 7.0 References 31-32 1.0) Company Background First national car, Proton Saga project was formed embark from the Look East Policy. Perusahaan Otomobil Nasional Sendirian Berhad (PROTON) was formed in 1983 as a company of national car to manage the operation of the national car project. "The Proton Saga is more than just a quality automobile. It is a symbol of Malaysians as a dignified people" quoted by Tun Mahathir Mohammad during the launched of the first model of national car, Proton Saga in 1985. Anyhow, PROTON facing the downfall when Perusahaan Otomobile Kedua Sendirian Berhad (PERODUA) launched in 1993, producing minicars and superminis models which target the different market segments as Proton. For example in 2002, Proton become the 1st of the car supplier in Malaysia, acquired 49.43% of the market share. Anyhow, in 2006, Perodua overtake Proton as the 1st car supplier in Malaysia with 42% of market share, and Proton was 10% behind it. This trend maintain consistently until latest statistic in 2011, Perodua still become the 1st supplier in Malaysia acquired 34% of the market share while Proton maintain the 2nd place with 33% market...

Words: 7705 - Pages: 31

Premium Essay

The Challenges and Their Determinants of Supply Chain of Pharmaceuticals in South West Ethiopia

...The determinants and Challenges in Supply Chain of Pharmaceuticals in South West Region Contents The determinants and Challenges in Supply Chain of Pharmaceuticals Fund and Supply Agency (PFSA) 1 Jimma Hub to Supply Quality Assured Essential pharmaceuticals to Health Facilities in South West Region 1 !Unexpected End of Formula 1. Introduction 2 1.1. Statement of the Problem 3 1.2. Study goal, objectives and indicators 3 1.2.1. Goal 3 1.2.2. Objective & Indicators 3 1.3. Hypothesis 4 1.4. Significance of the Study 4 1.5. Scope of the Study 5 2. Literature Review 5 2.1. TODAY'S CHALLENGES 6 2.2. Supply Chain Pain Points 6 2.2.1. Lack of Visibility, Particularly Upstream 6 2.2.2. Alignment with Third-Party Service Providers 7 2.2.3. Supply Chain Traceability 7 3. Methodology 8 3.1. Sources of Data 8 3.2. Method of Sampling Technique 8 3.3. Method of Data Collection 8 3.4. Study Population 8 3.5. Plan of Action 9 3.6. Management Plan 9 4. Conclusion 10 5. References 11 Abstract The Pharmaceuticals Fund and Supply Agency is focusing on supplying 100% Essential Medicines to public health facilities. The focus stems from the increasing health problem of the public that the health facilities should address accordingly. The objective of this study is, therefore, to identify challenges in supply chain of pharmaceuticals and determining factors that contribute to these challenges at PFSA Jimma hub. The study will use both an observational...

Words: 2866 - Pages: 12

Premium Essay

Supply Chain Integration

...March 17 - 19, 2010, Hong Kong Supply Chain Integration: Definition and Challenges Hussain A.H Awad, Mohammad Othman Nassar Abstract—Ever Since the Council of Supply Chain Management Professionals (CSCMP) Defined Supply Chain Management and the Council of Logistics Management (CLM) adopted the definition of logistics in 1984, the integration of a supply chain processes or activities became obligatory definition. Many firms have extended their chain from upstream and downstream to include other vendors, agents of vendor, and customers. These firms have successfully implemented the concept of supply chain integration with spectacular results after they recognize and manage the integration challenges of supply chain. This research is a humble scientific attempt to shed more on the challenges and the obstacles that those companies faced during their success journey stand behind finding integration in their supply chain. By reviewing the available literature about the supply chain integration challenges we didn’t find a single source able to present all these challenges that may face the organization during its implementation of supply chain integration. The main contributions for this paper are integrating all the of supply chain integration challenges in one source. These contributions will be very helpful for the organizations that establish the integration in their supply chain Index Terms— Supply chain integration, Challenges of supply chain integration. I. INTRODUCTION...

Words: 4240 - Pages: 17

Premium Essay

Demand Driven Supply Chain

...Demand driven supply chain Over the passage of time, the concept of supply chain and planning has gained considerable need on the retail brand in the society today. It is because the two are interred twined based on the end product and the needs of the consumer. As such, most of the companies have noticed the gap that exists between supply chain and the final product given to the consumer (Mendes, 2011). Retrospectively, they have invested a great deal of manpower and resources into planning solutions to respond to the need and remain competitive in the market. The primary focus of such a move is to gain an actual picture of the visibility related to material costs across the supply chain division. To respond to this need, many service providers have come up such as Oracle and SAP. Balancing demand It is evident that even though most of the companies have developed such unique planning solutions. However, the primary question is how to balance between the demand points and to control the variability related to customer demand. At this point, the focal point is how to annihilate the needs of the customers through the supply chain to ensure efficient service delivery and quality goods. In recent times, supply chain service provider namely JDA organized their annual event referred to as Focus. They discussed a great deal about the new form of information technology solutions that companies can adopt to make the supply chain division efficient. At that point, the organizers...

Words: 2865 - Pages: 12

Premium Essay

Supply Chain

...CURRENT CHALLENGES OF SUPPLY CHAIN MANAGEMENT Acknowledgement It is only because of the grace and mercy of great Almighty ALLAH that we are able to complete our report. Without His help, in no way we could complete it. We are highly indebted to honor Sir Shoaib Ishtiaq (Bahria University) for assigning us such an important and interesting report and for his valuable guidance in carrying out this research study which benefited during our course work in the university. We would also like to extend our gratitude towards the internet & books which helped us greatly. And on the other hand all those people who were directly and indirectly involved in the completion of this project. ABSTRACT Purpose : As the business environment becomes increasingly competitive, companies continuously look for ways to distinguish themselves from their competitors. Companies adapt different Supply Chain Management practices and philosophies to help them become competitive. However, they may face challenges that hinder attainment of the results sought. Here is the study of few challenges that supply chain management are facing in today’s world and some strategies propose to cope up with those challenges. Methods : Firstly the major challenges were search and then some strategies were purpose to cope up with those challenges of supply chain management by giving the examples of case study than how in past companies have faced those challenges and they were not able to handle...

Words: 8071 - Pages: 33

Premium Essay

Operations Strategy and Supply Chain Management

...Supply Chain Management: Challenges, Remedies and the Impact of change - Overview By Adawari Josiah Jumbo Student No.: 15522057 Submitted To Laureate Online Education & University of Liverpool – Online Masters Degree In Partial fulfillment for the award of Master of Science (M.Sc.) Degree in Operations and Supply Chain Management Instructor: Professor Anshuman Khare 2010. ACKNOWLEDGEMENT I am delighted to say thanks my Instructor Professor Anshuman Khare for your professional support and supervision all through this module including this project work for your encouragement is commendable. The learning acquired through interaction with my course mate has been tremendous, I therefore say thanks to my entire class mate. I also appreciate all authors whose works aided me in this project. I am sincerely indebted to all of you. To God, I say thanks for your kindness and support for this programme. Adawari Josiah Jumbo ABSTRACT This research was carried out to find out the challenges and the economic and operational impact of change on supply chain, including the options available to improve the challenges and create increased performance on the chain. To drive home the study we focused on PHRC Limited in Nigeria. We also undertake a comprehensive review of...

Words: 2614 - Pages: 11

Premium Essay

Impacts of Outsorcing on Organisation

...Survey The challenges ahead for supply chains: McKinsey Global Survey results Senior executives say their companies manage key trade-offs well, yet see barriers to better performance: rising risk, lack of collaboration, and low CEO involvement. November 2010 As economies around the world step back from the financial brink and begin adjusting to a new normal, companies face a different set of supply chain challenges than they did at the height of the downturn—among them are rising pressure from global competition, consumer expectations, and increasingly complex patterns of customer demand. Executives in this McKinsey survey1 are divided on their companies’ preparedness to meet those challenges, and fully two-thirds expect supply chain risk to increase. What’s more, the survey highlights troubling signs of struggle associated with key, underlying supply chain processes and capabilities, including the ability of different functions to collaborate, the role of CEOs in supply chain planning, and the extent to which companies gather and use information. Emerging from the downturn As companies have managed their supply chains over the past three years, the challenges they faced and the goals they set have reflected a single-minded focus on weathering the financial crisis. The most frequently cited challenge of the past three years is the increasing volatility of customer demand (Exhibit 1). This is no doubt a result of the sharp drop in consumer spending that has reverberated throughout...

Words: 2875 - Pages: 12

Premium Essay

Supply Chain

...International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 6, No. 2, June 2015 ISSUES AND CHALLENGES IN THE SUPPLY CHAIN OF FRUITS & VEGETABLES SECTOR IN INDIA: A REVIEW Saurav Negi1 and Neeraj Anand2 1 Doctoral Research Fellow, Centre for Continuing Education, University of Petroleum and Energy Studies, Dehradun, India 2 Professor and Head (LSCM & Operations), College of Management and Economic Studies, University of Petroleum and Energy Studies, Dehradun, India ABSTRACT Purpose- The entire supply chain of Fruits and Vegetables in India is laden with various issues and challenges. To list the possible challenges and suggest a way forward, there is a need to study the supply chain of Fruits and Vegetables sector in India. So the purpose of this paper is to discuss the supply chain of fruits and vegetables sector in India and explain the issues which are affecting it. Authors also suggested the corresponding mitigation strategies to overcome the identified issues and challenges. Design/methodology/approach-Descriptive research has been used for this study. The supply chain of Fruits and Vegetables sector has been explained and attempt has been made towards identifying the issues affecting the supply chain of the sector. The present study undertakes a thorough review of basic and contemporary literature available and tries to explain the factors affecting the supply chain of Fruits and Vegetables sector in India. The literature has been divided...

Words: 6133 - Pages: 25

Premium Essay

Case Analysis: Forecasting and Planning

... Introduction This paper will analyze a case analysis focused on Starbucks’ supply chain. Starbucks’ business model and supply chain strategy will be reviewed. Also, the global supply chain challenges the company faces will be analyzed. Further, the importance of aggregate planning and demand forecasting to Starbucks’ supply chain will be discussed. Finally, ways in which Starbucks utilizes pricing promotions to influence demand will be highlighted. Starbucks’ Business Model & Supply Chain Strategy Starbucks is a global coffee chain with over 21,000 outlets in 60 countries. The company is built on its brand which demands an experience and service above all other coffee chains. Until recently, Starbucks retained full ownership and control of its outlets. Franchising is relatively new transition for the organization. Yet, Starbucks takes a different approach to franchising than other large organizations like Dominos or Subway. Starbucks is extremely selective about who they franchise to. They take steps to ensure everyone they partner with will operate in sync with Starbucks’ culture and brand emphasis, as well as align with their environmental sustainability commitment. (Curtis, 2015) The fact that Starbucks was able to grow into a global organization with over 21,000 outlets speaks to the strength of their supply chain. Their supply chain strategy is built on a make to stock model which focuses on utilizing real time demand to efficiently...

Words: 1125 - Pages: 5

Premium Essay

Key Supply Chain Issues

...Key Supply Chain Issues The economic collapse has had at least one affirmative impact: It forced corporations to take a concentrated check at their supply chain, inquire some of their suppositions, and pluck out key incompetences. In a paradigm, unplanned decisions to source cheap-price products from states with the smallest labor cost since they may no longer make sense when the long-term amplifies in haulage rates, risks of interruption, and weeks of inventory in the pipeline are factored into general landed cost calculations. Currently there are analysis going on over the supply and chain management changes in SCC (supply chain council). SCC is working on various advancements on the issues of supply chain challenges, which are affecting the global economy and markets. The SCC is aimed at advancing the supply chains acknowledgement, and its application to solve the real world challenges (Supply chain council, 2012). Today, colossal markets in several states have developed links with other markets in different parts of the world; hence forming immense supply chains from raw materials to finished products. These products are supplied to their various destinations, which are markets around the continents. As a matter of truth, as contamination scandals continue to rage through French, Europe supermarket giant Carrefour has announced a number of initiatives to perk up the traceability and quality of its supply chains (Perkins C, 2013). The corporation pronounced last week that...

Words: 746 - Pages: 3

Premium Essay

Challenges

...THE RESILIENCY CHALLENGE: CONSTRUCTING THE AGILE SUPPLY CHAIN FOR HEAVY INDUSTRY June 2014 By Lisa Harrington, President, lharrington group LLC and Associate Director, Supply Chain Management Center, Robert H. Smith School of Business, University of Maryland 2 The resiliency challenge The engineering and manufacturing sector (E&M) is the definition of diversity. The companies that make up the sector manufacture everything from jet engines and drilling rigs to simple fasteners and filters. Broadly speaking, though, E&M firms fall into a number of sub-sectors including Aerospace and Aviation and Industrial and Construction Equipment. The overall sector, like all industries, faces a myriad of issues around volatility, including dealing with natural disasters and supplier disruptions. But these issues aren’t the only ones that keep sector executives up at night. E&M CEOs also worry about how to transform their frequently large and conservative companies into agile enterprises capable of meeting new competition and opportunity head on with faster, leaner and more resilient operations. Global market dynamics are driving the need for transformation. As emerging markets grow and new markets emerge, demand is dispersing geographically. Demand is also fragmenting as a result of increasingly complex requirements from customers both for new product customization and post-sale support and service. Customers want – and expect – more choice on configuration...

Words: 5054 - Pages: 21

Premium Essay

“Analysis of Supplier’s Performance in Supply Chain Management in Respect to Automobile Industry”

...A STUDY ON SUPPLY CHAIN MANAGEMENT IN AUTOMOBILE INDUSTRY DR. Anu Maheshwari DR. Sanjay Shankar Mishra Guest Lecturer, Prof. & Hod of Commerce Dept. Govt. T.R.S.College, Rewa (MP) Govt. T.R.S.College, Rewa (MP) The changing business conditions of the 21st century has led to companies facing issues ranging from globalization, economic uncertainty to new technologies and increasing consumer demands. In the automobile industry, as manufacturers design and build vehicles globally, their supply chains become increasingly complex with challenges that often stand in the way of profitability and higher shareholder value such as long order-to-delivery lead times, unreliable production schedules, excess inventory across the supply chain, lengthy demand planning cycles and lack of visibility of suppliers. The effect of the global economic meltdown increased the pressure on automotive executives to make right decisions about their supply chain for better performance. In a highly challenging and competitive environment such as today, where supply chain is a popular tool for improving the organizational competitiveness. OVERVIEW OF SUPPLY CHAIN MANAGEMENT IN AUTO-INDUSTRY [pic] The Auto Ancillary Industry can be Further Divided into Six Main Segments: ❖ Engine Parts - Engine assembly, fall into 3 broad categories: core engine parts; fuel delivery system; and others. ❖ Electrical Parts - The main products in this category include starter motors, generators...

Words: 1055 - Pages: 5

Premium Essay

The Reluctant Receptionit

...z.html implementing, and controlling the physical and information flows concerned with materials and final goods from the point of origin to the point of usage.' International logistics involves the management of these resources in a company's supply chain across at least one international border. Conceptual Framework It may sound complicated, but logistics is basically the management of stuff, and information regarding the stuff, from one place to another until it reaches the consumer. The logistical management of physical items may include integration of information (such as inventory databases and shipping schedules), material handling, production, packaging, inventory, transportation, distribution, storage, and security for the resources. Example of International Logistics Let's look at a simple example. Just pretend for a moment that you work as a logistics manager for a large American jewelry company based out of New York. Your company has an extensive international supply chain. We'll walk through a simplified logistical process for a diamond ring. Your diamond supplier is in South Africa. You get your gold from a supplier in China. The jewelry itself is assembled in Switzerland. Your job is to manage the supply chain from acquisition of a resource through its transformation into a finished product and until it is sold to a customer. Your responsibilities may include the following: * Oversight of the purchase of diamonds in South Africa and gold necessary from...

Words: 1563 - Pages: 7

Premium Essay

Journal 1

...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...

Words: 1025 - Pages: 5