...Supply Chain Efficiency in the Healthcare industry Introduction Healthcare in US is a major area with the country spending almost 16% of its GNP on healthcare costs. The healthcare industry is expected to grow and consume a greater share in the next few years. Hospitals are complex organizations providing a multitude of services to patients, physicians, and staff. These services include dietary, linen, housekeeping, physical plant engineering, pharmacy, laboratory, inpatient treatment (nursing units), surgery, radiology, administration, and others. In the national debate over how to make U.S. healthcare more efficient, one promising area for reform is often overlooked: supplies. Whether the products are knee implants, pacemakers, or expensive medications, hospitals have long purchased whatever doctors desired with little discussion among the parties involved about cost. Healthcare supply chain system is an extremely complex “adsorption model” that moves products downstream with limited visibility into product demand at the point of use. The outcome of the current model results in products that can be out-of-stock as much as 15 percent of the time. The pressures on hospital supply chains are changing too. In the past, a hospital that managed its purchasing costs well could operate efficiently. Today, the cost of materials management can exceed 35% of a hospital's operating budget, with nearly 20-25% attributable to supply costs alone. Despite the supply chain representing...
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...fgf Course information for Supply Chain Management (A logistics Approach) Course Facilitator Muhammad Tariq Yousafzai Assistant Professor MBA Imsciences (Distinction Holder) MS Innovation and Business Creation Course syllabus Course literature Langley, Coyle, Gibson, Novack, Bardi (2009), Managing Supply Chains – a logistics approach, 8th edition, South-Western Aims The aim of the course is to achieve an understanding and knowledge about the supply chain and logistics, its Participants, functions and flows and how these are interrelated and interacting. It introduces the students to analyze logistic flows for different products and services within and between firms in the supply chain. Further, students will get an insight of how changes in one part of the chain will influence the whole supply chain and its development. Students will also learn about the role and importance of recycling and reverse logistics. Contents Starting from customer demands the course analyzes the flows through the firm, from procurement and inbound flows, manufacturing and distribution and how these flows in turn are linked to those of suppliers, wholesalers, distributors, retailers and other partners. This will include warehousing and inventory management, the role of transportation, operation management, reverse logistics and recycling logistics system and service logistics. Based on the...
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...appropriate new and innovative technologies in order to endure and thrive in today’s dynamic marketplace. Of significance is Porter’s (1985) approach to value chain analysis which argues that organizations can achieve competitive advantage by effectively managing its core competencies and activities to create cost advantage and/or differentiation by leveraging Information technology (IT) as a major strategic tool. The latest revolutionary technological breakthrough is the emergence of the Radio Frequency Identification (RFID) system which has the demonstrated ability to identify, track, trace and collect information on almost any physical object wirelessly, using electronic tags and radio waves connected to local and international telecommunications networks. RFID therefore provides at least a viable alternative to and significant advantage over the use of barcodes by making use of internet technology and thus providing unlimited opportunities for added value creation and business expansion. While, admittedly, it is no magic elixir and has serious implementation challenges, its full business benefits can be achieved once careful strategic analysis identifying the specific needs of the organization is exercised. RFID is part of the Automatic Identification (Auto-ID) technological grouping which includes barcodes and smart cards. A RFID system has three major components electronic tags (transponders) which stores data, reading devices (interrogators) to capture data and computer hardware...
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...measurements corresponds to 4.4% missing product, where the 2.9% comes from somewhere in the supply chain and the 0.3% (6,043 products) was found showcased in another position, a phenomenon that can definitely affect the shopping experience. Due to these and other problems, in recent years, companies have paid special attention to find solutions that allow them to have better visibility into the supply chain of their products, from manufacturing through distribution and even to the point of sale. Of all the solutions available to users, highlights the Radio Frequency Identification Technology ( RFID by its acronym in English) which has existed for over half a century. Its origin dates back to the Second World War, when the British Air Force used it to identify their aircraft. However, in recent years, its potential has been maximized to provide new solutions related to the way in which retailers operate both manufacturers and retailers in sectors as diverse as food, consumer products, textiles, wine , pharmaceutical, automotive, and others. However, technology alone solves difficult problems in any sector, so that it becomes critical to have mechanisms that support the processes in which any component is involved as the information technology, the integration of different systems (both internal and with business partners, etc.). Specifically in the processes of the supply chain, global organizations have worked to develop standardized mechanisms agreed or offered the opportunity...
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...Wal-Mart Just In Time Just In Time - A Business Strategy for Efficiency and Cost Reduction The retail industry has long sought to improve their bottom line by strategically pricing their merchandise to maximize profits while remaining competitive. This paper addresses one approach utilizing an emerging technology for inventory tracking: Radio Frequency Identification (RFID). Introduction A typical concern of all retail establishments is maximizing profits while maintaining customer loyalty. Now where this is more of a concern than with the Big-Box stores such as, Target and Wal-Mart in the United States. These stores offer a wide variety of goods and provide a “one-stop” shopping experience for their customers. The challenge for the store is to provide the variety and availability of merchandise without the high cost of inventory storage and over-stocking. Consequently, the goal is to have the merchandise available to their customers, “just in time” for them to make the purchase. These stores have a greater challenge than the warehouse club stores such as Costco and Sam’s Club because they require their members to buy in quantity. This paper will focus on the special problem that non-warehouse club stores encounter in selling smaller quantities and describe the “just in time” philosophy and how it is applied in today’s retail industry. A case history of how Wal-Mart is applying this approach to their operation and some of their implementation challenges. Addressing...
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...information which may be read from a distance. Different than a bar code that needs to be in sight. RFID can be used in 1. RFID tag attached to a car during production to track its process through the assembly line. 2. Medicines can be tracked at warehouses. 3. Livestock 4. RFID tags can be attached to clothing, possessions and implanted within people 5. Tracking of goods 6. Tracking of persons and animals 7. Toll collection and contactless payment 8. Machine readable travel documents 9. Tracking authenticity 10. Airport baggage tracking How RFIDS improve efficiency in an operation environment RFID offers advantages over manual systems or use of bar codes. The tag can be read even if it is not visible. Tags can be read inside any container unlike barcodes. The main point where RFID will benefit is the supply chain sector. This technology can improve the effect and visibility; it can cut administrative costs, enhance utilization of the product, and reduce shrinkage, counterfeiting and increase sales but avoiding out of stocks Benefit towards the operation of the business Tracking of Products Businesses can track products at all times. They can also keep an eye on what’s is and inst in stock Enhanced Productivity & Cost Avoidance Identifying items by RFID takes less time than using barcode or other less automated ways. This leads to greater process efficiencies in many tasks such as shipping and receiving Reduce Manually Entry Errors: Since all inventories...
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...This report is about the RFID project written for evaluation and implementation of project applicability for Officeworks Company. This RFID project for Officeworks is examined and finally decided for Officeworks. In this report, the background of both development of RFID and situation of the business case of Officeworks are given; team work and team roles are assigned as well as the project schedule is planned and executive; the following sections of analysis and solution are involved: team requirements, project scope and assumptions, project drivers and strategies as well as enabler, complementary and competing initiatives, strategic and economic benefit, investment requirements, outsourcing plan, and implementation roadmap. It is concluded that the RFID project is generally valuable and able to be implemented for Officeworks Company ranged stores. Some useful suggestion to successfully construct the RFID into Officeworks is also recommended. Based on the successful experience of Wal-Mart, the RFID is detailed analysed with suitable solutions given. To completely evaluate the project, the ROI model and vertical comparison are also used for the cost/benefit examinations. As the suggested implementation, implementing work flow with detailed sub-steps is developed as well. Table of Content 1. Introduction 1 1.1. Background of RFID 1 1.1.1. Definition and description of RFID 1 1.1.2. RFID technique and history 1 1.2. Background of Officeworks 1 1.3. Project Initiation 1 1.3.1....
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...7-May-2013 1) Bullwhip effect defines as; It is a tendency of customer of material or product in short supply to buy more than they need in an immediate future (Bullwhip effect, 2010). There are several factors involved to cause bullwhip effect; overreaction to backlogs, neglecting to order in an attempt to reduce inventory, communication gap in supply chain, in-accurate demand forecasting etc. In order to deal with bullwhip effect, there are certain countermeasures to overcome the effect; proportional rationing schemes that encountered by assigning unit based on past sales. Vendor Managed Inventory (VMI) can overcome exaggerated demand forecast. Special purchase contracts that can be implemented in order to specify ordering at regular intervals to better synchronize delivery and purchase (Bullwhip effect, 2010). 2) The sales department of Volvo offered special deals which caused the increase in demand of green cars. The manufacturing department was not aware of the promotion and believed that consumers had started to like green cars (Michael Bean, 2006) 3) The bullwhip effect can be reduced by keeping prices low and keeping demand steady. This reduces periodic high inventory levels and the need to discount products (Ivey, 2011). VMI (vendor-managed inventory) is a model in which an accord is reached between the customer and the retailer based on customer demand. The customer to an extent decides the prices of the products in this model. Large amount of inventory...
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...| ByMr Shireesh | RFID | | | | Words Count: 2,180 Tables of Content Page Tables of Content 1 Introduction 2 What is Radio Frequency Identification (RFID)? 2 - 3 Purpose of RFID 3 - 6 Benefits of RFID 6 Disadvantages of RFID 6 Points of View 7 Conclusion 8 References 9 Introduction Imagine a technology that could slice the time it takes a retailer to measure inventory, one that could provide accurate information about a single tem as it moves from manufacturing through a store and then on to post-sales support. Imagine one that could finally fully automate checkout, freeing store personnel to provide increased levels of customer support. RFID - Radio Frequency Identification...
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...Retail Stores Using RFID in Supply Chain Management – Wal-Mart SCM exists in both service and manufacturing environments. A typical supply chain consists of many interactions between suppliers, manufacturers, distributors, retailers, with the ultimate goal of providing either a service or a product to customers. This also works in reverse with the customer at the head of the process when returning a product. The overall goal of SCM is to optimize supply chains in an attempt to provide more accurate and time sensitive information that can be used to improve process times and cut costs. Supply chains have been around for decades and a constantly being improved. The newest opportunity for improvement is the introduction of radio frequency identification (RFID) tags. RFID technology provides real-time information that allows manufacturers to get better readings of customers and markets which ends up improving supply chains. RFID helps retailers provide the right products at the right places at the right times. Ultimately, this results in maximizing sales and profits. Wal-Mart has been leading the charge with RFID technology. The company initiated its plan to employ RFID technology in its supply chain in June 2003. Having the largest retailer adopt and begin to use RFID technology has given strong backing to the technology and has furthered and quickened the expansion of RFID. They have begun requiring all their major suppliers to implement RFID technology on all products supplied...
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...Inventory Management Methods (ii) RFID ( Radio Frequency Identification ) RFID is small tags contain a chip with information. The information on the tag can be updated or changed as necessary which makes it more adaptable than barcode. This technology helps stores or companies to see who is buying their products, how fast and when they need to restock. It uses radio frequencies to transmit data stored on small tags attached to individual products. RFID helps to reduce costs and increase efficiency. Besides that, RFID allows businesses to identify individual products and helps to track the products throughout the supply chain from production to point-of-sale and help companies get the right products into the right stores at the right time. Advantages There are some advantages using RFID which are firstly, resistant to humidity and temperature which means they can be used in harsh weather conditions. RFID tag is more resistant because it is normally part of the products and it is placed under a protective surface and supports humidity and temperature better compared to barcode which breaks and damaged easily. Secondly, enables reading of several labels simultaneously automatically compared to barcode which have to be read sequentially. For example with this automatic identification system through radiofrequency it can reduce waiting time in supermarket queues. Thirdly, can contain more information about the product which means electronic labels can hold more information...
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...Synchronized Distribution Supply Chain: Best Practices in Warehouse Management About Motorola’s Mobile Supply Chain Solutions Every day, companies all over the world count on Motorola mobility solutions to keep their supply chain operations at peak productivity and profitability. When it comes to supply chain optimization, Motorola’s end-to-end supply chain mobility solutions offer the expertise gained through successful proven deployments in many of the world’s largest enterprises, a comprehensive and proven enterprises class product portfolio — including wireless infrastructure for seamless ‘inside outside’ mobility, integrated voice and data devices and bestin-class applications through a world-class partner network — and a complete portfolio of services designed to help you get and keep your mobility solution up and running to ensure peak performance and maximum value. For more information on how Motorola mobility solutions can streamline your supply chain, please visit motorola.com/supplychainmobility or access our global contact directory at motorola.com/enterprise/contactus Executive summary The warehouse is at the center of your business, a key area through which nearly everything in your business must pass — from packages in a parcel post environment to raw materials and finished goods in a manufacturing plant to a wealth of products in a distribution center. When mobility is extended throughout your warehouse, a new level of efficiency, accuracy and visibility...
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...Chapter 2 IT Infrastructure and Support Systems IT at Work IT at Work 2.1 Western Petro Controls Costs with its Trade Management System For Further Exploration: Which processes are being automated and why? PetroMan is a comprehensive trading system that triggers buying and selling activities and integrates contract management, risk management, accounting, and pipeline scheduler. Using the PetroMan, the company can place bids and automatically capture a contract for refined products; and schedule and confirm deliveries in pipelines. PetroMan also handles the resale of fuels, including electronic invoicing and a credit module that checks and tracks a customer’s credit risk. This tracking is done by hedging large purchasing contracts by selling futures on the New York Mercantile (Commodities) Exchange. By hedging, the company protects itself against the risk of a large drop in oil prices. The software is plugged directly into the primary commodity exchanges--automating the process. Why is controlling risk important? By hedging, the company protects itself against the risk of a large drop in oil prices. The software is plugged directly into the primary commodity exchanges--automating the process. Does PetroMan provide Western Petro with a competitive advantage? Explain. Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving Competitive Advantage strengthens and positions...
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...Inner Mongolia University for the Nationalities, Tongliao, China. E-mail: honeyzhaoshuang@126.com Received: August 31, 2014 Accepted: September 20, 2014 Online Published: November 26, 2014 doi:10.5539/jms.v4n4p184 URL: http://dx.doi.org/10.5539/jms.v4n4p184 Abstract This essay analyses and evaluates critically Tesco’s current operations management. The essay discusses from 3 major perspectives namely, operations strategy, operations design and operations management. Firstly, it will show an introduction. The second section will analyze Tesco’s formats and international expansion at corporate strategy level. And then, based on the customer-centric conception, it will discuss the low price policy, cost control, loyalty card strategy, supply chain management, delivery system management and inventory management at the business unit strategy level and functional strategy level. Following this, it will make a comprehensive conclusion and show the strengths and weakness of Tesco’ operations management. Finally, the article will give some appropriate recommendations to Tesco’s sustainable development. Keywords: operations strategy, operations design, operations management 1. Introduction Tesco was established by Jack Cohen in London in 1919. Today Tesco is the biggest retailer in UK. It operates in 14 countries across the world and serves tens of thousands of customers every day. The company mainly operates 4 types of store formats in terms of Express, Metro, Superstore and Extra, respectively...
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...Supply Chain System of Aircraft Spares Traceability is an enormous concern because the time spent locating parts is an important factor in military aircraft maintenance and accuracy, timely maintenance and accountability are critical to success. Adopting RFID in aircraft warehouse will substantially help in increasing operational efficiency in servicing aircraft; reduce risk in the spare parts supply chain; and improve the ability to comply with Aviation Safety Agency’s guidelines regarding traceability and authenticity of aircraft components. Air force has a large inventory of equipments and the spare parts for these are delicate and require specific storage condition. The supply chain system in air force is as follows: Equipment Depot: A single point for storage of spares. In fact any inventory on the air force is received from OEM and unserviceable spares are received from units for further dispatch to OEM for repair. Serviceable spares are further dispatched to units. Thus spares are received and dispatched from ED. If all the received goods are tagged using RFID, the goods can be automatically scanned within seconds when the pallet carrying the goods is being moved through the receiving door. Information concerning the received goods can be directly sent to the information system for validation with instantaneous feedback to the operator in the receiving dock Damaged goods can be easily distinguished by programming an indicator in the tags together with all other...
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