...horizontal platforms where the “supply chain becomes a confederation of organizations that agree on common goals, each contributing specific strengths” (Christopher, 2011) In theory, the natural and logical progression towards an advanced supply chain system is where a “series of relationships between partners is based upon value added contributions and exchange of information” (Christopher, 2011). It is difficult to imagine that the reaction of a fully synchronous supply chain in my industry is entirely feasible. In reality, all industries would call for the combination of various players who stay true to their core strengths to work together to form a sustainable advantage, through a web of relationships. If we examine the challenges of supply chain integration as described by Christopher (2011), it is said that (1) collective strategy development, (2) win-win thinking, and (3) open communications are all fundamental elements of a synchronous supply chain. I am doubtful whether the business environment in Mozambique is conducive to the requirements needed for cooperation, creation of visibility and seamlessness of differing procedures without affecting customer retention – unless the effort is done in-house rather than between incapable market participants. “Perhaps the biggest breakthrough prospect lies in achieving truly integrated decisions support systems that link all parties.” (Gattorna, 1998) If we consider the role of supply chain orchestration in the move towards...
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...Global Supply Chains Containerization was a major technological innovation that revolutionized the nature of maritime based freight transport of manufactured goods. It caused a substantial degree of standardization of port services. With containerization, ports in the same region become closer substitutes, and hence are more exposed to competition from other ports and other routes. This tendency is reinforced by two other factors. First, the use of ever larger container vessels implies that fewer port calls are required. This move to larger ships reduces shipping lines’ dependence on particular ports and intensifies competition. Second, the emergence of intermodal rail and road transport has extended gateway ports’ geographical reach. These technological factors imply that the exposure of ports to competition has increased. At the same time, widespread adoption by governments of new public management principles has resulted in a more commercial approach to the management of port operations. Port competition is intense, but ports are not “perfect substitutes”, i.e. they are not interchangeable perfectly or without cost. First, gateway ports still have a strong position in at least some of their service area, as hinterlands do not overlap completely. Second, the intensifying effect of containerization on port competition may be reduced by congestion in ports or in their hinterland transport networks. Third, switching ports is costly. The Emergence of Global Supply Chains ...
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...Barilla SpA (A) Case Module 1 ------------------------------------------------- Table of Contents ------------------------------------------------- Executive Summary 3 Issue Identification and Root Case Analysis 4 Alternatives and Options 7 Recommendations and Implementation 8 Monitor and Control 9 Exhibits 10 ------------------------------------------------- Executive Summary ------------------------------------------------- The tremendous fluctuation that occurred from week to week in the number of Barilla dry products being ordered by the distributors and the extreme demand variability seriously strained Barilla’s manufacturing and logistics operations. Barilla’s highly automated manufacturing system was not designed to accommodate large fluctuations in demand nor, was it designed to accommodate sudden changes in demand or product. Brando Vitali, Barilla’s director of logistics, proposed the idea of Just-In-Time Distribution (JITD) in the 1980’s as an alternative to Barilla’s traditional...
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...better than others in an industry. Using RBV as a framework this essay aims to examine how ZARA generates sustainable competitive advantage. (Opening is good, you have been able to introduce theory that would be discussed the essay). “A fast fashion system combines quick response production capabilities with enhanced product design capabilities to both design latest products that capture the latest consumer trends and exploit minimal production lead times to match supply with uncertain demand” (Cachon and Swinney, 2011). Fast fashion is widely gaining recognition as being a key enabler for success for modern fashion retailers (Barnes and Lea-Greenwood, 2006). Fashion retailers such as ZARA, H&M and Benetton have adopted this strategy in order to enhance its business system and gain competitive advantage. ZARA was established in 1975 and is the flagship of Inditex (Industria de Disen˜o Textil) of Spain. In a relatively short span of time, ZARA became the largest and most internationalized of Inditex’s chains. At the end of 2001, it was operating in 507...
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...agribusiness solutions for the farmers as well as customers by having fertilizer division. The analysis demonstrates the importance of trade-offs, innovation, product development, line of fit and Information Technology systems in the operations strategy, while showing decentralization structure and effect of it on global companies. Introduction Bunge limited is a successful example for transformation of companies to globalization as Bunge CEO Weisser goal to become the best company in the world in agribusiness and food. Performance objectives indicating market requirements from quality, speed, dependability, flexibility and cost for companies to position themselves in the market while decisions areas for operations strategy as capacity, supply network, process technology, and development and organization for companies to set their operation resources capabilities achieving the performance required in the market to reach and maintain the intended market position as a vital part of...
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...White Paper Food Service and Data Synchronization Sponsored by June 2006 Acknowledgements The International Food Distributors Association (IFDA) and GS1 US™ would like to thank the EFR/GS1 US Committee for their work on this paper. Additionally, the following participants of the committee were critical to the development of this document. Data Synchronization Committee Mark Barnekow Todd Brindley Allan Eklund Jodi Miller Pam Tann Lela Tripp Janet Zlokovich Amphire ConAgra Foods United Foodservice Purchasing Co-op, LLC Land O’ Lakes, Inc. SYSCO, Inc Tyson Foods, Inc Answers Systems, Inc IFDA is a Washington, D.C. based trade organization representing foodservice distributors throughout the U.S., Canada, and internationally. IFDA’s 130+ members include broadline, systems, and specialty foodservice distributors that supply food and related products to restaurants, institutions, and other food away from home foodservice operations. IFDA members operate more than 550 facilities, and sell more than $75 billion in food and related products to the fastest growing sector in the food industry. GS1 US is a not-for-profit organization dedicated to the adoption and implementation of standards-based, global supply chain solutions. GS1 US-based solutions, including business processes, GS1 Business Message Standards using Extensible Markup Language (XML), Electronic Data Interchange (EDI), and the bar code identification standards of the GS1 System, formerly the EAN...
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...collaborative supply chain with the analytic hierarchy process (AHP) Andra Badeaa , Gabriela Prosteana*, Gilles Goncalvesb,c, Hamid Allaouib,c a Politehnica University of Timisoara, Remus 14, Timisoara 300191 Romania b Universite Lille Nord de France, Lille F-59000, France a Universite Artois, LGI2A, Bethune F-62400, France Abstract This paper analyzes supply chain crisis, the main blockage to effective supply chain collaboration. The research question of this article refers to how the two collaboration concepts (vertical and horizontal) in supply chain can be influenced in practice by potential risk factors. This research proposes five alternatives for a good collaboration: Information sharing collaboration, Decision synchronization collaboration, Incentive alignment collaboration, Resource and skill sharing collaboration, Knowledge Management collaboration. After a thorough research and detailed discussions, the authors identified 16 risk factors most present in literature. The research methodology was combined with the application of the analytic hierarchy process (AHP). © 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license. © 2014 The Authors. Published by Elsevier Ltd. Selection and peer-review under responsibility ofof SIM 2013/12thInternational Symposium inin Management. Selection and peer-review under responsibility SIM 2013 / 12th International Symposium Management. Keywords: collaborative supply chain; risk factors;...
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...The Kroger Company Mem o To: From: Date: Re: Matthew W. Ford Georgi E. Trifonov September 24, 2007 Distribution and supply chain management analysis for Wegmans and Kroger Co. Introduction As assigned, the distribution and supply chain management has been investigated for Wegmans and Kroger Co. A comparison on distributions and supply chain management choice has been made between the two. The comparison also focuses on what beneficial operational decisions can be adopted at Kroger and how they will affect the distribution and supply chains. Summary Comparison between Wegmans and Kroger. The comparison based on distribution strategy shows that Wegmans have implemented strategies that give them advantage over Kroger Co. Such are warehouse semi-automation and conveyor use, which results in decreased labor cost and increased speed and effectiveness. Working with vendors to improve packaging has reduced inventory loss at Wegmans. Information sharing through Global Data Synchronization will further increase their effectiveness. The planned replacement of SKU with ID-tag chips will further improve Wegmans’ supply chain operations. Opportunities for improvement at Kroger. Key opportunities for improvement at Kroger Co. are automation of the warehouse process through the use of conveyor belts that will reduce labor cost and improve effectiveness. Current and future recommendations for Kroger. Key recommendation for Kroger at this point besides automation is vendor relations...
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...future competitive atmosphere. In this upcoming regionalization, Thailand’s betterment depends on being well prepared in the logistics area. Thus, Thai businesses should develop their logistics capability especially in terms of business cooperation, business information synchronization, and logistics skilled labors. In this context, good business cooperation means multiple companies in the supply chain jointly operate in order to meet their goals effectively. It could not only help increase the revenue, but also to reduce their cost in several perspectives. For instance, a global carmaker such as Toyota usually coaches their automotive part suppliers regarding their successful Lean Manufacturing concept which would help these suppliers to operate with more efficiency and effectiveness. At the same time, these suppliers share their knowledge concerning the part production methods, conditions, and common difficulties to Toyota, so Toyota would learn and comprehend more in feasibility of each part’s manufacturing and can design their automotive parts more practically. From this example, useful business cooperation may result in mutual benefits for many stakeholders. Furthermore, business information synchronization, particularly information technology (IT) integration, is also becoming an essential supporting factor facilitating industries concerning reliability, flexibility, and speed. Previously, business partners may often experience mistakes in several recorded documents due...
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...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...
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...Learning Team Reflection: Supply Chain and Demand Model ECO/372 Learning Team Reflection: Supply Chain and Demand Model The topic that we are discussing is supply chain and demand model. We have learned many valuable tools over the past four weeks that has lead us to this topic. We learned about historical economic data, economic forecast data, aggregate demand and supply models. Each of these topics has aided us in learning the fundamentals of Macroeconomics. This week we discussed the relationship between supply chain and the supply and demand mode. We will explain what each is and how they work together. Our goal is to gain and give a better understanding of the relationship between the two. Supply Chain and Demand Model A Supply Chain is a network of companies and services that have products available to consumers. “Historically, the three fundamental stages of the supply chain; procurement, production and distribution, have been managed independently” (Thomas & Griffin, 1996, p. 1). The supply chain gets a good or service from the supplier to the consumer. Goods are often produced anywhere in the world, and the supply chain management makes them available to us locally so we don’t have to travel far to purchase a foreign car, a pair of jeans or a cup of coffee. They make sure we get the best quality for the price we pay. The supply chain consists of purchasing, logistics and the production line. The supply chain exists to bring in the resources...
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...CASE STUDY Boeing 787: Global Supply Chain Management Takes Flight Leveraging Global Partners to Maximize Customer Value Company Profile World’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined Goal Leverage global partners to reduce cost, speed time-to-market, and increase customer value while maintaining the highest level of safety Challenge How to maintain visibility and control while transitioning from a vertically integrated manufacturing model to a global partner model that leverages providers of best value components and technology Solution Exostar’s Supply Chain Management Solution powered by E2open software to provide end-to-end management of the order, inventory, and planning processes executed across multiple tiers of supply partners Expected Results Eliminate latency in communicating demand /supply changes and change impacts across partner tiers Ensure continuity of supply while minimizing supply disruptions Improved on-time delivery and ship-tocommit date with end customer Provide global visibility to all partners involved in the delivery of the completed assemblies Reduce total manufacturing cost by leveraging best price and value partners globally The new Boeing super-efficient jet liner is the 787 Dreamliner. Scheduled for delivery beginning in 2008, the Dreamliner provides passengers with a better flying experience and operators with a...
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...Dell’s Supply Chain Management The term supply chain management (SCM) was initially used in wholesaling and retailing to denote the integration of logistics and physical distribution functions with the goal of reducing delivery lead times. Manufacturers and service providers have used the same term to describe integration and partnership efforts with first- and second- tier suppliers to reduce cost and improve quality and delivery timing. Terms such as integrated purchasing strategy, integrated logistics, supplier integration, value chain management, supply base management, strategic supplier alliances, lean production, Just-In-Time (JIT) logistics, and supply chain synchronization have been used in the literature to address certain elements or stages of this new management philosophy (1998; 1994). Conceptually, SCM includes all value-adding activities from the extraction of raw materials through the transformation processes and through delivery to the end user. SCM spans organizational boundaries and treats the organizations within the value chain as a unified virtual business entity (1991; 1995). (1995) further expanded SCM to include recycling or reuse activities. In general, SCM seeks improved performance through elimination of waste and better use of internal and external supplier capabilities and technologies (1996). The retailing industry has focused on different aspects of SCM, namely, location, transportation, and logistics...
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...WGU - Supply Chain - The Entire Course - All 3 Tasks http://www.homeworkminutes.com/question/view/41072/WGU-Supply-Chain-The-Entire-Course Task 1 Supply Chain Management Simulation Analysis (B): Utilizing pro-forma balance sheets revealed that I was too conservative in my initial approach. My market share was 98% in the traveler series but dismal in the workhorse line. My decision to invest $400,000 into a certificate of deposit was a critical error. I should have opened an office in Europe sooner to maintain market share. Pro-forma financial statements are critical to determine the outcome of previous decisions. After my third quarter my error was to not completely analyze my financial statements. Earlier, in the second quarter, I had went from a negative $394,000 to a positive $493,749. This gave me confidence in my traveler line and since I was only at 4% market share with the workhorse line – I dropped the line completely. I made the decision after reviewing analysis of my profit and loss statements. I viewed this as a low profit item that was taking away from our cash assets that could be best used to catapult our traveler line My initial goal was to gain market share and defend it. I gained market share but did not keep it. My conservative approach early in the simulation did not allow me time to defend my 98% market share. I analyzed competitors and they were gaining...
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...CASE STUDY December 2002 Procter & Gamble: Building A Smarter Supply Chain Issue/Solution To remain profitable, consumer products manufacturers must find ways to optimize the performance of their supply chains. They need to support marketing promotions better and avoid frustrating consumers with out-of-stock situations in the store. Situation • Procter & Gamble realized it needed a “consumer-driven supply network” to stay ahead in the consumer packaged goods industry. Retailing’s “first moment of truth” is a key focus area for P&G. When the shopper reaches the shelf, is the product there? • Discoveries • • Links between supply chain and CRM processes are critical. Business leads, technology follows. But the technology must be proven, practical and scalable. Even with immature solutions, it is possible to get rapid payback on streamlined demand and fulfillment processes for critical products. A harmonized ERP applications backbone is a basic requirement. • • Recommendations • Secure management support before you start redesigning your supply network. Don’t let politics condemn the initiative to failure. Leverage the value IT can bring in connecting demand and supply side business processes. Simplify your applications architecture to allow collaborative business processes and cope with changes in network alliances. • • Dig Deeper • • • Related Research from GartnerG2 Gartner Core Research Methodology Maria Jimenez with Derek Prior ...
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