...THE FUTURE Chapter 16—SUPPLY CHAIN PROCESS INTEGRATION AND A LOOK TOWARDS THE FUTURE For those for whom integration is not happening, the future is bleak and getting darker.[i] There is a lot of value that is “trapped” between the processes trading partners use to transact business, and when companies work together, they can unlock that value and share its benefits.[ii] LEARNING OBJECTIVES After completing this chapter, you should be able to: • Discuss and compare internal and external process integration. • Discuss the requirements for achieving process integration. • Describe the barriers to internal and external process integration, and what can be done to overcome them. • Understand the importance of performance measurements in achieving internal and external process integration. • Understand why it is important to align supply chain strategies with internal process strategies. • List and describe the eight key supply chain processes, and how trading partners integrate these processes. • Discuss a number of the latest trends in the areas of process management and process integration. CHAPTER OUTLINE Introduction Achieving Internal Process Integration Extending Integration to Supply Chain Trading Partners A Look at Trends and Developments in Integration and Process Management PROCESS MANAGEMENT IN ACTION—An Interview with Zack Noshirwani, Vice President of Integrated Supply Chain for Raytheon The...
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...Introduction Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration: management of information and financial flows, inventory management, and management of relationships of trading partners (Power, 2005). Modern businesses are dynamic in nature and to stay competitive (organizations) need to optimize their business processes by understanding and reacting to the rapid changes in their environment' (Banavar, Black, Caceres, Ebling, et al, 2005). Dialysis, a specialized field in the healthcare industry, is a major business entity with penchant for a rapidly changing environment. Dialysis is a medical treatment for individuals with limited or no kidney function and without this specialized therapy these unfortunate individuals would not survive. In dialysis, supply chain management is crucial from all aspects in providing comprehensive and adequate patient care. The constant changing needs of patients and the organizational...
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...sourcing Global manufacturing Global distribution . dealing with foreign . facility location . local content regulations suppliers . coordinating networks . managing global . managing international of plants distribution logistics . coordinating networks . managing risk . managing risk of R&D facilities . operations in other countries Page intentionally left blank. Class: 2a Type: Lecture Supply Chain Management & Service The goal in this part is to introduce the two main sections of the course, international manufacturing and international service. For manufacturing we start with the simple proposition that decisions about our company’s competitive strategy leads to a supply chain strategy which then leads to a supply chain structure. We provide a strategic framework that can be used to analyze design, planning, and operational decisions in a supply chain. This framework focuses on supply...
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...Research Paper David A. Horvath INF 336 – Project Procurement Management Beverly Williams May 9, 2011 Purchasing and supply management holds a position of great importance to the business world. Within purchasing and supply management, there are the steps of the creation of project supply, service, and material budget from detailed requirements. It shows how to select the most qualified suppliers and strategies for negotiating prices. Along with this, there are also benefits and costs of outsourcing. This includes the growth of outsourcing. Various organizations will be evaluated on their benchmarks in purchasing and supply management, along with their best practices in this. There are specific companies out there that who show market leadership in purchasing and supply management. The term, “purchasing,” is often limited to what its actual definition is. It is limited to just buying and this refers to the location and selection of suppliers, learning of the need for whatever it is to be bought, price negotiation and any terms of agreement, and finally, the payment and delivery. In this particular case it is something much bigger this is not the definition that should be used for it. “Purchasing, supply management, and procurement are used interchangeably to refer to the integration of related functions to provide effective and efficient materials and services to the organization. Thus, purchasing or supply management is not only concerned with the standard steps in the procurement...
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...1.1 Explain the importance of effective supply chain management in achieving organizational objectives of the chosen Organization. (AC 1.1: Explain the importance of effective supply chain management in achieving organizational objectives). 1.2 Explain the link between supply chain management and business functions of the Chosen Organization. (AC 1.2: Explain the link between supply chain Management and business functions in an organization). 1.3 Discuss the key drivers for achieving an integrated supply chain strategy of the Chosen Organization ( AC 1.3 : Discuss the key drivers for achieving an Integrated supply chain strategy in an organization). 2.1 Explain the role of logistics in supply chain management of the chosen Organization.(Assessment Criteria2.1 : Explain the role of logistics in supply Chain management in an organization). 2.2 Evaluate procurement practices of the chosen Organization. (Assessment Criteria 2.2: Evaluate procurement practices in an organization). 2.3 Discuss the factors that must be considered when improving logistics and Procurement practices of the chosen Organization (Assessment Criteria 2.3 : Discuss the factors that must be considered when improving logistics and Procurement practices an organization). 3.1 Explain the importance of INCOTERMS 2000/ 2010 in the chosen Organization.(Assessment Criteria 3.1 : Explain the role of Inco...
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...Supply Chain Management: made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers Supply Chain Includes… facilities functions activities involved in the process of delivering a product or service from suppliers to their customers Supply Chain Functions and activities… planning and managing supply & demand acquiring materials producing & scheduling the product/service warehousing inventory control distribution customer service Supply chain management Coordinates all these activities so that customers can be provided with prompt and reliable service Successful supply chain management in turn can provide the company with a competitive advantage Facilities along the supply chain plants warehouses distribution centers service centers retail operations Distribution methods Rail truck water air pipeline computer mail Uncertainty in the chain wrong forecasts late deliveries poor-quality materials or parts machine breakdowns canceled orders slow information transportation breakdowns Coping with uncertainty Insurance inventory companies carry inventory to minimize the negative effects of uncertainty and to keep the productive process flowing smoothly from suppliers to the customer Controlling uncertainty... identifying and understanding the causes of the uncertainty determining how it affects other activities up and down the supply chain formulating ways to...
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...SIBM,Bengaluru | Supply Chain Management | Assignment :Set 1 | | Karthik Periyasamy P 14020841020 Question: 1 You are the manager of Strategic Sourcing at Toyota Motor Corp and have just been called by the VP of global sourcing to whom you report. There has been a problem with the least 8 vehicles exhibiting sticking accelerator pedals and your boss is upset. Strong Evidence points to a problem with CTS, an electronic supplier, which has been recognized for high quality standards by the Toyota. Answers a) Identify the exact sequence of steps - a project plan - on how to handle this problem, from dealing with customers to identifying causes. Explain what should be done and why? ------------------------------------------------- The first step to be followed is to check with the different dealers across various cities to know if there are any more such cases. Those dealers should be asked to contact the customers to know if they are facing any such similar issues related to the accelerator pedals. If so, those vehicles need to be recalled for fixing the issue. This is the most important step as customer relationship is the key for any firm’s success. If the defective number of cars is too high, a special team can be setup to respond to the concerns of the customers. ------------------------------------------------- The next step would be to setup a discussion with the supplier CTS, to understand the severity of the problem. This discussion also provides...
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...SUPPLY MEASUREMENT BUSINESS METRICS Definition - A business metric is any type of measurement used to gauge some quantifiable component of a company's performance, such as return on investment (ROI), employee and customer churn rates, revenues, EBITDA, and so on. It can also be defined generally as a unit or units of measure to gauge a company's performance and provide the company's employees with a standard to improve. The current interest in performance measurements has led to a variety of supporting adages or clichés in the industry, such as: • “Anything measured improves.” • “What you measure is what you get.” • “Anything measured gets done.” • “You can’t manage what you do not measure.” These are not new business ideas, but there are a few new twists. Using measurements to support manufacturing operations has its roots back to the late 19th and early 20th centuries with ideas espoused by Frederick W. Taylor, the father of applying scientific methods to running business. His ideas for time and motion studies of operations were successfully used to scientifically manage production lines and warehouse operations. These ideas, however, led to exaggerated business processes that transitioned into “running a business by the stopwatch” with employers treating human employees as if they were highly reliable, predictable machines to be monitored and controlled. Over time, the workplace’s view of performance measurement became more humane and these exaggerated types...
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...Introduction This report is engendered to analyze the functions, procedures and operations that Canadian Freightways participate in order to sustain synergy between CF and its customers, its views on outsourcing, as well as the efficiency of its operations. However the real question is; is CF taking all possible measures to fully satisfy their customer’s requirements? Are there areas within CF’s internal controls that could be altered in order to improve and provide a better experience for their customers? If not, what are the externa factors and how could outsourcing be used to capitalize on these areas of structural weakness? In addition to establishing possible solutions an examination of Canadian Freightways practices will be analyzed to determine what steps are taken to resolve all barriers of customer fulfillment, and in addition a breakdown of a make or buy analysis will define Canadian Freightways approach to outsourcing. This report will also include an evaluation of the approaches CF takes to ensure effective and efficient operations and how these activities deliver customer value. Finally a few suggested recommendations will be produced to help improve the organization’s customer fulfillment and overall success. Canadian Freightways and Outsourcing Why must Canadian Freightways outsource and what are benefits to having work operations and product production completed “in-house” (Make or buy decisions Investopia) rather than by another company? When analyzing...
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...DOM05 Supply Chain Management Assignment – I Assignment Code: 2014DOM05B1 Last Date of Submission: 15th November 2014 Maximum Marks: 100 Section-A Each question carries 25 Marks. Q1. Discuss in detail few methods of Cost Control in Supply Chain Management. Q2. Discuss in detail few challenges faced by Supply Chain Managers today with few examples. Section – B Case Study (50 Marks) ABC Company is electronics, aerospace, electrical machinery, semi-conductors, and computer products Company. Its annual sales are nearly Rs. 1000 crore. It has manufacturing plants in 5 states and 4 foreign countries. It employs 120000 people worldwide. While its operations had expanded, its purchasing, warehousing and shipping functions had lagged behind its other business units in effectiveness. Although a JIT system had been installed, problems with materials remained because no one seemed to be accountable when difficulties arose. For example, a recent order from a supplier arrived late at ABC Company’s Jamshedpur plant. Purchasing blamed the warehouse and shipping. The warehouse blamed production control. Production control blamed warehousing and purchasing. Shipping claimed that the motor carrier lost the order for several days in Patna, thus delaying delivery. Each function pointed an accusing finger at the other functions. Discuss: How the problems faced by ABC Company could be solved by the use of Supply...
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...Executive Masters Program In Business Administration (E-MBA) Supply Chain Management Note: - Solve any 5 Questions All case carries equal marks Q.1. Read the following case and answer the questions given at the end. Passenger Interchange In most major cities the amount of congestion on the roads is increasing. Some of this is due to commercial vehicles, but by far the majority is due to private cars.There are several ways of controlling the number of vehicles using certain areas. These include prohibition ofcars in pedestrian areas, restricted entry, limits onparking, traffic calming schemes, and so on. A relatively new approach has road-user charging, where cars pay afee to use a particular length of road, with the fee possibly changing with prevailing traffic conditions. Generally, the most effective approach to reducing traific congestion is to improve public transport. These services must be attractive to people who judge them by a range of factors, such as the comfort of seating, amount of crowding, handling of luggage, availability offood, toilets, safety, facilities in waiting areas. availabilityof escalators and lifts, and so on. However, the dominant considerations are cost, time and reliability. Buses are often the most flexible form of public transport, with the time for a journey consisting of four parts : • joining time, which is the time needed to get to a bus stop • waiting time, until the bus arrives ...
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...Wal-Mart Supply Chain Mathew Chitwood Southwest Florida College Marketing Strategy Professor Blakely November 20, 2013 Wal-Mart Many would argue the strategic advantage Wal-Mart holds in the retail industry is the ability to offer lower prices than their competitor’s, which translates into greater savings for the consumer; however, the key to offering lower prices stems directly from Wal-Mart’s distribution and inventory system. Through the application of advanced technological practices to the establishment of distribution centers throughout the country, Wal-Mart has been able to out-maneuver competitors by ensuring that store shelves are rapidly re-stocked with items that consumers wish to purchase. How exactly does Wal-Mart’s distribution system correlate to lower prices for their consumers one may ask; the answer is really quite simple. As stated by Ferrell & Hartline, “every time a different intermediary handles a product, the cost to the final customer increases” (Ferrell & Hartline, 2011, p. 282). With this in mind, it is rather evident as to why the establishment of distribution centers can be viewed as a key element to Wal-Mart’s competitive advantage. Wal-Mart currently operates 158 distribution centers which is one of the largest in the world. Much like the airline industry, these distribution centers are known as “hubs of activity” (Wal-Mart Corp, 2013) for the business. Combined with operating “a fleet of 6,500 tractors, 55,000 trailers, and...
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...SUPPLY CHAIN MANAGEMENT DEFINING SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. The following are five basic components of SCM. 1. Plan—This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer demand for their product or service. 2. Source— Companies must choose suppliers to deliver the goods and services they need to create their product. Therefore, supply chain managers must develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. 3. Make—This is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery. This is the most metric-intensive portion of the supply chain where companies are able to measure quality levels, production output and worker productivity. 4. Deliver—This is the part that many SCM insiders refer to as logistics, where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments. 5. Return—This can be a problematic part of the supply chain for many companies. Supply chain planners have to create a responsive and...
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...Supply Chain Management Stacia Sorin Concordia University Word count: 702 Supply Chain Management Anastasia Melnichenko Concordia University Abstract With the vicious competition in today’s society, the introduction of products with limited life cycles, and the increasing expectations of consumers have compelled businesses to devote and center their attention on their supply chains. This, together with continuing progressions in communications and transportation technologies such as the internet, mobile communication, and overnight delivery, has inspired the continuous development of the supply chain and of the methods to direct it efficiently. In a supply chain, raw materials are obtained and items are produced at one or more factories, shipped to warehouses for storage, and then shipped to the consumers¹. As a result, to trim down cost and improve service levels, effectual supply chain policies must take into account the relations at the different levels in the supply chain. Introduction Components The supply chain consists of suppliers, manufacturing centers, warehouses, distribution centers, and retail outlets, as well as raw materials, work-in-process inventory, and finished products that flow between the facilities¹. Supply chain management is a set of approaches used to incorporate suppliers, manufacturers, warehouses, and stores, so that products are produced and distributed at accurate quantities, to specific locations, at the right time. This is done...
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...The coordination of the Supply Chain Management varies on the business industry and collaboration of each company functions. In most organizations, supply chain planning is a cross-functional effort. Functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities, most important fundamental component of the supply chain management would be Functional Coordination within the firm operation, without this function we couldn’t isolate who does what in each phase of operation, and couldn’t determine who being profitable by accomplishing the objective task within budget, and constraints there are other imperative dimensions that have to be addressed in all functional operations. At first Prestige’s Wines LLC had major problem with Coordination and because of that situation we were not profitable for third years, the high cost of the process was out control so we had to reorganize our operations we have implemented a process to our management team to analyze the important features of our operations and coordination of our unique process in the wine business cycle. One of the dimensions of the functional coordination has to be well established before any arrangement can be implemented. The interaction of the company is vital with the collaboration of each category of the process with individuals, committees, and other departments within the company...
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