The overall objective of the integrated supply chain is to integrate the functions of procurement, suppliers, and engineering. Supply chain integration is defined as: “Professionally managing suppliers and developing close working relationships with different internal groups.”1 Integrating these functions into a cohesive group can be complex, especially when dealing with the role of an outside supplier in a company’s supply chain. Once a company decides that they want to integrate their supply chain they must include the suppliers early in the process. In the case studies provided during the course there are examples in the Wal-Mart case study that highlight the benefits of using integrated suppliers into the core of their operations. Wal-Mart actually controls the inventory flow into their warehouses allowing them to manage their cross-docking operations, enabling them to carry little to know inventory storage overhead. While FedEx has suppliers that are integrated into their operations, they are at a much greater level integrated into other companies operations, as a transportation service provider. Integrating suppliers, procurement and engineering will allow a company to create a highly efficient supply chain that continuously eliminates waste. Integrative strategy development is essential to successful integration of a supply chain. There are many components of an integrative strategy first a company must determine its objectives and strategic goals. These named objectives must be a focused few, with associated metrics. After a company has established its objectives, cross-functional business objectives must be established. With the establishment of cross-functional objectives, the associated team must be brought ... ... middle of paper ... ...nherently found within small organizations, a holistic understanding of the unique operational requirements, and a greater sense of ownership of decisions affecting purchases. In the end, the integrated supply chain concept offers an approach that allows companies to consolidate resources from procurement, suppliers and engineering to gain a more holistic understanding of the problem and potential solution sets. There are challenges with fully integrating a company’s supply chain especially if this is going to impact the company’s cultural norms. Meaning that the company will have to understand change management and how the changes will impact the company in the short term to gain the potential benefits of the change in the future. Additionally, there would be concerns for a company to integrate a supplier’s liaison into the company organizational framework.
On the same note, it is well acknowledged that the competitiveness of any organization fundamentally depends on the workforce. Indeed, the workforce is recognized as the heart or living organism of any organization including hotels. It goes without saying that there is minimum likelihood that a restaurant where workers operate in unsafe conditions or are mistreated will offer services and products of the highest quality. Scholars note that employees always desire to work in institutions or restaurants that have high standards of integrity and strive to do the appropriate thing (Fox & Vorley, 2004 pp. 33). This is especially so for the new generation workforce, as well as in attracting the best talent in the industry. A reputation for responsibility and integrity has been recognized as crucial in motivating, as well as recruiting staff especially considering that individuals care about the principles and values that their employers wish to uphold. Scholars note that operating voluntarily to high ethical standards pertaining to environment and social responsibility can result in competitive advantage (Schlegelmilch et al, 2004, pp. pp 254). Customers and civil society groups have been increasingly vigilant in determining whether there is an ethical lapse in the manner in which employees are treated within the supply chain of any organization (Fox & Vorley, 2004 pp. 33). In fact, they have been pressurizing restaurants and other business entities to cut ties with any organization in their supply chain that is not ethical in its treatment of employees. Scholars note that the impression that a restaurant or business entity would create in terms of public relations both on the stakeholders and the customers is highly dependent on the ac...
Supply chain management is connected with the flow of products and information between supply chain members and organizations. New development in technologies enables organization to get correct information easily in their premises. Technologies used are helpful in coordinating the activities which manage the supply chain. By this the cost of information is decreased because now we have increasing rate of technologies. In an integrated supply chain where product or raw material and information flow in a bi-directional we as managers needs to understand that information technology is more than just computers.
WISNER, J.D., TAN, K. and LEONG, G.K., 2009. Principles of supply chain management : a balanced approach / Joel D. Wisner, Keah-Choon Tan, G. Keong Leong. Mason, OH : South-Western Cengage Learning, 2009; 2nd ed. pp 111-113,262
Lockheed Martin’s supply chain is responsible for approximately $11.2 billion annually with nearly 1,500 production suppliers and 900 non-production suppliers all over the world (Lockheed Martin, 2014). Lockheed Martin designed their supply chain using lessons learned from preceding programs, that addressed on-time delivery, and quality assurance. Once a contract is signed with a supplier, Lockheed Martin issues a Material Resource Planning requirement to initiate the procurement process. Engineers travel to each of the sub-contractors and perform quality and reliability testing on their components. ALIS has increased the overall effectiveness of the supply chain by automating tracking of parts. Lockheed Martin has also increased
Understanding the needed supply chain capabilities before one sets out to operate in a global market place is a good idea, before trying to find and fill the holes in the dike are needed. Implementing a strategic plan that can be rapidly duplicated throughout the organization, strengthen supplier relationships, set quality expectations for suppliers by using a supplier performance score card to measure compliance. Optimize logistics and manufacturing capabilities, synchronize business units using information technology, and in order to drive organizational efficiencies create a culture of action. Set goals for a sourcing strategy. This means internal, or possibly external, personnel who can build new capabilities seamlessly. The following areas of performance can help identify the highest priorities as follows:
· Big 3 automaker (Ford, GM, Daimler Chrysler) looking to better management of supply chain (the series of transaction & interaction between suppliers, buyers, and intermediaries) to minimize costs while improving quality
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. The objectives of these organizational divisions are always different and conflict with each other’s objectives. . Marketing puts a higher emphasis on high customer service and maximum sales dollars conflict with manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. The result of these factors is that there is not a single, integrated plan for the organization---there were as many plans as businesses. Clearly, there is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such an integration can be achieved.
In a survey result shown that majority said lack of supply chain management skills and knowledge was the greatest barrier within their own organizations, in view the network of company to work together successfully, though, requires managers to use subtle persuasion and education to get their own enterprise and their trading partners to do the right things. The cultural, trust, and process knowledge differences in company are such that firms successfully managing their supply chain must spend significant amount of time influencing and increasing the capabilities of themselves and their
While I had a good understanding of the supply chain components needed to achieve strategic fit without compromising cost or responsiveness, the article allowed me to dive deeper into the main elements that drive a company’s levels of responsiveness and effectiveness. Further, it allowed me to understand that each company is unique and must execute a supply chain that meets its corporate mission and vision. While Zara’s supply chain has allowed them to become one of the leading retail stores in the world, it cannot be useful for companies like Walt-Mart or K-Mart who are proactive and not reactive to changes in demand. In addition, I was able to place further analysis on the importance of customer criteria and brand loyalty when deciding a supply chain strategy. As well as been able to further understand that minimizing cost is not always the best strategy for a firm, thus, Zara places more emphasis in speed and
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Wal-Mart Stores, Inc. is a renowned retail goods superstore that sits atop the Fortune list at number one. It would be very difficult to find an individual who is unaware of Walmart’s position as the largest brick-and-mortar retail chain in the world. The company has thrived over the past few years and is continuing to grow by effectively managing its store operations and distribution strategies. One of the major contributors to the business consistently meeting market expectations is directly attributable to their management approach. Walmart has revolutionized the way retail companies manage their supply chains in more ways than one. But, perhaps the most revolutionary was the practice of unprecedented coordination with suppliers (Chekwa,
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.