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Short note on supply chain management
Aspects of supply chain management
Short note on supply chain management
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Supply Chain Management (SCM) is a management approach, aiming to make the whole supply chain system cost to a minimum so as to effectively manufacture, transport, distribution and sale under the certain customer service and demand conditions. In order to have a best understanding about Lean Supply Chain and lean production lines, we were asked to participate in a Lego supply chain simulation as following. The Scenario: We were seen as a company that aims to build and sell Lego house. The whole class was divided into eight groups, four groups were composed of a team to play suppliers, warehouses, distribution centers, and manufacturers, each group has their own standardised procedures. We were providing a variety of colors …show more content…
Round Three: Each group, one by one, to implement their process and build a house Debrief: Our group initially intended to build a house by each two person, one to complete steps 1 to 4, another people to make steps 5 to 8 at the same time, then integrate these two parts. However, during the implementation, this process has proved impractical. Because in a short time, the speed of two person are not the same, which leads to lots of semi-finished products were wasted. Revelation: Everyone should identify the objectives and complete them by themselves. While constantly receiving new demands, the partners should rapid exchange, cooperate and transform objectives in accordance with pre-conditions, thereby increasing the total output. In addition, quick response is still the core of the supply chain, preparing the elements in advance, then rapid extract and assemble. …show more content…
Therefore it requires from the aspect of user-centric and provides the best services. Rapid and Timely Timeliness is an extension of the service. It is the requirements of both users and social development, but also a key for the company in the face of new requirements to win. External factors: a quick overview of what the market will need and forecast changes in the environment , and quickly identify market opportunities. Internal factors : timely to innovate, develop new products to meet market demand. In addition, make the flow of goods faster and shorten the cycle of social reproduction. Savings Saving is an important rule in the economic field . In the supply chain , company should try to shorten the completion time and close to the real-time production needs. Besides, company should be focusing on labor savings, material savings, and reduce the cost of purchasing, inventory, transportation as well as other sectors. Relying on savings to reduce investment is an important means to improve the relative
Chopra, S., & Meindl, P. (2012). Supply chain management: Strategy, planning, and operation (5th ed.). Upper Saddle River, NJ: Prentice-Hall.
Each week, each component in the supply chain tries to meet the demand of the downstream component. Any orders which cannot be met are recorded as backorders, and met as soon as possible. No orders will be ignored, and all orders must eventually be met. At each period, each component in the supply chain is charged a $1.00 shortage cost per backordered item. Also, at each period, each component owns the inventory at that facility. In addition, the wholesaler owns inventory in transit to the retailer, and the distributor owns inventory in transit to the wholesaler, and the factory owns both items being manufactured and items in transit to the distributor. Each location .is charged $.50 inventory holding cost per inventory item that it owns. Also, each supply chain member orders some amount from its upstream supplier. It takes one week for this order to arrive at the supplier. Once the order arrives, the supplier attempts to fill it with available inventory, and there is an additional two week transportation delay before the material being shipped by the supplier arrives at the customer who placed the order.
Generally, as figure 1 shown that the Strengths for this supply chain is good for short run production and hard make mistake. It could avoid the lack of materials and make materials mixed together.
The main aim of supply chain management is allow the movement of both goods & information in a manner which is appropriate to any industry.
‘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...
Supply chain management is the main role in operation management.Supply chain management handles supply side activities of a business with efficiency and effectively to gain the competitive advantage in the market.(Investopedia, 2003)SCM concerned with raw material supply,intermediate supply,end product distribution,retailers and wholesalers.So every aspect of supply chain is critical for the business and doing it right can cause
“The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains.” (Handfield)
Lambert, D.M. (2008) Supply Chain Management: Processes, Partnerships, Performance, Sarasota. Florida: Supply Chain Management Institute
Supply chain management is the process of planning, implementing and controlling the efficient flow and storage of goods and related information from the point of origin to the point of consumption, see appendix A.The mid 1980’s is when businesses began to understand the importance of of SCM as a whole. They started to look at the effect of logistics along with the ot...
As per definition supply chain management is the management of different stages of all business activities and processes which is necessary to manage demand and supply on a global scale.
In all, supply chain operation management has helped many global companies in handling and distributing their products as it is a one-stop solution provider from one warehouse direct to end user. By building trust among the trading partners with effective communications would improve performance metrics both the company and the solutions provider.
Supply chain management (SCM) is the management of the torrent of possessions and chattels. It has been demarcated as the "design, organization, execution, control, and checking of supply chain events with the objective of creating net value, building a competitive infrastructure, loading of raw materials, inventories of work in progress and completed goods from point of origin to point of consumption. It includes the movement and based on the worldwide logistics, coordinating supply with demand and measuring performance globally Codependent and interrelated obligations channels and businesses are complex nodes in the supply of products and services required by end customers in the supply chain. The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain.
However, SCM also allows a firm to achieve other related objectives. First, it allows an organisation to reduce costs per unit due to the increased level of efficiency. Supply chain management also reduces the length of the delivery cycle (Havaldar, 2008). Other objectives of supply chain management focus on waste reduction and creating delivery systems that are superior to those of competitors (Havaldar, 2008). From the definition, it is evident that supply chain management’s scope is extensive. It begins with the movement of different raw materials into an organisation, followed by the movement of these materials within the organisation as they are converted into final products. Additionally, supply chain management concerns itself with the delivery of finished goods to the end consumers. The wide scope of supply chain management can distract an organisation from its core mandate. As such, firms opt to concentrate on their core competencies and rely on partners to oversee the majority of supply chain functions. This reliance on partners is facilitated by modern technology which has connected suppliers and customers in new and effective ways (Longenecker et al.,
A supply chain may be characterized as a coordinated procedure wherein various different business elements (i.e., suppliers, makers, wholesalers, and retailers) cooperate with an end goal to: (1) gain raw materials, (2) change over these raw materials into indicated complete items, and (3) convey these last items to retailers. This chain is generally portrayed by a forward stream of materials and a retrogressive stream of data. For a considerable length of time, scientists and professionals have basically researched the different procedures of the supply chain separately. As of late, in any case, there has been expanding consideration put on the execution, configuration, and examination of the supply chain in general. From a reasonable outlook,
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.