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Explain the nature and importance of distribution channels
What is supply chain management....
Questions on supply chain management
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Value Chain at O&M:
O&M offers a considerable value-added services in medical supply chain. O&M provides information on product demand and purchasing patterns to the manufacturers for better managing their operations and production schedules. O&M also allows the customers to access and select different brands of surgical and medical supplies. O&M owns and manages the inventory of products, and then makes deliveries to the customers as part of either a just-in-time or stockless system. Hospitals prefer to purchase in smaller quantities from the distributor who stocks and keeps track of the inventory. In turn, manufacturers are able to avoid this labor- intensive activity of breaking down larger packaging and delivering in smaller batches. O&M also maintain the contractual agreements and tracks the prices for a variety of different
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Cost-plus ties all the importance of the profit to the price of the product instead of the service provided. So in case of O&M, they had to give up their profit to transport bulky but cheap products and could gain only by transporting expensive products. To avoid the high distribution charges occurred due to transport of expensive items, the customer may tend to buy the same from the manufacturer directly instead of the distributors. This leads to the loss of profit for distributors because they are now left with only the inexpensive orders to deal with. Cost-plus pricing allows customers to buy the lowest quantity possible and replenish as often as necessary with no additional charge. Despite seeming more convenient, time and resources are actually wasted by the hospitals that place more frequent orders rather than manage their current inventory more effectively. For the manufacturers on the other hand, cost-plus pricing attracts customers (hospitals) to purchase directly from them but this will lead to inaccurate demand data flow the
...ory holding costs, ordering costs, and shortage costs, and have a classification system for inventory items.
Cost-plus pricing, it the industry pricing standard, and is a method to determine a price of the product by finding the cost per unit and then including a mark-up
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Understanding the changes in the market and the growth of e-commerce prompted the organization to invest heavily in its supply chain management forecasting and management system. The development of a network of distribution centers and Direct Fulfillment Centers to position the company to capitalize on the growing e-commerce market indicate a strong understanding of the need to adapt to changing market forces. The company spent over $300 million on new distribution center facilities in 2014 alone, and continues to expand to maintain efficiency in product movement (Cassidy,
Royal Caribbean Cruise Ltd (RCCL) has two distinct supply chains which create a unique challenge. Each supply chain is managed by a Provision Master. The first supply chain includes all food, beverage, and lodging inventories that needed for the trips. The second supply chain encompasses “corporate spend” materials, such as office supplies, printing services, hardware and software, printed materials, computer supplies, marine consumables (spare parts, fuel, lubricants, any and all services associated with the ship maintenance and etc).
When looking at Target’s value chain, it is evident that they apply aspects of both design and corporate responsibility while thinking through every decision they make to ensure it lives up to their values and helps the world. Starting at the top, they look at design. Design is what they call the heart of the business. Looking at every detail from the big picture to the small things that make a Target shopping experience, the goal is to do it with greater efficiency, style and smarts. (Corporate Responsibility Report, 2014).
The system controlling the quantity and quality of the stock at reception from suppliers has been improved; the next goal to be covered is controlling the hospital’s stock on hand and trying to avoid stock shortage problem.
12). HSC Pediatric Center, like many other hospitals in this country, have been slow to change. According to Hines (2004), “this slow change has been due to operational Improvement efforts have been stymied by lack of automation, inaccurate data, poor business intelligence and reporting” (pg. 19). Due to this high cost in supply-demand HSC wanted to introduce new ways to manage wasted supplies. Our hospital assumed that the medical supplies were being utilized more than they actually were. When our hospitals data is collected this was not the case. HSC was ordering more supplies thinking that that current supply had run out. Unknowingly, theses supplies were tucked away in closets, under patient cribs and in other places where inventory is not accurate. Two suggestions were implemented to combat this ongoing issue; the use of electronic id tags for larger devices and the implementation of the Omnicell to house other
Extended Pricing: Improve customer satisfaction and beat the competition by generating flexible pricing options and rules for each customer. With extended pricing one can:
The external environment has been analysed in previous sections, Appendix E lists internal capability and resources of Burberry by using porter’s value chain model, the VRIO framework will also be used to test whether the brand adds value by such activities or not.
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
Value chain analyses a firm 's internal activities such as planning, production, and development, packaging and distribution so as to create value for clients. The function of the value chain is to identify the sources for cost reduction along with quality improvement. It means value chain is used to identify the strong and weak points, positive and negative points, the scope of improvement; in a nutshell, the advantages and disadvantages of the activities taking place in the system. The value chain is also called as a strategic analysis tool and it is a well-known concept in business management industry.
It is undeniable that Inventory Management is an important key to success at Walmart. This paper will discuss the two main methods of Inventory Management used by Wal-Mart: Material Requirements Planning and Just-in Time. Next we write about the technical means of keeping track of inventories, like RFID tags. We conclude by discussing how Wal-Mart, one of the world’s largest retailers, manages its inventories. Material Requirements Planning (MRP) Walmart needs to make sure that consumers are satisfied all the time, not only with the quality of service being provided to them, but with the quality of the product they are planning.
Healthcare organizations have many different reason to manage their inventory. The key aspect of any management is to be effective. Having an effective inventory management system can create quite a few benefits for businesses. Let us explore this theory.
The first impression one might have about Crocs' products are that they are basically plastic looking shoes that are comfortable and readily available. Customers familiar with this product boast, like on the company website, about "the company’s proprietary closed-cell resin, Croslite™, a technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities"(Company.crocs.com, 2011). There are also various comments about how the material does not slip when exposed to water and of the popularity of the shoes since their "first sale in 2003"(Hoyt & Silverman, 2008, p.13). Over the last few years, the popularity of the shoes have dropped off and the purpose of this study is to present an analysis of the company's value chain and determine what changes I would incorporate and why.