That is why the design of the reverse supply chain processes is so important. Every company needs specific processes that are aimed at increasing value for the company and its customers based on the type of industry in which it operates and the type of products that it supplies. The major stumbling block for most companies that are attempting to optimize their return supply chain is the chaotic nature of reverse logistics. Volume within the return supply chain is highly variable and difficult to predict or control (O’Reilly, 2005). In addition, returning the product in a timely manner is often not of major importance to the end users and retailers.
Since the ERP software can only be customized so much, many businesses need to try to fit the model of the ERP. Some business techniques are so unique that the customization of the software is appropriate. However, customization of software should be avoided when possible because of the extreme costs. Int... ... middle of paper ... ...are packages offer global packages that include exchange rates, multiple languages and many other features for global positioning. One can find out more about these projects at the company web sites or in business magazines.
Inventory Management Processes Given the core nature of the problem, it is important to take a look at the different concepts for more efficient inventory management practices in order to reduce the WIP inventory at all stages. Inventory management is one of the key concerns for manufacturing set ups in order to be successful. Manufacturers suffer from inefficient inventory management because of their business settings. Many operational and structural conditions cause inappropriate inventory management and inventory related problems surface every now and then. Some suggested areas that can address the cause for this pile up of inventory at every stage are as follows- Information Systems Firms should have a good information system to view accurate demand and inventory levels and to monitor policies more consistently in order to develop an efficient inventory management system.
Corporates and companies have worked upon the velocity and variability of supply chain but still have very little understanding of visibility. Visibility not only means on-shelf inventory but also means inventory piled up at all levels of supply chain including in transit inventory and inventory piled up across company’s network. Visibility allows concerned people in supply chain to forecast problems before they occur and taken necessary steps to avoid expense in the real time. Two drivers of this savings through visibility come from PO lifecycle and ASN (Advanced Shipped Notice, Inventory) accuracy. Figure Source: Supply Chain Digest Letter, April 2012 Supply Chain Visibility Vectors – A case of Reliance Fresh Visibility vectors are basically the factors that affect the visibility of products and services across various layers of organization’s network.
Throughout all of its distribution activity, General Motors must take into account the regional regulations that are imposed on its network. All working contracts that General Motors writes can be overruled by these regional regulations. This lack of uniformity makes it difficult for General Motors to have a truly uniform way to deal with the suppliers and retailers it distributes to. Moreover, it poses a threat in making it more difficult for the company to make changes and improvements to its existing operations. In dealing with retailers, General Motors works with the dealers individually to deliver a customized product mix to the end customer.
Patricof's focus was not on results or productive feedback from employees. He felt that style and a tolatarian approach to personnel management was best suited for this total quality (TQ) training program. Other barriers Smithers faced was the possibility that employee expectations on the success of this new program may be too high given previous attempts to change Sigtek?s differing engineering and manufacturing corporate culture. It would be difficult to unite these two internal organizations. The major drivers to the success of the TQ program was that Sigtek was in desperate need of a change in its processes or face the risk of going out of business.
Bombardier demonstrates some of the pitfalls that can beset firms when implementing the change that results from the decision like the one Harley made. Change management is paramount to the success of the venture. Bombardier could have had a more efficient roll out if the management had been more effective. Likewise, Harley could have reached the same conclusion with fewer resources devoted to the process. Ultimately, a good decision, a great product and a well-managed implementation is useless unless the IT behind it is aligned with the needs of the business and the vested interest of all stakeholders.
For example, how are customers treated? How open is communication? For example, how difficult is it to interact with senior management? In General Motors, the employees won't have the capacity to settle on their own choices since they will have clear orders from above on precisely what to do. Since the power in General Motors is concentrated, there is an unmistakable chain of command to follow in the organization.
They must also consider and/or decide whether it's better to outsource the devices or some of its components. Situation Analysis Issue and Opportunity Identification Midland Motors is a large company that has a reputation of keeping close and long-lasting relationships with their vendors. For KL it would be an unwise decision to turn their order down. After accepting Midland's order, KL is first faced with the decision to manufacture everything in house or to outsource in order to meet the demand of their new client. One huge issue is the lack of a structured process.
It is a broad investment to sustain a customer database. These excessive costs can lead to a negative vibe within the organization and can result in a collapse of the CRM system. The CRM system should be based to manage the multiple channels of communication with customers – including service calls, feedback forms, e-mails and face to face meet ups at the branches. Also it should the analysis of customer related information. A successful customer relationship management system must use advanced technology and software and human resource to operate them and policies to combine.