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.
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 Lego bricks(blue, red, green, white, yellow) that represent different demand, and 16 pieces can be built a house.
Round One: push system--Unknown customer demand
Without knowing the customer demand, the most serious consequence is caused by a large number of product waste. In the supply process, there is no clear division of labor and no clear target, resulting in waste of personnel, time waste, waste materials, unnecessary transportation, and excess inventory, leading to low-cost eventually.
This behavior of first manufacturing and then supplying to market cannot expect the sale effect before consumer purchase. In this “Push System”, the risks of inadequate inventory or excess inventory as well as the poor sales are existing side by side. Thus, the supply chain should adopt the “Pull System” which regards customer as center and market demand as the driving force.
Round Two: Pull system--Only Group 4 will see the demand
Group 4 pas...
... middle of paper ...
...ng the application of information technology is essential. For example, the implementation of shared POS system, EOS systems, database systems, and the promotion of EDI and VMI supply chain management applications constantly revise
Design, implement, revise and continuous improve to workflow, physical processes, information flow and capital flow.
A major objective of supply chain management is to optimize the overall performance of the supply chain, rather than to optimize the performance of individual companies or departments, so the collaboration among participants in the supply chain is very important to risk burden equally as well as benefit.
Lego supply chain simulation make me have an intuitive and vivid understanding of supply chain management. “Win at supply chain management” is not a simple slogan but a sapiential strategy.