Organizational Readiness (OR) –Hofer, Knemeyer and Drressner (2009) studied that in the firm and 3PL relationships, firms does not only consider financial considerations but relational factors as well. A firm is more likely to outsource 3PL for its dependence on their logistical capability and expertise in providing services. 3PL invests its relationship with the firm by increasing the complexity of a firm’s logistics operations. Hofer’s model showed that inter-organizational factors, especially dependence on 3PL have a stronger influence compared to firm’s specific factors (firm’s partnering experience with 3PL and relationship marketing orientation).
Top management commitment to both manufacturer and logistics service providers in the outsourcing relationship is very important. Top management initiates the integration of value added activities across the supply chain both functionally and organizationally (Hsu et al., 2009).
Environment, Health and Safety (EHS) - it is the goal of Cement Manufacturers Association of the Philippines (CEMAP) to be environment-friendly in the application of processes and technology and it looks into health and safety of the community (Cemap,2010). The application
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Service Level Agreements (SLA) should be included in the contract with a predefined minimum performance gauge. Ninety nine percent (99%) reliability and delivery guarantee areexamples of SLAs. Non-conformance to SLAs has an accompanying penalty to compensate the firm/cement company. This also addresses concerns on shirking (Susarla, Barua&Whinston, 2009). The efficiency and effectiveness of the logistics operations has a considerable influence not only on the business performance of manufacturers but also on the customer’s perception of the quality of the products and services provided by the plant (Bowersox, Mentzer&Speh,
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.
Lim, W., & Tan, S. (2010). Outsourcing suppliers as downstream competitors: Biting the hand that feeds. European Journal of Operational Research, 203(2), 360-369. doi:10.1016/j.ejor.2009.08.006.
Rao, K., and Young, R. R. (1994) Global supply chains: Factors influencing outsourcing of logistics functions. International journal of physical distribution and logistics management. Vol. 24. No. 6.
Assessing the environment is the second part of step four in the strategic planning process. The organizational internal assessment is important in identifying the strengths and weaknesses of Brendel Elementary School. By providing an organizational assessment, the planning team can clarify the aspects that help in accomplish the mission and fulfill the mandates in the organization. This part of step four enriches the management information system (MIS) with more qualitative data in order to make MIS more effective. Moreover, the organizational assessment clarifies the organization’s competencies, distinctive competencies, and core competencies. (Bryson 2011, 166)
...pital resources like distribution vehicles and storage warehouses should be outsourced to help reduce the high cost of operation which in turn can lead to reduction of its products price. The company should concentrate on product development and evolution and delegate distribution roles to outsourced firms. Such initiatives have worked well in the new Indian market and should be implemented in other areas.
Generally, a superior supply Chain is an important and unique source of competitive advantage. Its importance is especially illuminated in Multinational companies such as Toyota. Putting this into consideration, the question that now begs for an answer is whether Toyota’s supply chain is effectively serving the organization. Without a doubt, Toyota ha...
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local
Vrijhoef, R. and Koskela, L. (2004) ‘The four roles of supply chain management in construction’, European Journal of Purchasing & Supply Management, 6(3-4), pp. 169-178 ScienceDirect [Online]. Available at: http://www.sciencedirect.com/ (Accessed: 6 February 2010).
With the pressures of state testing and the College and Career Readiness Performance Index, our school’s Better Seeking Team examined what we could do to increase student achievement. During our investigation, we realized our students in grades three and five were not doing well in the literacy area, specifically with their Lexile scores. First of all, Lexile was not something we knew much about because our school had always used grade equivalency, not Lexile to measure students’ reading ability. This curriculum-based issue would need more concentration, not just for our students but for our teachers as well. Secondly, we realized the impact these Lexile scores had on our students’ overall GA Milestones scores. After all, it is the Lexile score
Outsourcing is the final option for logistics management. When this happens, transportation firms concentrate on logistics, and the company can concentrate on it’s production. There are many cost savings using this type of program, however that lack of control can negatively effect many companies.
Purchasing strategies are an important aspect of a business. Suppliers must fit the structure of your company in order for the partnership to be successful. Otherwise, there will be little to no room available for growth between purchaser and supplier—only discord and micromanagement in order to assure business is not disrupted. I think this is why it is so important to employ the services of more than one supplier. “Intense competitive pressures have forced companies to re-examine their approach to managing suppliers and their supply base. An increasing focus on core competencies, and the concomitant increase in outsourcing of components and services, has also placed greater emphasis on supplier management. In addition, much of the traditional in-house development activities have been pushed onto suppliers. Purchasing is thus increasingly regarded as a strategic weapon, centered on its ability to create collaborative relationships for firm advantage” (Handfield, et al, 2005, p.1).
... management ande-procurement: creating value added in the supply chain”,Industrial Marketing Management, Vol. 33 No. 2, pp. 219-26.
Outsourcing labor and materials in a global market can significantly stretch the supply chain structure. This can have both positive and negative effects. Looking to different countries provides the opportunity to access different markets and find the lowest possible manufacturing costs. Many companies also embraced the Toyota Motor Corp. model of just-in-time inventory and other lean manufacturing techniques that emphasized speed and cost reduction (Bosman, 2006...
Since mid-90, technology changed procedures for evaluating supplier’s relationships. Before technology, Suppliers relationships used to be an isolated activity disconnected from others companies’ activities highly influenced by conflict of interest. But when technology started to provide accurate data, companies begin the focus on inventory management activities increasing the importance of procurements departments’ evaluation as a way to reduce supply chain cost. With data, procurement can evaluate suppliers and their benefits for the company. In today business environment, the company dilemma is evaluating if the supply chain should be vertical, full outsourced of mix, considering industry maturity impact and price competition (Chopra & Meindl, 2007; Slack & Lewis, 2011).
- Environment: Mining activity leads to significant deforestation, noise pollution and emissions. As environmental regulations are gradually becoming more stringent in the cement industry is facing constant challenges to meet these specifications