Business requirements Tracking Raw Material and Work in Process: To maintain a maximum, efficient level of raw material as well as lowest costs for production is essential for the production department. o A system which can estimate and track the optimum level of raw material reduces the cost for production procedure, o It must be able to monitor the storage level of raw material and communicate with the public demand for drugs as well. o The system should also provide a shared database between ECOLI and its suppliers, to shorten the time of ordering and delivery raw material. o Since some of the raw materials are intermediate goods buy from suppliers, the system must have a capacity which can monitor the production procedures and materials suppliers use, to avoid suppliers to charge a higher price. o The system should have a historical disease database. Since lots of important chemical materials are extracted from fossil fuel, the company needs to store extra fuel in order to handle disastrous diseases (SARS, bird flu, etc.) base on past historical trends. This storage strategy can also get rid of the risk of price increasing. o Chemical raw material has very strict requirements on surrounding environment. Thus, the system must be able to sort chemical raw material by their characters (temperature, smell, chemical property), to reduce the probability of chemical inter-pollution since they have very strict requirements on surrounding environment. o The system should records all information of raw material, including the name, purchase date, opened date and expire date, to lower the turn over rate and the unnecessary waste of raw material. o The system should have a function to monitor water quality. Drugs produced with non-sterile water is defective, and must be destroyed because they may already been polluted. Suppliers Selection Suppliers should be carefully selected based on the qualities and prices of the raw material as well as their reputation. o An information system should list all contracted suppliers and their business scopes. If one of supplier couldn¡¦t deliver the raw material on time due to unexpected reasons, the company can contact alternative supplier quickly, and the whole production process won¡¦t be delayed. o The system should records all business transactions between ECOLI and its suppliers. Suppliers who had unethical records (using expensive materials to earn profit) cannot be used again. Quality Control o In order to shorten the inspection time on outputs, the system should be able to instantly summarize the inspection results of the testing sample and keep the quality controllers informed of the most updated quality of outputs.
In addition, the bargaining power of the sources of inputs is high. The switching costs from one supplier to another are high because there are not many substitutes for the particular input for metal products. Besides, the number of suppliers who produce raw metals is small. The threat of substitute is high. There are many different kinds of substitutes for metal product company. These companies may also produce a large variety of product like Slade Company. Therefore, the substitute is low for this market. Only companies that produce high quality are able to not be substituted by the others.
Price increases in the raw material mean that prices needed to be increased, but customers were still willing to pay for a quality product.
A supplier is a company that provides services and goods that meets their consumers’ wants and needs. All supply companies want to feel valued by the company that they supply, that’s the aim of the suppliers. When the demand for finished goods at Debenhams, for example: Rocha John Rocha jeans, the businesses are more likely to supply their consumers more. This depends on the raw materials’ availability and if the suppliers are willing to supply Debenhams with more finished goods. The competition for raw materials to produce the jeans may be a bit difficult to buy because the demand for the materials is higher and the suppliers may not have enough raw materials to sell to produce the
Increasing customer expectations and fluctuations in demand are driving companies search for alternative strategies to operate their supply chains to make more profit now and in the future. Goldratt 's distribution replenishment model is one of such strategies that is being extensively implemented nowadays and gaining popularity throughout world (Belvedere & Grando, 2005). The model is called Theory of Constraints Supply Chain Replenishment System : TOC - SCRS. This is a replenishment method of the TOC Supply Chain Solution (Cole & Jacob, 2002; Goldratt, 1994). In this paper, I would like to give an example of a bakery and dairy products company that manufactures and distributes throughout a supply chain network consisting of Plant, Central
Efficiency was also encouraged to ensure that the commodities distributed met the needs of the consumers. Due to this, planning of quality goods was introduced to ensure that goods met the needs of the consumers. In the early phases of construction and development, time and cost saving was considered to be important (Weckenmann et al., 2015). To ensure that organizations were able to save on costs, measures were introduced to ensure a preventive quality assurance system rather than a reactive system. Several systems were introduced to ensure preventive quality assurance
Supplier evaluation is a term used in business and refers to the process of evaluating and approving potential suppliers by quantitative assessment. The purpose of supplier evaluation is to ensure a portfolio of best in class suppliers is available for use. There are several techniques are used by companies to evaluate suppliers and measure performance. The first step in implementing any of the techniques being discussed is to determine the attributes that should be considered. A firm should focus on the attributes that it finds most important. Some attributes are easy to measure while others are not. Some models are proficient in considering total costs, but they are usually very difficult to implement and time consuming. Thus, the resources
Direct materials. The costing of the employment system must be able to keep the cost of materials used or disposed of during the task. Therefore, if a company is building a custom machine, the cost of the sheet used in construction must be built and workload.
Suppliers: Since the raw material’s are commodities there should be no problems on this front this is not any different
The bargaining power of the supplier increases when there are few suppliers or a single supplier is supplying too many companies.
For example, if one supplier was to perform below and an auto industries standard then other options open up for the industry and that supplier could be replaced very easily. Recently, auto industries and suppliers have moved toward a system called a tier based system, where the auto industries would contract with a limited amount of suppliers and then those suppliers would contract products with an upstream market. The shift has been very good for the suppliers and has led to an increasement of power for
2. Minimizing delays in production and making efficient use of the space that is available.
The number of suppliers available for each input drives the bargaining power of suppliers. More the suppliers, lower would be their bargaining power.
Water with high levels of pollutants caused by poor design, operation or treatment systems creates major environmental problems to surface water and land. The conventional municipal WWTPs, which are primarily used for pharmaceutical effluent treatment, are unable to completely remove all contaminants, especially micro-pollutants. In addition to the environmental hazards, it can also directly impact GMP compliance for the manufacture of medicinal products. Therefore, manufacturers need to know how to effectively treat pharmaceutical
Business need to minimize total cost moving towards a single supplier for any item. Using a single supplier for any one item, they should look at suppliers as your partners in quality and encourage them to use time improving their own quality.
...derstood in the clear manner by knowing the type of inventory they use, the number of orders that is placed per day, the type of procurement system that they use for the inventory, terms of contract between the company and the supplier.