The company organization structure influences the integration level of the three main components of the supply chain: CRM (Consumer), ISCM (Firm) and SRM (Supplier) The main barriers for integration are: silos mentality, lack of visibility, lack of trust, lack of knowledge and bullwhip effects (Chopra & Meindl, 2007). Barrier Solution (1) Solution (2) Silo Mentality Lack of trust Reported as the first barrier integration with complex solution (IBM, 2009). GE-Work- Out solution for increasing communication in all supply chain participants. UK-government increases quality dialogue between public and private sector. Silo mentality barrier is the inability to find a win-win-win solution because managers are focus on its on budgets without considering the impact on the others budgets departments. This barrier follows the principle: I win you lose. Lack of trust is the inability to share data that if known by all supply chain participants can increases benefits but at cost of reveling confidential data and strategies (Chopra & Meindl, 2007). The ex-GE-CEO Jack Wells, realizing the importance of communication in the early 90, created the GE-Work-Out technique. Implemented by Gannon Associates, GE-Senior-Managers organize meetings with clients, business partners, suppliers and customers following a communication procedure that enhances focus on win-win-solutions. Mixing different expertise’s teams, the cross functional problems within the supply chain were analyzed by the problem-solving teams following an agenda meeting strategy. The excellent results for this technique made the GE-Work-Out an efficient communication technique for finding efficient solutions (Gannon, 1996). GE-Work-Out overcomes ranks, functions, geography, bureauc... ... middle of paper ... ...e from: http://thinkgagnonassociates.com/core-capabilities/ge-work-out (Accessed: 28 November 2011). IBM. (2009) The Smarter Supply Chain of the Future [Online]. Available from: http://www-935.ibm.com/services/uk/gbs/pdf/gbe03167-usen-02.pdf (Accessed: 28 November 2011). IBM-1. (2009) Overcoming barriers to supply chain performance [Online]. Available from: http://public.dhe.ibm.com/software/data/sw-library/cognos/pdfs/whitepapers/wp_overcoming_barriers_to_supply_chain_perf.pdf (Accessed 28 November 2013). Lawrence, R., Hanauz, M.D., & Doherty, S.(2012). The Global Enabling Trade Report 2012: Reducing Supply Chain Barriers [Online]. Available from: http://www3.weforum.org/docs/GETR/2012/GlobalEnablingTrade_Report.pdf (Accessed: 28 November 2011). Nestle. (2013) Nestle News [Online]. Available from: http://www.sas.com/success/nestle.html (Accessed: 28 November 2013).
W.C. Benton, Jr., 3rd Edition, “Purchasing and Supply Chain Management.” (2010). Text. 2.
Academic Consortium on International Trade (2000) Letter to Presidents of Universities and Colleges. Available at: http://www.spp.umich.edu/rsie/acit/ [Accessed 1 April 2014]
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 the decade of 1980’s three major changes in supply chain management occurs. First, manufacturers focused on lower operating cost from reengineering cost structures. Second, they improve the customer service rather than costs reduction. Third, to improve the internal integration of logistics within the companies.
Kersten, W., & Bemeleit, B. (2006). Managing risks in supply chains: How to build reliable collaboration in logistics. Berlin: Erich Schmidt.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
It has become apparent the effects of globalization has changed the marketplace so much in the past few decades that a much faster response is demanded from producers and their supply chain. This is done by effective supply chain management, which is the integration of key business processes acrosss the supply chain within organisiations. The objective of this is to create a system of best value for the entire supply chain including the consumer. In recent years, many firms have realised the importance of the optimization and streamlining of the supply chain management processes, it has since become the focus for many firms.
[8] Supply chain lessons for the new millenium: a case of Micromax informatics Integral Review –by Salma Ahmed, A Journal of Management-ISSN: 2278-6120, p-ISSN: 0974-8032, Volume 5, No. 2, Dec.-2012, pp 53-61) .
The international community have highlighted the benefits that efficient and effective trade in Africa could potentially hold; the G8 in 2005 (and again in...
Jorgensen, Barbara.( 2005 June). The "greening" of the supply chain. Electronic Business, Volume 31, Number 6, pp.29-30.
In all, supply chain operation management has helped many global companies in handling and distributing their products as it is a one-stop solution provider from one warehouse direct to end user. By building trust among the trading partners with effective communications would improve performance metrics both the company and the solutions provider.
The key performance drivers of Supply Chain Management (SCM) are - facility effectiveness, inventory effectiveness, transportation effectiveness, information effectiveness, sourcing effectiveness, pricing effectiveness, delivery effectiveness, quality effectiveness and service effectiveness. These drivers include various performance markers that may be measured quantitatively by gathering information and applying them in SPSS. The works here may principally be quantitative with spellbinding measurable investigation. In the current world, practical supply chain management to help the triple primary concern, (nature, domain, and economy) is likewise included in the extent of supply chain performance drivers. This is relatively a quite new research region.
In the long run, despite the apparent advantages of Fair Trade and the opportunities it appears to offer small suppliers, free trade provides a more sustainable development for suppliers than Fair Trade. It is also more effective in incr...
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.