Keywords: Introduction: Typical Supply Chain Processes — Buy – Procurement/Financing/Hiring — Make/Create – Design/Manufacture/Production/Service — Sell – Distribution/Marketing — Move – Logistics/Transportation/Warehousing — Buy + Make/Create + Sell + Move = SCM Processes How do Firms/Practitioners View SCM — [1]“No two supply chains are alike. Very few companiesdefine the supply chain in the same way. Of the supply chain leaders with which we spoke, almost all had different spans of control.”[2] — A narrow definition limits the potential of supply chain management — A very broad definition risks a loss of focus Design, Coordination and Execution — Designing the supply chain processes/products/services to manage resources – 4 important levers: FACILITIES, INVENTORY, TRANSPORTATION and INFORMATION — Coordination of Supply Chain Process – Resource allocation with Planning, Scheduling Dealing with uncertainty and risk: forecasting, understanding risk and devising strategies to mitigate risk — Execution – Measure, control and continuous improvement Drivers of Supply Chain Performance Facilities 1. Role in the supply chain a. the “where” of the supply chain b. manufacturing or storage (warehouses) 2. Role in the competitive strategy a. economies of scale (efficiency priority) b. Larger number of smaller facilities (responsiveness priority) c. — Components of facilities decisions – Location, capacity, number of, technology/automation – Competitive Inventory — Role in the supply chain – The “what” in the supply chain — Role in the competitive strategy – Variety, responsiveness — Components of inventory decisions (cycle, safety, seasonal inventory) – Make to... ... middle of paper ... ... • Inbound transportation – Vendor to factory • Intra plant and inter‐plant movements • Factory warehouse – space and infrastructure • Field Distribution Centre – space and infrastructure • Racking , Shelving and Material Handling • Primary and Secondary Transportation • Warehouse Utilities • IT – Hardware and Software • People – White‐collared and blue‐collared • Training • Communication Corporate Social Responsibility ‐ Safety, Security, Health & Environment. Tools used to optimise the SCM: Warehouse Design Optimization -CLASS • CLASS : Computerised Layout and Simulation Software • Created by Cirrus Logistics, specifically for warehouse operations. CLASS is now inits sixth generation and is widely regarded as the benchmark product in themarketplace • ‘Hands on’ software product focused on enabling design and decision‐making inthis area of logistics
On the same note, it is well acknowledged that the competitiveness of any organization fundamentally depends on the workforce. Indeed, the workforce is recognized as the heart or living organism of any organization including hotels. It goes without saying that there is minimum likelihood that a restaurant where workers operate in unsafe conditions or are mistreated will offer services and products of the highest quality. Scholars note that employees always desire to work in institutions or restaurants that have high standards of integrity and strive to do the appropriate thing (Fox & Vorley, 2004 pp. 33). This is especially so for the new generation workforce, as well as in attracting the best talent in the industry. A reputation for responsibility and integrity has been recognized as crucial in motivating, as well as recruiting staff especially considering that individuals care about the principles and values that their employers wish to uphold. Scholars note that operating voluntarily to high ethical standards pertaining to environment and social responsibility can result in competitive advantage (Schlegelmilch et al, 2004, pp. pp 254). Customers and civil society groups have been increasingly vigilant in determining whether there is an ethical lapse in the manner in which employees are treated within the supply chain of any organization (Fox & Vorley, 2004 pp. 33). In fact, they have been pressurizing restaurants and other business entities to cut ties with any organization in their supply chain that is not ethical in its treatment of employees. Scholars note that the impression that a restaurant or business entity would create in terms of public relations both on the stakeholders and the customers is highly dependent on the ac...
· Big 3 automaker (Ford, GM, Daimler Chrysler) looking to better management of supply chain (the series of transaction & interaction between suppliers, buyers, and intermediaries) to minimize costs while improving quality
Generally, as figure 1 shown that the Strengths for this supply chain is good for short run production and hard make mistake. It could avoid the lack of materials and make materials mixed together.
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.
It is hard to balance budget, schedule and risk at the same time. The pressure of budget and schedule increase the chance of neglecting the potential risks which was abnormal performance of different components, becoming a factor in causing the disaster.
The Home Depot Supply Chain Management model is based on integrated inventory management through a centralized network of 20 distribution centers, called Rapid Deployment Centers (RDCs) and three Direct Fulfillment Centers (DFCs) aimed at the e-commerce market (Bond, 2015). Orders are processed and managed to meet current and forecasted demands, sent to the regional RDCs, which service approximately 100 stores each, and sent to retail outlets to meet stock requirements (Bond, 2015). Direct Fulfillment Centers are e-commerce distribution systems. Home Depot delivers within a two-day timeframe to 90% of US based customers, and the system also leverages in store stock for same day pick-up (Bond,
‘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...
Hum,Sin Hoon (2000), “A Hayes-Wheelwright framework approach for strategic management of thrid party logistics services”,Integrated Manufacturing Systems,Vol .11/2,pp 132-137
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,
UK Morepeth facility, the company’s ability to integrate over seas businesses and ramp up of
Quickly becoming apparent after only a few rounds of play was in the absence of coordinating direction the individual supply chain links immediately focused upon acting in their own best interests much more so than the organization as a whole. Whether the end use customer was satisfied became secondary to avoiding stock outages for the next link in the chain, or their specific “upstream customer”. The real world application of this example is that focus on the end use customer must be consistent and maintained throughout the process up to and including delivery. Undoubtedly internal customers, such as retailers to wholesalers and distributors to production, must be serviced along the way for the transaction to ultimately occur. However, unless an end use customer is involved no profit can be realized by anyone.
• The supply chain is getting divided. At one time vertical incorporation was the request of the day. Yet the present pattern is to focus on center fitness and outsource more exercises. Along these lines the supply chain is more divided now.
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...
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
According to Slack et. al. (2001) the best mechanism for running a business is to match level of demand (goods, services that customers need) with supply of capacity (recourses, labor force that the business inputs in the production process). They also define capacity as “the maximum level of value –added activity over a period of time”. Thus three main factors come into force here – the capacity of resources and labor force, the process operation which itself leads to satisfying customers through matching demand. It is very important to plan and coordinate all 3 factors very effectively because a difference in capacity and performance easily affects: costs, revenues, working capital, flexibility, quality of goods, speed of response and others.