Supply Chain Management
Introduction
Supply chain management is emerging as one of the most powerful business practices. It is transforming the way manufactures operate and work with partners - even the way they think about business. Why all the sudden interest? Mere observation of industrial practice brings to light a simple truth; very few materials remain in the constant ownership of one person, persons or company from their source to the time they are sold to the end customer. "Almost invariably, material flows through a series of 'players' whose role may be to transform (manufacturing plants), store (warehouses) or move (distributors) material." This results in the establishment of complex systems that industry has labeled supply chains or supply networks.
Supply chains are not new; they have been around as long as the market place. Historically, however, each supply chain "link" tended to regard its role as satisfying the demand of its immediate customer. "A more holistic view point suggests that each is just a part of a wider supply chain system whose role is to satisfy end customer demand. This refocusing of the company roles in terms of end customer satisfaction is in line with a systems thinking approach to management." From a conceptual viewpoint, one could view the ideal supply chain as a pipeline with laminar flow.
Traditionally, most supply chains simply evolved rather than being designed. This fact makes supply chains susceptible to turbulence. "Companies are discovering that the vast majority of supply chains are logistically inefficient and therefore prone to poor supply chain dynamic behavior." Because of the huge success of a couple of retaliators, the concepts of supply chain ...
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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...
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.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Supply Chain Risk Management (SCRM) denotes the identification of likely sources of risk as well as the implementation of suitable strategies through a synchronized approach among supply chain parties, to condense supply chain susceptibility to potential risks. SCRM has of late gathered increasing attention in the context of supply chain and its management . Currently, global competition is increasingly intensifying and the supply chains are becoming more complex and stretched. As a result, the likelihood of not accomplishing the desired performance of supply chain increases due to risks of supply chain failures. In fact, effectual practices and tools for SCRM requires critical support by properly organizing the entire SCRM process. This requires a holkistic identification of the scope of the process to be considered and the capabilities of the process under thought. It is very critical for companies to plan for disruptions as well as develop contingency plans while designing and redesigning their supply chains. Companies require understanding the interdependencies of their supply chain; identify the potential risk factors as well as their likelihood, severities and consequences. The risk management action plan can be developed in order to avoid the identified risks or mitigate, control...
Royal Caribbean Cruise Ltd (RCCL) has two distinct supply chains which create a unique challenge. Each supply chain is managed by a Provision Master. The first supply chain includes all food, beverage, and lodging inventories that needed for the trips. The second supply chain encompasses “corporate spend” materials, such as office supplies, printing services, hardware and software, printed materials, computer supplies, marine consumables (spare parts, fuel, lubricants, any and all services associated with the ship maintenance and etc).
Introduction The growing competition in global markets, demands and expectations of customers, as well as innovative products with shorter life cycles have forced today’s businesses to focus and invest on supply chains. Further, the development of technologies and communications has inspired the evolution of supply chain and its techniques for management (LEVI, David Smichi et al., 2008). Supply-chain management has become the new source of competitive advantage for companies from all over the world. This management is related to managing all the activities related to brining product to the market and satisfying the customers. Thus, the management looks after everything related to manufacturing, purchasing, transportation, distribution, etc.
This report provides a comparison of the supply chain management practices of Wal-Mart and Toyota. Comparison was done after researching, examining, and analysing each company’s supply chain management practices, in relation to each company’s values and philosophy. Comparison was done in five sections, by examining strategic alliances, procurement and outsourcing, challenges and risks, sustainable strategies, and efficient supply chains in relation to technology. Additional figures and references used can be found in the appendix and reference list.
“Supply chain. Product life cycle processes comprising physical, information, financial and knowledge flow or movements whose purpose is to satisfy end-user requirements with physical products and intangible services from multiple, linked suppliers.” In other words, supply chains compose a network of different companies that cooperate closely for goods delivery.
The objective of supply chain management is to provide a high velocity flow of high quality, relevant information that will enable suppliers to provide an uninterrupted and precisely timed flow of materials to customers. However, unplanned demand oscillations, including those caused by stockouts, in the supply chain execution process create distortions which can wreck havoc up and down the supply chain. There are numerous causes, often in combination, that will cause these supply chain distortions to start what has become known as the Bullwhip Effect.
‘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...
Ever increasing competition in today’s global markets, introduction of new products with shorter lifecycles, faster dissemination and proliferation of information and heightened expectations of customers have forced enterprises to invest in, and focus attention on, entire supply chains. Today, some companies are extending their reach outside of traditional supply chain boundaries to engage in activities that go beyond their own sphere of control. To do this, they organise competitive networks of enterprises to develop and access supply chain capabilities for those organisations that are part of such value-adding networks. The scope of this research report covers aspects ranging from in-house logistics, with a focus on productivity, cost-savings and functional excell...
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
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,
Another lesson of the game materialized gradually at first, but steadily became more and more evident with each round of play. This lesson was the demonstration of the overwhelming ineffectiveness and utter futility of approaching logistics from the position of total ignorance. With no forecast or sales history to serve as a guide or predictive tool, the participating supply elements simply had nothing to base their projected order quantities upon other than pure conjecture. Operating in a vacuum relative to the other players of the supply chain was nothing less than counterproductive. Closely related was the development of a subdued, but underlying, sense of hostility within the supply chain as orders were placed that didn’t correspond with anticipated amounts. When this type of communication breakdown exists in the real world, an irritation between supply elements invariably manifests itself. Additionally, the resulting waste of time, material, storing of inventory and other resources expenses further fuel the fires of frustration and discord between supply elements.
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.