A New Approach For Scm

A supply chain is a net work of firms. Thus, each firm in the chain should build its own supply chains to support the competitive priorities of its services or products. Two distinct designs used to competitive advantage are efficient supply chains and responsive supply chains. Efficient supply chains work best in environments where demand is highly predictable. The focus of the supply chain is on efficient flows of services and materials keeping inventories to a minimum. The firm’s competitive priorities are low-cost operations, consistent quality, and on-time delivery. Responsive supply chains designed to react quickly in order to hedge against uncertainties in demand. Work best when firms offer a great variety of services or products and demand predictability is low. Typical competitive priorities are development speed, fast delivery times, customization, variety, volume flexibility, and top quality. Tables below show the environments and design features that best suit each design.

The lean supply chain helps to imrprove efforts focusing waste, improve manufacturing schedule and economically produce small quantities. It is also flexible to react to changes in the market. Hence, BMW has this facility of allowing a customer to change its order within a week of placing and still maintain the original delivery time and high quality. Similarly, agile supply chain helps in carrying a generic inventory. The best part is that it helps in reducing risk of keeping too much stock as well as being out of stock. Mass-customization can be easily pursued through an agile supply chain which offers variety at a lower total

Implementing an agile supply chain process would be beneficial for Riordan’s China plant. Agile supply chain strategy is to be responsible and flexible to customer needs. They are considered agile because they are responsive to change and irregularity in demands of customers while reducing risk supply disorder on back-end. The agile supply chain combines the strengths of hedged and responsive supply

25. The cycle view of the supply chain is useful when considering operational decisions, because it specifies the roles and responsibilities of each member of the supply chain.

In the shed of globalization and intense competition between companies in high variance environment in term of changes in technologies and demands from the customers, many companies have to identify the best ways to overcome such circumstances and uncertainness in their business and operation. The major objective of their identification is to further improve the flexibility. To achieve this objective, the companies have to ensure each component in their supply chain must be designed with respect of flexibility (Borhanazad and Tran, 2012). Relevant theories reveal the linkage between upstream supply chains must be well-maintained through the sourcing strategy.

This article is about several trends in the supply chain in the year 2012.Throughout 2012 there were evolutions in the supply chain technology due to companies' realization that a supply chain that is highly visible is necessary for success in the business climate today. Generally, IT trends like big data; cloud and mobile have greatly impacted the supply chain industry. Apart from these IT trends there are specific trends which were in the forefront in 2012.All these trends are related to various aspects of the supply chain.

The change and new sourcing strategy reduced the complexity of their supply chain and resulted in fewer disruptions. As demand increased for Caterpillar’s equipment, their supply chain was getting bogged down and operating slower causing orders to be delayed. With their new sourcing strategy, customers were allowed to order from “lanes” with readily available options, as opposed to having to fulfill customized orders as they occurred, enabling a more proactive approach throughout the company (Katz, 2011). The lane strategy has helped Caterpillar improve their ability to meet customer demand; as this system consists of four ordering lanes serving a variety of infrastructure equipment models that enables its dealers to offer a wider array of customization choices with different lead times; customers are also given information on how to access these lead times and get order status updates (Katz, 2011). This type of information is one of the value-added services available from SCM.

Design approach – The paper is based on an exhaustive study of eight supply chains which included ten companies in America. Managers from at least four levels of the supply chain were interviewed, and the supply chains were outlined and observed.

This book reflects the shift in interest to supply chain. We have included a chapter on MRP, but have not included scheduling in the book. Further we have included chapters on “strategic sourcing” and “logistics” in the book. Detailed “internal”

Abstract Integration of supply chain activities and the technologies to accomplish it have become competitive necessities in most industries. Accordingly, the trend toward greater use of supply chain

Customers today also want to know about company supply chains before placing orders because their own customers have many concerns about the environment, ethical sourcing, manufacturing transparency and sustainability. A fully customized supply chain management feature can provide information to customers directly through the websites and generate notifications when suppliers, vendors or supply chain details change. Customers can look for parts based on serial numbers, study materials and request special fabrications based on supply chain information.

In today’s rapidly changing business environment, ever-greater demands are being placed on business on every industry, such as to provide products and services quicker, with greater added value, to the correct location, with no relevant inventory position, etc. However, customers are more sophisticated by wanting more quality, design, innovation, choice, convenience and service, and they want to spend less money, effort, time and risk. Hence, every business has to deal with highly competitive situation in order to survive; Supply Chain Management (SCM) becoming the main topic for improving efficiency and satisfy customer’s need.

Supply chains has been relevantly defined as a “system of organizations which are convoluted through upstream and downstream linkages, in the diverse methodologies and activities that create benefit in the form of services and products in the hands of a definitive consumer”, and is therefore the sum total of efforts in integrating a network of firms and coordination as regards information, material and financial flows. Interestingly, the two main supply chain objectives have moved, from decreasing operating expenses and general inventory levels, to the concerns of how to enhance the customer service and the momentum of product delivery to the business sectors.

Supply change management (SCM) is active in many organizations today. The purpose of SCM is to maximize the company value in order maintain a competitive advantage in the market place. As an Operational Managers (OM) it is essential to oversee the supply chain within an organization. The OM responsibility is to manage the supply chain flow, and to ensure the supply chain has a quality design in order to reduce cost and drive efficiency. (Reid & Sanders, 2010) An organization supply chain includes activities such as product development, sourcing, productions, logistics, material, and other information systems needed to coordinate the movement of goods from suppliers to manufactures, and to final customers.

Business generally is frosted with various challenges, and that facing supply chain seems not to have gained adequate attention. Challenges could force early exit on firms’, thus imposing loses on investments. Therefore to ensure effective and efficient minimization of loses, improve profit, and operate competitively, it then becomes imperative to critically research on the challenges and proffer solutions that would minimize the impact on the chain.