When supply chain managers are brought together it is the common goal to focus on the process of getting the consumers product though the forward supply chain as quick and efficiently as possible. However, there is a need to focus on the scope of the returns process too. “Companies can no longer afford to treat reverse logistics management as an afterthought. It needs to be a core capability within the supply chain organization. For years, most shippers paid little attention to returns” (Dowlatshahi, 2005). It has cost companies billions of dollars over the years and even harmed some of their brands. Though this may be apparent, the improvement of managing the returns of those goods has become the capstone of completing the full cycle of the supply chain from both forward and revers. In saying that, the attributed on managing the returns process is somewhat similar to that of the forward supply chain. This process is not always easy and convenient. Many known companies have failed because of an overload on return that were mishandled, causing a dilemma when making the attempts to reach expectations. To avoid failure the best practices, in reverse logistics have been proven to give those in leadership positions the functional ability to consider the overall establishment of clearly defining what profits and loss are being made. Technological advancements have too given the use of applications and inventory control analytical procedures to govern the increasing disposition of
Recognized as one of the leading computer manufacturers, Dell uses an astonishing supply chain through pull-to-order procurement and just-in-time inventory management. Their strategy is highly efficient and drives costs to a minimum while allowing for minimal lead times and production times of under 4 hours for each order as their suppliers maintain levels of inventory based on forecasts within Dell warehouses near Dell assembly
Thousands of activities are performed and coordinated within an organization, and every company at least one supply chain relationship with another organization. Research has led to the conclusion that "the structure of activities within and between companies is a critical cornerstone of creating unique and superior supply chain performance" (Lambert, 2005). Successful supply chain management requires integrating business processes with key members of the supply chain, because valuable resources are wasted when supply chains are not effectively managed. Standard business processes enable managers from different organizations in the supply chain to use a common language and link-up their organizations' processes with other members of the
In order for IKEA to achieve design and sustainability objectives, they follow and balance four dimensions of design. The four different dimensions followed are form, function, quality, sustainability, and low price (Rafiq Elmansy, 2014). IKEA has already made changes by using cotton and water from sources that can be renewed. IKEA did this while posting strong sales figures. In 2014, its sales increased 5.9 percent from 2013 to $32.1 billion (Pantsios, 2015).
J&J’s supply chain has transformed from a decentralized approach with so little visibility to a globally aligned organization. Standardizing the most important things such as quality system, operational improvement methodologies, procurement, etc. has given J&J a competitive advantage. Moreover, J&J relies on the data provided at Internet of Things (IoT). The company is heavily involved with IoT in order to monitor their operations and to achieve a better coordination between suppliers and customers. (Chatterjee, 2017)
In reverse logistics, the design, control, and operation of a recovery value system will reflect the whole life cycle of a product. This is the concept of closed-loop supply chains, in which zero-waste is achieved in the “forward flows of materials (from suppliers to end customers) and the reverse flow of products (post consumption) back to the manufacturing or distribution supply chains” (Book p.151-152). Reverse logistics supports closed-loop supply chains and coordinating the chains to achieve (or maintain) competitive advantage. A fragmented chain, where each member is only focused on its own processes, is considered a key Supply Chain Management problem. It is not wise for Sandvik to fragment, or decouple the forward and reverse supply chains.
"The ability to learn faster than competitors may be the only true sustainable competitive advantage." – Arie P. De Geus
Supply Chain Management (SCM) represents the end to end value chain of a business from production to after-sales service. According to Schulz, a well-managed supply chain should be market focused, stating that the supply chain should strongly represent the market needs and “what solutions consumers are looking for, not the product we are trying to sell them”. However is the philosophy of SCM merely just a new supply chain thinking approach to older existing SCM practice? For example, Quality Management which is deeply rooted in the concept of SCM although not in self-new, has evolved over time, and is based upon the concept of having total commitment to everyone is the supply chain to deliver quality service/products to both the internal and
The processes involved in the supply chain are very critical to the business organization. It is therefore very central and critical for the organization to make sure that it is operating or running a supply chain process that is very practical, efficient and sustainable as well as those that are simple to implement in terms of the operational costs. Sustainability means that the company is operating on renewable resources, no environmental pollution, generates products that meet the needs of the customer among others. As such the company or the business entity is in a position to operate in a way that is beneficial to itself, to the environment and to the society within which it operates (Cooper 14). There are three major
Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration: management of information and financial flows, inventory management, and management of relationships of
Enterprise systems can be helpful to solve diverse business problems and optimize numerous processes in commercial organizations. Though the CIO is interested in different types of these systems being used, particular emphasis is placed on Supply Chain Management (SCM), which can be defined as “the management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability” (Baltzan, 2014). In order to profoundly evaluate the impact that these systems can have on different types of organizations, the paper will analyze two case studies, whose objective was to “promote further understanding of this process of adoption and integration of supply chain management
b) For each mode of sourcing that Zara uses (as indicated by your answer to Question 5a), explain why they have chosen this mode, and also indicate when Zara uses it and for which types of items.
Supply chain management (SCM) is a core part of organizational effectiveness in order to achieve goals characterizes efficiency. Globalization and international agreement led Toyota to develop it is SCM process to increase outsourcing supply raw materials from foreign market that are low cost and high quality.
Research has shown that there has been a gradual shift from the traditional linear supply chain to a modern circular supply chain point of view. The idea of a circular economy was introduced to experts in the field in 2013. However, it wasn’t until recently that experts agreed on the impact of the circular economy and its role in forming the circular supply chain. Traditionally, supply chain strategy functioned on a linear approach transporting raw material to end customers. In 2016 supply chain strategy “circular” or “closed-loop” strategy was identified by experts as the new wave movement. This method focuses on moving used products back as raw materials. In 2016, experts agree that the circular supply chain will pose many challenges and opportunities for SCM professionals. One of those opportunities is Reverse logistics. The circular economy will force logistic and supply chain managers to adapt a forward moving approach to logistics and reverse logistics.
As I have completed a Bachelor of Technology in Mechanical engineering and worked as a supervisor in an Industry which generally deals in manufacturing of rice mills and flour mills, I really had to struggle against managing supply chain as it was very difficult for me without proper knowledge of Supply chain management in dealing with purchasing of raw material from suppliers and giving product to clients. I could not understand what clients were demanding and how to fulfill their demands. First of all a big thanks to CQ University providing its students to get knowledge on all important topics which are helpful in their future career and I am one of them.
Reverse logistics aim is to focuses on different aspects of learning and tell us that what are the impact on decision made by manufacturing company or firm. Now a day 's competition can be seen in every field , and there is no difference in the manufacturing world. Companies are looking for latest opportunities and tackled defects in the system. Logistics plays a significant role in any manufacturing firm, as it involves the best use of man, machine and material.