Integration Between Forward And Reverse Supply Chains

Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.

Supplies are the vital factor to having successful operation and to be efficient with the business you are providing. In order to bring value to the organization, you must insure that customers are satisfied with the quality health care provide in each transports, so that they can continue use transport with future transports.

Over the past few decades, logistics activities have gained increasing strategic importance for almost every company all over the world. Fixed costs of production have increased, consumer demands have become more complex and are harder to predict, both in time and place. Technology is rapidly changing around the world every new day there is a new and advance technology and product life cycles have shortened while product range has increased. Now more than ever, companies are faced with the challenge of producing an increasingly large variety of products in a responsive manner while keeping materials and inventory to a minimum to fulfill the customer demand

TSC is planning for large corporate growth over the next couple of years, and there are concerns of whether or not, in its current state, the supply chain strategy is adequate to meet the growing demands.Brad Twiddy, the director of distribution, recently produced a forecast model of future inventory volumes, and examined the affect the inventory had on the supply chain. The model predicts the company will experience capacity issues as soon as next spring. With larger volumes of inventory looming over a static inventory space, it would be prudent to examine alternatives of how to adapt the supply chain to the corporate expansion goals.

Netflix could profit in the growth and opportunities that vertical integration would provide in the future of the company. Vertical integration is visible when “two companies or organizations at various stages of production merge together” (OccupyTheroy, 2015). The main goal of vertical integration is “to increase the overall efficiency and to reduce costs all throughout the supply chain, thus improving business competitiveness and profitability” (OccupyTherroy, 2015).

Reverse Logistics. Once a customer places an order for an item and the item has an associated return value, the GCSS-A system populates a list that so that all parties can see and know what part needs to be returned and that it indeed has and associated return value. This is the true start point of the reverse pipeline of the Army’s supply chain. The Army’s reparable management process recovers and repairs assets (repair parts) to replenish serviceable inventories and satisfy the equipment readiness requirements. Commanders are responsible to ensure that their subordinate units are in compliance with local policy and Army publications (US Army, 2014). The Army uses a system call Standard Pricing (SP), which enables the Army to receive a

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.

A first of important group of reverse supply chains can be found in systems of directly reusable items such as reusable packages such as bottles, crates pallets and containers (see Chapter 1). Reusable items requiring only minor reprocessing steps such as cleaning and inspection can be expected to lead to a rather flat supply chain network structure comprising a small number of levels (i.e. depots). Moreover, a closed-loop supply chain structure seems natural in this context since there is no distinction between ‘original’ and ‘reuse’. Determining the number of items required to run the systems and prevention of loss are important issues in this closed-loop situation (Goh and Varaprasad, 1986).

The typical process of the supply chain, as a whole, involves starting from raw material purchasing, to material processing or production, replenishment of inventory at various locations, distribution and delivering to the end customers through the distribution centres. The benefits for the supply chain by adopting the TOC replenishment methodology are: meeting the customers demand quickly with the lowest cost, drop in inventory levels, improvement in ROI of distributors and retailers, enhancement in customer service and sales performance.

4. In a service supply chain, the (explicit) cost of information is higher than in a product

To survive and being success in modern business environment, focusing on supply chain management has become one of the popular ways to increase competitiveness among organizations. According to Lambert and Cooper (2000, as cited in Flynn, Huo and Zhao, 2008), organization has started to rethink the importance of cooperative, mutually, and beneficial supply chain partnerships due to the fierce competition among organization nowadays. In order to increase the efficiency and effectiveness, outsourcing has been commonly used among business, which means companies will allocate part of their production process to a third-party logistics and fourth party logistics (3PL&4PL) rather than finishing the

A common system for replenishment planning used in major companies, including Electrolux, is a material requirement planning (MRP) system. Making wrong replenishment decisions leads to expensive inventories (Danilovic & Vasilievic, 2014). Because of the uncertainty in demand and supply, a need for optimizing inventory control procedures exists. The goal of the manufacturer is to devise production and supply procedures that minimize the average holding cost and stock-out cost. A supply chain management challenge is to control the capital cost of raw material by keeping stock levels down while simultaneously providing a high level of customer service. These often conflicting objectives require a customizable material requirement

The extended supply chain is a way where everyone contributes to a product. For example, to an automotive company, like Ford, its extended supply chain would include a factory where plastics are produced and another factory where glasses for windshields are molded. Therefore, it is very important to a company to monitor what would happen in its extended supply chain. Sometimes a supplier’s supplier could have an impact on you. For instance, if there is a fire happened in a rubber factory owned by Ford’s supplier’s contractor, Ford should ask another vender to provide tires because the original supplier may short for the raw material and can’t provide enough tires Ford needs.

Forward logistics (or conventional logistics) is the regular distribution channel followed by the manufactures from time immemorial. Forward logistics concentrates on the products (goods or services) reaching the consumer end and deals with the line of flow from the manufacturer’s end to the consumer’s end. It deals with the very essence of Supply Chain Management and logistical activities of an organization. It has a significant impact on the primary operations carried out, which act as the basic revenue generating aspect of a business. In this logistical system, the flow is a “one-to-many” type and the forecasting or traceability is quite simple.

SAP Forecasting and Replenishment uses sophisticated optimization and automation capabilities to help manufacturing companies strike the ideal balance between minimizing inventory ownership and maximizing customer service. It helps in improve inventory turnover and prevent out-of-stock conditions that results in lost sales and customer alienation. Using the expertise in the particular industry domain and advanced techniques incorporated by leading industries, SAP Forecasting and Replenishment is a solution created for effective and maximum merchandise optimization. The solution mainly focuses on products which are replenished on a regular base from both internal/external vendors and built to manage complex products which are affected by trends, seasons, seasonality, price changes or promotions. It deals with reducing inventories simultaneously optimizing the actual service levels. Several other benefits includes:-