The coordination between the supplies and the customers demand is an important aspect in the success of any supply chain. Poor coordination may result in poor supply chain and high cost. One of the example of this is the videocassette retailer. New arrive movies has high demand in the first weeks of the release. After a while this demand start to decrees. These retailers face the problem in the first weeks because the demand is high but it will shortly decline. At that time supplier sold videocassette to retailer for 65$ and the retailer rent it for 3$ so they hit break even after 22 rentals. For that reason retailer cannot order enough videocassette to meet initial demand or they will lose money. To overcome this problem retailer has to come with a way to meet the initial demand without losing money. Blockbuster and supplier reach a deal that will benefit both of them. The supplier agreed to sell the videocassette for less than the production cost in exchange for a portion of the rental income. In this deal blockbuster got the videocassette from the supplier for only 8$ and the breakeven dropped to 6 rentals from 22 rentals. That allow blockbuster to meet initial demand and to share the revenue with the supplier. This case inspired Martin Lariviere and Gérard Cachon to write their article “Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations,” In their article showed that revenue sharing contracts is not only limited to videocassette
The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.
Study Question #4. Compare and contrast the customer service, customer satisfaction, and customer success philosophies of supply chain management.
When implementing project 1, you face technical and market risk. How would you assess the risks embedded in Project 1?
Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also
Richard Dana Associates (RDA) was brought in by the owners of a family-owned business with complex relationship issues at a time preceding an anticipated leadership transition. Following individual and group coaching sessions, RDA was able to help the leadership separate personal issues, and codify practices through formal policies to allow the leadership group to focus on business issues without personal complications. At the end of RDA's engagement, the client was well-positioned to begin developing a transition plan.
An organization focuses on many aspects and strategies that address customers’ needs and wants. The organization develops a product that includes many steps such as, product life cycle, type of brand, packaging and labeling, but the final step is how to have their product accessible to the consumer, which is distribution. A distribution channel is the path where products, including their ownership, flow from producer to consumer. There are many paths an organization can choose to send their product. Physical distribution is the actual movement of products from a producer to consumers.
Previously, in literature, different production strategies for customer order fulfillment have been discussed. These strategies can be classified as Make-to-Stock (MTS), Make-to-Order (MTO), Assemble-to-Order (ATO) and Engineer to Order (ETO) [42, 43]. These strategies differ with respect to where stock is held in the system and where the production system is decoupled from customer order [44]. The adoption of these strategies depends on the customer’s willingness to wait as discussed by Mather in his P/D ratio, where he compares the production system’s response time (P) to the customers’ willingness to wait (D) [45]. Company’s decision to adopt any of these approaches is of great strategic importance [46] as it strongly affects the way a
As the new technology and fast evolution of software, keeping information system efficiency became a challenge. On the enterprise side, the company’ operation, inventory, and logistics systems are the key to success. On the customer side, the high quality and satisfied experience from the user interface is very important. Moreover, the establish and develop a new technology is costly and different.
The first step in devising an effective supply chain is to consider the nature of demand for your product.
She/he is an integral part of the supply chain planning and analytics of organization distributor center. This position will serve as the business matter expert in the area of supply chain and will be responsible for managing multiple work streams for supply chain modeling and analysis in the context of redistribution center, global sourcing initiative, steady state optimization and other analysis requests. The Supply Chain Analyst will work with external and internal customers on various projects to propose an optimized future state supply chain.
4. In a service supply chain, the (explicit) cost of information is higher than in a product
The network created amongst different companies producing, handling and/or distributing a specific product (Supply Chain Definition, n.d.). This is done when materials flow from suppliers through a company’s operation. Sometimes the materials are transformed into other materials before they are then delivered to their customers and then to their customers’ customers. In general, logistics refers to the distribution process within the company whereas the supply chain includes multiple companies such as suppliers, manufacturers, and the retailers (Supply Chain Definition, n.d.). The supply chain has three main links which allow information, products and material to flow properly.
T.A. Spedding University of Greenwich, Chatham Maritime, Kent, UK K.K. Chan Nanyang Technological University, Singapore
comprehend key elements and decisions in distribution channel design be able to evaluate different configurations of channel structure be familiar with recent trends and developments in channels of distribution appreciate the importance of managing the physical flows of products, services and information into, through, and out of the organization to its customers n grasp the meaning and scope of physical distribution and logistics management n be aware of developments and trends in production and manufacturing, particularly the growth of ‘lean manufacturing’ and implications for logistics n recognize the role of
They result in the following environmental threats like greenhouse effect, acidification, over-fertilization and depletion of the ozone layer.