The Supply Chain Of Supply Chains

1235 Words Nov 18th, 2014 5 Pages
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. Figure 1 schematically portrays an average automobiles supply chain that incorporates a network of modest supply chains each with its particular distinct attributes. The complication of the automobile supply chain might be measured from the way that an average vehicle embodies approximately 20,000 parts with around 1000 sub-assemblies or modules. The automobile supply chain involves huge number of tier 1, tier 2, and tier 3 manufacturers or suppliers with many assembly operations and various dealerships. Costumer demand for differed specific layouts and features add to the abnormal state of response required from automotive supply chains. The order lead time required by a customer is averaged at 4-6 weeks in the automobile industry and there is a positive connection between execution of Supply Chain Management (SCM)…

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