Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Term Paper:
Where, you are bringing different elements of the business together, to be able to effectively address various supply chain issues. The most notable include: the business model, inventory reduction strategies / risk reduction strategies, inventory levels and effective warehousing. The business model is: where they are examining how the current model, could help to contribute to various supply chain related issues. The inventory reduction / risk reduction strategies are: when the business is seeking out ways to reduce the inventory levels and possible risks as much as possible. Inventory levels are when you are monitoring the effectiveness of using this strategy. Effective warehousing is when the company is utilizing its different warehouse space, to effectively control the inventory levels. These different elements are important, because they illustrate how the warehouse would play a vital role in the postponement process. Where, it is playing role in helping a company to: store, maintain and control inventory levels. As a result, the warehouse is the final point, that the total effects of a company's inventory management strategy will be seen. The below example illustrates how this system would work. (Baker 2008)
Combining Different Postponement Strategies
Inventory Reduction Strategies / Risk Reduction Strategies
A Comparison of Postponement Strategies
When you compare the various systems side by side, it is clear that there are a number of different ways that this can help the warehouse adapt to the changes that are occurring. Under the form postponement system, there is one central distribution center that will distribute the different products to the various locations. The two level inventory system; is when you are using two different warehouses, to serve as a stop gap measure, to make certain that the different retail stores have the products they need. Combining the different strategies is when you are looking at the business model that is being used and the underlying inventory levels. Where, the main objective is to examine how both factors, could have an effect on inventory levels. These different strategies are significant; because they show how a shift has occurred in way warehouses are being used. Where, it is playing an increasingly important role in the management of the supply chain and inventory levels. For any organization, effectively being able to deliver the products that consumers need, at the prices they are demanding, will play a major role in determining how successful a business will be in the future. As a result, a variety of warehouse postponement strategies must be utilized, as a way to address the different changes that a business is facing, because of globalization. Where, the most profitable corporations have begun to embrace innovative warehouse postponement strategies, as a way to help improve their overall bottom line. Over the course of time, those businesses that can be able to effectively adapt their postponement strategies, to changes that are taking place in the economy, will see a dramatic improvement in the underlying levels of profitability. Where, the focus on this aspect of the business will help to give the company flexibility at all times. In many ways, one could effectively argue that the ability to control the supply chain and to adapt to changes the industry / economy are essential for continued economic growth. Therefore, it is in the best interests of the business, to utilize warehouse procurement strategies that will help it adjust, to the changes that are taking place.
Clearly, postponement is having a dramatic impact upon the role of the warehouse in an organization. This is because globalization is changing the nature of business, where changes in demand can occur quickly. Over the years, various businesses have tried carrying large supplies of various raw material and parts. However, the use of this system has led to losses and is simply not economically viable. Instead, organizations have been resorting to postponement, as a way to reduce the amount of working capital that is invested in inventory and to help reduce the underlying amounts of risk. As a result, three different postponement strategies were developed to address these issues to include: form postponement, the two level warehouse inventory system and the combination of different inventory systems. For the warehouse, each system is significant, because it plays a vital role as the distribution center and as a tool to help control costs. This is because it is the focal point of an organization's supply chain. Where, the warehouse is the place that will effectively control inventory levels and distribute products, to different locations quickly. Since consumers are demanding a variety of products quicker requires: that some kind of system is developed to address these issues. This is how the warehouse will play a vital role in postponement. As it will serve as a stop gap, that is capable of effectively monitoring and reporting to executives, key changes in supply / demand. Over the course of time, this helps an entity be able to effective adapt to changes in the economy, because they can maintain appropriate inventory levels at the warehouse. This is one of the keys in helping an entity be able to survive the changing tastes from consumers and various economic conditions. Therefore, those organizations that can effectively utilize different postponement strategies will be able to adapt, to changing economic conditions and demand.
Baker, P, 2008, Design for Postponement and Operation of Distribution Centers,
The Role, Design and Operation of Distribution Centers, PHD Thesis, Canfield University
Bates, A, 1977, 'Warehouse Retailing', California Management Review, vol. 20-page 74.
Chiou, J, 2002, 'The Adoption of Form Postponement Strategy in a Global Logistics System', Journal of Business Logistics, vol. 23, no. 1, pp. 107 -- 125.
Huq, F, 2006, 'Simulation Study', International Journal of…[continue]
"Warehouse Role In Postponement Over" (2010, July 21) Retrieved December 3, 2016, from http://www.paperdue.com/essay/warehouse-role-in-postponement-over-9451
"Warehouse Role In Postponement Over" 21 July 2010. Web.3 December. 2016. <http://www.paperdue.com/essay/warehouse-role-in-postponement-over-9451>
"Warehouse Role In Postponement Over", 21 July 2010, Accessed.3 December. 2016, http://www.paperdue.com/essay/warehouse-role-in-postponement-over-9451
Ayers (2000, p. 4) describes a supply chain as "Life cycle processes supporting physical, information, financial, and knowledge flows for moving products and services from suppliers to end-users." A supply chain can be short, as in the case of a cottage industry, or quite long and complex as in the manufacture, distribution, and sales of automobiles. In fact, the automobile supply chain has its origin in the mining of the
85). Newly independent countries joined in the shipping industry as a way of demonstrating their economic independence, leading to an increase in the number of open registers as owners in the traditional maritime countries could now register in countries with less demanding tax laws and lower costs for workers. Shipbuilding, which had long been dominated by Europe and North America, moved instead to East Asia. Other changes also took place
AMR Research (2005) believes that companies must begin developing and redeploying current order management architectures with the focus on delivering more flexibility rather than a strategy that delivers far less. The move toward customer-driven fulfillment processes requires the ability to build and adapt channel-specific, product-specific, and customer-specific order flows quickly without an army of developers creating custom code. However, the days of big bang, rip-and-replace implementations are over, and any
SCS initiative analysis has been talked about in detail. The main aim or purpose of this in-depth analysis is to explain in a better way the questions regarding the design, theoretical grounds, dynamics and the coverage of the supply security chain etc. Following are the kind of questions that have been tried to answer in this paper: To what extent does the SCS initiative covers the security areas, human resource