There are a lot of benefits of supply chain management, to the point where it is absurd to ask what they are. What benefits are there of not engaging in supply chain management? None. So the reverse is also true. Supply chain management, among other things, ensures that you get the products/materials you need on time, on cost and to spec. While this obviously enhances the firm's value, it also enhances customer value. Customers get products at a lower cost, with fewer delays, and also to spec. The benefits of supply chain management are often passed onto the customers to help the firm gain competitive advantage.
Supply chain integration reflects the process by which the supply chain system is integrated with the demand system. An example would be a retail store that sees demand for snow shovels in advance of a blizzard, and the integrated system ensure that manufacturers can tap their inventory supplies and get them to the stores in time to sell them. This process will typically involve multiple organizations, and certainly multiple departments, so a lot of the integration aspect is the result of communication between relevant parties. Customers enjoy superior outcomes as the result of supply chain integration because the company is better able to meet demand. The customers create the demand, and supply chain integration better enables the company to meet that demand, so customers do not experience shortages or cost increases as the result of this process.
3. If a company fails to embrace supply chain integration, there are many outcomes, most of them negative. Essentially, supply chain integration when it works allows for the company to work smoothly, cutting out excess inventory, reducing shortages and simply better aligning the goods coming in with the demand for output. Thus, if there are no supply chain integration efforts, the company is likely to experience each of these negative consequences. It is likely that the…… [Read More]
Managing Supply Chain
Managing the supply chain
The organization that I work for deals in interior finish of houses with the range of services being the floor finishes, plumbing works and sanitary ware, home furniture and office furniture as well as curtains. The outsourcing levels within this organization run to close to 70-75% of the goods and services. In as much as there are some materials that are manufactured by the company, most of them are outsourced. Once the tenders are secured for making a final fine finish to a given block of offices, the company often outsources the skills and manpower from the companies that deal in these interior finish and decorations. The company also outsources for the skilled manpower that helps in the assembly of furniture that is delivered to the homes or offices where they secure orders. Even though the company has a few transportation vehicles that helps in transporting its merchandise to the company stores as well as from the stores to the customers, most of it is outsourced to the transport company that deals in safe transportation of even fragile goods. Bearing the extent of the outsourcing that the company engages in, it can be estimated that 70% to 75% of their services and goods are outsourced.
Of the five recommendations given in the article, the fifth is of greatest significance to the organization I work for and is the one that is most widely used (Cecere L., 2014). The company strives to maximize the use of Electronic Data Interchange (EDI). This is very important to the company since it depends on importation of most of its goods and merchandise from countries in Asia like China. Their status while on transit is important so that the company can also secure orders and give the correct timelines for the delivery of the goods to the customers without delay. The EDI is also important on the delivery side since as the goods leave the company stores headed to the customers, there is…… [Read More]
This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when a firm is not facing these issues. (Reza, 2009)
This is problematic, as this approach has been shown to have trouble maintaining these levels consistently. Instead, it creates the necessary momentum to help a firm deal with critical issues. Then, it does not provide any kind of direction going forward. This is troubling, as these kinds of challenges will have an adverse impact on the ability of firms to streamline their supply chain management. (Reza, 2009)
As a result, our research will deviate from these findings by identifying other ideas that can be used during the process. These findings will be augmented with key ideas from other sources to provide a better approach for enhancing supply chain management issues. It is at this point that firms will have a working protocol they can use on a regular basis. This is when productivity will increase and costs will remain low. Over the long-term, this will help a firm to understand the challenges they are facing and how to quickly adapt to them. (Reza, 2009)
To deal with some of these challenges, many individuals believe that decision making must be streamlined during the process. The reason why is because the management can engage in more effective strategies in determining how they will address a host of challenges. According to Garg (2011), this is a part of an overall philosophy that can…… [Read More]
Supply chain management in FMCG sector
Fast Moving Consumer Goods (FMCG)
Managing supply of FMCGs
Demand and Supply
Traditional channel of FMCGs distribution
National Vs Global Presence
Products and Services
Supply chain opportunities
Usage of Supply Chain Management
Overall Business Performance
Issues in global supply chain management: FMCG sector
Multi-channel Supply Chain Management
The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands in common understanding. The business segment includes a variety of products including grocery, food, non-food, and home use items. The business segment is categorized as low margins and high volume industry. The presence of this margins and competitive environment requires innovative techniques for cost reduction and consumer satisfaction.
It is also observed that it requires time and increased amount of capital investment to establish a FMCG brand. The requirements for global market presence and cost reduction require incorporation of sophisticated technological techniques to create value for stakeholders. The implementation of supply chain management has leverage business performance and increased revenues in this industry. Effective use of technology can automate several business operations facilitating cost reduction and performance optimization.
The latest trends in industry can be valued as collaboration and a treatment of suppliers, manufacturers, distributors, and customers as strategic partners. Technology and multi-channel approach for distribution are regarded as enablers of cost reduction and increased presence. However the industry requires a diligent approach to establish credibility and a customer's centric supply chain can assist organizations in gaining market share.
Supply chain is the system of people, organizations, information, and resources that are involved in moving the products and services from the suppliers to the customers. Raw materials, components, semi-finished, and…… [Read More]
Supply Chain Management
Concepts of SCM and the evolution to its present day form
Critical factors that affect SCM
Information sharing and Knowledge management
Culture and Belief -- impact on SCM
Global environment and Supply Chain management
"Social" and "soft" parameter required for SCM
This chapter aims to give an outline and scope of the study that will be undertaken in this work. The study lays out the issues faced by manufacturing organizations when it comes to the management of supplies, inventory, operations and distribution. Any study that can help organizations understand the factors that impact the management of these resources in an organization is beneficial. This chapter also contains the purpose and the hypothesis of this study.
Purpose of this study organization, big or small, is driven by the need to generate profits for its stakeholders. As a result, these organizations are constantly looking for new ways to increase their profitability. While management concepts have been around for centuries, their progression and evolution have never been as rapid as that in the 19th and 20th century. E new management style introduced in recent times has been declared as the "best" and most effective. Companies that "created" these styles as a result of their companies' own internal factors defined many of the management styles, as we know them today.
The need to constantly generate profits for any organization if forcing management within the organization to evaluate and understand the internal and external factors that have the potential to create the most variance.
Management of organizations is a complex process. In turn, organizations constantly seek methods and use tools that will help them understand their operations and optimize their operating processes for higher profits. Attempts to run organization in a "lean" manner with awareness of the criticality of continuous improvement is growing among manufacturing-based organizations. Creating a constancy of purpose towards improvement and strategy planning based on long-term goals of the organization can help enlighten those involved with the organization to problems that they face or might face.
Supply chain management (SCM) has been used with varying effectiveness in organizations all over the world. This study initially hoped to identify the concepts and ideologies of SCM in two countries: the U.S. And Malaysia.…… [Read More]
Supply Chain Management at DIMCO
The supply chain relates to the entire cycle and process through which raw materials are purchased, processed and developed in to goods and services which can be traded in the market. The management of such a process would involve creating improvements in the supply chain itself to make it more profitable and efficient for the company (Davis, 1993). Therefore the supply chain encompasses not only raw material providers or experts that provide their services during the production period but also the distribution channels the company adopts, and its internal production departments and channels.
The Durham International Manufacturing Company has the option to either improve its supply chain with its suppliers or its distributors, and considering that DIMCO has already settled in to the markets it is currently trading in; it would be more beneficial to work on the company's connection with its suppliers.
By improving relations with suppliers as well as better organizing how raw materials reach the production plant, DIMCO can be sure to decrease production time for each unit produced as well as decrease wastage during production. Also by having a better network of suppliers in place DIMCO will be more likely to source products more cost effectively and also be able to manage the right materials when they are needed rather than wasting time either searching for the raw materials or purchasing them at a higher cost. Not to mention that once the supply process of the raw materials has been ironed out the production process can also be tailored to suit the supply, so as to produce most efficiently. By enhancing relations with the suppliers it may also be possible for DIMCO to find substitutes for raw materials they are currently using, or to find superior products altogether which they can use both to increase the end products' quality, or to lower its price. In order to improve its current relations with suppliers DIMCO may consider issuing some form of extrinsic incentive for its suppliers which may include things such as smaller credit periods. By paying…… [Read More]
Supply Chain Management related to DIMCO
Supply Chain Management and other issues related to DIMCO
In this paper, we will determine whether integration efforts should start with suppliers, distributors or both for the firm DIMCO. We will also attempt to explain the rationale for our decision, after this we will recommend ways that DIMCO could benefit from leveraging B2B e-Commerce. We will then determine what steps DIMCO could take in order to improve its relationship with suppliers and finally look out for the most effective ways for our chosen firm to eliminate waste in its supply chain.
For our chosen case of DIMCO it is more appropriate to start integration efforts with the suppliers. Since DIMCO uses approximately one thousand three hundred and fifty different raw materials or components in manufacturing line which are purchased from approximately three hundred and seventy five different suppliers throughout the world, it is very essential to manage all of this with great efficiency. Also, since the distribution greatly depends on the supply factor therefore it must be considered as a prerequisite to the integration efforts with distribution. Now, lets focus on the integration efforts with the suppliers in some detail.
"It is very important to recognize that the process of supplier integration must be properly managed so that optimum efficiency regarding the deals being done is achieved" (Brudney, 2000). Some of the important practices and strategies for the successful management of supplier integration are as follows.
First, "the usage of supplier integration must be done selectively" (Byrnes, 2003). Second, "it is very important to choose the correct suppliers to deal with" (Earl, 1998). Third, a firm commitment must be built towards the integration efforts in the buyer as well as the supplier organizations. Fourth, the targets and metrics must be clearly defined, the suppliers must…… [Read More]
Supply Chain Management
Purchasing and Supply Management: A Key to Competitive Advantage
Purchasing and supply management is an essential function of any business. Regardless of the size of the business, or the product are service that they offer, every business depends on some type of supply in order to produce goods or services. If supplies do not arrive on time, the business could be it a standstill. This not only means lost money and lost time, but it also means angry customers and potentially lost business. This research will support the thesis that purchasing and supply management play a significant role in customer relations and maintaining competitive advantage.
Definition of Purchasing and Supply Management
Purchasing and supply management means placing attention on the procedures and policies of the organization in the acquisition of goods with which to produce their products. According to Johnson, Leenders, & Flynn (2010), many academics are only concerned with the purchasing processes of buying. They do not concern themselves with the processes involved with the strategic side of the process. Purchasing and supply do more than simply fill purchase orders as directed by others in the organization. They must actively seek to find a need within the organization, find appropriate suppliers, and negotiate a price. There are many considerations in the purchasing process. In an earlier edition, the authors defined purchasing and supply management in the following manner,
"Purchasing, supply management, and procurement are used interchangeably to refer to the integration of related functions to provide effective and efficient materials and services to the organization" (Leenders, Johnson, Flynn, and Fearson, 2006).
As one can see, the role of purchasing and supply management goes far beyond pushing paperwork and filling orders. Purchasing and supply managers now play a vital role in the profitability of the organization. The work of the supply manager has a definitive impact on the success and grown of…… [Read More]
Supply chain management has become a concept without which companies could not face the increasingly complicated business environment existent nowadays, especially given the competition of companies that can operate at lower operational costs and thus increase their profit margins through cost competitive advantages.
In order to achieve lower costs, better distribution processes and better delivery times, companies have introduced supply chain management. Supply chain management can be defined as "the practice of coordinating the flow of goods, services, information and finances as they move from raw materials to parts supplier to manufacturer to wholesaler to retailer to consumer" and, as a process, includes "order generation, order taking, information feedback and the efficient and timely delivery of goods and services"
Boieng is an excellent example in this sense. Operating in an industry as complex as aeronautics, with tough competition from European firms such as Airbus, Boeing needs to ensure a high quality supply chain management process.
Perhaps the most important aspect of Boeing's supply chain policies is the collaboration with other companies, carefully selected in order to fit Boeing's exact requirements. The partners that Boeing selects have a series of distinct characteristics, most notably "online visibility and leading-edge application of technology"
There are several relevant examples in Boeing's supply chain strategies, with interenterprise links going from partnerships to alliances on the market. Perhaps the best example in this sense is Boeing's relation with GKN Aerospace North America. The respective company was established in 2001. At that time, Boeing decided to concentrate on assembly and sold its fabrication division to GKN
From this point forward, GKN worked to achieve "down to the hour and minute -- the needs and wants of its largest customer"
. This meant that a proper and fully functional needed to be set in place in order to best coordinate GKN's production with Boeing's consumption. The technological system conceived was truly marvelous: a system that "key indicators in Boeing's…… [Read More]
Supply chain management careful attention paid process sees materials, information, finances move supplier manufacturer wholesaler retailer consumer. Supply chain management focuses efficiently effectively coordinating flows supply chain process companies.
Supply chain management
True or false: Coca-Cola's experience with inventory forecasting supports the principles set forth by CPFR
The modern day economic agents function in a more and more dynamic business environment, in which they have to simultaneously serve the growing needs of numerous categories of stakeholders, such as customers, employees, business partners, the general public and so on. In such a setting, the firms devise and implement a wide array of methods and strategies by which to serve these needs and to also maximize their chances of attaining their pre-established business goals.
Given this complex setting, companies across the globe turn to supply chain management as a mechanism of integrating all actors which ensure the efficient creation of the products and their reaching the end consumer. The Coca Cola Company has devised its own supply chain management system and has implemented in it a highly successful manner. The Coca Cola Bottling Co. Consolidated used supply chain management to allow its field agents to collaborate on matters of inventory forecasts. The result of this decision was that of the slashing in half of the inventories and the absorption of 150 new products.
In such a setting, a question is being posed relative to the company's experience with inventory forecasting applications, namely whether this usage of inventory forecasting has supported the principles of collaborative planning, forecasting and replenishment. In order to answer this question, it is first necessary to reveal the features of these principles, and then to reveal if and how these were attained by the Coca Cola Company.
At a generic level, the scope of the Collaborative Planning, Forecasting and Replenishment Committee (CPFR) is a three fold one, namely to ideate, execute and educate. In terms of idea creation, the scope of CPFR is that of "provid[ing] the leadership and innovation to reduce overall value chain costs and better serve our customers" (Voluntary Iterindustry Commerce Solutions, 2011).
Then, at the level of execution, the goals of the committee are to "own the CPFR framework, provide stewardship for it and keep it relevant; […] create the common language and standards."…… [Read More]
Supply Chain Management
True or False:
Coca-Cola's Experience with Inventory Forecasting
Supports the Principles Set Forth by CPFR
In a one-word clear stand: true.
The Collaborative Planning, Forecasting & Replenishment (CPFR®) System promoted by the Voluntary Interindustry Commerce Solutions (VICS) Association (Voluntary Interindustry Commerce Solutions Association, 2011) was piloted between Wal-Mart and Warner-Lambert in April 1996 (Purpura, 1997). Their CPFR collaboration allowed Wal-Mart and Warner-Lambert to jointly evaluate the supply chain in process, particularly regarding "Listerine," a Warner-Lambert product. That joint evaluation and inter-company feedback gave Wal-Mart more accurate selling rates and inventory of the product while giving Warner-Lambert more efficient predictions of amounts, types and times to supply the product to Wal-Mart (Purpura, 1997). Over a period of 5 months, Wal-Mart increased in-stock levels of "Listerine" "from 87% to 98%" (Purpura, 1997) while reducing inventory of Wal-Mart's "Listerine" products by approximately 20% (Purpura, 1997), reducing inventory-related costs. In sum, the pilot project achieved several of CPFR's main objectives by inventory reduction, higher efficiency and lower costs.
Encouraged by the efficiency of this pilot project and others, various large companies, including the Coca-Cola Bottling Company Consolidated (CCBCC), studied the possibility of applying CPFR to their own supply chains. Prior to 2002, the Coca-Cola Retailing Research Group found that efficient supply chain management could result in a 1.5% - 2.5% cost savings potential in end-consumer prices (Seifert, 2002, pp. 22-23). Once CCBCC opted for CPFR, it did so wholeheartedly, developing "upfront collaboration" linking trade directors with sales and marketing in the field, incorporating a "Look for Success" plan and establishing step-by-step opportunities in sales (Coca-Cola Bottling Company Consolidated, 2011). CCBCC also invested heavily in supply chain integration, concentrated on agility and skills and encouraged "thought-leadership" (Coca-Cola Bottling Company Consolidated, 2011), which can be defined as "having the answers to the biggest questions on the minds of your buyers" (Brenner, 2011), and possibly including "your unique perspective on hot topics relevant for your customers" (Brenner, 2011).
As a result of investing considerable time,…… [Read More]
"Wal-Mart has the biggest IT systems of any private company in the world and supply chain Wal-Mart has made important investments in supply chain management" (Why Wal-Mart's supply chain is so successful, n.d.).
Wal-Mart's way of doing business is founded on a low price approach and low transportation expenses which permit it sell its products at the lowest achievable prices. "In return for its Everyday Low Price Strategy, Wal-Mart's suppliers, both large and small, either break even or make profit supplying at Wal-Mart's stores. But the real winners are Wal-Mart's customers who save thousands of dollars buying at low prices. Since Wal-Mart stores began selling groceries almost three dozen regional grocery suppliers have struggled to match or simply run out of business. On average Wal-Mart's annual sales are $350 billion and it has more than 7,000 stores, 120 distribution centers and operations spanning fifteen countries. Nearly two million employees at Wal-Mart focus on cost, customers and continuous improvement on a daily basis. Other major retailers like Target and Home Depot have emulated Wal-Mart's logistics strategies and tactics" (Why Wal-Mart's supply chain is so successful, n.d.).
Every Wal-Mart store functions like a small company. Store managers are taught to run one store at a time, run one department at a time, and take care of one customer at a time. Decisions are made by store teams in order to make the individual stores function at their best with superior execution. With recognized vendor affiliations with top manufacturers, Wal-Mart has put into practice advanced logistics solutions like RFID (radio frequency identification). These resolutions help maintain lower expenses, recognize out-of-stocks and increase sales (Why Wal-Mart's supply chain is so successful, n.d.).… [Read More]
This shift in responsibility that a payoff can force over time needs to be dealt with from a business process management and change management standpoint over the long-term (Jacobs, Chase, 2010). By concentrating on the unique requirements and needs of the internal stakeholders, payoff analysis can be profitable and productive over the long-term.
Juan Alberto Aragon-Correa, & Enrique a Rubio-Lopez. (2007). Proactive Corporate Environmental Strategies: Myths and Misunderstandings. Long-Range Planning, 40(3), 357.
Jacobs, Robert, & Chase, Richard. (2010). Operations and Supply Chain Management. Upper Saddle River, NJ: McGraw Hill Higher Education. 13th Edition.
MacMinn, Richard D., & Han, Li-Ming. (1990). Limited Liability, Corporate Value, and the Demand for Liability Insurance. Journal of Risk and Insurance, 57(4), 581.
6. What strategies are used by supermarkets, airlines, hospitals, banks, and cereal manufacturers to influence demand?
There is an abundance of strategies used by retailers and members of distribution channels, healthcare providers, service providers and consumer packaged goods manufacturers to influence, shape and drive demand for their products, services and upsell programs (Jacobs, Chase, 2010). The most common of these strategies is to concentrate on selling solutions and benefits over just features and price. This strategy concentrates on value over just price alone.
Influencing demand through the use of customer endorsements is also considered one of the most effective strategies each of these types of companies rely on to influence demand. Endorsements convey trust and invite prospective customers to see their unique requirements also reflected in the needs of customers who have already bought the products as well. Customer testimonials are very powerful as a means to influence demand through trust and relevance.
A third approach all of these businesses rely on to influence demand is their reliance on the unique experiences each of these businesses and their products and services offer (Tynan,…… [Read More]
Second, greater education about the values and benefit of this approach to managing projects needs to be completed (Brady, Maylor, 2010). Third, the inertia and lack of motivation to change needs to be quantified and shown to managers to see how their lack of commitment and urgency are hurting their businesses. All of these factors center on the value of time and its precious nature as a resource (Brady, Maylor, 2010).
Brady, T., & Maylor, H.. (2010). The improvement paradox in project contexts: A clue to the way forward? International Journal of Project Management, 28(8), 787.
Casamatta, C., & Guembel, a.. (2010). Managerial Legacies, Entrenchment, and Strategic Inertia. The Journal of Finance, 65(6), 2403.
Jacobs, Robert, & Chase, Richard. (2010). Operations and Supply Chain Management. Upper Saddle River, NJ: McGraw Hill Higher Education. 13th Edition.
What is the difference between statistical process control (SPC) and statistical quality control (SQC)?
The goal of statistical process control (SPC) includes the measuring, monitoring and improving a given series of processes using statistical tools and techniques (Gruska, Kymal, 2006). Statistical process control is prevalent in oil and gas, chemicals and pharmaceutical industries. SPC relies on statistical process techniques to understand variation in quality and output based on production strategies and programs
(Jacobs, Chase, 2010). Statistical quality control (SQC) is the series of frameworks, techniques and tools used for effectively measuring and improving the quality level of product over time (Mahmoud, Henderson, Epprecht, Woodall, 2010). Their use and adoption by industry is dependent on a wide range of factors including the level of acceptance in a given corporate culture for quantitative measures of performance (Gruska, Kymal, 2006). SPC is also being applied to services-related business models as well, looking to find variation in service process performance. The use of secondary indexes for quantifying each aspect of service processes has also grown as SPC has gained momentum over time, with the most prevalent being SERVQUAL (Mahmoud, Henderson, Epprecht, Woodall, 2010). The concept of SERVQUAL is to integrate in perceptions of service to the quality levels being attained so companies have an indication of what to improve upon over time…… [Read More]
In addition to this, the company is pressured into reducing the time in which the product will be recalled, the situation will be analyzed, and the items in case will be replaced with proper ones.
The pressure exerted by the public is also very important for the company in handling the product recall. The company must ensure that the public does not turn against the company. In order to achieve this, it is important to communicate with the customers the details of the product recall process.
7. In terms of accountability, contracts represent only a small part of the process. But negotiating a good contract does not suffice (Ernst & Young, 2009). In addition to this, specialists in the field state that metrics must be measured, and customers should also be held accountable in certain situations.
1. Factbox -- Johnson & Johnson's recent product recalls (2010). Reuters. Retrieved August 15, 2010 from http://www.reuters.com/article/idUSN0412564320100504.
2. Ackerman, A. (2008). In the Event of a Recall. Consumer Goods Technology. Retrieved August 15, 2010 from http://www.consumergoods.com/ME2/dirmod.asp?sid=&nm=&type=MultiPublishing&mod=PublishingTitles&mid=A533BDC6582947448BBFA37BFF6394FF&tier=4&id=1AA2E93DF49C49EFB90D641610FF8D31.
3. Product Recall Program (2007). Zurich Services Corporation. Retrieved August 15, 2010 from http://zurichhpdelivered.com/internet/zna/SiteCollectionDocuments/en/media/inthenews/RiskTopicsProductRecall.pdf.
4. Global Supply Chain (2009). Ernst & Young. Retrieved August 15, 2010 from http://www.ey.com/Publication/vwLUAssets/Global_supply_chain/$FILE/AABS_Advisory_Global_supply_chain.pdf.
5. Abele, E., Meyer, T. & Naher, U. (2008). Global Production. Retrieved August 15, 2010 from http://books.google.ro/books?id=baQOlzVEmuAC&printsec=frontcover&dq=global+production&source=bl&ots=CXEBGXVAz3&sig=C1jj2vt-I46NQ_ZKSRmQJmvFGqE&hl=ro&ei=mxtoTIX1H6GSOJe4wLgF&sa=X&oi=book_result&ct=result&resnum=3&ved=0CCQQ6AEwAg#v=onepage&q&f=false.
6. McNeil Consumer Healthcare Announces Voluntary Recall of Certain OTC Infants' and Children's Products (2010). Johnson & Johnson. Retrieved August 15, 2010 from http://www.jnj.com/connect/news/all/McNeil-Consumer-Healthcare-announces-voluntary-recall-of-certain-OTC-infants-and-childrens-products.
7. Singer, N. (2010). In Recall, A Role Model Stumbles. The New York Times. Retrieved August 15, 2010 from http://www.nytimes.com/2010/01/18/business/18drug.html?_r=1.
8. Day, J. (2010). Johnson & Johnson Issues Massive Product Recall. Day on Torts. Retrieved August 15, 2010 from http://www.dayontorts.com/products-liability-johnson-and-johnson-issues-massive-product-recall.html.
9. Smith, L. (2010). What's Next: The Plaintiff's Perspective -- Johnson & Johnson's Product Recall Protocol Spawns Potentially Massive Class Action. Levick Strategic Communications. Retrieved August 15, 2010 from http://www.bulletproofblog.com/2010/06/16/whats-next-the-plaintiffs-perspective-johnson-johnson%E2%80%99s-product-recall-protocol-spawns-potentially-massive-class-action/.
10. Layton, L. (2010). Johnson & Johnson recall medicine for infants and children. The Washington Post. Retrieved August 15, 2010 from http://www.washingtonpost.com/wp-dyn/content/discussion/2010/05/03/DI2010050301988.html.
Sales & Inventory
Customer Call-Center… [Read More]
Standardization of the longest lead-time parts and those with the highest variable costs are essential for manufacturers to stay profitable. Standardization also needs to be dictated by the implications for suppliers of key parts and subassemblies. Standardizing on long lead-time items that also have little demand variability would be the best decision.
Based on your knowledge and/or experience of Total Cost of Ownership (TOC), discuss what you think are the two most critical components of TOC.
Total Cost of Ownership's most critical areas are the recurring costs over the lifetime of an asset and the services strategies to minimize these costs. The second most critical component is the planning prior to development or manufacture to ensure that maintenance for the asset or system is as high in terms of reliability as possible (Heilala, Montonen, Helin, 2007). It is also critical on this second point to engineer in a low time to repair (MTTR) and very low cost to repair using off-the-shelf parts to minimize supply chain fluctuations as well.… [Read More]
This dynamic is more than an experience effect or network effect, as it is multiplicative across the many members of the supplier network, in effect creating an entirely new platform for sharing knowledge and information. The reliance on analytics for creating the necessary integration links and platforms for decision making also dominate this phase of maturity in any supply chain network (Wang, Huang, Dismukes, 2004).
With the findings that what gets measured dictates the culture of an organization as much as how information is shared across the network, the development of an effective DDSN framework can begin. The initial steps of creating a common set of key performance indicators (KPIs) and metrics first needs to be completed, and the integration points across each area also defined. Third, there is the need for defining the idealized state of metrics performance followed by a best practices benchmark for comparable supply chain networks. With all of these factors in place, a supply chain can be effectively measured and compared relative to peers, so that a relative level of performance maturity can be assessed (Schlegel, Murray, 2010). With these factors in place a DDSN will over time transform itself into a knowledge sharing network provided that the key goals and objectives of the supplier chain itself continue to be accomplished (Dyer, Nobeoka, 2000). The ability to generate knowledge over time based on supply chain performance can then be achieved.… [Read More]
Though it is not entirely necessary for the approach taken to be a novel one, the research here will consider that there are yet undetermined impacts on the merchant of such a system. Thus, a second part of this methodology will be focused upon once the literature review has provided us with sufficient data to surmise a framework for the automated system. As this automation would impact the ordering systems used by merchants outside of Imperial Tobacco, it will be important to gather feedback from such vendors. They will be asked through survey to cite pros and cons to the prospect of automated online ordering, which would likely be effective once a merchant signed to the program reached a certain inventory minimum.
As to current and unresolved issues on the subject, the input of merchants should supplement the literature review in order to demonstrate a clear course of action that will be most beneficial to all parties involved. Namely, though we are already moved forward by the hypothesis that this automation would improve the company's ability to remain in stock where desired while also giving it more clear predictors of purchasing pattern to the extent of assisting the company in making long-term consumption projections, the input of merchants will have the capacity of helping to identify heretofore unseen challenges in the project such as the cultural resistance of merchants to a new program, the economic costs to Imperial Tobacco of the project implementation and the overall value gained in time-management for internal human and computer resources upon which the transition will depend.
Ultimately, the research here proposed will be driven by an interest in improving operational effectiveness through technological rather than strategic reconsideration of the supply chain.… [Read More]
This lack of trust within the supply chain has a rippling effect across the flow of goods and services, and should therefore be addressed with a high degree of priority. Trust must be built through a process of regular communication across the supply chain, which includes all parties involved in the flow of goods.
Communication can be established by a variety of means. In addition to electronic communication, face-to-face communication via meetings is also a good idea. Trust is easier to establish by means of personal meetings, where ideas and information can be shared among the various stakeholders. Trust can also be established and maintained by means of a contract stipulating that information is not to be shared with parties outside the supply chain or those who do not have a direct interest in the supply chain itself.
A long-standing relationship with suppliers will also create a basis of trust if goods and services supplied are of a consistently high quality. In order to ensure this, each company within the supply chain should share its specific requirements for the goods, services, and delivery times that they require. These requirements should also be consistent with the demands of customers at the end of the supply chain. APS and EPK systems are a useful way to organize and disseminate such information with efficient speed across the supply chain.
Through meetings, the needs of each company in terms of information technology should be established. A regular schedule for communication should be established in order to promote trust and information sharing among companies.
The purpose of communication and trust among supply chain companies is to match the demand for bedroom furniture products with the supply in order to establish a lean manufacturing paradigm. This can be done by means of a Materials Requirements Planning system, which allows suppliers to plan for future materials supply. Known future orders are recorded with forecasted orders to ensure the on-time delivery of sufficient materials. The amount and delivery requirements of these materials are determined by the system and communicated across the supply chain to ensure the smooth flow of products. The quality of these products…… [Read More]
Communication was kept constant, so any problems were dealt with before they resulted in delays.
Demand forecasting is a critical aspect of World Co's success. It is essential that new product lines are responsive to the consumer's needs and desires. Both aggregate demand for the products sold by the company, as well as category-specific demand for specific types of clothing was closely monitored (Raman & Fisher, 2001, pp.6-7). Responsiveness was also required to minimize wasteful production of unpopular lines of clothing and reduce the build-up of unsold inventory. Monitoring of past inventory and current sales, as well as speedy transmission of information between headquarters and the factory floor enabled demand forecasting to have a significant impact upon inventory waste reduction.
Department store's significant impact upon sales of product lines such as Untitled meant that brands were constantly struggling for better placement within expensive retail spaces. But cost savings were achievable through Accurate Response monitoring, which enabled World Co to balance overstocking and under-stocking cost risks and achieve a happy medium between these two extremes.
Quick inventory turnovers are useful in the fashion industry because inventories that build up frequently are usually sold at a loss, once the trends have become stale. Yet small inventories may mean that some customers may leave stores dissatisfied and there may be insufficient capitalization upon new trends. Accurate Response was thus an effective risk management technique.
Through materials preparation, such as standardizing zipper lengths and other relatively inconsequential details, production time was reduced. This also reduced waste, as inventory for obsolete products was less apt to become stockpiled. Also, this enabled the company be more responsive to demand, as existing input materials could be used in new clothing.
Financial impact: Supply chain design, short lead times and quick inventory turnovers
By increasing its ability to respond to subtle changes in demand in an immediate fashion, World Co managed to achieve high levels of consumer responsiveness and innovation. Its lean, tightly-controlled supply chain proved effective in reducing costs for the company but kept quality high. Short lead times for product releases and making use of adaptable raw materials increased inventory turnover, as this allows the company to be a 'first mover' in meeting demand without building up an inventory that had to be sold at a loss.
What can other…… [Read More]