Supply chain design: executive summary and presentation

¶ … role of supply chain management in the management of the product and how various concepts of supply chain management can be applied to get better results for the chosen product.

Heated crib mattress and the diaper bag with an installed camera is an innovative product and its supply chain requires a cross functional approach which includes the management of the raw materials movement into the organization, internal processes of materials and then finally delivering the goods to the final customer. The supply chain will be flexible and would focus on the core competencies of the product by reducing the costs through keeping the inventory at the minimum required level. This will increase the cost efficiency of the organization. However this is only possible if the team is able to predict the demand of the customers accurately. Daily logistics operations will be kept to minimum by increasing the number of organizations that are involved in making sure that customer satisfaction is their own priority.

The current market dynamics has shifted from individual company performance to the performance of supply chain. It is the ability of the supply chain to meet the customer expectations through responsiveness, less lead time, product availability and delivery; that decides the success of the organization. In order to measure the performance of the supply chain management there are certain "metrics." Theses metrics are further classified in service metrics (metrics which show the value generated for the customers) and organizational metrics. The nature of supply chain is cross functional therefore each department has its own role to play and affects the performance of the whole.

The primary goal of capacity management would be to guarantee that the IT capacity is up to the mark with the requirements of the product in an effective and efficient manner in terms of cost. The installation of the camera will have a lot to do with the IT technology and the new trends and innovations must be monitored in order to make sure that the product is up-to-date and it is equipped with the latest technology in the most cost effective manner.

The primary requirement of a Just in Time inventory is the top management support which can also be called the corporate commitment, which is willing to allow the development of the internal structures and the customer bases to support Just in Time manufacturing. In addition to the top management support, each department of the organization must be committed to the cause because it requires a cross functional effort. A significant amount of financial resources is also required in the initial stages of the implementation of JIT inventory. The transition phase can be a tough period for the organization and the organization must be willing to give time to the new system. Commitment and Trust play a vital role between the customer and the supplier. Our product must use Justin Time inventory. The reason for using this approach is that the product does not have a stable demand. Therefore it will help in reducing a lot of inventory handling costs and will also allow the customers to make the minor adjustments if they want to, in the product design and features. This also supports customization. However the relationships with the suppliers, distributors and retailers must be carefully managed and monitored and if required the company can also open up their own retail stores at a later stage, which will facilitate the customers in a better way.