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¶ … Logistics
The manufacturing of products such as cars or computers has shifted from take-what-you-get to made- to-order. Identify three ways this change has been beneficial to the logistics management process?
The shift from assembly line manufacturing to a wide variety of mixed mode manufacturing techniques including assemble-to-order, build-to-order, configure- and engineer-to-order are all predicated on highly responsive, agile logistics and supply chain processes (Roehrich, Parry, Graves, 2011). Three ways this has been very beneficial for the logistics management process include the following.
First, mixed mode manufacturing and the wide variation in to-order strategies continually forces new constraints on logistics and supply chain systems that require immediate interpretation of demand signals and a shift in procurement and sourcing priorities (Volling, Matzke, Grunewald, Spengler, 2013). Second, the role of logistics and supply chain analytics and reporting become essential for optimizing the variety of mixed mode manufacturing systems and environments (Roehrich, Parry, Graves, 2011). To enable the delivery of any made-to-order in the timeframes committed to customers, auto manufacturers often need to create supplier enablement portals that can share in real time the analytics, reporting and data on supply chain performance across the entire production line (Roehrich,...
Manufacturers excelling at mixed mode production techniques that encompass made-to-order automobiles excel at the use of advanced analytics that provide logistics providers with insights and intelligence they need to meet and exceed customer expectations. Third, made-to-order production systems are highly dependent on a tightly integrated logistics network and supply chain system. For the made-to-order strategy to work in auto manufacturing, it is imperative that the logistics and supply chain systems be integrated beyond the product workflow level to the actual logistics process layer of their respective business models (Volling, Matzke, Grunewald, Spengler, 2013). Manufacturers who attain this level of logistics integration and optimization often attain an experience effect of benefits in being able to more quickly assimilate and use insights regarding performance relative to competitors (Roehrich, Parry, Graves, 2011).
2. Explain the thinking behind quick response (QR) logistics. How could QR help a retailer to plan and control product lines for a new fashion season?
By its very nature, the fashion industry is mercurial and merciless in how quickly it can completely redefine a given segment or audience for clothing. The recent Wet Seal bankruptcy is a case in point, where the retailer lost touch with tis customers and could not recover in time to save…
References:
Pan, F. (2012). Logistics network's rapid response model and algorithm. Contemporary Logistics, (6), 19-23.
Roehrich, J.K., Parry, G.C., & Graves, A.P. (2011). Implementing build-to-order strategies: Enablers and barriers in the European automotive industry. International Journal of Automotive Technology and Management, 11(3), 221.
Volling, T., Matzke, A., Grunewald, M., & Spengler, T.S. (2013). Planning of capacities and orders in build-to-order automobile production: A review. European Journal of Operational Research, 224(2), 240.
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