Evolution Of A Supply Chain Cases And Best Practices Pdf
File Name: evolution of a supply chain cases and best practices .zip
Amazon has changed the face of retail through its use of bold supply chain strategies and the deployment of innovative technologies. The online retailer's history is one of rapid growth and relentless innovations.
- Supply Chain Management 101: Principles, Examples, and Templates
- Supply Chain Management 101: Principles, Examples, and Templates
- Supply Chain 4.0 – the next-generation digital supply chain
Not a MyNAP member yet? Register for a free account to start saving and receiving special member only perks. Most OEMs no longer compete solely as autonomous corporations. They also compete as participants in integrated supply chains.
Supply Chain Management 101: Principles, Examples, and Templates
Globalization has become an undeniable part of commerce over the last few decades, as large companies have grown first to source labor and parts from developing regions, and then to start selling in those same areas as they grew in wealth and buying power.
Supply chains have had to keep in step, passing through numerous countries to obtain goods most efficiently and cost effectively, and growing more complex as a result. And on the other end, the supply chain grows more frayed in order to deliver to countless countries for consumption. For the largest companies, managing a supply chain can require dedicated teams in every area the chain touches.
This article will cover what a supply chain is, with examples; discuss how supply chain management works and its principles; and vital concepts in the field. A supply chain is a collection of suppliers required to create one specific product for a company. The concept of the chain is important, because each link is connected in a specific direction and order, and the next link cannot be reached without going through the previous one.
Each link adds time and costs, and can involve labor, parts, and transportation. Every product a company carries may have its own supply chain, though they may use certain suppliers for multiple products. You can see why this gets so complicated, especially for international supply chains. The process described above was that of a typical retail supply chain. However, there are many different types in practice. Walmart succeeds by having fewer links in its supply chain, and buying more generic goods directly from manufacturers, rather than from suppliers with brand names and markup.
The company is also is particularly choosy with suppliers, partnering only with those who can meet the quantity and frequency it demands with low prices, and with locations that limit transportation needs. They manage their supply chain like one firm, with all partners operating on the same communication network. By buying at large enough quantities to take advantage of economies of scale, moving products directly from manufacturers to warehouses, and then delivering to stores which are large enough to be distribution centers, it reduces links in the supply chain and cost per item, translating to low prices for consumers.
Where Amazon innovates is both in its supplier-side and its final supply chain link - delivery. As a result, Amazon has more things than any other online store, so when people shop online, they think of Amazon.
Then, it produces everyday goods cheaply, and underbids suppliers. Next, their warehouses make serious use of automation to store items going to like destinations together, ready for immediate transport. Finally, its investments in delivery staff and technology make 2-day shipping a basic expectation, and even same-day delivery a possibility. Amazon ditches third-party logistics 3PL and fulfills orders itself.
Example: Tesla and Specialized, Owned Chains Automotive manufacturing has come a long way since Henry Ford used assembly line manufacturing to speed up the production of a single car model in a single color. Now, in a time when even American carmakers are opening factories abroad, Tesla is making innovative, incredibly popular, and luxurious cars right in California, a location with incredibly costly real estate.
Rather than having a long supply chain of cheap part makers, they have a vertically integrated supply chain, with a full-service auto plant near its corporate headquarters and plans for a supplier park and a massive battery factory, and Tesla owns it all.
Even more interesting is the digital supply chain the company promotes - new firmware and algorithm updates are pushed out to existing car owners over the cloud. As the name implies, supply chain management SCM is handling and optimizing all the many complicated facets of a supply chain, involving goods and services.
Even ensuring timely handoff from manufacturer to shipper to supplier to shipper to buyer is a massive task, but to do it cost effectively and build net value is truly a challenge.
Supply chain management is so important because modern commerce exists in a networked global economy. Most businesses are specialized - even department and big box stores are only really equipped to sell to customers, despite their wide variety of products. The value of vertical integration is hard to justify when communication costs and SCM tools are so inexpensive - it almost always makes more sense to outsource for price efficiency.
The concept of supply chain management was in effect long before the term was created in In the colonial era, international trade by ship was already making for complicated transportation issues and the need for efficiency.
During the Industrial Revolution, the ability to quickly produce goods with machine assistance led to the need to manage significant inventory and constant consumption. As the century wore on, more companies were producing more goods and looking for ways to reduce costs. They vertically integrated into owned supply chains to try reducing costs at each stage. In the s and on, globalization became a realistic dream for many companies, because of computer systems, easier communication, and commerce-friendly trade laws.
Around the s, it became a common practice for firms to specialize, and focus on core competencies and outsourcing the rest, abandoning the vertical integration of the previous era. At this point, supply chains became truly complex, in order to coordinate hundreds of otherwise unrelated and geographically-distant manufacturers, suppliers, shippers, warehousers, and retailers. Better communication and planning tools are providing a way for small and large companies alike to manage even more complex supply chains.
Global SCM: The combination of global manufacturing with supply chain management, which must account for tariffs and local taxes as goods and services travel internationally to ultimately provide greater value at the end of the chain. It provides an automated way to manage supply chain networking, supply chain planning, and supply chain execution, along with production planning, business forecasting, and demand planning. Logistics and SCM: The art of coordinating efforts between every member of the supply chain to get products from their source to the consumer.
There are key supply chain processes that you must take into consideration to effectively understand and manage them. Customer relationship management CRM comes first, because as the principles of SCM state, you must adapt everything in the supply chain to the customer. They need CRM tools to gather customer information for marketing and market research, all to determine the products and services to offer in the future.
Customer service management is another process that ties in, as it is where you gather negative and positive feedback to determine future needs.
Demand management is closely linked with the previous two, as it takes customer interactions and orders into account to determine the workload all the way up the supply chain. At its core, customers buying more means make more, and customers buying less means make less. Customer forecasting is an important task that analysts must perform well to determine the current demand and what it will be in the future, to prevent waste in the supply chain.
Product development is an important part of the supply chain that is informed by consumer demand. You must work with CRM and customer service data to determine what they want, which influences new products, product line extensions, and also what to stop making. You must integrate suppliers in this process because it affects cost, quality, and delivery time.
This impacts manufacturing flow management , which ensures everything gets where it needs to go without delay, and at the correct spec.
Order fulfilment involves coordinating with distribution centers and either retail locations or 3PL to get the product direct to consumers. Once these items are put back into inventory, they must be ready to get to a different customer while the product run is still live.
One of the most complex parts of SCM is handling all the other people in the supply chain. They have their own needs and motivations, and to keep them all happy and working together with partners they are only loosely affiliated with is a challenge - especially when trying to meet deadlines and turn a profit.
Is it a vertical or horizontal structure? Is the leadership strong and long lasting, or fickle and prone to change? Management Style: How do the leaders at this supplier run their shop?
Make sure it works with your crew. A micromanager at a relatively replaceable link in your supply chain will waste inordinate time, just as a hands-off manager at a vital link could result in sloppy delivery or substandard product quality. Company Culture: Always important for working with suppliers, determine what kinds of people rise to the top, and how everyone acts when nobody's watching. If, for example, middle managers are constantly in fear for their jobs because of ruthless quarterly performance reviews, they may over-promise, make excuses, or otherwise be unstable work partners.
Product Flows: Once you know that you can work with the people, make sure their facilities are in order. Are they equipped for orders of the size and frequency you plan to make? How do they handle emergency, fast-turn around orders? What about other customers - are they only able to use their facilities for your product flows at certain portions of the month due to full inventory? Leave no stone unturned. Information Flows: Just as vital is the ability to control information about the day-to-day flow of materials, and to communicate and coordinate long-term plans.
Is the supplier up on their product details, inventory, and SKU organization? Is their security and encryption up to the standards of your company, and your industry?
Rewards and Risks: Take into account opportunities and threats of working with this supplier. Perhaps they are new and establishing themselves, so offer a substantial discount, but may not be able to deliver on time? Customer Relationship Management: Also known as CRM, this concept refers to providing ongoing service to customers and collecting data about their likes and purchases. There are also CRM tools that help automate and record interactions with customers.
Cumulative Mean: A figure for knowing how much or how little to produce in advance, involving mean orders with all previous data treated as equally useful. Demand Management: Understanding customer behavior and patterns to control how much is ordered and produced at each link in the supply chain, with the goal of eliminating wasted production.
Financial Flows: Credit terms, payment schedules, accounts payable and receivable, and other factors that you must monitor to determine if a supply chain is profitable or not. Integrated SCM: This is a method of SCM wherein all of the links are tightly integrated, operating almost as one company rather than a loose association of buyers and sellers. Inventory Management: Monitoring and controlling orders, storage, and use of owned components to create the products your company sells.
Lean Six Sigma: A data-backed philosophy of continuous improvement that focuses on preventing defects and mistakes rather than discovering them later, which reduces waste and production time via standardization.
Logistics: The physical movement of products from one link in the supply chain to the next, and the practice of improving their efficiency. Make vs. New Product Development: The creation of new products both in response to and in anticipation of customer demand, using data gleaned from CRM and the whole supply chain. Operational Accounting: Accounting for a company that focuses on planning, directing, and controlling of daily activities by their costs and eliminating waste.
Physical Flows: The actual movement of parts and products throughout the supply chain, which the Logistics team must manage and analyze to keep going without pause. Project Management: The process and tools involved in ensuring that a codified piece of work project or product gets done on time while keeping all contributors aware of their next step. Reverse Supply Chain: Aftermarket customer service, which may involve accepting returns, refurbishing and discounting, or otherwise finding use for the reacquired inventory.
Risk Management: Identifying, evaluating, and then choosing which risks to address first, with the goal of reducing overall risk in a supply chain. Theory of Constraints: A methodology that identifies the largest limiting factor in production, then finding a way to remove it to improve the efficiency of the entire production.
It adds an extra layer of complexity and costs to SCM for those involved in chains with those minerals. Third-party audits of supply chains are an important part of keeping in step with these regulations. Transparency: Though protecting data is important, certain measures of transparency can improve company performance. Among consumer products, many younger, disruptive brands make their supply chain a selling point in marketing by being upfront about how and where they get their components, and where they make their products.
The reasoning goes, if a company is hiding something, there must be an unethical component to it. Sustainability Measures: As major companies and countries around the globe move towards sustainable production, all supply chains become impacted. Whether due to changing regulations or seeking good PR, many companies are working to reduce pollution and other issues in their chain.
Supply Chain Management 101: Principles, Examples, and Templates
Schedule a Pick Up — Ext. Over the last plus years of the history of supply chain management has evolved from an initial focus on improving relatively simple, but very labor-intensive processes to the present day engineering and managing of extraordinarily complex global networks. We will take you through the last 60 plus years below and end the post with an amazing infographic. Both industrial engineering and operations research have their roots in logistics. Fredrick Taylor, who wrote The Principles of Scientific Management in and is considered the father of industrial engineering, focused his early research on how to improve manual loading processes. Operations Research began when scientists demonstrated the value of analytics in the study of military logistics problems in the s as a result of the complex requirements of World War II. While Industrial Engineering and Operations Research have each tried to maintain separate identities, many of their biggest successes have occurred when used in an integrated framework to address supply chain and logistics issues.
Supply Chain 4.0 – the next-generation digital supply chain
Building a strong supply chain is essential for business success. But when it comes to improving their supply chains, few companies take the right approach. Many businesses work to make their chains faster or more cost-effective, assuming that those steps are the keys to competitive advantage. To the contrary: Supply chains that focus on speed and costs tend to deteriorate over time.
The evolution and future of logistics and supply chain management. This article will be divided into three sections: past, present, and future. The past section will trace major events that created business logistics as it is practiced today. In particular, do the events portend the future of business logistics and supply chain management?
У него никогда не возникало сомнений по поводу того, кто убьет Танкадо. Танкадо находился в Испании, а Испания - вотчина Халохота. Сорокадвухлетний португальский наемник был одним из лучших профессионалов, находящихся в его распоряжении. Он уже много лет работал на АНБ.