Supply Chain Management

  • Agile supply chain management

    The Need for Agility

    Having understood the impact and the undisputable success of the lean philosophy applied in many organisations world over. Can we come to a conclusion that the next milestone, after the craft production and mass production, is going to be the lean production? To answer this question, one needs to first establish whether the lean approach can fit to all business environments now and in the future. Researches and literatures so far appear to believe the otherwise.

    The critical argument here is that the lean system was developed from a forecasting based volume production industrial sector where the market differentiator is reliability and cost, and today large part of our global market is variety dominated and the differentiator is speed and responsiveness. Hence, lean probably is not a cure-all approach after all.

  • Financial and Strategic Objectives of supply chain

    In this section we will discuss the basic beliefs and attitudes that organizations want to promote as well as recognizing that there can be different pressures on owners and managers at different stages of a company’s life as it moves from start up, through growth and maybe to some form of end stage.

  • Global Supply Chain Operations

     To date, our world market is dominated mostly by many well established global brands. Over the last three decades, there have been a steady trend of global market convergence – the tendency that indigenous markets start converge on a set of similar products or services across the world. The end-result of the global market convergence is that companies have succeeded on their products or services now have the whole wide world to embrace for their marketing as well as sourcing.

  • Lean Supply Chain Management

    Origins of the Lean Manufacturing

    Over the span of circa 40 years time, from the beginning of 1950s to the end of 1980s, Toyota led Japanese automotive industry created a unique production / manufacturing system, which brought the industry from the ruins of the 2nd World War to the biggest automobile exporter in the world.

  • Market Imperatives

    This section considers what it is that is needed to successfully deliver customer satisfaction recognizing that many market places and customer groups have their own special challenges. This means again that there is no one solution to all of these and so more evaluation and managerial choice is necessary and this needs to be done regularly.

  • Order qualifiers and order winners

    In section 2 we discussed what could look like very many confusing choices to make in finding suitable customer opportunities and framing an effective value proposition to provide the opportunity for customer satisfaction. We need to find a way to simplify these choices and in this section we do this by the use of the concepts of order qualifiers and order winners.

  • Purchasing strategies and Supplier Selection

    Strategic Role of Purchasing

    Purchasing function has a strategically indispensible role to play in supply chain management. It covers the sourcing end of supply chain management interfacing with the delivery end of the suppliers.

    The classical definition of purchasing is : to obtain materials and/or services of the right quality in the right quantity from the right source, deliver them to the right place at the right price.

  • Reference models for supply chain design and configuration

    Today more and more essential processes are conducted across enterprise borders, inducing additional challenges in terms of different languages, process types and ontology. Business Process Modelling (BPM) and Simulation are well-understood methods to analyze and optimize the processes within an enterprise. However, they can also be used for cross-organizational application, especially if they are combined with reference structures.

  • Relationship and Integration

    Supply Relationship Defined

    Supply relationship can be defined as the cross organisational interaction and exchange between the participating members of the supply chain. This means that the relationship is between organisations not individual people within the same supply chain where the material flows defines the boundary. However for the inter-organisational interaction that falls outside of the main streams of the material flows, then it may not be called collaborative relationship or partnership relation, but may not be the supply relationship.

    Supply relationship can be either on the upstream side with the suppliers or on the downstream side with the buyers. If the relationship is solely observed between one supply and one buyer, it is also called dyadic relationship.

  • Supply Chain Side Infrastructure - Structural Features

    Boundaries of the Firm

    In section 2 we discussed the strategic choices involved in the Make/Do or Buy/ Trade decision and the answers to this will largely determine to where the boundaries of the firm or business extend. Activities performed by third parties in the supply market are definitely supply chain ones with the opportunities and threats that that implies. Choosing the trade rather than do option suggests more flexibility to respond to market changes but the company has to choose its partners carefully since much of the success of the value delivery to ultimate customers is now going to be dependent on these third parties.

  • Supply Chain Design and Analysis: Models and Methods

    For years, researchers and practitioners have primarily investigated the various processes within manufacturing supply chains individually. Recently, however, there has been increasing attention placed on the performance, design, and analysis of the supply chain as a whole.

    Thisattention is largely a result of the rising costs of manufacturing, the shrinking resources of manufacturing bases, shortened product life cycles, the leveling of the playing field within manufacturing, and the globalization of market economies.

  • Supply Chain Design and Planning

    One of the important issues in supply chain management is to design and plan out the overall architecture of the supply chain network and the value adding flows that go through it. This means that managers should step back and looks at the supply chain as a whole and formulates strategies and processes that maximise the total supply chain value-adding and minimises the total supply chain costs.

  • Supply Chain Management

    What is supply chain management

    What is supply chain management: basically this is group of independent organisations connected together through the products and services that they separately and/or jointly add value on in order to deliver them to the end consumer. It is very much an extended concept of an organisation which adds value to its products or services and delivers them to its customers.

    But what is the benefit of understanding the value adding from the supply chain perspective? Why managing supply chain is becoming necessary and important to today’s business success? These are some of the fundamental questions that must be first addressed before discussing the “how to” questions.

  • Supply Chain Side Infrastructure Support Systems

    In this section we will discuss the background systems that can be used to fit the supply capability to the customer requirement before going on to discuss the kinds of skills needed by the people employed in this set of activities.

    Spend analysis

  • The Future Challenges supply chain management

    What’s the future holds for supply chain management? The future of supply chain management is the future of the business management when there will be no business that is not part of a supply chain. The paradigm of business management will soon be converged to the paradigm of supply chain management. To precisely fortune-tell the future of supply chains is meaningless.

    But what’s useful is to identify and explore some challenges that we better prepare ourselves for. Three key challenges have been identified and discussed here.

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