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The virtual organization is closely coupled upstream with its suppliers and downstream with its customers
A virtual organization or company is one whose members are geographically apart, usually working by computer e-mail and groupware while appearing to others to be a single, unified organization with a real physical location.
Geographically dispersed teams allow organizations to hire and retain the best people regardless of location.
Goal:- to increase the efficiency of internal marketplace
Multiple services provided by a single interface with a single point of accountability on an order-by-order basis
Types of electronic brokerages in internal markets customers Order management & financial accounting Design brokerage Manufacturing & scheduling brokerage Logistic & supply chain management brokerage Production brokerage shipping Internal markets order delivery
Customization & Internal Commerce Electronic commerce & technology Technology provides access to a variety of products & services Consumer behavior & choice Organization dynamics & market place competition Need to cut costs drives the need for improved technology Consumer choice dictates the marketing, distribution & production of products & services The technology, choice and marketplace triad
A methodology employed to more efficiently manage inventory mechanisms. The activities are viewed as a system, rather than many different activities. Usually involves the inventory pulls from manufacturing sites and warehouses, through distribution to the customer. The execution involves merging transportation modes, systems and distribution for the optimum solution.
integrate the customer directly & react to changes in demand by modifying the supply chain
3. Agile manufacturing
Agile manufacturing is a term applied to an organization that has created the processes, tools, and training to enable it to respond quickly to customer needs and market changes while still controlling costs and quality.
Financial / marketing-driven forecast Master scheduling Replenishment based on distribution center inventory Manual purchase order & invoicing Order point based on warehouse inventory & historical forecasts Deals, promotions & forward buying Manual purchase orders, info entry and o/p Order point based on shelf inventory & forecasts Promotions Manual entry of items to be reordered Retail store Retail distribution center Manufacturer Push based supply chain Consumers purchase merchandise
POS data collection Perpetual inventory tracked UPC level Automatic replenishment using EDI services Automatic replenishment Shipping container marking cross-dock receiving EDI services Demand driven forecast based on POS data & product development Micromarket-driven Short cycle manufacturing Advances shipping notice & EDI services Bar code scanners & UPC ticketing Manufacturer Retail distribution center Retail store Pull based supply chain Consumers purchase merchandise