This document discusses strategies for integrating lean and agile paradigms in supply chain design. It outlines key differences between lean and agile approaches, such as predictable vs volatile demand. The document proposes several ways to integrate the paradigms, including: 1) Applying lean to top 20% of products and agile to bottom 80% based on Pareto analysis; 2) Using a decoupling point to apply lean upstream and agile downstream; 3) Separating demand into predictable "base" and unpredictable "surge" components and applying different strategies to each. The goal is to design cost-effective and responsive hybrid supply chains.
Supply chain management in glass industryumesh yadav
This document provides an overview of supply chain management (SCM) in the glass industry in India. It discusses the importance of SCM, defining it as coordinating the planning and flow of goods from raw materials to end customers. The document also notes that effective SCM can improve fulfillment, logistics, production, revenue, costs and cooperation between partners in the supply chain. Finally, it discusses how SCM relates to value chain management and integrating key supply chain business processes.
The impact of outsourcing on the transaction costs and boundaries of manufact...Ian McCarthy
This paper discusses the concept of outsourcing, along with an account of the economic benefits that are achieved by reconfiguring the organization and reducing the transaction costs of providing products and services. With the practice of outsourcing experiencing exceptional growth, this paper examines the corresponding change (decline) in UK manufacturing as an economic activity, and considers how the economic benefits of outsourcing alter the contribution that an organization makes to a sector’s gross domestic product. To assess this issue, an input–output methodology for measuring economic restructuring in UK manufacturing is presented.
THE AGILE SUPPLY CHAIN IN TURBULENT AND VOLATILE MARKETIAEME Publication
Agility is the fundamental characteristic of a supply chain needed for survival in turbulent and volatile markets, which are becoming normal, as product life cycles shorten and environmental forces create additional uncertainty resulting in higher risk in the supply chain management. Agility further helps in providing the right product, at the right time to the consumer, which is the main objective of any supply chain.
Being responsive is an increasingly important skill for firms in today's global economy; thus firms must be agile. Naturally, it follows that an organization's agility depends on its supply chain being agile. However, achieving supply chain agility is a function of other abilities within the organization, specifically supply chain flexibility and technology integration. The integration enables a firm to tap its supply chain flexibility which in turn results in higher supply chain agility and ultimately higher competitive business performance.
This document summarizes a study on supply chain management in the textile industry and a supplier selection model using analytical hierarchy process. It discusses key factors for a successful supply chain in the globalized textile industry. The study presents an AHP model that apparel companies can use to select suppliers and develop a supplier relationship management strategy. The model identifies strategic priorities and weights to select suppliers that align with the company's strategy. The outcome and implications of the model for implementation are also discussed.
International Journal of Engineering Research and DevelopmentIJERD Editor
Electrical, Electronics and Computer Engineering,
Information Engineering and Technology,
Mechanical, Industrial and Manufacturing Engineering,
Automation and Mechatronics Engineering,
Material and Chemical Engineering,
Civil and Architecture Engineering,
Biotechnology and Bio Engineering,
Environmental Engineering,
Petroleum and Mining Engineering,
Marine and Agriculture engineering,
Aerospace Engineering.
This document provides an overview of logistics concepts and functions. It defines logistics as managing the flow of materials and information from suppliers to manufacturers to customers. The key points are:
1. Logistics ensures the right materials are delivered to the right place at the right time. It involves transportation, inventory, warehousing and other functions.
2. Logistics has become more important due to factors like globalization, increasing competition, and changing customer demands. Proper logistics can provide a competitive advantage.
3. The main logistics functions include transportation, inventory control, information management, and ensuring quality across the supply chain. Logistics aims to minimize costs and inventory while maximizing delivery speed, reliability and
Available online at [www.ijeete.com] IMPLEMENTATION OF SUPPLY CHAIN MANAGEMEN...Ankur Bindal
This paper aims to convey how to do a conceptual work during supply chain design, planning and operation, and how to improve performance. In present work, efforts have been made to analyze techniques like logistic management, quick customer service, vendor base management, inventory management etc. The key effective to supply chain management is supply chain integration, ensuring that all parts of the supply chain work together, rather than cross purpose. The supplier selection is no more based on factor like having low cost or speed of delivery alone. Productivity and quality have become perquisite. Trustworthiness, speed flexibility and responsiveness are main issues. K
Logistics refers to activities within a single organization focused on procurement, distribution, and inventory management. Supply chain management acknowledges these logistics activities but also coordinates networks of companies and includes additional activities like marketing, finance, and customer service. The document then provides definitions and explanations of related terms like logistics management, inbound and outbound logistics, transport and logistics, international logistics, supply chain, and supply chain management. It describes supply chain management as coordinating production, inventory, location, and transportation across a network to balance responsiveness and efficiency.
Supply chain management in glass industryumesh yadav
This document provides an overview of supply chain management (SCM) in the glass industry in India. It discusses the importance of SCM, defining it as coordinating the planning and flow of goods from raw materials to end customers. The document also notes that effective SCM can improve fulfillment, logistics, production, revenue, costs and cooperation between partners in the supply chain. Finally, it discusses how SCM relates to value chain management and integrating key supply chain business processes.
The impact of outsourcing on the transaction costs and boundaries of manufact...Ian McCarthy
This paper discusses the concept of outsourcing, along with an account of the economic benefits that are achieved by reconfiguring the organization and reducing the transaction costs of providing products and services. With the practice of outsourcing experiencing exceptional growth, this paper examines the corresponding change (decline) in UK manufacturing as an economic activity, and considers how the economic benefits of outsourcing alter the contribution that an organization makes to a sector’s gross domestic product. To assess this issue, an input–output methodology for measuring economic restructuring in UK manufacturing is presented.
THE AGILE SUPPLY CHAIN IN TURBULENT AND VOLATILE MARKETIAEME Publication
Agility is the fundamental characteristic of a supply chain needed for survival in turbulent and volatile markets, which are becoming normal, as product life cycles shorten and environmental forces create additional uncertainty resulting in higher risk in the supply chain management. Agility further helps in providing the right product, at the right time to the consumer, which is the main objective of any supply chain.
Being responsive is an increasingly important skill for firms in today's global economy; thus firms must be agile. Naturally, it follows that an organization's agility depends on its supply chain being agile. However, achieving supply chain agility is a function of other abilities within the organization, specifically supply chain flexibility and technology integration. The integration enables a firm to tap its supply chain flexibility which in turn results in higher supply chain agility and ultimately higher competitive business performance.
This document summarizes a study on supply chain management in the textile industry and a supplier selection model using analytical hierarchy process. It discusses key factors for a successful supply chain in the globalized textile industry. The study presents an AHP model that apparel companies can use to select suppliers and develop a supplier relationship management strategy. The model identifies strategic priorities and weights to select suppliers that align with the company's strategy. The outcome and implications of the model for implementation are also discussed.
International Journal of Engineering Research and DevelopmentIJERD Editor
Electrical, Electronics and Computer Engineering,
Information Engineering and Technology,
Mechanical, Industrial and Manufacturing Engineering,
Automation and Mechatronics Engineering,
Material and Chemical Engineering,
Civil and Architecture Engineering,
Biotechnology and Bio Engineering,
Environmental Engineering,
Petroleum and Mining Engineering,
Marine and Agriculture engineering,
Aerospace Engineering.
This document provides an overview of logistics concepts and functions. It defines logistics as managing the flow of materials and information from suppliers to manufacturers to customers. The key points are:
1. Logistics ensures the right materials are delivered to the right place at the right time. It involves transportation, inventory, warehousing and other functions.
2. Logistics has become more important due to factors like globalization, increasing competition, and changing customer demands. Proper logistics can provide a competitive advantage.
3. The main logistics functions include transportation, inventory control, information management, and ensuring quality across the supply chain. Logistics aims to minimize costs and inventory while maximizing delivery speed, reliability and
Available online at [www.ijeete.com] IMPLEMENTATION OF SUPPLY CHAIN MANAGEMEN...Ankur Bindal
This paper aims to convey how to do a conceptual work during supply chain design, planning and operation, and how to improve performance. In present work, efforts have been made to analyze techniques like logistic management, quick customer service, vendor base management, inventory management etc. The key effective to supply chain management is supply chain integration, ensuring that all parts of the supply chain work together, rather than cross purpose. The supplier selection is no more based on factor like having low cost or speed of delivery alone. Productivity and quality have become perquisite. Trustworthiness, speed flexibility and responsiveness are main issues. K
Logistics refers to activities within a single organization focused on procurement, distribution, and inventory management. Supply chain management acknowledges these logistics activities but also coordinates networks of companies and includes additional activities like marketing, finance, and customer service. The document then provides definitions and explanations of related terms like logistics management, inbound and outbound logistics, transport and logistics, international logistics, supply chain, and supply chain management. It describes supply chain management as coordinating production, inventory, location, and transportation across a network to balance responsiveness and efficiency.
This document provides an overview of key concepts in supply chain management from a chapter in a textbook. It discusses:
1) The different phases of supply chains including acquisition, transformation, and distribution and key functions within purchasing, receiving, and supplier certification.
2) The changing role of purchasing from transactional to strategic. Purchasing now focuses on developing long-term supplier relationships and providing strategic information to support make-or-buy decisions.
3) Global sourcing involves more than just international transactions but integrating suppliers worldwide. Effective global sourcing requires executive commitment, rigorous processes, resources, IT integration, and measuring savings.
This document provides an overview of supply chain management. It defines supply chain management as coordinating the flow of goods and services from suppliers to customers. This includes managing the movement and storage of raw materials, work-in-progress, and finished goods. The document also discusses problems addressed in supply chain management such as distribution network configuration, distribution strategy, inventory management, and information sharing. Finally, it outlines activities at the strategic, tactical, and operational levels of supply chain management.
Logistics involves planning and coordinating the efficient flow of goods and services from suppliers to customers. It integrates information, transportation, inventory, warehousing and packaging. The goal of logistics management is to deliver products to customers with the highest service levels at the lowest possible cost. Effective logistics can provide a competitive advantage by differentiating a company through lower costs or better customer service than competitors. Logistics management aims to strategically coordinate procurement, production and distribution to maximize profitability through fulfilling customer orders in a cost-effective manner.
This document discusses sourcing strategies in the clothing retail industry. It focuses on the balance between lean/agile sourcing strategies and local/overseas suppliers, as well as product complexity versus supply chain complexity. The key points made in the document are:
1) Retailers are taking on a more central role in global supply chains and configuration of supplier networks.
2) New trends in clothing retail, like vertical integration, are impacting the relationship between retailers and upstream suppliers.
3) The document investigates how retailers manage these relationships and balance options like decreasing product complexity versus faster supply chains.
This document provides an overview of supply chain management. It defines supply chain management as integrating supply and demand management within and across companies. It describes key functions of supply chain organizations like procurement, demand forecasting, and transportation. It discusses how supply chains can be leveraged for competitive advantage through strategies focused on cost, quality, time, and flexibility. It also covers how supply chains are becoming more global and segmented to serve different customer needs and how technology is increasingly impacting supply chain operations on a global scale.
The document provides a historical perspective on supply chain management (SCM) in Thailand. It discusses how SCM has evolved from the traditional independent business model to today's more collaborative model enabled by advances in information technology. It also summarizes recent developments in SCM adoption in Thailand, including initiatives in the retail, apparel, and other industries. Key enablers of SCM like ERP systems are also discussed. Overall the document outlines Thailand's progress with SCM but notes most companies still have a long way to go to fully realize its benefits.
An application of Supply Chain Managment on present business organizationsDepesh Banik
The document discusses supply chain management and its application in present business organizations. It defines supply chain as a network of facilities working together to procure materials, transform them into products, and distribute the finished products to customers. The objectives are to understand how supply chain concepts are applied, how supply chains work within organizations, and how supply chain adaptations affect organizations. Research was conducted through literature reviews and interviews with supply chain professionals.
Supply chain definition
The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.”
“A supply chain is the alignment of firms that bring products or services to market.”
“A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.”
“A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.”
“Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served.”
There is a difference between the concept of supply chain management and the traditional concept of logistics. Logistics typically refers to activities that occur within the boundaries of a single organization and supply chains refer to networks of companies that work together and coordinate their actions to deliver a product to market. Also traditional logistics focuses its attention on activities such as procurement, distribution, maintenance, and inventory management. Supply chain management acknowledges all of traditional logistics and also includes activities such as marketing, new product development, finance, and customer service. Supply chain management views the supply chain and the organizations in it as a single entity. It brings a systems approach to understanding and managing the different activities needed to coordinate the flow of products and services to best serve the ultimate customer.
Different supply chain requirements often have conflicting needs. For instance, the requirement of maintaining high levels of customer service calls for maintaining high levels of inventory, but then the requirement to operate efficiently calls for reducing inventory levels. It is only when these requirements are seen together as parts of a larger picture that ways can be found to effectively balance their different demands.
Effective supply chain management requires simultaneous improvements in both customer service levels and the internal operating efficiencies of the companies in the supply chain. There is a basic pattern to the practice of supply chain management. Each supply chain has its own unique set of market demands and operating challenges and yet the issues remain essentially the same in every case. Companies in any supply chain must make decisions indivi
Acceptable%2 b quality%2blevels%2bin%2bthe%2btextile%2bsector%2band%2btheir%2...Mohammad Akhtar
The document discusses acceptable quality levels in the textile sector and their effect on competition. It states that international competition has forced textile enterprises to focus on meeting consumer expectations through quality control. Statistical quality control is important in the textile sector due to the emphasis on quality and consumer preferences. Acceptable quality levels are determined by companies using standards and sampling plans during production and quality checks.
This document provides definitions and analyses of supply chains and supply chain management. It first discusses definitions of supply chains from various sources that generally describe supply chains as involving the flow of goods and materials from suppliers to customers. It then discusses more complex definitions that include additional activities. The document also provides definitions of supply chain management from different sources that commonly describe it as coordinating activities across the supply chain to optimize efficiency and customer satisfaction.
Supply chain migration from lean and functional to agile and customisednixianshi
This document discusses the differences between lean and agile supply chains. Lean focuses on efficiency and eliminating waste to lower costs, while agile focuses on flexibility and responsiveness to customer needs. Agile supply chains aim to provide the right product at the right time, making availability the top priority over cost. The automotive industry is used as an example of a lean manufacturing process that is not agile in its overall supply chain, as inventory levels remain high. To be truly responsive requires elements of both lean and agile approaches working together in a hybrid model.
Supply chain management involves coordinating activities across businesses involved in providing products to end customers. It includes planning and managing activities related to sourcing raw materials, manufacturing, and logistics. Supply chain management aims to create value and efficiency across the network of businesses. It addresses issues like distribution strategy, inventory management, and information sharing. Activities in supply chain management can be categorized as strategic, tactical, and operational. Effective supply chain management is important for competition in today's global business environment.
The document discusses operations management in the retail sector, specifically the fashion industry. It notes that the supply chain is complex with many parties involved, requiring careful management. Fast fashion has become important for getting clothing to stores quickly within small lead times. The future challenge for retailers is to optimize costs and build trust in the supply chain through improved communication.
Economics for Managers (VV2)
We Also Provide SYNOPSIS AND PROJECT.
Contact www.kimsharma.co.in for best and lowest cost solution or
Email: amitymbaassignment@gmail.com
Call: 9971223030
International Journal of Business and Management Invention (IJBMI)inventionjournals
The document discusses switching costs and their role in achieving sustained competitive advantage. It begins by defining switching costs and outlining the mainstream economic explanation for how switching costs affect firm strategies and market outcomes. However, the economic explanation is limited in fully explaining real-world phenomena. The document then proposes an alternative "competitive advantage theory" of switching costs. This theory posits that firms aim for value maximization rather than just profit maximization. It also distinguishes between high and low inertia consumers and allows for irrational consumer choice and cooperation between firms. The theory argues this framework better explains strategies like rewarding loyal customers and some firms' ability to achieve long-term competitive advantage.
This document discusses global value chains in the textile and apparel industry. It explains that international production and trade are increasingly organized through global value chains, where different stages of production occur across countries. There are two main types of value chains - producer value chains, where manufacturers coordinate decentralized production networks, and buyer value chains, where large retailers and brands set up production networks in developing countries. Upgrading in global value chains can involve increasing production efficiency through process upgrading or shifting to higher value product lines through product upgrading. Control of key functions like branding, design, and production capabilities is important in apparel value chains.
This document discusses the evolution of logistics and supply chain management over time. It addresses how competitive advantage has progressed from a focus on low wages and scale to quality, cost management, time-based management, and technology-enabled management. It also summarizes literature on topics like the integration of logistics activities, nodes and links in supply chain networks, conflicting objectives between functions like production and logistics, and keys to enabling fast-cycle logistics like information sharing and shorter manufacturing cycles.
Policy Framework for Effrctive and Efficient Financial RegulationsDr Lendy Spires
The document outlines the OECD's policy framework for effective and efficient financial regulation. It provides high-level principles to guide legislators and policymakers in reforming financial regulation systems. The framework aims to ensure these systems meet public policy objectives and can adapt to a complex, global financial system. It includes a general guidance and high-level checklist of principles for attributes, transparency, surveillance, objectives, instruments, institutions, coordination, and review of financial regulation systems. The goal is to establish sound, risk-based regulation that promotes financial stability and aligned incentives.
This document presents South Africa's Youth Enterprise Development Strategy (YEDS) from 2013-2023. It aims to address high youth unemployment and lack of economic participation in South Africa. The strategy outlines constraints facing youth such as low economic growth, inequality, lack of skills/training, and limited access to financing. It then presents the vision, objectives, and guiding principles. Key roles for government departments, agencies, and the private sector are defined. The strategy also introduces specific youth enterprise development programmes and projects, and establishes mechanisms for coordination, monitoring, and evaluation of the strategy.
The african-union-s-mechanisms-to-foster-gender-mainstreaming-and-ensure-wome...Dr Lendy Spires
This document summarizes the African Union's mechanisms for promoting gender mainstreaming and women's political participation. It outlines the AU's institutional and legal framework, which is informed by international frameworks like CEDAW and UN conferences. The framework includes the AU Constitution, the African Charter on Human and Peoples' Rights, reporting structures like the Solemn Declaration on Gender Equality in Africa, the AU Gender Policy and Action Plan, and financing mechanisms like the Fund for African Women. It also discusses cooperation between the AU, EU, and UN on these issues and identifies ongoing challenges and recommendations.
Corruption in the education sector www.transparency.org TI Working Paper # 04/2009 accompanied by monitoring and adequate capacity building measures. With more people and administrative levels involved in education finance, opportunities for fraud and corruption have also risen. Reforms can create confusion about respective responsibilities and resource flows, leaving those within the education system unclear about the changes and their rights under the new system. Budget allocation. Countries with high levels of corruption invest less in public services, leaving the education sector under-funded.7 Resources may be channelled from schools in need, especially in rural areas, to those that are already privileged, such as in more urban regions. Funding also may be allocated based on where there are greater opportunities for private gain. Large contracts for building schools, buying textbooks or running meal programmes offer the potential for kickbacks, bribery, nepotism and favouritism. In addition, allocations to schools may be made using falsified data, such as inflated enrolment numbers. This uneven distribution of resources tends to benefit better-off students to the detriment of the poor and affects the equity of a nation’s education system. Off- budget allocations are particularly risky, especially when foreign donors provide direct financing to schools and bypass government departments or civil society organisations (CSOs) that could act as intermediaries.8 Budget execution. Earmarked resources may never reach schools and universities. In schools studied in Ghana and Uganda as part of TI’s Africa Education Watch, it was common to find payments each term delayed up to one year (see sidebar). Instead, finances may be embezzled by officials, misused in rigged tenders, or lost to administrative inefficiencies. Contract specifications may target a specific supplier and closed tendering processes may exclude potential bidders or lead to inflated prices. The extent of these 'resource leakages' can be sizable. According to countries surveyed by the World Bank, between 10 and 87 percent of non-wage spending on primary education is lost.9 As a result, textbooks may be of poor quality and insufficient quantity, the building infrastructure of teaching institutions may collapse, toilets may not be built and learning materials may go undelivered (see sidebar on pg. 4). Use of education resources. Funds that reach schools may not be used according to their intended purpose. Textbooks may be sold instead of being freely distributed, illegal payments may be made by school authorities using falsified receipts or the quantity of goods purchased may be inflated. Counteracting these abuses is further complicated when book keeping at the school-level is not audited or conducted at all. Findings from Morocco and Niger suggest 64 percent of primary schools lack any accounting system.10 What can be done? Transparency and access to information are essential to control
The document summarizes civil society engagement with the New Deal, an international agreement to help fragile states transition out of conflict. It finds that while civil society has contributed technical knowledge and advocacy, full participation faces challenges including slow government buy-in, limited resources, and tensions between technical and political aspects. It recommends greater donor support for civil society and balancing technical and political approaches to ensure the New Deal achieves its goal of inclusive, country-led peacebuilding and development.
This document provides an overview of key concepts in supply chain management from a chapter in a textbook. It discusses:
1) The different phases of supply chains including acquisition, transformation, and distribution and key functions within purchasing, receiving, and supplier certification.
2) The changing role of purchasing from transactional to strategic. Purchasing now focuses on developing long-term supplier relationships and providing strategic information to support make-or-buy decisions.
3) Global sourcing involves more than just international transactions but integrating suppliers worldwide. Effective global sourcing requires executive commitment, rigorous processes, resources, IT integration, and measuring savings.
This document provides an overview of supply chain management. It defines supply chain management as coordinating the flow of goods and services from suppliers to customers. This includes managing the movement and storage of raw materials, work-in-progress, and finished goods. The document also discusses problems addressed in supply chain management such as distribution network configuration, distribution strategy, inventory management, and information sharing. Finally, it outlines activities at the strategic, tactical, and operational levels of supply chain management.
Logistics involves planning and coordinating the efficient flow of goods and services from suppliers to customers. It integrates information, transportation, inventory, warehousing and packaging. The goal of logistics management is to deliver products to customers with the highest service levels at the lowest possible cost. Effective logistics can provide a competitive advantage by differentiating a company through lower costs or better customer service than competitors. Logistics management aims to strategically coordinate procurement, production and distribution to maximize profitability through fulfilling customer orders in a cost-effective manner.
This document discusses sourcing strategies in the clothing retail industry. It focuses on the balance between lean/agile sourcing strategies and local/overseas suppliers, as well as product complexity versus supply chain complexity. The key points made in the document are:
1) Retailers are taking on a more central role in global supply chains and configuration of supplier networks.
2) New trends in clothing retail, like vertical integration, are impacting the relationship between retailers and upstream suppliers.
3) The document investigates how retailers manage these relationships and balance options like decreasing product complexity versus faster supply chains.
This document provides an overview of supply chain management. It defines supply chain management as integrating supply and demand management within and across companies. It describes key functions of supply chain organizations like procurement, demand forecasting, and transportation. It discusses how supply chains can be leveraged for competitive advantage through strategies focused on cost, quality, time, and flexibility. It also covers how supply chains are becoming more global and segmented to serve different customer needs and how technology is increasingly impacting supply chain operations on a global scale.
The document provides a historical perspective on supply chain management (SCM) in Thailand. It discusses how SCM has evolved from the traditional independent business model to today's more collaborative model enabled by advances in information technology. It also summarizes recent developments in SCM adoption in Thailand, including initiatives in the retail, apparel, and other industries. Key enablers of SCM like ERP systems are also discussed. Overall the document outlines Thailand's progress with SCM but notes most companies still have a long way to go to fully realize its benefits.
An application of Supply Chain Managment on present business organizationsDepesh Banik
The document discusses supply chain management and its application in present business organizations. It defines supply chain as a network of facilities working together to procure materials, transform them into products, and distribute the finished products to customers. The objectives are to understand how supply chain concepts are applied, how supply chains work within organizations, and how supply chain adaptations affect organizations. Research was conducted through literature reviews and interviews with supply chain professionals.
Supply chain definition
The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.”
“A supply chain is the alignment of firms that bring products or services to market.”
“A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.”
“A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.”
“Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served.”
There is a difference between the concept of supply chain management and the traditional concept of logistics. Logistics typically refers to activities that occur within the boundaries of a single organization and supply chains refer to networks of companies that work together and coordinate their actions to deliver a product to market. Also traditional logistics focuses its attention on activities such as procurement, distribution, maintenance, and inventory management. Supply chain management acknowledges all of traditional logistics and also includes activities such as marketing, new product development, finance, and customer service. Supply chain management views the supply chain and the organizations in it as a single entity. It brings a systems approach to understanding and managing the different activities needed to coordinate the flow of products and services to best serve the ultimate customer.
Different supply chain requirements often have conflicting needs. For instance, the requirement of maintaining high levels of customer service calls for maintaining high levels of inventory, but then the requirement to operate efficiently calls for reducing inventory levels. It is only when these requirements are seen together as parts of a larger picture that ways can be found to effectively balance their different demands.
Effective supply chain management requires simultaneous improvements in both customer service levels and the internal operating efficiencies of the companies in the supply chain. There is a basic pattern to the practice of supply chain management. Each supply chain has its own unique set of market demands and operating challenges and yet the issues remain essentially the same in every case. Companies in any supply chain must make decisions indivi
Acceptable%2 b quality%2blevels%2bin%2bthe%2btextile%2bsector%2band%2btheir%2...Mohammad Akhtar
The document discusses acceptable quality levels in the textile sector and their effect on competition. It states that international competition has forced textile enterprises to focus on meeting consumer expectations through quality control. Statistical quality control is important in the textile sector due to the emphasis on quality and consumer preferences. Acceptable quality levels are determined by companies using standards and sampling plans during production and quality checks.
This document provides definitions and analyses of supply chains and supply chain management. It first discusses definitions of supply chains from various sources that generally describe supply chains as involving the flow of goods and materials from suppliers to customers. It then discusses more complex definitions that include additional activities. The document also provides definitions of supply chain management from different sources that commonly describe it as coordinating activities across the supply chain to optimize efficiency and customer satisfaction.
Supply chain migration from lean and functional to agile and customisednixianshi
This document discusses the differences between lean and agile supply chains. Lean focuses on efficiency and eliminating waste to lower costs, while agile focuses on flexibility and responsiveness to customer needs. Agile supply chains aim to provide the right product at the right time, making availability the top priority over cost. The automotive industry is used as an example of a lean manufacturing process that is not agile in its overall supply chain, as inventory levels remain high. To be truly responsive requires elements of both lean and agile approaches working together in a hybrid model.
Supply chain management involves coordinating activities across businesses involved in providing products to end customers. It includes planning and managing activities related to sourcing raw materials, manufacturing, and logistics. Supply chain management aims to create value and efficiency across the network of businesses. It addresses issues like distribution strategy, inventory management, and information sharing. Activities in supply chain management can be categorized as strategic, tactical, and operational. Effective supply chain management is important for competition in today's global business environment.
The document discusses operations management in the retail sector, specifically the fashion industry. It notes that the supply chain is complex with many parties involved, requiring careful management. Fast fashion has become important for getting clothing to stores quickly within small lead times. The future challenge for retailers is to optimize costs and build trust in the supply chain through improved communication.
Economics for Managers (VV2)
We Also Provide SYNOPSIS AND PROJECT.
Contact www.kimsharma.co.in for best and lowest cost solution or
Email: amitymbaassignment@gmail.com
Call: 9971223030
International Journal of Business and Management Invention (IJBMI)inventionjournals
The document discusses switching costs and their role in achieving sustained competitive advantage. It begins by defining switching costs and outlining the mainstream economic explanation for how switching costs affect firm strategies and market outcomes. However, the economic explanation is limited in fully explaining real-world phenomena. The document then proposes an alternative "competitive advantage theory" of switching costs. This theory posits that firms aim for value maximization rather than just profit maximization. It also distinguishes between high and low inertia consumers and allows for irrational consumer choice and cooperation between firms. The theory argues this framework better explains strategies like rewarding loyal customers and some firms' ability to achieve long-term competitive advantage.
This document discusses global value chains in the textile and apparel industry. It explains that international production and trade are increasingly organized through global value chains, where different stages of production occur across countries. There are two main types of value chains - producer value chains, where manufacturers coordinate decentralized production networks, and buyer value chains, where large retailers and brands set up production networks in developing countries. Upgrading in global value chains can involve increasing production efficiency through process upgrading or shifting to higher value product lines through product upgrading. Control of key functions like branding, design, and production capabilities is important in apparel value chains.
This document discusses the evolution of logistics and supply chain management over time. It addresses how competitive advantage has progressed from a focus on low wages and scale to quality, cost management, time-based management, and technology-enabled management. It also summarizes literature on topics like the integration of logistics activities, nodes and links in supply chain networks, conflicting objectives between functions like production and logistics, and keys to enabling fast-cycle logistics like information sharing and shorter manufacturing cycles.
Policy Framework for Effrctive and Efficient Financial RegulationsDr Lendy Spires
The document outlines the OECD's policy framework for effective and efficient financial regulation. It provides high-level principles to guide legislators and policymakers in reforming financial regulation systems. The framework aims to ensure these systems meet public policy objectives and can adapt to a complex, global financial system. It includes a general guidance and high-level checklist of principles for attributes, transparency, surveillance, objectives, instruments, institutions, coordination, and review of financial regulation systems. The goal is to establish sound, risk-based regulation that promotes financial stability and aligned incentives.
This document presents South Africa's Youth Enterprise Development Strategy (YEDS) from 2013-2023. It aims to address high youth unemployment and lack of economic participation in South Africa. The strategy outlines constraints facing youth such as low economic growth, inequality, lack of skills/training, and limited access to financing. It then presents the vision, objectives, and guiding principles. Key roles for government departments, agencies, and the private sector are defined. The strategy also introduces specific youth enterprise development programmes and projects, and establishes mechanisms for coordination, monitoring, and evaluation of the strategy.
The african-union-s-mechanisms-to-foster-gender-mainstreaming-and-ensure-wome...Dr Lendy Spires
This document summarizes the African Union's mechanisms for promoting gender mainstreaming and women's political participation. It outlines the AU's institutional and legal framework, which is informed by international frameworks like CEDAW and UN conferences. The framework includes the AU Constitution, the African Charter on Human and Peoples' Rights, reporting structures like the Solemn Declaration on Gender Equality in Africa, the AU Gender Policy and Action Plan, and financing mechanisms like the Fund for African Women. It also discusses cooperation between the AU, EU, and UN on these issues and identifies ongoing challenges and recommendations.
Corruption in the education sector www.transparency.org TI Working Paper # 04/2009 accompanied by monitoring and adequate capacity building measures. With more people and administrative levels involved in education finance, opportunities for fraud and corruption have also risen. Reforms can create confusion about respective responsibilities and resource flows, leaving those within the education system unclear about the changes and their rights under the new system. Budget allocation. Countries with high levels of corruption invest less in public services, leaving the education sector under-funded.7 Resources may be channelled from schools in need, especially in rural areas, to those that are already privileged, such as in more urban regions. Funding also may be allocated based on where there are greater opportunities for private gain. Large contracts for building schools, buying textbooks or running meal programmes offer the potential for kickbacks, bribery, nepotism and favouritism. In addition, allocations to schools may be made using falsified data, such as inflated enrolment numbers. This uneven distribution of resources tends to benefit better-off students to the detriment of the poor and affects the equity of a nation’s education system. Off- budget allocations are particularly risky, especially when foreign donors provide direct financing to schools and bypass government departments or civil society organisations (CSOs) that could act as intermediaries.8 Budget execution. Earmarked resources may never reach schools and universities. In schools studied in Ghana and Uganda as part of TI’s Africa Education Watch, it was common to find payments each term delayed up to one year (see sidebar). Instead, finances may be embezzled by officials, misused in rigged tenders, or lost to administrative inefficiencies. Contract specifications may target a specific supplier and closed tendering processes may exclude potential bidders or lead to inflated prices. The extent of these 'resource leakages' can be sizable. According to countries surveyed by the World Bank, between 10 and 87 percent of non-wage spending on primary education is lost.9 As a result, textbooks may be of poor quality and insufficient quantity, the building infrastructure of teaching institutions may collapse, toilets may not be built and learning materials may go undelivered (see sidebar on pg. 4). Use of education resources. Funds that reach schools may not be used according to their intended purpose. Textbooks may be sold instead of being freely distributed, illegal payments may be made by school authorities using falsified receipts or the quantity of goods purchased may be inflated. Counteracting these abuses is further complicated when book keeping at the school-level is not audited or conducted at all. Findings from Morocco and Niger suggest 64 percent of primary schools lack any accounting system.10 What can be done? Transparency and access to information are essential to control
The document summarizes civil society engagement with the New Deal, an international agreement to help fragile states transition out of conflict. It finds that while civil society has contributed technical knowledge and advocacy, full participation faces challenges including slow government buy-in, limited resources, and tensions between technical and political aspects. It recommends greater donor support for civil society and balancing technical and political approaches to ensure the New Deal achieves its goal of inclusive, country-led peacebuilding and development.
The document summarizes decisions made by African heads of state at the 17th Ordinary AU Summit regarding accelerating youth empowerment for sustainable development. The key decisions were:
1) Member states should advance youth policies to create safe, decent jobs by accelerating plans like the Youth Decade Plan of Action and Ouagadougou Plan of Action on employment.
2) The AU Commission should develop a framework for technical and vocational education and training focused on agriculture and ICT, while accelerating the Youth Decade Plan of Action.
3) Member states should provide adequate resources to the AU Commission to advance the youth agenda, including funding the Pan African Youth Union.
This document is the National Recovery Plan for Ireland from 2011-2014. It outlines measures to reduce Ireland's budget deficit to below 3% of GDP by 2014 through €15 billion in expenditure reductions and tax increases. It aims to restore economic growth and competitiveness by reforming public services, reducing costs, improving infrastructure, removing barriers to employment, and supporting key sectors like exports. While these measures will negatively impact living standards in the short-term, postponing them could jeopardize Ireland's return to sustainable growth and full employment. The plan seeks to stabilize public finances and build confidence among citizens, businesses and international partners to help Ireland's economic recovery.
State of the african youth report 2011 (english)Dr Lendy Spires
This document is the State of the African Youth Report 2011 published by the African Union. It provides an overview of the demographic situation of African youth and examines key issues facing youth including education, employment, poverty, health, substance abuse, and civic participation. The report finds that while Africa has a large youth population, many youth face challenges in areas such as education access and employment. It concludes by recommending actions African governments can take to address these issues and empower African youth.
This annual report from the National Economic Development and Labour Council (NEDLAC) summarizes the organization's activities from 2013-2014. NEDLAC facilitates cooperation between the South African government, labor, business, and community organizations to address economic and social challenges. The report discusses NEDLAC's mandate to promote economic growth, participation, and equity. It provides overviews of NEDLAC's strategic goals and priorities, messages from leadership of different social partners, and information about the organization's governance, programs, finances, and secretariat.
Areas of convergence related to areas of cooperation on the issue of the impa...Dr Lendy Spires
The document discusses areas of convergence for cooperation among parties related to the impact of implementing climate change response measures. It identifies three key areas: 1) assessing and analyzing the impact of response measures, including improving reporting and ex ante/ex post assessments; 2) supporting economic diversification in developing countries to minimize adverse impacts; and 3) facilitating a just transition of the workforce through job training, social protections, and other measures. Parties and observers proposed strengthening cooperation through forums, mechanisms, modeling collaboration, and other processes to help address these issues.
This document summarizes the African Youth Report 2011, which addresses the nexus between youth education and employment in the new global economy. It provides ordering information for the full report, published by the United Nations Economic Commission for Africa. The report examines initiatives to support youth education and employment at the global, regional, subregional and national levels in Africa. It also identifies best practices in linking education and employment, and concludes with key messages on ensuring African youth are equipped with skills and opportunities to thrive.
The document summarizes UNCDF's annual report for 2013. It discusses UNCDF's work with partners to promote inclusive finance and local development finance in least developed countries. Key points include:
- UNCDF works with partners in 33 LDCs to provide investment capital and technical support to both public and private sectors.
- In 2013, UNCDF continued innovating in inclusive finance and local development finance, leveraging synergies between the two areas.
- UNCDF's unique mandate allows it to deliver high leverage from both public and private partners' investments in LDCs.
This document provides the background and framework for the African Union's Plan of Action for the African Youth Decade from 2009-2018. It acknowledges that empowering Africa's large youth population is essential for achieving the AU's goals of an integrated, prosperous and peaceful Africa. The Plan of Action aims to support youth empowerment and development through coordinated multi-sectoral efforts at both the continental and national levels. It calls on AU member states, regional economic communities, development partners and youth organizations to align their activities and resources with this framework over the next decade.
UNV promotes sustainable human development through volunteerism and mobilizing volunteers to support UN initiatives. It partners with governments, civil society, and UN agencies to integrate volunteerism into development programs. Each year, UNV mobilizes over 6,800 UN Volunteers from 159 countries to serve in 127 countries, working on peacebuilding, humanitarian aid, health, education and other development areas. Over two-thirds of UN Volunteers come from developing countries and over 30% volunteer in their home countries.
In nine years of measuring the global gender gap, the world has seen only a small improvement in equality for women in the workplace. According to the Global Gender Gap Report 2014, launched today, the gender gap for economic participation and opportunity now stands at 60% worldwide, having closed by 4% from 56% in 2006 when the Forum first started measuring it. Based on this trajectory, with all else remaining equal, it will take 81 years for the world to close this gap completely.
The ninth edition of the report finds that, among the 142 countries measured, the gender gap is narrowest in terms of health and survival. This gap stands at 96% globally, with 35 countries having closed the gap entirely. This includes three countries that have closed the gap in the past 12 months. The educational attainment gap is the next narrowest, standing at 94% globally. Here, 25 countries have closed the gap entirely. While the gender gap for economic participation and opportunity lags stubbornly behind, the gap for political empowerment, the fourth pillar measured, remains wider still, standing at just 21%, although this area has seen the most improvement since 2006.
With no one country having closed its overall gender gap, Nordic nations remain the most gender-equal societies in the world. Last year’s leading four nations – Iceland (1), Finland (2), Norway (3) and Sweden (4) – are joined by Denmark, which climbs from eighth place to fifth. Elsewhere in the top 10 there is considerable movement, with Nicaragua climbing four places to sixth, Rwanda entering the index for the first time at seventh, Ireland falling to eighth, the Philippines declining four places to ninth and Belgium climbing one place to tenth.
Further up the index, the United States climbs three places to 20 in 2014, after narrowing its wage gap and improving the number of women in parliamentary and ministerial level positions. Among the BRICS grouping, the highest-placed nation is South Africa (18), supported by strong scores on political participation. Brazil is next at 71, followed by Russia (75), China (87) and India (114).
The document summarizes the evolution of supply chain management and discusses green supply chain perspectives. It defines supply chain management and describes the emergence of standard, lean, agile, and hybrid supply chain models. The document focuses on green supply chain management, explaining it as the latest form of SCM that considers environmental impacts throughout the product lifecycle. It reviews literature on green SCM practices adopted by multinational companies and small-to-medium enterprises. The document concludes that green SCM is necessary in today's globalized market and provides avenues for future research on topics like green supplier selection and applying the resource-based view to sustainability.
This document discusses how the lean manufacturing and agile manufacturing paradigms can be integrated within a total supply chain strategy. It defines lean manufacturing as developing a value stream to eliminate waste and ensure a level schedule, while defining agile manufacturing as using market knowledge and a virtual corporation to exploit profitable opportunities in a volatile market. The document argues that viewing the paradigms in isolation is too simplistic, and that elements of both are needed depending on the supply chain strategy and positioning of the decoupling point, which separates customer order-driven operations from planning-driven operations. It presents characteristics of lean and agile manufacturing and discusses how elements of each were successfully combined within one supply chain case study.
This document summarizes a paper on the relationship between lean production, sustainable development, and global supply chains. It discusses how lean principles aim to reduce costs through quality improvements and waste reduction. Sustainable development focuses on meeting economic, social, and environmental needs. Global supply chain management coordinates activities across suppliers, manufacturing, and distribution. The paper reviews literature at the intersection of these topics and aims to identify synergies between lean production and sustainable principles applied through global supply chains.
Gaining Competitive Advantages Through Supply Chain Management:Success StoriesLijo M Loyid
This document discusses how effective supply chain management can create competitive advantages for organizations. It provides success stories of Zara, Dell, FedEx, and Walmart as examples. Zara gains advantages through rapid production, local sourcing, and frequent deliveries. Dell reduces costs and lead times through vendor managed inventory and information sharing. FedEx improves transparency and customer service through innovative technology and data availability. Walmart was an early adopter of barcodes and IT to reduce costs and offer low prices. Overall the document shows how supply chain integration, information technology, and waste reduction can help firms compete.
Volume 5 (19) Issue 2 2014 21 New Approaches to S.docxlillie234567
Volume 5 (19) Issue 2 2014
21
New Approaches to Supply Chain Management Concept.
Logistics Integration of "Hub and Spoke" Model
Gheorghe MINCULETE
Polixenia OLAR
“Carol I” National Defense University, Romania
[email protected]
Abstract
In the current modern trade, the integration of economic affairs from design to
completion is an important priority, which determines all economic options of companies
to focus on satisfying the needs of consumers and users to their loyalty.
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer’s request. The supply chain not only includes the manufacturer and suppliers,
but also transporters, warehouses, retailers, and customers themselves.
Within each organization, such as a manufacturer, the supply chain includes all
functions involved in receiving and filling a customer’s request. These functions include,
but are not limited to, new product development, marketing, operations, distribution,
finance, and customer service.
This article stresses the essential aspects of supply chain management in modern
economics affairs, which are integrating under the functional aspect of the "hub and
spoke" model.
Keywords: supply chain management, hub and spoke model, hub and spoke
system, hub and spoke network, e-commerce
JEL Classification: L11, L22
1. Introduction
The management of the supply-delivery chain aims to intensify the processes that
take place from the level of the suppliers of raw materials to that of the end customers. The
aim is to increase the added value and to improve the use of resources and the efficiency of
costs by bringing the required product at the indicated time and place with minimum
manipulations and without delays.
A supply chain means a flow of goods, services, money and information through
different situations (Tan, 2001). These units are legally independent companies, factories
or offices far from each other, geographically speaking, or organizational entities that have
the autonomy to take decisions regarding the information systems.
The concept of management of the supply-delivery chain is closely connected to
Michael Porter's idea (1985), which expresses it as a chain of values based on the
processual vision on organizations. According to this idea, an organization can be seen as a
Valahian Journal of Economic Studies
22
subsystem composed of sub-systems, each of them with inputs, transformation
(conversion) processes and outputs.
Having in mind the logistic field, the management of the supply-delivery chain is
very important, because it covers the aspects that study the flows of materials and
information, the acquisitions and sales from an operative point of view, such as the
transports, orders and packing, but also aspects of a strategic nature, such as the
competition. Although there is a large number of definitions on the management of the
supply chain, th.
Volume 5 (19) Issue 2 2014 21 New Approaches to S.docxjessiehampson
Volume 5 (19) Issue 2 2014
21
New Approaches to Supply Chain Management Concept.
Logistics Integration of "Hub and Spoke" Model
Gheorghe MINCULETE
Polixenia OLAR
“Carol I” National Defense University, Romania
[email protected]
Abstract
In the current modern trade, the integration of economic affairs from design to
completion is an important priority, which determines all economic options of companies
to focus on satisfying the needs of consumers and users to their loyalty.
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer’s request. The supply chain not only includes the manufacturer and suppliers,
but also transporters, warehouses, retailers, and customers themselves.
Within each organization, such as a manufacturer, the supply chain includes all
functions involved in receiving and filling a customer’s request. These functions include,
but are not limited to, new product development, marketing, operations, distribution,
finance, and customer service.
This article stresses the essential aspects of supply chain management in modern
economics affairs, which are integrating under the functional aspect of the "hub and
spoke" model.
Keywords: supply chain management, hub and spoke model, hub and spoke
system, hub and spoke network, e-commerce
JEL Classification: L11, L22
1. Introduction
The management of the supply-delivery chain aims to intensify the processes that
take place from the level of the suppliers of raw materials to that of the end customers. The
aim is to increase the added value and to improve the use of resources and the efficiency of
costs by bringing the required product at the indicated time and place with minimum
manipulations and without delays.
A supply chain means a flow of goods, services, money and information through
different situations (Tan, 2001). These units are legally independent companies, factories
or offices far from each other, geographically speaking, or organizational entities that have
the autonomy to take decisions regarding the information systems.
The concept of management of the supply-delivery chain is closely connected to
Michael Porter's idea (1985), which expresses it as a chain of values based on the
processual vision on organizations. According to this idea, an organization can be seen as a
Valahian Journal of Economic Studies
22
subsystem composed of sub-systems, each of them with inputs, transformation
(conversion) processes and outputs.
Having in mind the logistic field, the management of the supply-delivery chain is
very important, because it covers the aspects that study the flows of materials and
information, the acquisitions and sales from an operative point of view, such as the
transports, orders and packing, but also aspects of a strategic nature, such as the
competition. Although there is a large number of definitions on the management of the
supply chain, th ...
The document discusses pull and push supply chain models. A pull supply chain, also called built-to-order, manufactures products based on specific customer requests to minimize inventory carrying. A push supply chain, also called built-to-stock, manufactures products based on anticipated demand which can lead to higher inventory costs. The document provides examples of industries that typically use each model and their key characteristics.
Reading Assignment Report-IIPlease thoroughly go through the R.docxcatheryncouper
Reading Assignment Report-II
Please thoroughly go through the Reading Assignment posted under Chapter 8 on Moodle (Vanteddu et al., 2006, Research Publication) at least twice.
Please make a summary of the research article in your own words that is at least two pages in length, clearly identifying the purpose, research contribution and conclusions of the research. Provide appropriate citations of the works referred to in your summary. Your summary must be typed. Please use appropriate font and 1.5 line spacing.
The material posted on our course website;
Understanding the concepts;
Want to have a one-to-one demonstration of solving a given problem;
Questions about your grade and where you stand at a given point of time in the semester etc.
Supply chain focus dependent safety stock placement
Gangaraju Vanteddu Æ Ratna Babu Chinnam Æ
Kai Yang Æ Oleg Gushikin
Published online: 18 April 2008
� Springer Science+Business Media, LLC 2008
Abstract Increasing globalization, growing product range diversity, and rising
consumer awareness are making markets highly competitive, forcing supply chains
to adapt constantly to different stimuli. Growing competition between supply chains
(as well as players within them) is also warranting a priority for overall supply chain
performance over the goals of individual players. It is now well established in the
literature that, among the many order winners, both overall supply chain cost and
responsiveness (i.e., supply chain lead time) are the most significant determinants of
supply chain competitiveness. The literature, however, mostly focuses on supply
chain cost minimization with rather simplistic treatment of responsiveness. By
introducing the concept of a coefficient of inverse responsiveness (CIR), we facil-
itate efficient introduction of responsiveness related costs into the scheme of supply
chain (SC) performance evaluation and/or optimization. Thus, our model aids
supply chain managers in achieving better strategic fit between individual business
unit strategies and overall supply chain requirements in terms of cost efficiency and
responsiveness. In particular, it aids in strategic placement of safety stocks at dif-
ferent stages in the supply chain. Our model also offers managerial insights that help
improve our intuitions into supply chain dynamics. The model is more suited for
G. Vanteddu � R. B. Chinnam (&) � K. Yang
Department of Industrial & Manufacturing Engineering, Wayne State University,
4815 Fourth Street, Detroit, MI 48202, USA
e-mail: [email protected]
G. Vanteddu
e-mail: [email protected]
K. Yang
e-mail: [email protected]
O. Gushikin
Ford Research and Advanced Engineering, 2101 Village Road, Dearborn, MI 48121, USA
e-mail: [email protected]
123
Int J Flex Manuf Syst (2007) 19:463–485
DOI 10.1007/s10696-008-9050-z
strategic SC alignment, for example, when dealing with product changeovers or
introduction of new product, rather than for operational control ...
The document discusses the concept of agile supply chains. It argues that agility, not leanness, allows companies to best respond to volatile markets with unpredictable demand and high product variety. An agile supply chain is market sensitive, uses virtual integration through information sharing, has integrated processes among partners, and forms a collaborative network. It also notes that hybrid strategies using both agile and lean approaches may be appropriate depending on specific product demand characteristics. The fashion company Zara is presented as an example that combines agility and leanness in its successful supply chain.
An integrated inventory optimisation model for facility location allocation p...Ramkrishna Manatkar
This document presents a mathematical model for an integrated inventory optimization problem for a multi-echelon supply chain network. The model considers inventory, transportation and location decisions with the objectives of minimizing total inventory holding and transportation costs while meeting customer service level requirements. The model is formulated as a multi-objective non-linear integer programming problem to determine optimal assignments of retailers to distribution centers, safety stock levels at each facility, regular stock levels, and maximum inventory levels at each echelon. The model is tested on real data from steel industry supply chains to provide practical guidelines for inventory management and distribution network design.
Please go through the Review Article and submit a summary of.pdfkitty811
Please go through the Review Article and submit a summary of 500-800 words to include.
a. Focal points discussed regarding SCM.
b. Important issues and challenges concerning supply chain management.
c. Important conclusion drawn for improving overall supply chain performance.
plz solve asap I want this with in 2 hours
Abstract India is becoming a global manufacturing hub. Increasing demand in domestic and
international markets is opening a new world of opportunities for the Indian Industry. Increasing
competition, due to globalization is making inevitable for the Indian industries to provide cost
effective quality output with stringent delivery schedules. Issues in supply of inferior quality,
delayed supply, unwarranted cost escalation, etc. would adversely impact the credibility and
business potential of the Indian industry. Amongst many difficulties faced by Indian manufacturers,
supply chain disruption management is a major issue, which can result in large tangible and non-
tangible losses. In current study lot of research has been done to understand what the Supply
Chain Management is and how it is affecting organizations, what are different challenges and it
can be proved as a tool for improving overall performance in today's global competitive
environment. Keywords: Supply chain management. 1. Introduction his suppliers and through his
suppliers' suppliers and so on back. By having the program driven by the customer, it is In the
current competitive scenario supply chain hoped that inventories, caused by uncertainties and
slow management assumes a significant importance and calls response, will be significantly
eliminated. While there are for serious research attention, as companies are challenged sales
incentives to major suppliers with the carrot of with finding ways to meet ever-rising customer
category management or similar programs, the success of expectations at a manageable cost. To
do so, businesses supply chain management rests with logistics. must search out which parts of
their supply-chain process are not competitive, understand which customer needs are Functional
areas of Logistics: not being met, establish improvement goals, and rapidly 1. Network Design
implementnecessaryimprovements.2.InformationTechnology The term 'supply chain management'
has not only 3. Transportation been used to explain the logistics activities and the 4. Inventory and
Storage planning and control of materials and information flows 5. Warehousing internally within a
company or externally between 6. Materials Handling, Loading and unloading companies
(Christopher 1992, Cooper et al.,1997 and 7. Packaging and Re-packaging Fisher, 1997).
Researchers have also used it to describe strategic, inter organizational issues (Cox, 1997,
Harland It should be noted that supply chain management has both et al., 1999), to discuss an
alternative organizational form "hard" (i.e., technical) and "soft" (i.e., people) aspects, to vertical
integration (Thorelli ,1986 H.
Creating competitive advantages through supply chain finalKurnia Rosyada
This document provides a case study on Samsung Electronics and how their supply chain management practices have helped create competitive advantages and resilience. It discusses trends in supply chain management like resilience, value chain networks, and demand-driven excellence. It also analyzes Samsung's practices like extended supplier partnerships, customer collaboration, and how these have contributed to strategic positioning, product innovation, and differentiation. The document concludes Samsung has implemented best practices that view supply chain management holistically and have created competitiveness and market resilience.
International logistics-management-1220943204514096-9Sumit Palwe
This document discusses the concept of international marketing logistics. It defines logistics as the process of planning, implementing, and controlling the efficient flow of goods, services, and information from the point of origin to the point of consumption to meet customer needs. Logistics has become more important for international companies due to factors like globalization and increased competition. An efficient logistics system is significant for fulfilling contracts on time, improving customer service, reducing costs, and allowing countries and regions to specialize in industries where they have advantages.
1. The document discusses the history and definitions of logistics and supply chain management, noting that while logistics originated as a military term, it now refers to the movement of goods from suppliers to consumers.
2. It describes key aspects of logistics and SCM including inventory planning, transportation, packaging, and warehousing, and explains how information flows are critical to coordinating activities across the supply chain.
3. The role of logistics information systems is to manage data related to logistical activities within and across organizations to improve decision making and customer service.
This document provides an overview of supply chain management. It defines supply chain management and describes the objectives, importance, functions, advantages, and characteristics. It also discusses the historical evolution of supply chain management from the creation era to more recent developments like globalization, specialization, and supply chain management as a service. Additionally, it covers Porter's value chain model and the primary and support activities. Finally, it outlines the three main decision phases in supply chain management: supply chain strategy, supply chain planning, and supply chain execution.
This document discusses demand and supply chain management and the logistical challenges companies face in meeting changing customer demands. It argues that individual companies can no longer meet customer requirements efficiently on their own and that collaboration between suppliers, manufacturers, and retailers through supply chain partnerships is necessary. Effective demand and supply chain management requires integrating decisions both within and between companies to optimize information, financial, and material flows from a multi-company perspective.
SCM can be defined as a management philosophy, the implementation of that philosophy, or a set of management processes. The article reviews various definitions of supply chain and SCM. A supply chain is defined as three or more entities directly involved in upstream and downstream flows of products, services, finances, and/or information from source to customer. SCM as a philosophy takes a systems view of the supply chain and focuses on strategic cooperation across firms to synchronize activities and create customer value.
This document discusses the concept of a responsive supply chain (RSC) and provides a framework for developing an RSC. It defines an RSC as a network of firms capable of reacting quickly and cost-effectively to changing market demands. The key enablers of an RSC are identified as a network of partnering firms, information technology and systems, and knowledge management. The document reviews literature on agile manufacturing and supply chain management strategies and identifies strategic planning, virtual enterprise, and knowledge/IT management as important factors for developing an RSC. It concludes by proposing a framework that combines the strengths of agile manufacturing and supply chain management to achieve responsiveness, flexibility, and cost objectives.
This document discusses the concepts of agile manufacturing (AM) and supply chain management (SCM) and proposes a framework for a responsive supply chain (RSC). It defines RSC as a network of firms capable of reacting quickly and cost-effectively to changing market demands. The document reviews literature on AM and SCM and analyzes case studies to identify factors for developing an RSC framework. The proposed RSC framework integrates AM and SCM approaches to achieve agility, flexibility, speed, and cost objectives through a virtual network of partner firms enabled by knowledge management and information technology.
Similar to An integrated model_for_ the_design_of_agile_supply_chains (20)
An integrated model_for_ the_design_of_agile_supply_chains
1. 1
An Integrated Model for the Design of Agile Supply Chains
Professor Martin Christopher
Cranfield Centre for Logistics & Transportation
School of Management, Cranfield University
Professor Denis Towill
Logistics Systems Dynamics Group
Cardiff University
Summary
The latter part of the 20th Century saw the lean production paradigm positively impact
many market sectors ranging from automotive through to construction. In particular
there is much evidence to suggest that level scheduling combined with the elimination
of muda has successfully delivered a wide range of products to those markets where
cost is the primary order winning criteria. However, there are many other markets
where the order winner is availability. This has led to the emergence of the agile
paradigm typified by ‘quick response’ and similar initiatives. Nevertheless, ‘lean’ and
‘agile’ are not mutually exclusive paradigms and may be married to advantage in a
number of different ways. This paper explores ways in which hybrid strategies can be
developed to create cost-effective supply chains and proposes an integrated
manufacture/logistics model for enabling the essential infrastructure.
Introduction
A key feature of present day business is the idea that it is supply chains that compete,
not companies (Christopher, 1992), and the success or failure of supply chains is
ultimately determined in the marketplace by the end consumer. Getting the right
product, at the right price, at the right time to the consumer is not only the lynch pin to
competitive success but also the key to survival. Hence, customer satisfaction and
marketplace understanding are crucial elements for consideration when attempting to
establish a new supply chain strategy. Only when the requirements and constraints of
the marketplace are understood can an enterprise attempt to develop a strategy that will
meet the needs of both the supply chain and the end customer.
Supply chain performance improvement initiatives strive to match supply to demand
thereby driving down costs simultaneously with improving customer satisfaction. This
invariably requires uncertainty within the supply chain to be reduced as much as
2. 2
practicable so as to facilitate a more predictable upstream demand (Mason-Jones et al.,
1999). Sometimes however, uncertainty is impossible to remove from the supply
chain due to the type of product involved. For example, if a product is highly
fashionable then by its intrinsic nature its demand will be unpredictable. Hence,
specific supply chains are faced with the situation where they have to accept
uncertainty but need to develop a strategy that enables them to still match supply and
demand.
Significant interest has been shown in recent years in the idea of ‘lean manufacturing’
(Womack, Jones & Roos, 1990), and the wider concepts of the ‘lean enterprise’
(Womack, & Jones, 1996). The focus of the lean approach has essentially been on the
elimination of waste or muda. The upsurge of interest in lean manufacturing can be
traced to the Toyota Production Systems (TPS) with its focus on the reduction and
elimination of waste (Ohno, 1988). However, the origins of lean manufacture are
certainly visible in Spitfire aircraft production in the UK in World War II, and
Keiretsu dates back to the US automotive industry in 1915 (Towill, et al., 2000). In
the context of the present paper, it has been argued elsewhere (Christopher, 2000) that
lean concepts work well where demand is relatively stable and hence predictable and
where variety is low. Conversely, in those contexts where demand is volatile and the
customer requirement for variety is high, a much higher level of agility is required.
Agility is a business-wide capability that embraces organisational structures,
information systems, logistics processes and in particular, mindsets. A key
characteristic of an agile organisation is flexibility. In that respect, the origins of
agility as a business concept lie partially in flexible manufacturing systems (FMS).
Initially it was thought that the route to manufacturing flexibility was through
automation to enable rapid changeovers (i.e. reduced set-up times) and thus enable a
greater responsiveness to changes in product mix or volume. Later this idea of
manufacturing flexibility was extended into the wider business context (Nagel and
Dove, 1991) and the concept of agility as an organisational orientation was born.
Naylor et al. (1999) provide a useful definition of the two paradigms we are
considering as follows:
3. 3
“Agility means using market knowledge and a virtual corporation to exploit
profitable opportunities in a volatile marketplace.”
“Leanness means developing a value stream to eliminate all waste including
time, and to enable a level schedule.”
It is the purpose of the present paper to show the various ways in which these
paradigms may be combined to enable highly competitive supply chains capable of
winning in a volatile and cost-conscious environment. In doing so we shall emphasise
the important differences between the two paradigms, and also how one may benefit
from the implementation of the other. As Warnecke and Huser (1995) forcefully point
out, there is a need in all change management programmes to consider the intellectual
as well as the operational needs of the supply chain. Hence, the development and
description of our Integrated Model for enabling the agile enterprise based upon the
concept of a seamless connection between manufacture and logistics.
The Cyclical Nature of Market Winners and Market Qualifiers
Hill (1993) has earlier developed the concept of ‘order qualifiers’ and ‘order winners’
against which it is advocated that manufacturing strategy should be determined. As
these labels suggest, it is important for every business to understand what the baseline
is for entering into a competitive arena – these are the ‘order qualifiers’. To actually
win the order requires specific capabilities and these Hill termed the ‘order winners’.
The definition of order qualifiers and order winners then logically leads to the
specification of the appropriate manufacturing strategy. We can borrow from these
important ideas to develop a wider supply chain oriented concept of ‘market qualifiers’
and ‘market winners’. The notion here is that to be truly competitive requires not just
the appropriate manufacturing strategy, but rather an appropriate holistic supply chain
strategy.
The connection between these ideas of ‘qualifiers’ and ‘winners’ and ‘lean’ and ‘agile’
is critical. At its simplest the lean paradigm is most powerful when the winning
criteria is cost; however, when service and customer value enhancement are prime
requirements for market winning then the likelihood is that agility will become the
critical dimension. Figure 1 illustrates the crucial differences in focus between the
4. 4
lean and agile paradigm depending upon the market qualifiers and the market winners
based upon the work of Mason-Jones et. al. (2000).
Agile
Supply
Lean
Supply
1. Quality
2. Cost
3. Lead Time
1. Service Level
1. Quality
2. Lead Time
3. Service Level
1. Cost
Market Market
Qualifiers Winners
Fig 1
Market Winners - Market Qualifiers Matrix for Agile Versus Lean Supply
[Source: Mason-Jones, Naylor, and Towill (2000)]
It is in the nature of competition that last year’s market winner will be replaced this
year by a former market qualifier (Johannson et. al., 1993). This can be illustrated in
the context of the lean and agile paradigms by studying the migration of the operation
of the Personal Computer supply chain. Thus Table I describes the transition over a
15-20 year period from product driven to market orientated to market driven and
finally through to individual customer driven enterprise (Christopher and Towill,
2000). During that change the market winner has rotated between quality, cost,
availability and lead-time. But at any one point in time the other performance metrics
remain market qualifiers which cannot be prejudiced if business is to continue to be
won.
Attributes of Lean and Agile Supply
Whereas quality, service level, and lead-time are market qualifiers for lean supply,
with the market winner then being cost, the latter benchmark is merely an important
qualifier in agile supply (Christopher and Towill, 2000). Fisher (1997) makes a
similar point which is that where the risk of obsolescence and/or the cost of a stock-out
is high relative to the cost of production and distribution, then a different supply chain
solution is required. This leads to the conclusion that the total costs for the Product
Delivery Process (PDP) are :-
5. 5
Supply Chain Total PDP Costs = Physical PDP Costs + Marketability Costs
Where
• Physical Costs includes all production, distribution, and storage costs.
• Marketability Costs includes all obsolescence and stockout costs.
SUPPLY CHAIN
EVOLUTION
PHASE
I II III IV
SUPPLY CHAIN
TIME
MARKER
early 1980s late 1980s early 1990s late 1990s
SUPPLY CHAIN
PHILOSOPHY
Product
Driven
Market
Orientated
Market
Driven
Customer
Driven
SC
TYPE
Lean
Functional
Silos
Lean
Supply
Chain
Leagile
Supply
Chain
Customised
Leagile
Supply Chain
MARKET
WINNER
Quality Cost Availability Lead Time
MARKET
QUALIFIERS
(a) Cost
(b) Availability
(c) Lead Time
(a) Availability
(b) Lead Time
(c) Quality
(a) Lead Time
(b) Quality
(c) Cost
(a) Quality
(b) Cost
(c) Availability
PERFORMANCE
METRICS
(a) Stock Turns
(b) Production
Cost
(a) Throughput
Time
(b) Physical
Cost
(a) Market Share
(b) Total Cost
(a) Customer
Satisfaction
(b) Value Added
Table I
Summary of the Transition in the Personal Computer supply Chain from Product
Driven to Customer Driven Operations
[Christopher and Towill, 2000]
The first cost source (PDP) dominates lean supply whereas the second cost source
(marketability costs) dominates agile supply. Note that lost sales are gone forever in
the agile supply chain whether the cause is due to stockouts or to obsolescence. This is
because it is an extremely harsh and competitive marketplace with little brand loyalty.
As we shall see later, the requirement is for the product to be both affordable and
available. We shall now undertake a detailed comparison of lean and agile supply by
comparing specific attributes which highlight the specific problems to be overcome in
enabling the appropriate business strategy to be adopted.
Both agility and leanness demand high levels of product quality. They also require
minimisation of total lead-times defined as the time taken from a customer raising a
6. 6
request for a product or service until it is delivered. Total lead-time has to be
minimised to enable agility, as demand is highly volatile and thus difficult to forecast.
If a supply chain has long end-to-end lead-time then it will not be able to respond
quickly enough to exploit marketplace demand. Furthermore effective engineering of
cycle time reduction always leads to significant bottom line improvements in
manufacturing costs and productivity Towill (1996).
Lead-time needs to be reduced in lean manufacturing as by definition excess time is
waste and leanness calls for the elimination of all waste. The essence of the difference
between leanness and agility in terms of the total value provided to the customer is that
service level (availability) is the critical factor calling for agility whilst cost, and hence
the sales price, is clearly linked to leanness. However, whereas the Total Cycle Time
Compression Paradigm (Towill, 1996), when effectively implemented, is a sufficient
condition for achieving lean production, it is only one necessary condition for enabling
agile supply.
DISTINGUISHING
ATTRIBUTES
LEAN SUPPLY AGILE SUPPLY
Typical Products Commodities Fashion Goods
Marketplace Demand Predictable Volatile
Product Variety Low High
Product Life Cycle Long Short
Customer Drivers Cost Availability
Profit Margin Low High
Dominant Costs Physical Costs Marketability Costs
Stockout Penalties Long Term Contractual Immediate and Volatile
Purchasing Policy Buy Materials Assign Capacity
Information Enrichment Highly Desirable Obligatory
Forecasting Mechanism Algorithmic Consultative
Table II
7. 7
Comparison of Lean Supply with Agile Supply : The Distinguishing Attributes
[Source: Mason-Jones, Naylor and Towill (2000)]
Table II illustrates the comparison of attributes between lean and agile supply. In the
volatile unpredictable marketplace for “fashion” goods, both stockout and
obsolescence costs are punitive. Consequently the purchasing policy moves from
placing orders upstream for products moving in a regular flow to that of assigning
capacity to finalise products in rapid response mode. As Fisher et al (1994) have
indicated this means forecasting via “intelligent” consultation so as to maximise inputs
from “rich” marketplace insider sources.
Practical Ways of Marrying the Lean and Agile Paradigms
As we have indicated, there are a number of common elements between the lean and
agile paradigms. Provided the whole concept is fully thought through and properly
managed, lean and agile businesses can co-exist, even when on the same site and with
some limited rotation of personnel (Aitken, 2001). Here are three proven ways in
which the paradigms have been brought together to provide available and affordable
products for the end customer.
The Pareto Curve Approach
Many companies manufacturing or distributing a range of products will find that the
Pareto Law will apply and can be exploited to determine supply strategy. Typically an
analysis of the business will show that the 80/20 (or similar) rule holds (Koch, 1997).
In other words, 80% of total volume will be generated from just 20% of the total
product line. The way in which these 20% are managed should probably be quite
different from the way the remaining 80% are managed. For example it could be
argued that the top 20% of products by volume are likely to be more predictable and
hence they lend themselves to lean principles of manufacturing and distribution. The
slow moving 80% on the other hand will typically be less predictable and will require
a more agile mode of management. Figure 2 suggests one generic way in which
supply chain strategies may be devised for the predictable 20% and the more volatile
80% of products.
8. 8
80%
Lean
20%
% of
total
demand
• Make to forecast
• Low priority in
production schedule
• Manage inventory
centrally
• Seek economies of
scale
Figure 2 – The pareto distribution
Agile
% of products
• Make to order
• High priority in
production schedule
• Utilise quick response and
continuous replenishment
concepts
• Forecast for capacity,
execute to demand
The De-coupling Point Approach
A further marrying of the lean and agile paradigms can be achieved through the
creation of a ‘de-coupling point’ using what may be termed strategic inventory. Here
the idea is to hold inventory in some generic or modular form and only complete the
final assembly or configuration when the precise customer requirement is known. An
example is the customised PC (Christopher and Towill, 2000). This concept of
‘postponement’ is now increasingly widely employed by organisations in a range of
industries (van Hoek, 1998). As shown in Figure 3, by utilising the concept of
postponement, companies may utilise lean methods up to the de-coupling point and
agile methods beyond it. Companies such as Hewlett Packard have successfully
employed such strategies to enable products to be localised much closer in time to
actual demand (Feitzinger and Lee, 1997). However, as Pagh and Cooper (1998) have
pointed out, satisfying customer demand may require particular combinations of
postponed manufacture and postponed logistics
A parallel concept to the ‘material’ de-coupling point described above is that of the
‘information’ de-coupling point (Mason Jones and Towill, 1999). This represents the
furthest point upstream to which information on ‘real’ demand flows i.e. information
which has not been distorted by inventory policies such as re-order points and re-order
9. 9
quantities. The ability to base replenishment decisions on real demand clearly
contributes to supply chain agility.
Lean Agile
• Forecast at generic
level
• Economic batch
quantities
• Maximise efficiencies
Figure 3 – The decoupling point
• Demand driven
• Localised
Configuration
• Maximise
Strategic effectiveness
Inventory
Separation of “Base” and “Surge” Demands
Other hybrid strategies that have been employed with success are based upon
separating demand patterns into ‘base’ and ‘surge’ elements (Gattorna and Walters,
1996). Figure 4 highlights this distinction together with one possible level scheduling
solution where capacity demands are smoothed by intelligent switching of ‘base’
production. Base demand can be forecast on the basis of past history whereby surge
demand typically cannot. Base demand can be met through classic lean procedures to
achieve economies of scale whereas surge demand is provided for through more
flexible, and probably higher cost, processes. Strategies such as these are increasingly
being employed in the fashion industry where the base demand can be sourced in low
cost countries and the surge demand ‘topped up’ locally nearer to the market. Even
though the unit cost of manufacture in local markets will be higher than sourcing in
low cost locations, the supply chain advantage can be considerable. Alternatively,
arrangements can be made for dealing with both “base” and “surge” demands either by
separation in space (via separate production lines) or in time (by using slack periods to
produce base stock). This contrasts with the lean concept of ‘level scheduling’.
10. 10
Smooth
scheduling of
Figure 4 – Responding to Combinations of ‘Base’ and ‘Surge’ Demands
Well documented companies employing such strategies include Zara (Christopher,
1998), Benetton (Zuccaro, 1998), and National Bicycle (Fisher et. al, 1994). What is
particularly important is to relate the strategy throughout the whole supply chain to the
needs of the end customer in terms of both affordability and availability.
Whilst these three strategies are complementary rather than mutually exclusive, it is
likely that each may work better in certain conditions. A suggested set of appropriate
conditions for the application of the three hybrid strategies is presented in Table III
below :-
De
m
a
n
d
Ca
pac
i
t
y
Us
a
ge
Time Time
(a) Total (b) Level Scheduling
Solution
“Surge”
“Base”
For
“Base”
For “Surge”
11. 11
Hybrid strategies
Appropriate market conditions and
operating environment
Pareto/80:20 Using lean methods for the
volume lines, agile methods for the slow
movers.
High levels of variety; demand is non-proportionate
across the range.
De-coupling point The aim is to be lean
up to the de-coupling point and agile
beyond it.
Possibility of modular production or
intermediate inventory; delayed final
configuration or distribution.
Surge/base demand separation
Managing the forecastable element of
demand using lean principles; using agile
principles for the less predictable element.
Where base level of demand can
confidently be predicted from past
experience and where local
manufacturing, small batch capacity is
available.
Table III
A Contingency Approach to Supply Chain Strategy Choice
The three lean/agile hybrid strategies described above confirm that the real focus of
supply chain re-engineering should be on seeking ways in which the appropriate
combination of lean and agile strategies can be achieved. Our proposed Integrated
Model described below provides the essential infrastructure.
An Integrated Approach to Supply Chain Design.
Our contention is that lean methodologies can be a powerful contributor to the
creation of agile enterprises. In particular where product ranges can be separated
according to volume and variability and/or where the de-coupling concept can be
applied, a real opportunity exists for employing hybrid lean/agile strategies. There is
also one important sense in which lean precedes agile, and which has been advanced
12. 12
by Victor and Boynton (1998) in the context of moving towards mass customisation.
This is because real and effective change requires the mapping and understanding of
all the relevant business processes. Thus, in an industrial engineering scenario the lean
knowledge base is there to be exploited in enabling further performance improvements
including building in agility (Childerhouse et al, 2000).
Impact of
Agile
Manufacture
Impact of
Agile
Logistics
Agile
Supply Chain
Level 1
Principles
Level 2
Programmes
Level 3
Actions
Standardisation/
Modularisation
Waste
Reduction
Lean
Production
Postponed
fulfillment
Rapid
Vendor
Managed
Inventory
replenishment
Synchronised
operations
Organisational
Agility
Economies
of Scale
Flexible
Response
Agile
Supply
Process
Management
Cross
Functional
Teams
Demand
Driven
Visibility of
Real Demand
Continuous
Replenishment
Programmes
Set-up
Time Reduction
Quick
Response
Pipeline
Time
Reduction
Figure 5 : An Integrated Model for Enabling the Agile Supply Chain
Figure 5 suggests a three level framework summarising our view of the agile supply
chain. The concept of such a framework was first advocated by Werr et al. (1997). We
have found it extremely useful in bringing together the various strands which
contribute to the agile enterprise. In this integrative model, Level 1 represents the key
principles that underpin the agile supply chain; rapid replenishment; and postponed
fulfilment. Level 2 identifies the individual programmes such as lean production,
organisational agility, and quick response which must be implemented in order for the
Level 1 principles to be achieved. Level 3 specifies individual actions to be taken to
support Level 2 programmes, for example, time compression, information
enrichment, and waste elimination. Not all the characteristics shown in Figure 5 may
be necessary in any one specific market/manufacturing context, but it is likely that the
13. 13
agile supply chain will embody many of these elements. What is certain is that much
of the conventional wisdom concerning manufacturing strategy, supplier relations and
distribution will have to be challenged if real agility is to be achieved from within the
supply chain.
Rapid replenishment, for example, requires agile suppliers, organisational agility, and
a demand driven supply chain (Lowson et.al. 1999). Similarly, postponed fulfilment
enables the adoption of lean production principles up to the de-coupling point
supported by agile capabilities beyond that point (Harrison et. al.1999). Nor must the
cultural side be forgotten, since it may be the single biggest barrier to effective
change. For example, in moving towards an agile structure in one company in the
pharmaceuticals sector, it was found that the anticipated IT problems did not arise.
Instead, the real stumbling blocks were the difficulty of creating an understanding of
the new system, and the creation of a customer focused culture ~ in other words people
problems (Belk and Steels, 1998). Such reasons could also help explain why
successful industrial implementation of quick response programmes is more patchy
than expected, (Kohzab, 2000). This is just supporting evidence for the view
previously expressed by Andraski (1994) in commenting on the ineffectiveness of
many real-world supply chains. He suggested that this is because ‘80% of problems
that arise are due to people, not technology’.
Creating an agile supply clearly requires a number of significant changes to the status
quo. Supply chain managers today need also to be change managers – not just
managing change within the organisation, but managing change in the way that
relationships between organisations are structured. The trend towards the creation of
the ‘virtual’ organisation, whilst likely to help achieve agility (Preiss et.al., 1995), also
requires a high level of co-ordination and management. One way to achieve this co-ordination
is to make use of a ‘pipeline integrator’ or, as they have sometimes been
termed, a Fourth Party Logistics Service provider (4PL). These organisations make
use of their expertise and knowledge of managing global supply chains to ensure that
even in complex networks a more agile response can be achieved. An example of one
company that is taking up this role on behalf of global clients is the Hong Kong based
company Li and Fung (Magretta, 1995). Li and Fung were originally a trading
company sourcing and distributing products on behalf of their principals. Over the
14. 14
years they have developed specific expertise and skills that enable them to manage and
co-ordinate supply chains. For example, Li and Fung, on behalf of the US retailers,
the Limited, will order un-dyed yarn from the yarn supplier, book weaving and dying
capacity at fabric manufacturers’ facilities and manufacturing capacity at the garment
factories; all in advance of the actual requirement being known. As the Limited gets a
clearer view of what the requirement is for actual styles, colours and sizes then Li and
Fung will issue precise orders and manage the entire supply chain. In the words of the
Chairman, Victor Fung :-
“It would be easier to let the factories worry about securing their own fabric
and trim. But then the order would take three months, not five weeks. So to
shrink the delivery cycle, I go upstream to organise production. And the
shorter production time lets the retailer hold off before having to commit to
fashion trend. It’s all about flexibility, response time, small production runs,
small minimum order quantities, and the ability to shift direction as the trends
move”. (Magretta, 1995).
Conclusion
It is becoming increasingly apparent that competitive advantage derives from the
combined capabilities of the network of linked organisations that today we call ‘the
supply chain’. This is a fundamental shift in the traditionally held view of a business
model based upon a single firm. It has also become apparent that markets today are
increasingly volatile and hence less predictable and so the need for a more agile
response has grown.
Putting these two ideas together leads us to the conclusion that a pre-requisite for
success in these markets will be an agile supply chain.
What we have proposed in this paper is a framework for agility that is contingent upon
the context in which the business operates. Thus we have sought to bring together the
lean and agile philosophies to highlight the differences in their approach but also to
show how they might be combined for greater effect. Increasingly, managers need to
15. 15
understand how market conditions and the wider operating environment will demand
not a single off-the-shelf solution, but hybrid strategies which are context specific.
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