Bullwhip Effect ppt
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The document discusses the bullwhip effect in supply chain management. The bullwhip effect is defined as the uncertainty caused by distorted information flowing up and down the supply chain. This can result in excess inventories, quality problems, increased costs, and lost sales and customers. The bullwhip effect is caused by unforecasted promotions, incentives, lack of confidence, order changes, and freight costs. Companies can avoid this effect by sharing information, aligning the supply chain, using everyday low pricing, and long-term contracts.
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Bullwhip effect ppt
The document discusses the bullwhip effect in supply chains. The bullwhip effect occurs when orders sent to manufacturers and suppliers have greater variance than sales to end customers. This can interrupt supply chain processes as each link may over or underestimate demand. The bullwhip effect is caused by factors like lack of coordination between supply chain links, lack of communication, batch ordering practices, demand forecasting issues, and long lead times. Symptoms include excessive inventory, poor forecasts, insufficient capacity, and long backlogs. The document provides examples and discusses ways to counteract the bullwhip effect, such as avoiding frequent forecast updates, stabilizing prices, and increasing information sharing.
The "Bullwhip" Effect
The document discusses the "bullwhip effect", which refers to how demand and orders become more variable as they move up the supply chain from the consumer to the manufacturer. There are several key causes of the bullwhip effect, including long lead times, lack of information sharing between supply chain partners, price fluctuations, and batch ordering. This can lead to problems like increased costs, stockouts, and inaccurate demand forecasts as variability increases at each stage. The document provides examples and strategies for reducing the bullwhip effect through better information sharing and collaboration between supply chain members.
The bullwhip effect
The bullwhip effect occurs when small changes in consumer demand result in large variations in orders placed upstream in the supply chain. As demand variability moves up the supply chain, it increases at each level as companies overreact and do not communicate well. This can cause oscillations across the supply chain as costs rise and service declines. The bullwhip effect stems from factors like demand forecasting inaccuracies, shortage gaming, order batching, and lack of coordination between supply chain participants. Leading companies counter the bullwhip effect through measures like Vendor Managed Inventory, shared forecasting data, and regular order delivery schedules.
Bullwhip effect
The bullwhip effect refers to larger swings in inventory levels and orders as one moves up the supply chain away from the customer. It occurs as each company amplifies the fluctuations in customer demand when placing orders with its suppliers. This results in excess and insufficient inventory levels throughout the supply chain. The bullwhip effect is caused by factors like forecast errors, batch ordering, pricing variations, and a lack of demand information sharing between supply chain partners. To reduce the bullwhip effect, companies should improve communication, demand forecasting, information sharing, and move towards a demand-driven supply chain model.
Supply chain management ppt MBA
This document discusses achieving strategic fit between a company's competitive strategy and its supply chain strategy. It outlines three key steps: 1) Understanding customer needs and how they impact supply chain uncertainty. 2) Understanding the company's supply chain capabilities and how to balance responsiveness and efficiency. 3) Aligning the supply chain strategy to best meet customer needs given the company's supply chain capabilities. Strategic fit is achieved when a company's supply chain strategy supports its competitive strategy to satisfy customer priorities. The document also discusses factors like product life cycles and competitive changes that require evolving the supply chain strategy over time.
The bullwhip effect in supply chains
The document discusses the bullwhip effect, which is an increase in variability of orders as they move up the supply chain from customer to manufacturer. Some symptoms of the bullwhip effect include excessive inventory, poor forecasts, insufficient capacity, and long backlogs. The bullwhip effect can be caused by factors such as forecasting methods, order batching, price fluctuations, rationing during shortages, and gaining behavior. Strategies to mitigate the bullwhip effect include improved forecasting methods, visibility of downstream demand data through approaches like VMI/CRP, bypassing intermediaries, and reducing price discounting and order exaggeration.
Supply chain management
This document provides a summary of key concepts in supply chain management. It discusses supply chains, supply chain management, value chain management, operations management, logistics management, lean supply chains, agile supply chains, and the objectives and decision phases of supply chains. It also covers integrated supply chain management, barriers to supply chain management implementation, attributes affecting implementation like technology and communication, and reasons for many versus few suppliers in a supply chain.
Design of supply chain networks
The document discusses various options for designing supply chain networks and their characteristics. It describes manufacturer storage with direct shipping, in-transit merging, distributor storage with package carrier delivery, distributor storage with last-mile delivery, manufacturer/distributor storage with customer pickup, retail storage with customer pickup, and local storage at consumer pickup sites. For each option, it summarizes the performance characteristics in terms of cost factors like inventory, transportation, and facilities as well as service factors like response time, product variety, and customer experience.
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Bullwhip effect ppt
The document discusses the bullwhip effect in supply chains. The bullwhip effect occurs when orders sent to manufacturers and suppliers have greater variance than sales to end customers. This can interrupt supply chain processes as each link may over or underestimate demand. The bullwhip effect is caused by factors like lack of coordination between supply chain links, lack of communication, batch ordering practices, demand forecasting issues, and long lead times. Symptoms include excessive inventory, poor forecasts, insufficient capacity, and long backlogs. The document provides examples and discusses ways to counteract the bullwhip effect, such as avoiding frequent forecast updates, stabilizing prices, and increasing information sharing.
The "Bullwhip" Effect
The document discusses the "bullwhip effect", which refers to how demand and orders become more variable as they move up the supply chain from the consumer to the manufacturer. There are several key causes of the bullwhip effect, including long lead times, lack of information sharing between supply chain partners, price fluctuations, and batch ordering. This can lead to problems like increased costs, stockouts, and inaccurate demand forecasts as variability increases at each stage. The document provides examples and strategies for reducing the bullwhip effect through better information sharing and collaboration between supply chain members.
The bullwhip effect
The bullwhip effect occurs when small changes in consumer demand result in large variations in orders placed upstream in the supply chain. As demand variability moves up the supply chain, it increases at each level as companies overreact and do not communicate well. This can cause oscillations across the supply chain as costs rise and service declines. The bullwhip effect stems from factors like demand forecasting inaccuracies, shortage gaming, order batching, and lack of coordination between supply chain participants. Leading companies counter the bullwhip effect through measures like Vendor Managed Inventory, shared forecasting data, and regular order delivery schedules.
Bullwhip effect
The bullwhip effect refers to larger swings in inventory levels and orders as one moves up the supply chain away from the customer. It occurs as each company amplifies the fluctuations in customer demand when placing orders with its suppliers. This results in excess and insufficient inventory levels throughout the supply chain. The bullwhip effect is caused by factors like forecast errors, batch ordering, pricing variations, and a lack of demand information sharing between supply chain partners. To reduce the bullwhip effect, companies should improve communication, demand forecasting, information sharing, and move towards a demand-driven supply chain model.
Supply chain management ppt MBA
This document discusses achieving strategic fit between a company's competitive strategy and its supply chain strategy. It outlines three key steps: 1) Understanding customer needs and how they impact supply chain uncertainty. 2) Understanding the company's supply chain capabilities and how to balance responsiveness and efficiency. 3) Aligning the supply chain strategy to best meet customer needs given the company's supply chain capabilities. Strategic fit is achieved when a company's supply chain strategy supports its competitive strategy to satisfy customer priorities. The document also discusses factors like product life cycles and competitive changes that require evolving the supply chain strategy over time.
The bullwhip effect in supply chains
The document discusses the bullwhip effect, which is an increase in variability of orders as they move up the supply chain from customer to manufacturer. Some symptoms of the bullwhip effect include excessive inventory, poor forecasts, insufficient capacity, and long backlogs. The bullwhip effect can be caused by factors such as forecasting methods, order batching, price fluctuations, rationing during shortages, and gaining behavior. Strategies to mitigate the bullwhip effect include improved forecasting methods, visibility of downstream demand data through approaches like VMI/CRP, bypassing intermediaries, and reducing price discounting and order exaggeration.
Supply chain management
This document provides a summary of key concepts in supply chain management. It discusses supply chains, supply chain management, value chain management, operations management, logistics management, lean supply chains, agile supply chains, and the objectives and decision phases of supply chains. It also covers integrated supply chain management, barriers to supply chain management implementation, attributes affecting implementation like technology and communication, and reasons for many versus few suppliers in a supply chain.
Design of supply chain networks
The document discusses various options for designing supply chain networks and their characteristics. It describes manufacturer storage with direct shipping, in-transit merging, distributor storage with package carrier delivery, distributor storage with last-mile delivery, manufacturer/distributor storage with customer pickup, retail storage with customer pickup, and local storage at consumer pickup sites. For each option, it summarizes the performance characteristics in terms of cost factors like inventory, transportation, and facilities as well as service factors like response time, product variety, and customer experience.
Fundamentals of Supply Chain Management
This presentation deals with the basics of Supply Chain Management.It gives short notes on what is it that makes a complete supply chain network and industrial terminologies are explained here.
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SOURCING DECISIONS IN A SUPPLY CHAIN
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1) The document discusses supply chain management strategies including defining supply chains, understanding industry models, and achieving supply chain excellence.
2) It provides 12 ground rules for effective supply chain management such as building in flexibility, optimizing information, and treating customers unequally based on needs.
3) Key aspects of supply chain management covered include inventory management, production planning, distribution, and techniques to reduce costs and waste.
Logistics and Supply Chain
The document discusses supply chain and logistics concepts including:
1) Physical distribution involves choosing warehouses and transportation carriers to deliver goods in the desired time at lowest cost. Physical distribution has expanded into supply chain management.
2) Supply chain management involves procuring inputs, efficiently converting them into finished products, and dispatching them to customers.
3) Market logistics planning involves four stages - deciding on a value proposition, developing operational excellence, implementing solutions, and deciding on a channel/network strategy.
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Third party logistics (3PL) involves outsourcing elements of supply chain management to a third party provider. 3PL providers can perform transportation, warehousing, distribution, and other logistics functions. Using 3PLs allows companies to focus on their core competencies while improving efficiency. There are different types of 3PL providers, including asset-based providers that use their own assets and management-based providers that coordinate using other companies' assets. Outsourcing to 3PLs has grown as companies seek to reduce costs and improve supply chain performance.
Distribution network desing
This document discusses distribution networks and demand forecasting in supply chains. It begins by defining distribution as the steps to move a product from suppliers to customers. It then discusses how distribution network design impacts costs and customer service. The document outlines different types of distribution networks like direct shipping, distributor storage, and retail storage networks. It also discusses factors influencing demand forecasts like past demand, lead times, marketing, and competitors. Finally, it summarizes qualitative and quantitative forecasting techniques as well as collaboration best practices for building forecasts.
Process view of scm & value chain analysis
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Logistics management aims to coordinate activities from procurement to delivery to satisfy customers at lowest cost. It links suppliers, production, distribution and customers through materials and information flows. The ultimate goal is customer satisfaction by establishing organizational linkages to the marketplace. Effective logistics can provide competitive advantage through cost leadership or value differentiation. Logistics optimization reduces costs and improves customer service through activities like transportation, inventory, warehousing and information management.
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The document discusses factors that influence distribution network design for supply chains. It describes how distribution affects costs and customer experience. Distribution network design must balance customer needs like response time and product availability with supply chain costs like inventory and transportation. The document outlines different distribution network design options and provides examples of how companies implement various designs. It also discusses factors like strategic objectives, technology, infrastructure, competition and costs that influence decisions around facility roles, locations, capacity and market allocation.
Basics of Supply Chain Management
1. Supply chain management involves coordinating the flow of materials, information, and finances between suppliers, manufacturers, distributors, retailers, and customers. It aims to optimize the production and distribution of goods and services.
2. Key aspects of supply chain management include purchasing, logistics, and warehousing. Purchasing links an organization to its suppliers, logistics involves transporting materials, and warehousing manages inventory storage and order fulfillment.
3. Developing partnerships with suppliers is important in supply chain management. Strategic supplier relationships can help lower costs, improve quality, and increase flexibility throughout the supply chain.
Reverse Logistics
Reverse logistics involves the movement of goods from their point of use back to the manufacturer for reprocessing, repairs, recycling, or disposal. It has become an important competitive tool as organizations use services like replacing defective goods, refurbishing returned products, and product recalls to add value for customers. Effective reverse logistics requires planning systems for product collection, recycling centers, and documentation to support product tracking throughout the reverse supply chain.
Forecasting in Supply Chain
The document discusses demand forecasting and push/pull processes in supply chains. It notes that push processes anticipate customer demand while pull processes respond to it. Forecasts will always contain errors that should be measured. Long term forecasts are generally less accurate than short term ones. Aggregate forecasts tend to be more accurate than disaggregate ones due to error reduction. The bullwhip effect causes demand distortion as information moves up a supply chain.
The bullwhip effect
The bullwhip effect refers to distorted demand information as it flows up and down the supply chain. This can cause excess inventories, higher costs, and lost sales. It is caused by factors like poor forecasting, sales promotions not communicated upstream, and incentives. Reducing the bullwhip effect involves improving communication of accurate demand information between all parties in the supply chain.
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Role of information Technology in Supply Chain Manageent
The document discusses the role of information technology in supply chain management. It provides details on how Walmart uses IT extensively across its supply chain operations. This includes using electronic data interchange for more efficient procurement, bar code scanners to analyze sales data and replenish stores, a computer terminal network for real-time communication between stores and headquarters, and voice-based technologies to enhance warehouse and logistics management. The Retail Link system connects Walmart's EDI network to an extranet accessible to suppliers, providing them with historical sales data.
Supply Chain Management
The document discusses supply chain management. It defines a supply chain as the system involved in moving products from suppliers to customers, including organizations, activities, and resources. Supply chain management involves planning, implementing, and controlling supply chain operations to efficiently meet customer demands. It encompasses sourcing, procurement, production, and logistics management as well as coordination with supply chain partners. The goals of efficient supply chain management are revenue growth, better asset utilization, and cost reduction.
Vendor Managed Inventory (VMI)
Leverage information to remove cost and time from the supply chain, while delivering better service to the end customer
Inventory control
This document discusses various aspects of inventory management including classification of inventory, objectives of inventory control, costs associated with inventory, different inventory categories, selective inventory control methods, reorder quantity determination, and economic order quantity calculation. Key concepts covered include direct and indirect inventory, aims of minimizing costs while avoiding stockouts, and classification systems to focus control efforts.
Warehouselayout
This document discusses warehouse layout and material flow planning. It provides details on key areas to consider when planning a warehouse layout, including product storage, inbound and outbound operations, value-added processes, and material flow patterns. The goal is to maximize efficiency and space utilization. Key factors discussed include storage requirements, peak vs. average volumes, receiving and shipping needs, picking methods, and value-added services. Common material flow patterns like U-shaped and straight through are also outlined. The overall aim is to design a layout that satisfies the primary warehouse functions in a way that reduces travel time and optimizes operations.
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Coordination in a supply chain
the presentation is about managing coordination between the supply chains for fast movement of resources.factors affecting the coordiantion in supply chain.
SOURCING DECISIONS IN A SUPPLY CHAIN
Sourcing involves purchasing goods and services and deciding whether to outsource supply chain functions. Key considerations for outsourcing include whether it will increase supply chain surplus, how much surplus the firm will capture, and potential risks. Supplier performance is evaluated based on multiple factors like price, quality, and timeliness that affect total costs. Effective sourcing decisions use supplier scoring, contracting, auctions or negotiations to improve supply chain profits through strategies like design collaboration, risk sharing, and performance incentives.
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Supply Chain Management Coordination.
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Supply Chain Managment
1) The document discusses supply chain management strategies including defining supply chains, understanding industry models, and achieving supply chain excellence.
2) It provides 12 ground rules for effective supply chain management such as building in flexibility, optimizing information, and treating customers unequally based on needs.
3) Key aspects of supply chain management covered include inventory management, production planning, distribution, and techniques to reduce costs and waste.
Logistics and Supply Chain
The document discusses supply chain and logistics concepts including:
1) Physical distribution involves choosing warehouses and transportation carriers to deliver goods in the desired time at lowest cost. Physical distribution has expanded into supply chain management.
2) Supply chain management involves procuring inputs, efficiently converting them into finished products, and dispatching them to customers.
3) Market logistics planning involves four stages - deciding on a value proposition, developing operational excellence, implementing solutions, and deciding on a channel/network strategy.
3rd party logistic
Third party logistics (3PL) involves outsourcing elements of supply chain management to a third party provider. 3PL providers can perform transportation, warehousing, distribution, and other logistics functions. Using 3PLs allows companies to focus on their core competencies while improving efficiency. There are different types of 3PL providers, including asset-based providers that use their own assets and management-based providers that coordinate using other companies' assets. Outsourcing to 3PLs has grown as companies seek to reduce costs and improve supply chain performance.
Distribution network desing
This document discusses distribution networks and demand forecasting in supply chains. It begins by defining distribution as the steps to move a product from suppliers to customers. It then discusses how distribution network design impacts costs and customer service. The document outlines different types of distribution networks like direct shipping, distributor storage, and retail storage networks. It also discusses factors influencing demand forecasts like past demand, lead times, marketing, and competitors. Finally, it summarizes qualitative and quantitative forecasting techniques as well as collaboration best practices for building forecasts.
Process view of scm & value chain analysis
This document discusses supply chain planning and scheduling. It begins by defining a supply chain and outlining the objectives of supply chain management. It then describes the three decision phases of supply chain management: supply chain strategy/design, supply chain planning, and supply chain operations. Finally, it discusses the process view of supply chains using the cycle view and push/pull view and analyzes value within a supply chain.
Logistics and supply chain management
Logistics management aims to coordinate activities from procurement to delivery to satisfy customers at lowest cost. It links suppliers, production, distribution and customers through materials and information flows. The ultimate goal is customer satisfaction by establishing organizational linkages to the marketplace. Effective logistics can provide competitive advantage through cost leadership or value differentiation. Logistics optimization reduces costs and improves customer service through activities like transportation, inventory, warehousing and information management.
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The document discusses factors that influence distribution network design for supply chains. It describes how distribution affects costs and customer experience. Distribution network design must balance customer needs like response time and product availability with supply chain costs like inventory and transportation. The document outlines different distribution network design options and provides examples of how companies implement various designs. It also discusses factors like strategic objectives, technology, infrastructure, competition and costs that influence decisions around facility roles, locations, capacity and market allocation.
Basics of Supply Chain Management
1. Supply chain management involves coordinating the flow of materials, information, and finances between suppliers, manufacturers, distributors, retailers, and customers. It aims to optimize the production and distribution of goods and services.
2. Key aspects of supply chain management include purchasing, logistics, and warehousing. Purchasing links an organization to its suppliers, logistics involves transporting materials, and warehousing manages inventory storage and order fulfillment.
3. Developing partnerships with suppliers is important in supply chain management. Strategic supplier relationships can help lower costs, improve quality, and increase flexibility throughout the supply chain.
Reverse Logistics
Reverse logistics involves the movement of goods from their point of use back to the manufacturer for reprocessing, repairs, recycling, or disposal. It has become an important competitive tool as organizations use services like replacing defective goods, refurbishing returned products, and product recalls to add value for customers. Effective reverse logistics requires planning systems for product collection, recycling centers, and documentation to support product tracking throughout the reverse supply chain.
Forecasting in Supply Chain
The document discusses demand forecasting and push/pull processes in supply chains. It notes that push processes anticipate customer demand while pull processes respond to it. Forecasts will always contain errors that should be measured. Long term forecasts are generally less accurate than short term ones. Aggregate forecasts tend to be more accurate than disaggregate ones due to error reduction. The bullwhip effect causes demand distortion as information moves up a supply chain.
The bullwhip effect
The bullwhip effect refers to distorted demand information as it flows up and down the supply chain. This can cause excess inventories, higher costs, and lost sales. It is caused by factors like poor forecasting, sales promotions not communicated upstream, and incentives. Reducing the bullwhip effect involves improving communication of accurate demand information between all parties in the supply chain.
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Concept of inventory, need for inventory, types of inventory, Seasonal, Decoupling, Cyclic, Pipeline, Safety, Implications of Inventory Control Methods Inventory Costs: Concept & Behavior of Ordering cost, Carrying cost & Shortage cost Basic EOQ Model & EOQ with Discount
Role of information Technology in Supply Chain Manageent
The document discusses the role of information technology in supply chain management. It provides details on how Walmart uses IT extensively across its supply chain operations. This includes using electronic data interchange for more efficient procurement, bar code scanners to analyze sales data and replenish stores, a computer terminal network for real-time communication between stores and headquarters, and voice-based technologies to enhance warehouse and logistics management. The Retail Link system connects Walmart's EDI network to an extranet accessible to suppliers, providing them with historical sales data.
Supply Chain Management
The document discusses supply chain management. It defines a supply chain as the system involved in moving products from suppliers to customers, including organizations, activities, and resources. Supply chain management involves planning, implementing, and controlling supply chain operations to efficiently meet customer demands. It encompasses sourcing, procurement, production, and logistics management as well as coordination with supply chain partners. The goals of efficient supply chain management are revenue growth, better asset utilization, and cost reduction.
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This document discusses warehouse layout and material flow planning. It provides details on key areas to consider when planning a warehouse layout, including product storage, inbound and outbound operations, value-added processes, and material flow patterns. The goal is to maximize efficiency and space utilization. Key factors discussed include storage requirements, peak vs. average volumes, receiving and shipping needs, picking methods, and value-added services. Common material flow patterns like U-shaped and straight through are also outlined. The overall aim is to design a layout that satisfies the primary warehouse functions in a way that reduces travel time and optimizes operations.
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Bullwhip effect ch3
The bullwhip effect occurs when demand variability increases at each stage of the supply chain, despite relatively stable consumer demand. As orders move upstream, fluctuations in ordering patterns are amplified, making it difficult for suppliers to match production to customer needs. This summary effect is caused by factors like forecasting errors, batch ordering, promotions, and stockpiling during shortages. Companies can reduce bullwhip through strategies like quick response, everyday low pricing, lead time reduction, vendor-managed inventory, and risk pooling across locations.
Thebullwhipeffect 100420051050-phpapp02
The document discusses the bullwhip effect, which occurs when distorted information flows up and down the supply chain, causing uncertainty. This can result in excess inventories, increased costs, and poor customer service. The bullwhip effect stems from issues like sales promotions not being communicated, sales incentives, and inaccurate forecasts. Companies can reduce the bullwhip effect by improving information sharing, using demand data from POS systems, stabilizing prices, and removing unnecessary sales incentives.
CFW Procurement Workshop October 2016
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M-5.pptx
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SC-Coordination chapter 4.ppt
The document discusses challenges that arise from a lack of coordination within a supply chain, known as the bullwhip effect. This includes demand information being distorted as it moves through the chain, leading stages to have different demand estimates. It also results in increased inventory, transportation and labor costs, lower product availability, and decreased profitability. The document outlines several obstacles to coordination, like information processing, operational, pricing, incentive, and behavioral obstacles. It provides examples of each and potential remedies to improve coordination within the supply chain.
SC-Coordination chapter 4.ppt
The document discusses challenges that arise from a lack of coordination within a supply chain, known as the bullwhip effect. This effect causes demand information to become distorted as it moves up the supply chain, leading each stage to have different estimates of demand. As a result, manufacturing costs, inventory costs, transportation costs, and other metrics increase, while product availability and profitability decrease. The document outlines several obstacles to coordination, including information processing, operational, pricing, incentive, and behavioral obstacles. It provides examples of each and potential remedies to improve coordination within the supply chain.
Sydney harvest outcome presentation annotated
This market pilot of a re-engineered demand chain for fresh produce grown in the Sydney basin, branded "Sydney harvest" occurred between October 2013 and January 2014.
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P&G supply Chain
P&G transformed its supply chain from a linear chain to a responsive network through innovations like agent-based modeling, RFID technology, and strategic customer relationships. By simulating complex supply network interactions, P&G identified opportunities to reduce inventory 50% and save $300M annually with only a 1% investment. RFID implementation improved dock loading throughput by 40% and vendor-managed inventory with big customers like Walmart increased profits for both companies. Overall, P&G shifted from product to supply chain innovation to achieve strategic fit, responsiveness, and efficiency across 160 countries.
Supply Chain Management
The document provides an overview of supply chain management. It discusses Li & Fung's customized supply chain for a customer order. Key points include that effective supply chain management requires coordinating activities across organizations, considering strategic partnerships, and addressing inventory issues like the bullwhip effect. Strategic partnering approaches like vendor managed inventory can help improve forecasting and inventory levels when firms share information.
Barilla spa case analysis
Here are some key ways the conflicting goals of different partners and facilities in Barilla's supply chain can be addressed:
- Improve information sharing and coordination across the entire supply chain from manufacturers to retailers. Visibility into demand data can help align forecasting and operations.
- Adopt a Vendor Managed Inventory or collaborative planning approach to transfer responsibility for demand planning to Barilla and better integrate facilities/partners.
- Reduce complexity by streamlining SKU numbers and product varieties to improve forecasting accuracy and production planning.
- Pursue Just-In-Time manufacturing and distribution methods within Barilla's control to minimize inventories while still meeting customer needs. Overall, prioritizing integration, information sharing, and reducing
Supply Chain Management module 6
The document discusses supply chain coordination and the bullwhip effect. Lack of coordination can result from conflicting objectives between stages or distorted information sharing. This can cause the bullwhip effect where demand fluctuations increase moving up the supply chain. This reduces profits and coordination. Managerial levers to improve coordination include aligning goals, improving information accuracy through data sharing, reducing lead times, and building strategic partnerships through trust. Collaborative programs like CPFR can further help coordination.
Retail Perspective & Credentials
- Wilson Perumal & Company is a management consultancy with expertise in retail operations strategy. They take a unique approach to aligning strategy, complexity, and operations to optimize results and drive tangible ROI for clients.
- Their retail service offerings focus on five key areas: omni-channel, store operations, workforce optimization, inventory optimization, and supply chain. They help clients address complexity issues and barriers to successful strategy execution.
- Typical results for clients include sales increases of 2-3%, improved fulfillment rates by 10-15%, payroll reductions of 2-3%, and inventory turns improvements of 5-10%. Clients praise WPC's analytical approach and ability to drive tangible operational improvements.
Lecture Intranets and supply chain management.pptx
An intranet is an internal network within an organization that uses TCP/IP protocols like the internet. An extranet allows controlled external access through authentication. Intranets and extranets are commonly used in large companies for information sharing. Effective supply chain management (SCM) involves planning, sourcing, production, delivery, and returns across a network of suppliers, producers, distributors, and customers. Key benefits of SCM include reduced costs, improved quality and customer satisfaction.
Zappos Case Study
Zappos is an online retailer known for its excellent customer service and strong company culture. It started as an online shoe store in 1999 and has since expanded into other product categories. Zappos emphasizes customer happiness and uses its culture as a reason to hire and fire employees. It provides services like free shipping and returns to create a competitive advantage. While this strategy has led to financial success, Zappos faces challenges from increased costs and competition from other online retailers. The document discusses Zappos' supply chain management and recommendations to address issues like uneven inbound deliveries and long shipping distances by opening a new fulfillment center or consolidating shipments.
Retail Perspective & Credentials
Wilson Perumal & Company is a management consultancy that provides retail consulting services focused on optimizing strategy, reducing complexity, and driving tangible returns. They have offices in North America and Europe. Their retail service offerings center around omni-channel strategy, store operations, workforce optimization, inventory optimization, and supply chain consulting. Their approach involves identifying complexity barriers that interrupt execution and achieving strategy in order to improve the customer experience and business results.
SCM-value of information.pdf
This document discusses the value of information in supply chain management. It describes how sharing information, such as inventory levels and orders, across the supply chain can help reduce variability, improve forecasts, and enable more efficient coordination. It specifically examines the "bullwhip effect," where demand variability increases at each stage of the supply chain due to a lack of information sharing. Centralizing demand information and using incentives for truthful forecasting can help mitigate this effect.
SCM-value of information.pdf
This document discusses the value of information in supply chain management. It describes how sharing information, such as inventory levels and orders, across the supply chain can help reduce variability, improve forecasts, and enable more efficient coordination. It specifically examines the "bullwhip effect," where demand variability increases at each stage of the supply chain due to a lack of information sharing. Centralizing demand information and using incentives for truthful forecasting can help mitigate this effect.
EIS SUPPLY CHAIN MGT.ppt
This document discusses supply chain management. It defines a supply chain as including suppliers, manufacturers, warehouses, distribution centers, and retail outlets, as well as the materials and products that flow between them. It describes how uncertainty increases as you move further up the supply chain away from customers due to lack of information. It also discusses the bullwhip effect, where small fluctuations in retail demand can cause larger fluctuations in orders as you move up the supply chain. The document emphasizes the importance of reducing uncertainty in the supply chain through improved information sharing and collaboration between partners.
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Bullwhip Effect ppt
- 2. The Bullwhip Effect in SCM BY VINODH.M
- 3. What’s covered? • Bullwhip effect definition • Results of the bullwhip effect • Causes of the bullwhip effect • An example
- 4. Bullwhip Effect Definition: • The bullwhip effect is the uncertainty caused from distorted information flowing up and down the supply chain.
- 5. Who is affected? • Nearly all industries are affected! • Firms that experience large variations in demand are at risk. • Firms that depend on suppliers upstream or distributors and retailers downstream may be at risk.
- 6. Results of the bullwhip effect: • Excess inventories • Problems with quality • Increased raw material costs • Overtime expenses • Increased shipping costs • Lost customer service • Lengthened lead time • Lost sales • Unnecessary adjusted capacity
- 7. Causes of the bullwhip effect: • Un-forecasted sales promotions • Sales incentives • Lack of customer confidence • Customers turning back sales orders • Freight incentives
- 8. How to Avoid the Bullwhip Effect: • Share information • Align your supply chain • Implement an everyday-low-price policy • Establish long-term contracts with suppliers • Improve operational efficiency
- 9. Bullwhip effect - an example
- 10. Thanks A lot KEEP SMILING