This document discusses the relationship between corporate strategy and supply chain management. It explains that the corporate strategy should dictate functional strategies, including supply chain strategy. The corporate strategy determines whether the supply chain focuses on cost leadership, product differentiation, or responsiveness. It also discusses how factors like facilities, inventory, transportation, and information help achieve strategic fit between the supply chain and corporate strategy. Dell's supply chain revolution is provided as an example of how operational changes can support a company's competitive advantage.
A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. In the instance of global supply chains, it is extended around the world
Any company that uses parts and services from another factory overseas faces issues with global supply chain management
A global supply chain is made up of the interrelated organizations, resources, and processes that create and deliver products and services to end customers. In the instance of global supply chains, it is extended around the world
Any company that uses parts and services from another factory overseas faces issues with global supply chain management
Explore the innovative world of trenchless pipe repair with our comprehensive guide, "The Benefits and Techniques of Trenchless Pipe Repair." This document delves into the modern methods of repairing underground pipes without the need for extensive excavation, highlighting the numerous advantages and the latest techniques used in the industry.
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Student information management system project report ii.pdfKamal Acharya
Our project explains about the student management. This project mainly explains the various actions related to student details. This project shows some ease in adding, editing and deleting the student details. It also provides a less time consuming process for viewing, adding, editing and deleting the marks of the students.
Cosmetic shop management system project report.pdfKamal Acharya
Buying new cosmetic products is difficult. It can even be scary for those who have sensitive skin and are prone to skin trouble. The information needed to alleviate this problem is on the back of each product, but it's thought to interpret those ingredient lists unless you have a background in chemistry.
Instead of buying and hoping for the best, we can use data science to help us predict which products may be good fits for us. It includes various function programs to do the above mentioned tasks.
Data file handling has been effectively used in the program.
The automated cosmetic shop management system should deal with the automation of general workflow and administration process of the shop. The main processes of the system focus on customer's request where the system is able to search the most appropriate products and deliver it to the customers. It should help the employees to quickly identify the list of cosmetic product that have reached the minimum quantity and also keep a track of expired date for each cosmetic product. It should help the employees to find the rack number in which the product is placed.It is also Faster and more efficient way.
Water scarcity is the lack of fresh water resources to meet the standard water demand. There are two type of water scarcity. One is physical. The other is economic water scarcity.
About
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Technical Specifications
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
Key Features
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface
• Compatible with MAFI CCR system
• Copatiable with IDM8000 CCR
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
Application
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
2. Fit Between Corporate and Functional
Strategies (Chopra & Meindl)
Corporate Competitive Strategy
Supply Chain
or Operations
Strategy
Product
Development
Strategy
Marketing
and Sales
Strategy
Information Technology Strategy
Finance Strategy
Human Resources Strategy
3. Corporate Mission
• The mission of the organization
– defines its purpose, i.e., what it contributes to society
– states the rationale for its existence
– provides boundaries and focus
– defines the concept(s) around which the company can rally
• Functional areas and business processes define their
missions such that they support the overall corporate
mission in a cooperative and synergistic manner.
4. Corporate Mission Examples
• Merck: The mission of Merck is to provide society with superior
products and services-innovations and solutions that improve the
quality of life and satisfy customer needs-to provide employees with
meaningful work and advancement opportunities and investors with a
superior rate of return.
• FedEx: FedEx is committed to our People-Service-Profit philosophy.
We will produce outstanding financial returns by providing totally
reliable, competitively superior, global air-ground transportation of
high-priority goods and documents that require rapid, time-certain
delivery. Equally important, positive control of each package will be
maintained utilizing real time electronic tracking and tracing systems.
A complete record of each shipment and delivery will be presented
with our request for payment. We will be helpful, courteous, and
professional for each other, and the public. We will strive to have a
completely satisfied customer at the end of each transaction.
5. Defining the Corporate Strategy
Differentiation (Quality; Uniqueness;
e.g., Luxury cars, Fashion Industry,
Brand Name Drugs)
Cost Leadership (Price;
e.g., Wal-Mart, Southwest
Airlines, Generic Drugs)
Responsiveness (Reliability; Quickness; Flexibility;
e.g., Dell, Overnight Delivery Services)
Competitive Advantage through which
the company market share is attracted
6. Defining the Corporate Strategy
• Corporate Strategy: The organization’s positioning in terms of
– responsiveness,
– cost leadership and
– product differentiation
requirements, i.e., the sought competitive advantage(s).
• The corporate strategy dictates the detailed strategies for each
functional area (i.e., Operations, Finance, Marketing) but it is also
affected by those areas.
• Collectively, all these strategies seek to exploit (external) opportunities
and (internal) strengths, neutralize (external) threats, and address
(internal) weaknesses
7. Factors affecting Corporate Strategy
• External
– Emerging strengths and weaknesses of competitors => new threats
and opportunities, respectively
– New industry entrants
– Development of substitute products
– Development of new technologies
– Legal developments (e.g., environmental concerns and regulations)
– Economic and political developments (e.g., new international
agreements, political crises)
• Internal
– Company politics and restructuring
– Modified relationships with customers and suppliers
– Product Life Cycle
8. Strategy and Issues during a Product’s Life
(J. Heizer & B. Render, “Operations Management”, Prentice Hall)
Introduction Growth Maturity Decline
Time
Sales
• Best period to
increase market
share
•R&D engineering
critical
• Frequent product
and process
changes
•Short production
runs
•High production
costs
•Limited models
•Attention to
quality
•Practical to
change price or
quality image
•Strengthen
niche
•Forecasting
critical
•Products and
process reliability
•Increase capacity
•Shift towards
product focus
•Enhance
distribution
•Poor time to change
image, price or
quality
•Competitive costs
become critical
•Defend market
position
•Standardization -
minor product
changes
•Optimum capacity
•Process stability
•Long production
runs
•Cost control
critical
•Little product
differentiation
•Overcapacity in
the industry
•Reduce capacity
and eventually
prune line to
eliminate items not
returning good
margin
9. The “zone of strategic fit”
(adapted from Chopra & Meindl)
Implied
Uncertainty
Spectrum
Certain
Demand
Uncertain
Demand
Efficient
Supply Chain
Responsiveness
Spectrum
Responsive
Supply Chain
Implied Demand Uncertainty: The uncertainty that exists due to the portion of
Demand that the supply chain is required to meet.
10. The operations frontier, trade-offs,
and the operational effectiveness
Differentiation
Cost Leadership
Responsiveness
11. Expanding the operations frontier:
Dell’s “revolution” in the PC market
• Dell’s competitive advantage: Provide customized PC
configurations, with short delivery times and affordable
prices.
• Dell’s success in PC market:
12. Supporting Dell’s competitive advantage
through a new operational model
• Focused on strategic partnerships: suppliers down from
200 to 47
• Suppliers maintain nearby ship points; delivery time 15
minutes to 1 hour
• Suppliers own inventory until used in production
• Demand pull throughout value chain – “information for
inventory” substitution
• Demand forecasting is critical – changes are shared
immediately within Dell and with supply base
• Customers frequently steered to “recommended
configurations” with high availability to balance supply
and demand
• External logistics supplier used to manage inbound supply
chain
14. The CSF’s underlying Dell’s
competitive advantage
• Very high product (configurable) variety – mass
customization!
• Direct fulfillment - no intermediaries
• No production launch until customer order booked (pure
pull!)
• Very low finished goods inventory (costs) – high inventory
turns (raw material inventory influenced by “recommended
configurations”)
• High velocity material flows & fulfillment
16. Emerging factors and trends enabling
Dell’s strategy
• The commoditization of the PC industry
– Standardized and interchangeable components
– Emergence of reliable manufacturing service providers
• Recent advances in Supply Chain Management
– Information Technology (IT) platforms that allow the effective and
efficient information exchange and coordination across the entire
supply chain
– 3rd party logistics service providers
– Emerging emphasis on virtual rather than vertical company
integration
17. The primary “drivers” for achieving
strategic fit in Supply Chain Strategy
(adapted from Chopra & Meindl)
Corporate Strategy
Supply Chain Strategy
Efficiency Responsiveness
Facilities Inventory Transportation Information
Market
Segmentation
18. The role of Facilities
• Facilities: The locations where inventory is
– processed and transformed into another state (manufacturing) or
– staged before being shipped to the next stage (warehousing)
• In general, centralization boosts efficiency, while decentralization boosts
responsiveness (but not always…)
• Primary decisions:
– Location
• Proximity to the customer
• Proximity to resources
• Access to markets (ability to circumvent quotas and tariffs)
• Infrastructure
• Operational costs and tax incentives
– Capacity
• Capital cost vs. responsiveness
– Operations Methodology for Manufacturing Facilities
• Product vs. functional focus
• Flexible vs. dedicated capacity
– Warehousing methodology
• SKU-based storage
• Job lot storage
• Cross-docking
19. The role of Inventory
• Primary inventory components:
– Raw Material
– Work In Process (WIP)
– Finished Goods
• It exists because of the finiteness of the production and transportation rates
(Little’s Law: I=TH*T)
• Types of Inventory
– Cycle Inventory: It is incurred in an effort to control the impact of “fixed”
ordering and set-up costs.
– Safety Inventory: It is used to deal with the randomness in the experienced
demand; it is set so that it meets the supply chain to meet some “service level”
(i.e., control the probability that no stock-out will be experienced at any
replenishment cycle).
– Seasonal Inventory: It is used to help the supply chain deal with predictable
variability in demand.
– Opportunistic Inventory: Takes advantage of “bargains”.
• Sourcing: Determine the set of suppliers / subcontractors to be used, and
develop the contracts that will govern the relationship.
20. The role of Transportation
• Transportation: The SC element that moves product between its different
stages.
• Primary decisions:
– Mode(s) of Transportation
• Air: fastest but most expensive
• Truck: Relatively quick, inexpensive and very flexible mode
• Rail: Inexpensive mode to be used for large quantities
• Ship: Slowest but often the most economical choice for large overseas shipments
• Pipeline: Used (primarily) for oil and gas
• Electronic transportation: for goods as music and movies
– Route and Network Selection
– Inhouse or Oursource to some 3PL provider
21. The role of Information
• Information exchange is necessary for the most extensive modes of
coordination sought in contemporary supply chains. It allows the supply chain
to improve simultaneously its efficiency and responsiveness.
• Information-related decisions
– Push vs. pull
– Extent and modes of information sharing and coordination
– Forecasting and Aggregate Planning schemes
– Pricing and revenue management policies
– Enabling Technologies:
• Electronic Data Interchange (EDI): Enables paperless transactions, primarily for
“backend” operations of the SC.
• The Internet and the WWW.
• Enterprise Resource Planning (ERP): enables transactional tracking and global visibility
of information in the SC.
• Supply Chain Management (SCM) software: decision support tools.
22. Current Trends and Challenges in the SCM
• Increasing variety of products
• Decreasing product life cycles
• Increasingly demanding customers
• Fragmentation of Supply Chain Ownership: vertical vs. virtual
integration
• Globalization and Market Segmentation
• “Closed Loop” SC
Production Distribution Consumption Retrieval
Disassembly/
Reprocessing
Disposal
Reverse Logistics and
Re-manufacturing network