SCM Measurement

SCM Measurement Introduction to SCM Measurement Measuring the performance in the supply chain management, control is no longer based on ownership only, but it also focuses on networking across interfaces, such that the measurement system may reflect a system of measuring the non-measurable. It is important that the activities not under the direct control of an individual company needs to be measured and controlled (by the manufacturer and its supply chain partners), thereby making the…

Drivers and Obstacles in Supply Chain Management

Let us now learn more about drivers and obstacles in supply chain management Facilities, inventory, transportation and information are the four major drivers of the supply chain. The performance of any supply chain can be measured on the basis of the drivers that run it. Role played by major drivers in achieving a strategic fit We know that in order to achieve a strategic fit, a company needs to balance its efficiency with responsiveness in…

E-Business and Supply Chain Management

Introduction to E-Supply Chain Management Let us now begin to understand the concept and functionality of E-Supply Chain Management. The process of putting the demand and supply planning and execution information into a collaborative mode through the internet helps the employees to communicate with customers, suppliers and other business functions swiftly and also helps to execute ordering, promising and processing and other manufacturing activities more quickly at lesser cost. Now for an E-Supply Chain Management…

Role of IT in Supply Chain

Role of IT in Supply Chain One of the major role of IT in SCM used behind improved information flow was the emergence of electronic data interchange (EDI). EDI offers greatly improved information flows and is considered as an extremely important element within leading organizations in the fight to decrease lead-times. The key enrichment mechanism is an electronic point of sales link (EPOS). Therefore rather than each player traditionally making an order decision based purely…

Outsourcing and Supply Chain Management

Introduction to Outsourcing in general we can define outsourcing as contracting out of a company’s non-core, non-revenue-producing activities to domain experts. Outsourcing is different from contracting where outsourcing is considered as a strategic management tool that involves the restructuring of an organization around what it does best—its core competencies. Outsourcing is primarily viewed at two levels – Outsourcing of Products Outsourcing of Process As earlier outsourcing is no longer considered as a tactical option that…

Postponement and CRM in SCM

Postponement and CRM in SCM Postponement and CRM in SCM The primary objective here is to understand the concept of postponement and its applicability to supply chain management. In the process of defining the concept of postponement, we shall also consider the concept that works best under Specific demand, product, and production preconditions. Further we will be illustrating the impact of postponement on company strategy, capabilities, processes, resources and infrastructure. What is Postponement? Postponement is…

Designing Supply Chain Distribution Network

Factors affecting the Distribution Network Design Two major factors that deeply affect the distribution network design of any supply chain are – Meeting customer’s timely needs Costs involved in meeting the customer’s needs Meeting the customer’s demands on time affect the revenues of the company at large, which along with the costs together affect the overall profitability of the network and the company as a whole. There are various components that affect both customer service…

Outbound Supply Chain Management

Material Handling in Supply Chain Management Material Handling in Supply Chain Management is the main activity of every manufacturing organisation. It is approximated that nearly 15 to 25% of the cost of the product is attributable to material handling activities and as such it warrants consideration in every branch of manufacturing operation i.e. setting up the factory, planning the facilities, selecting the manufacturing methods, mechanisation, purchasing, receiving and storage, inspection, warehousing and distribution of the…

Inbound Supply Chain Management

Role of Inbound Supply Chain Management Inbound Supply Chain Management can be defined as the process by which companies acquire raw materia!, parts, components, different products and services from various suppliers in order to carry out their operations. Such a process is also called as procurement. Supplier scoring and assessment means rating the supplier’s performance. Supplier contract need to be formulated and negotiated with the suppliers. Here it is important to keep in mind that…

Role of Transportation and Logistics

Role of Transportation and Logistics Transportation and Logistics Transportation means movement of products from the beginning of the supply chain to the customer. Transportation plays a significant role in any supply chain because products are rarely produced and consumed at the same location. An object produced at one point has very little value to the prospective customer unless it is moved to the consumption point. The success of any supply chain is closely linked to…