In an effort to gain competitive advantage, firms must make key decision involving logistics and operations management to move products and service across the supply chain.
In many ways, the supply chain can either The supply chain concept essay or break a business. It is therefore important to maintain a healthy supply chain in order to finally result in satisfied customers and a good bottom line for the company.
The supply chain implies all the entities involved in the process ranging from raw material extraction to the final product bought by the customer.
Some theorists go as far as including the "supplier of the supplier" and the "customer of the customer. Constraints on the supply chain may entail problems such as effective communication, transport breakdowns, and other manufacturing or delivery problems. Rapid increases in the cost of products throughout the supply chain can also act as a constraint.
To handle such difficulties, advanced planning and scheduling APS and enterprise resource planning ERP companies are often part of the supply chain. These companies provide technology by means of which the supply chain can be optimized by anticipating both predictable and unpredictable constraints.
Such technology is important during the optimization process. Lean manufacturing is another element of the supply chain that has enjoyed great attention since being highlighted by Eli Goldratt. According to Goldratt, manufacturing that ensured a surplus of inventory created an inefficient and lengthy manufacturing process.
Lean thinking optimizes the supply chain by determining the customer's demands and providing goods and services accordingly. This makes for a much speedier process throughout the supply chain.
Fewer goods are being extracted, manufactured, and delivered, which means less time and money involved in eventually providing it to the customer. In this way, the Goldratt system provides companies with the means to not only optimize their supply chains, but also to save a large amount of capital in the process.
This type of Supply Chain Management is however not without its challenges, as it requires absolute trust and open communication among the elements of the supply chain. At the beginning of the supply chain, the raw materials may for example include products such as timber, cotton, polyester, as well as metals such as steel, iron and aluminum.
These products are then delivered to companies that manufacture parts such as springs, hinges, mattress covers, and stuffing.
The next step in the supply chain is to manufacture the products to be sold, including mattresses, bed frames, closets, and other bedroom furniture. The finished products are then delivered to the furniture company, which sells them to the public.
Supply chain management entails attention to constraints, and how these could be mitigated in order to optimize the supply chain. This requires a multi-faceted approach in terms of both logistics and business relationships.
Technology plays a key role in optimizing these. Logistics The first important step is for the company to define its perspective in terms of the supply chain. According to Pye Taitthree perspectives are entailed in the supply chain: The individual company's perspective; the perspective in relation to a product or item; and the supply chain as entailing the functions of purchasing, distribution and materials management.
These are all important perspectives when optimizing the supply chain process. One of the greatest logistics challenges for the furniture industry is delivery times. Transport problems could cause significant delays in final delivery, which impacts upon customer satisfaction levels.
Competition within the furniture market is a constraint that does not allow delays in delivery time. Goldratt's lean manufacturing principles provides several ways in which this constraint can be handled. Lean manufacturing provides quicker delivery times by focusing each manufacturing project upon customer demand.
This strategy eliminates the problem of surplus products that will later have to be sold at a reduced price, meaning less revenue for the company.
If all manufacturing companies across the furniture supply chain engage in lean manufacturing, this will mean less manpower and less manufacturing time, both of which save time and money. Products can then be provided to customers in much less time as well as a reduced price. The specific demands of customers are met, meaning more business for the company.
These allow the company to quantify their needs in terms of customer demand, and to set up the rest of the supply chain accordingly. When a sales order is received, ERP software converts it to a work order.
This creates a seamless environment for sales and manufacturing. Once again, this software creates a time saving environment for functions that would otherwise have taken a large amount of time, effort and money.
APS software provides a platform to use for effective decision-making.Supply Chain Concept Introduction In today's competitive business environment many firms face the arduous mission of managing their supply chain.
In an effort to gain competitive advantage, firms must make key decision involving logistics and operations management to move products and service across the supply chain. Custom Supply Chain Management Concept Essay Supply chain management refers to the process of systematically coordinating, controlling and planning various business activities relating to the supply chains of the business, with the aim of achieving improved business performances in distribution and supply of its products, across different borders.
Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers.
Supply Chain Management spans all movement and storage of . Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers.
Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of .
The concept of the Supply Chain The interaction between suppliers, manufacturers, distributors and consumers is important to understanding the supply chain concept. Schneider (, p. ) defines the supply chain as "the part of an industry value chain that .
The concept of the Supply Chain The interaction between suppliers, manufacturers, distributors and consumers is important to understanding the supply chain concept. Schneider (, p. ) defines the supply chain as "the part of an industry value chain that precedes a particular strategic business unit.