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Supply Chain Management and Continuous Improvement
In today world, supply chain management plays important role in businesses. In order to create efficient supply chain, right approach is essential. This essay will explain about Lean synchronization one of the most popular supply chain philosophy, role of talent and technology, and four principles to success in continuous improvement.
There are many ways to improve supply chain in the competitive environment. Lean synchronization is considered one of the best techniques. In this essay, I will focus on lean philosophy. Lean philosophy target are producing perfect quality of products and reducing waste. The most important part of lean philosophy is focus on eliminate all of the waste. Waste can
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(Slack. et al, 2013) The roles of technology and talents are involved with continuous improvement. For the technology role, “If you think expensive technology changes are the gatekeepers for continuous improvement, think again”(Keller, 2011). Continuous improvement focuses mainly on quality, cost, delivery, and services in business processes. After that identify and improve the processes that contribute these factors. There is no doubt that generally technology cause the occurrence of continuous improvement; however, the company can improve these processes without absolute needed of technology. The company could improve the business processes with continuous improvement tools and techniques. Technology role is essential in the processes such as production, design, and information system (Keller, 2011). On the other hand, talent appears to be more essential than technology. Gonsalvez (2014) claims that although technology and talent are the key factors in the quest of continuous improvement, technologies grow in the faster pace than companies able to adapted and perceived those new technologies. The knowledge of supply chain from talent emerges to be more important. Talent is needed to coordinate technology and knowledge along with effectively operates this combination in the company (Gonsalvez, 2014). To be talent in supply chain management is required more than supply chain knowledge “ modern-day supply chain management is about much more than coordinating the physical movement of goods from one point to another. It encompasses procurement expertise, supplier management, knowledge of international trade trends and regulations, information-technology prowess and customer-relationship management, to name but a few key aspects of the discipline ” (Bowman, 2013). Also there are demanding skill that needed to be in supply chain management role. Supply chain management is not just math. This
Every business has an evolutionary clock speed measuring the rate of change in products, processes and capability. At the core of everything is the organizations ability to design a sustainable supply chain. When this becomes an organizations core competency, they are then positioned to continually win the temporary advantage. By simultaneously working to improve products, process design/creation and supply chains (three dimensional concurrent engineering), a company can drive the “turn of the helix” thus changing the clock speed for the industry.
In the decade of 1980’s three major changes in supply chain management occurs. First, manufacturers focused on lower operating cost from reengineering cost structures. Second, they improve the customer service rather than costs reduction. Third, to improve the internal integration of logistics within the companies.
KAIZEN APPROACH TO SUPPLY CHAIN MANAGEMENT: FIRS STEP FOR TRANSFORMING SUPPLY CHAIN INTO LEAN SUPPLY CHAIN.
In all, supply chain operation management has helped many global companies in handling and distributing their products as it is a one-stop solution provider from one warehouse direct to end user. By building trust among the trading partners with effective communications would improve performance metrics both the company and the solutions provider.
For years now, the preference of mainstream supply chain management by major manufacturers, as well as distributors, has been driven by various factors. Today, best companies globally are increasingly discovering a great new source of their competitive advantage. This is called mainstream supply-chain management that encompasses majorly integrated activities as well as bringing product to market and creating satisfied customers. For example, today as customer-lead demand-planning moves deeper and deeper into the marketplace, all level of organization bot are experiencing a growing demand for mainstream Supply Chain Management. Many managers are increasingly finding themselves allotted the role of the rope in a rather real tug of war. This is to say they are pulled one way by their customers’ mounting demands now and then and in the opposite by the organizational goal for profitability and growth (Simchi-Levi et al., 2004). Nevertheless, mainstream supply chain management by major companies have been seen to possess both strengths and weakness. This is about operation of such a system and the expected return to the company in comparison to other traditional systems. This paper provides a critical
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Lack of coordination in a supply chain is costly and highly disruptive. The readings this week described several factors that can lead to supply chain problems. Most of the problems occur when there is ineffective communication between the different stages of a supply chain. Within a supply chain each stage may have a different owner and different performance indicators or measures. If each stage if focused on its own local objectives this may conflict with the overall success of the supply chain and of the other stages. In many cases, information passed from one stage to the next is delayed, incomplete, misleading or inaccurate. This makes coordination a challenge.
Today’s organizations are faced with increasing levels of global competition, customer’s demanding value for their money and high stakeholders expectations on investment returns. Gattorna (2003), notes that firms are now pursuing supply chain management as a strategy to competitive advantage. Firms in a supply chain relate, transact, and partner on different levels; from product design and development to product delivery. Through supply chain management a firm pursues value creation through timely product delivery, cost management, inventory control and customer service (Beamon, 1999).They do so individually or through synergies formed with other organizations to increase customer service
"A lot of companies think of supply chain as a cost centre. They don’t always see it as helping to funnel top-line growth." Supply chain touches practically every part of operations inside an organization: from determining client interest, to sourcing crude materials, to assembling, distribution and returns Supply chain is to adjust supply and request, for example the demand for goods and services. You need to get the right quantity and quality of goods and services
By implementing smarter supply chains which is used in creating good relationship among the suppliers, using the best of the technology to increase visibility , enhances the agility by the use of lean technologies and can be used to proper decision making will enable the Indian automotive Industry to gain competitive advantage over
This report has clearly in detail described the meaning, benefits as well as the need and challenges of the RFID in the supply chain system. While RFID comes with a larger magnitude of benefits than the bar code, it’s an expensive medium and comes at a price that may be prohibitive to many businesses. On the one hand, RFID is advantageous in different areas of the supply chain and does not require line-of-sight scanning; it helps in labor reduction, enhances visibility of products and processes , and helps in inventory management. On the other hand, RFID is an expensive solution, lacking benchmarks or standards, suffers from some adverse deployment issues, and suffers from major privacy concerns. However with the ultimate aim to see the establishment of item-level tracking which should act to revolutionize SCM practices, RFID is here to stay.
Supply chain training plays a great role for company’s strategic development. The training has a great impact to make a business successful and profitable. That is the reason; now most of the companies are willing to implement the training within the organization.
The key performance drivers of Supply Chain Management (SCM) are - facility effectiveness, inventory effectiveness, transportation effectiveness, information effectiveness, sourcing effectiveness, pricing effectiveness, delivery effectiveness, quality effectiveness and service effectiveness. These drivers include various performance markers that may be measured quantitatively by gathering information and applying them in SPSS. The works here may principally be quantitative with spellbinding measurable investigation. In the current world, practical supply chain management to help the triple primary concern, (nature, domain, and economy) is likewise included in the extent of supply chain performance drivers. This is relatively a quite new research region.
The author has portrayed his view to attain the objective of lean tools and techniques by eliminating the increase of time and cost, the lean thinking on manufacturing shortens the time of the customer’s order and the shipment duration. The five-major principle of lean are as follows:
In the first week we discussed supply chain maturity, supply chain strategy and the ten traits of the best supply chains as which are presented in the textbook, Diagnosing greatness: Ten traits of the best supply