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Technology in medicine
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NIH (National Institutes of Health) Supply Chain Center:
The NIH Supply Center is comprised of both self-service stores at local campus in Bethesda, MD, and a 150,000-sq. ft. warehouse facility. The Supply Center Warehouse offers a large quantity of office supplies for administrative needs, medical and lab supplies for providing care and scientific research.
NIH Supply Chain Management Functions
Research is the entire focus of NIH, without the proper supplies and chemicals necessary to do scientific research, their focus to improve medicine, technology and health would not exist. NIH Supply Center is providing a service not only to their customers, the institutions and centers within the NIH, but also to patients and customers who rely on
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Focusing on decreasing costs for institutions and centers to order items through third party vendors, limiting purchase card transactions that would cost more to be done through partner organizations individually. Their SCM design is functional in a way because many of their products have sustained demand, or predictable demand. On the other hand, they also have an innovative supply chain due to the science and research side of the house which forces them to face unpredictability in demand, and inefficient supply chain and unhappy customers. As technology, medicine, and science continue to change, so does the demand for items, making other items obsolete. The NIH supply warehouse either faces items that are in stock-out for extended periods of time or have a large amount of excess inventory. NIH Supply center must find a medium where their “functional products have an efficient business process, and their innovative items have a responsive business process; addressing and meeting both uncertainty and certainties in demand” (Fisher, …show more content…
Although there are intrinsic and extrinsic risks that any organization faces. The supply center should begin focusing on the intrinsic factors to improve the SC within their organization because they are a unique organization regarding logistical efforts and the customers they serve. Improving collaboration depends greatly on providing incentives to employees for collaboration efforts, information sharing through both data and information technologies, and fostering business relationships in each
This allows them to purchase high volume for a lower cost. Bringing over 20,000 products into one convenient location and with over 450 brands they provide a large selection.
Supply chain innovations should ensure on-shelf availability at retail outlets, improving collaboration between vendors and retailers, translating supply chain costs to product pricing, lean inventory and real time replenishment. Wal-Mart should ensure that process differentiation to determine the right method of moving products with varying demand characteristics (Akehurst, C., & Alexander, N. (1995)
Understanding the changes in the market and the growth of e-commerce prompted the organization to invest heavily in its supply chain management forecasting and management system. The development of a network of distribution centers and Direct Fulfillment Centers to position the company to capitalize on the growing e-commerce market indicate a strong understanding of the need to adapt to changing market forces. The company spent over $300 million on new distribution center facilities in 2014 alone, and continues to expand to maintain efficiency in product movement (Cassidy,
WISNER, J.D., TAN, K. and LEONG, G.K., 2009. Principles of supply chain management : a balanced approach / Joel D. Wisner, Keah-Choon Tan, G. Keong Leong. Mason, OH : South-Western Cengage Learning, 2009; 2nd ed. pp 111-113,262
Quickly becoming apparent after only a few rounds of play was in the absence of coordinating direction the individual supply chain links immediately focused upon acting in their own best interests much more so than the organization as a whole. Whether the end use customer was satisfied became secondary to avoiding stock outages for the next link in the chain, or their specific “upstream customer”. The real world application of this example is that focus on the end use customer must be consistent and maintained throughout the process up to and including delivery. Undoubtedly internal customers, such as retailers to wholesalers and distributors to production, must be serviced along the way for the transaction to ultimately occur. However, unless an end use customer is involved no profit can be realized by anyone.
The Three companies: Discount School Supply(DSS), Sherwin-Williams and First American Corporation(FAC) sought competitive advantages by utilizing CRM systems. Firstly, DSS focused on guaranteeing the sales procedure is proficiently managed. Secondly, Sherwin-Williams improved their supply chain by embarking on a CRM project. Lastly, FAC realized growth by utilizing CRM strategies in making organizational transformations. Case 1: Discount School Supply(DSS), formerly known as SmarterKids.com, retails educational toys assisting parents in fostering educational goals for their children.
Other components are produced and delivered from numerous suppliers. It reduces its waiting period to the minimum and improves production efficiency.
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.
The difference between a product being a success or a failure can come down to how quickly a team can communicate and correct problems. There are strategies that can centralize a lot of supply chain decisions to maximize efficiency and minimize problems as well as down time. According to kinaxis the strategy that is taking over the industry is called supply chain control towers. What these actually do is combine technology, people, and a centralizing process to achieve a more reactive supply chain. When a problem comes apparent, a supply chain control tower will fast track the solution. The supply chain control tower will be able to use all of its assets and delegate the information to relevant personnel extremely quickly. If a company doesn’t use a supply chain control tower, the information will get out at a snail pace if it even gets there. Without a supply chain control tower, no one really knows all of the elements that are affected by a problem. Only a central supply chain control tower will know how to connect the moving parts and fast track the correction
Kersten, W., & Bemeleit, B. (2006). Managing risks in supply chains: How to build reliable collaboration in logistics. Berlin: Erich Schmidt.
A major part of hospital decision makers believes their hospital supply chain is functioning at maximum efficiency. But, many of these hospitals are not implementing the appropriate supply chain management strategies, even as budgets get gobbled up and mergers and acquisitions
Each office has their own supply management function that increases Group’s purchasing, manufacturing, packaging and delivering costs. Scotts Europe has hundreds of suppliers, numerous uncoordinated contacts, even several contacts with the same supplier, but with the different pricing.
Transportation Central equipment stores rather than ward based stores for commonly used items. Overprocessing: Asking patients for the same information several times. Inventory Waiting Lists -. Excess stock in stockrooms.
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
Many manufacturing and distribution companies now consider Supply Chain Management (SCM) as a vital strategic discipline for corporate survival and competitive advantage. SCM has gained importance as companies have realized that their capacity to reinvent competitive advantage depends less on their own internal capabilities and more on their ability to develop a network of business partners, in search of resources to assemble the right blend of competencies which help achieve their business objectives