Building A Flexible Supply Chain For Uncertain Times Pdf

What Is the Right Supply Chain for Your Product The Idea in Brief Are you frequently saddled with excess inventoryDid Consumers Want Less Debt Consumer Credit Demand Versus Supply in the Wake of the 20082009 Financial Crisis. Reint Gropp John Krainer Elizabeth Laderman. Welcome Doing business and investing in China 1 In my discussions with global CEOs around the region, I find our conversations inevitably returning to one prevailing. Lean projects begin with team members drawn from throughout the supply chain spending several days describing the current state of each SKUs entire path, from. Building A Shed Under Deck Stairs Wren Birdhouse Plans Building A Shed Under Deck Stairs Plans On Building A Workbench Nicholson Workbench Plans Pdf. Risk is the potential of gaining or losing something of value. Values such as physical health, social status, emotional wellbeing, or financial wealth can be. This research investigates the influences of supply chain resilience strategies on supply chain ambidexterity as a dynamic capability. The ability to excel. Careers, Education Careers, Industry Associations, Education, Supply Chain Management. Recruiting Supply Chain Talent. New technologies, consumer demands, and the. Do you suffer product shortages that have customers leaving stores in a huff Do these supply chain headaches persist despite your investments in technologies such as automated warehousing and rapid logisticsIf so, you may be using the wrong supply chain for the type of product you sell. Suppose your offering is functionalit satisfies basic, unchanging needs and has a long life cycle, low margins, and stable demand. Think paper towels or light bulbs. In this case, you need an efficient supply chainwhich minimizes production, transportation, and storage costs. Australian Association Of Natural Resource Management. Authors Program Australian Barley Technical Symposium. Authors Allelopathy. Allelopathy. Invited. Ecology. But what if your product is innovativeit has great variety, a short life cycle, high profit margins, and volatile demand A line of laptops with a range of novel features is one example. For this offering, you require a responsive supply chain. Fast and flexible, it helps you manage uncertainty through strategies such as cutting lead times and establishing inventory or excess capacity buffers. Design the right supply chain for your product, and your profits soar. For example, by building responsiveness into its chain, innovative skiwear company Sport Obermeyer reduced its over and underproduction costs by halfboosting profits 6. The Idea in Practice Once youve determined whether your product is functional or innovative, follow these steps to match your supply chain to your product Decide whether your current supply chain is efficient or responsive. Your chain is efficient if you satisfy predictable demand efficiently at the lowest possible cost, turn over inventory frequently, and select suppliers based on cost and quality. The first step in devising an effective supplychain strategy is therefore to consider the nature of the demand for the products ones company supplies. Lean manufacturing or lean production, often simply lean, is a systematic method for waste minimization Muda within a manufacturing system without sacrificing. Its responsive if you invest aggressively in reducing lead time for delivery use standard components for different product versions and choose suppliers for their speed, flexibility, and quality. Correct mismatches between your supply chain and product. Supercopier 22 Beta .Exe. If youre using an efficient supply chain to sell innovative products, or a responsive supply chain to sell functional products, youve got a mismatch. You can correct it through several means Change your product. RuXme/x360--FO.jpg' alt='Building A Flexible Supply Chain For Uncertain Times Pdf' title='Building A Flexible Supply Chain For Uncertain Times Pdf' />Procter Gamble had innovative products extensive variety, frequent introductions of new offerings, and low profit margins but an unresponsive supply chain. It began making many innovative product lines functional by reducing the number of product variations and simplifying pricing. Change your supply chain. Make your chain more efficient for functional products, or more responsive for innovative products. Example Campbell Soup made its supply chain more efficient to match its functional products. The company used electronic data interchange to coordinate closely with retailers. Every morning, retailers electronically informed Campbell of their demand for its products and inventory levels in their distribution centers. Using that information, Campbell forecasted future demand and determined which products needed replenishment. Trucks delivered the required new stock that day. The program cut participating retailers inventories from four to two weeks of supplyrepresenting significant cost savings. With retailers motivated to carry Campbells products and give them shelf space, Campbells sales doubled. Example Sport Obermeyer made its supply chain more responsive to match its innovative skiwear productsof which 9. The company managed uncertainty by soliciting early orders from important customersslashing demand forecast errors from 2. It also shortened lead time by expediting design information to production centers. This approach resulted in more than 9. Sport Obermeyers retailers. Never has so much technology and brainpower been applied to improving supply chain performance. Point of sale scanners allow companies to capture the customers voice. Electronic data interchange lets all stages of the supply chain hear that voice and react to it by using flexible manufacturing, automated warehousing, and rapid logistics. And new concepts such as quick response, efficient consumer response, accurate response, mass customization, lean manufacturing, and agile manufacturing offer models for applying the new technology to improve performance. Nonetheless, the performance of many supply chains has never been worse. In some cases, costs have risen to unprecedented levels because of adversarial relations between supply chain partners as well as dysfunctional industry practices such as an overreliance on price promotions. One recent study of the U. S. food industry estimated that poor coordination among supply chain partners was wasting 3. Supply chains in many other industries suffer from an excess of some products and a shortage of others owing to an inability to predict demand. One department store chain that regularly had to resort to markdowns to clear unwanted merchandise found in exit interviews that one quarter of its customers had left its stores empty handed because the specific items they had wanted to buy were out of stock. Why havent the new ideas and technologies led to improved performance Because managers lack a framework for deciding which ones are best for their particular companys situation. From my ten years of research and consulting on supply chain issues in industries as diverse as food, fashion apparel, and automobiles, I have been able to devise such a framework. It helps managers understand the nature of the demand for their products and devise the supply chain that can best satisfy that demand. Before devising a supply chain, consider the nature of the demand for your products. The first step in devising an effective supply chain strategy is therefore to consider the nature of the demand for the products ones company supplies. Many aspects are importantfor example, product life cycle, demand predictability, product variety, and market standards for lead times and service the percentage of demand filled from in stock goods. But I have found that if one classifies products on the basis of their demand patterns, they fall into one of two categories they are either primarily functional or primarily innovative. And each category requires a distinctly different kind of supply chain. The root cause of the problems plaguing many supply chains is a mismatch between the type of product and the type of supply chain. Is Your Product Functional or InnovativeFunctional products include the staples that people buy in a wide range of retail outlets, such as grocery stores and gas stations. Because such products satisfy basic needs, which dont change much over time, they have stable, predictable demand and long life cycles. But their stability invites competition, which often leads to low profit margins. To avoid low margins, many companies introduce innovations in fashion or technology to give customers an additional reason to buy their offerings. Fashion apparel and personal computers are obvious examples, but we also see successful product innovation where we least expect it. For instance, in the traditionally functional category of food, companies such as Ben Jerrys, Mrs. Fields, and Starbucks Coffee Company have tried to gain an edge with designer flavors and innovative concepts. Century Products, a leading manufacturer of childrens car seats, is another company that brought innovation to a functional product. Until the early 1. Century sold its seats as functional items.