Characteristic of Effective Supply Chain Management

Topics: Supply chain management, Supply chain, Management Pages: 10 (3169 words) Published: May 3, 2011
TITLE: CHARACTERISTICS OF EFFECTIVE SUPPLY CHAIN MANAGEMENT

Table of Content

Executive Summary1

Introduction2

Effective Distribution Networks 4

Effective Network Design 5

Effective Global Supply Chain Networks 5

Planned Demand and Supply 7

Managed Uncertainty (Safety Inventories)7

Optimal Product Availability 7

Designed and Planned Transportation network (Logistics Management)7 Managed Cross-Functional Drivers 8
Managed Prices and Revenue streams 8

Information Management in a Supply Chain 8
Supply Chains must be Coordinated Throughout 9 Conclusion 9

References10

Executive Summary

The supply chain includes all parties involved in fulfilling a customer’s request. It can involve manufacturing, supplier, transportation, warehouses, distributors, retailers and customers. Today the importance of the supply chain is cutting costs and customer satisfaction. Supply chain profitability is the total profit to be shared across all supply chain stage and intermediaries. Having an effective supply chain will reduce costs in all stages and satisfy the customer with what they want when they want it. We have listed the characteristics of what it takes to have an effective supply chain. In this paper you will learn that the important factors influencing the success of the supply chain. Starting with having an effective distribution and network design, because having poor designs can hurt customer satisfaction and increase costs hurting the profitability of the company. What it takes to have an effective global supply chain if this route is chosen. You will learn the importance of forecasting and managing uncertainty along with having optimal product availability. Designing and planning a transportation network for an effective supply chain. Managing cross-functional drivers, prices and revenue streams is viable to having an effective supply chain as well as information management. Overall having an effective supply chain means that all areas of the supply chains must be coordinated.

Introduction
Some years ago it could take several months for a retail store such as JC Penny’s to place an order and receive apparel. They would have to hope that the clothing would still be in style by the time it reached the store and in several instances the clothing would not sell. There became a huge need to improve the process of ordering product and getting it to the customer while it’s still in demand. This is where the importance of the effectiveness of supply chain comes in. The supply chain included all parties involved in fulfilling a customer’s request. It can involve manufacturing, supplier, transportation, warehouses, distributors, retailers and customers. Retail giants such as Wal-Mart has but nearly perfected its supply chain, where once it would take weeks now only takes 3 days to restock its shelves, not from the warehouse but from the manufacturer. Wal-Mart does this by sharing information throughout the supply chain network and coordinating with suppliers. Today the importance of the supply chain is cutting costs and customer satisfaction. Supply chain profitability is the total profit to be shared across all supply chain stage and intermediaries. Having an effective supply chain will reduce costs in all stages and satisfy the customer with what they want when they want it. 1) Effective Distribution Network

Distribution is one of the key drivers in the overall profitability of a firm because it affects both the supply chain cost and the customer experience directly. This includes all the steps taken to move and store a product from the supplier stage to a customer stage in the supply chain. Having the right distribution network can...

References: ➢ Stevenson, Operations Management 10th Edition
➢ Chopra,Meindl.Supply Chain Management 4th Edition
➢ The impact of information technology on supply chain capabilities, Barney et al, 2005.
➢ Add Value to your Supply Chain, Birkhead and Schirmer, 1999
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