• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16

Supply chain management

Extracts from this document...

Introduction

SUPPLY CHAIN MANAGEMENT 1. WHAT IS SUPPLY CHAIN MANAGEMENT? 2. SUPPLY CHAIN MODELS 3. COST AND VALUE vs. AVAILABILITY 4. ASSESSMENTS AND ACCREDITATION 5. QUALITY AND STANDARDS 6. IMPROVING BUYER/ SUPPLIER RELATIONS 7. GOODS TO MARKET 8. IT & ERP in SCM 9. CASE STUDY 1. WHAT IS SUPPLY CHAIN MANAGEMENT? The supply chain includes all of the organizations involved in the design, manufacture and distribution of goods to the ultimate consumer. Supply Chain Management [SCM] is a strategic (and operational) process, which directs the materials flow through the supply chain to the end user, appropriately adding value at each stage. It is, therefore, also referred to as the value chain or the demand chain. It is a powerful tool in reducing wastage and ensuring that goods arrive in the right place at the right time, with minimal cost and appropriate levels of service. In effective supply chains, all partners within the chain share the objectives and benefits. Openness and trust develop, in turn stimulating innovation and a culture of continuous improvement. Supply Chain Management includes: ?* ?Logistics ?*? Purchasing and supply ?* ?Materials management ?*? Supplier network development ?*? Communication and ?*? Manufacturing ?*? Production planning ?*? Marketing ?*? Design ?*? Facilities and resource management Supply chain management helps to: *? ?Reduce stock outs *? ?Reduce inventory levels *? ?Increase stock turn *? ?Increase sales at full margin *? ?Improve service levels *? ?Increase Return on Investment *? ?Improve flexibility All of these elements help to achieve customer satisfaction 2. SUPPLY CHAIN MODELS Every supply chain has different characteristics, but there are some models that have been identified and mapped. In reality, many companies employ a variety of different supply routes, dependent on the product and varying market demands. The following supply chain descriptions are not, therefore, mutually exclusive. DIRECT MANUFACTURE In some cases, retailers develop close relationships with a few, major suppliers which undertake most processes of product development, production, quality control and distribution. ...read more.

Middle

This is a process known as Kaizen. The principles of Kaizen include: Worker participation - everyone is involved in the process and strives to raise the standard; Small steps forward- change is almost imperceptible, but the monitoring the benefits should show a continuous improvement; Teamwork - is an essential element of problem solving, although improvements can happen at individual and company level too, and processes that are running smoothly can still be improved; Flexibility - supervision, payment systems, organizational structure and company culture must all be flexible enough to encourage worker participation. Improvements - Kaizen improves motivation and intangible rewards, improves quality, lowers costs, improves safety and reduces lead-times. Involves all - Kaizen must be prepared for at all levels, and all should be involved: - Directors incorporate Kaizen into strategy and give authority to employees; - Managers provide environment and resources needed; - Supervisors motivate workforce, lead and train workforce and ensure implementation - Workers volunteer ideas for individual and team activities. 7. GOODS TO MARKET The process of getting goods to the market place, complete and on time has become increasingly important, as retailers have reduced their stock-holding capacity. This strategy, while reducing costs, can lead to out of stock situations if failure to deliver occurs. The following activities are key to ensuring that goods reach their final distribution channels. INVENTORY MANAGEMENT An increasing number of companies manage inventory using IT systems. Some retailers have reduced inventory to virtually nil, other than goods on the shop floor. Other end-users, notably the automotive industry, demand goods to be delivered on a Just-in-Time basis Manufacturers in turn are under pressure to reduce inventory of components, work in progress, and finished goods although this is not always easy if there is the possibility of supply failure, or inflexibility to purchase small volumes of materials as the range of components required increases. LOGISTICS It is defined as the process of planning, implementation and controlling the efficient, cost effective flow and storage of materials, in process inventory, ...read more.

Conclusion

Subcontractors in Italy undertake most garment assembly, but overseas suppliers do produce under license to supply their respective local markets, overcoming distribution costs and trade barriers. Benetton's supply chain is regarded as a truly innovative good practice example, largely because of its flexible network of suppliers. However, in the early 1990's in response to growing competitive pressure on the company, Benetton built 2 new state of the art factories, in Northern Italy, to gain greater control over the production process of sewn products. The company had already invested in rapid response knitting plant and a sophisticated distribution center. Retailers order from the company's collections twice yearly, re-ordering regularly as sales progress. Stock requests are routed to a central computer at the Group headquarters in Ponzano, Italy. It centralizes data, and (for sewn products) instructs the state of the art cutting plant (located a few miles down the road) how many of each component (by color and size) to cut. While the computer drafts pattern pieces and lay plans, cloth for the garments is laid out. Virtually untouched by human hands, the cloth is cut by a machine controlled by the central computer. Each cut piece is assigned to a specific shop and packed in boxes ready for assembly. Cut pieces are collected by subcontractors, and taken to other parts of the region for sewing and finishing. Similarly, knitted garments are made-up in greige yarn and, upon receipt of sales data and orders, dyed and finished in response to demand. Finished products are returned a few days later to the Benetton factory for sorting. The sortation system moves goods automatically along a rail, until they reach a collection point for each particular shop. Once the shop's order is complete goods are packed and dispatched. Each box is bar-coded and moved by conveyor to the distribution center. Here a laser bar-code reader identifies boxes according to their destination store. All boxes for each store are collected together by a system of automated handling equipment and shipped by rail. Within days the goods are on sale. Only the sewing process remains labor intensive. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Case Analysis Report "Barilla SpA (A)" - Supply Chain Management

    * Uncertainty of demand experienced by the CDC. The underlying causes of these problems are: * No Centralized Information: Across the chain, there is no information sharing between various channel partners. * Demand forecasting: Each stage forecast its own demand based on orders received leading to Demand Uncertainty.

  2. Business Aims and Objectives.

    Also as the store would be crowded it will be very easy for someone to steal something from the store, therefore Tesco have a lot of CCTV cameras around to store. Also if the store is under attack from a robber, there must be a panic buttons under the desks.

  1. Evaluate the efficiency of Tesco's stock control methods.

    Therefore it is vital that Tesco is efficient and that they are able to do everything that they promise. Tesco are able to monitor which items are the most popular by new innovations such as clubcard, (apx 1). These are able to monitor which items are more popular and with which sectors of the market.

  2. The process of electroplating and how it is used to protect products.

    of the electroplated circuit. This is the main element that is used in the zinc plating when it is attracted to the raw component due to the raw component being negatively charged in the electroplating circuit. Zinc is extremely resistant to corrosion and rust.

  1. The purpose of this document is to define the Context of Cain Motors Information ...

    Supporting Documentation: Signature: Date: Review Date: _______________________ ___/___/____ PLEASE FORWARD TO THE PROJECT MANAGER FOR PROJECT REVIEW GROUP SUBMISSION Risk Form Risk ID: 2 Business Area: Project Raised By: Mr Shirley Project Name: Cain Motors Date Raised: 11/02/03 Project Manager: Mr Shirley Risk Description of Resources/Outcomes: Annual Leave entitlement of

  2. Sainsburys The purpose of this report is to find out the faults in the ...

    pruning a network of 25 distribution centres to just nine facilities in eight regions around the UK. Another part of the plan was to build four giant warehouses, two of them fully automated, for �400 million each." (http://www.supplymanagement.com/archiveitem.asp?id=8784, 4/4/2005) Sainsbury did it in three years, to catch up with, in some cases, and some cases overtake its rivals.

  1. Budgeting and management planning and control.

    Therefore it is necessary that while budgeting the concerned managers are fully aware of what would be the long-term objectives and how the forthcoming budget tenure is intended to work towards them. They also need to be well informed about commercial and economic environment in which they will work. 3.

  2. In this coursework I need to produce a detailed business report on one medium-sized ...

    * developing performance management processes and tools which will improve performance and encourage motivation in staff * providing advice and if necessary challenging organisational design, thereby ensuring a maximum return on corporate reward spend and creating organisational structures which will deliver business goals.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work