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This report is about guiding companies to become successful in managing their supply chain by firstly to set for their company aims and business strategies.

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Introduction

Part A Introduction This report is about guiding companies to become successful in managing their supply chain by firstly to set for their company aims and business strategies. Then, focus on effective ways of streamlining the products or services flow through the supply chain pipelines. There are many issues to be concerned of to smooth the process flow along the supply chain pipelines. A particular industry has been chosen to identify the steps made by companies to improve the synchronisation processes and activities across the supply chain. Some barriers of change have been considered based on the suggested new design of supply chain. By referring to the automotive industry supply chain, late configuration of vehicle build for the 3 day car has been clearly specified. There will be changes that are likely to occur in the future. This report has identified the role that web-base technologies may play to make supply chain more efficient and effective. Company Aims Every company wants to become successful in business and be the best when compare with the competitors. Not surprisingly, many companies would have the similar aim which is to become a World Class Companies. There is no other ways that companies can straight achieving a success without a good plan. Hence, company strategies need to be well produced and achieve accordingly. Business Strategies for The New Supply Chain 1. Focus on the customers 2. Compete with the world class companies 3. Partnership with the World Class Companies 4. Collaboration with all parties along the supply chain 5. Trust between all parties 6. Synchronise the supply chain 7. Response to change Major Problems in the supply chain * Slow in order processing * Early delivery of products to customer * Lack of storage space of mass produced products can cause expensive inventory cost * Customer dissatisfaction * Late delivery of orders produce overhead cost * Orders can delivered on time but quality deteriorates * Customer change orders frequently and this affect the whole supply chain - ...read more.

Middle

For example, Covisint and e-Steel have different ways of describing a purchase orders, this will make it very difficult for a firm to link its production system to orders coming from both. Open architecture IT should also allow a reduction of in-process inventories held as buffers against uncertainties created by inaccurate or out-of-date information. Automating Purchasing Steps The Web's open architecture comes from the ability to automate much of the purchasing process. Expert systems can be created for lower-tier suppliers that can greatly simplify processes such as need identification, vendor selection, receiving, and accounts payable. Some examples come from procurement for MRO (maintenance, repair, and general plant operations). MRO is an area plagued by ad hoc fixes, and suppliers that are infrequently used. So an expert system that would explain how to complete a repair job for a broken piece of equipment in the plant, and an online auction for suppliers to do the work might well save a lot of money. Collaborative Mechanisms Auctions clearly would not be used for all components in a vehicle. Indeed, the information intensity of interactions between suppliers and their OEM customers has increased tremendously in recent years, as design responsibilities are outsourced to suppliers and as the product architecture becomes more modular. E-procurement of complex modules would not proceed by auction. These parts are rarely sourced entirely on the basis of price. In fact, bids for such parts are unlikely to be sought very often since relationship-specific knowledge must be extensive for suppliers to fulfil customer requirements. For example, the value of Covisint will be as a source of timely and accurate information that aids coordination and collaboration. Covisint could facilitate collaboration in a variety of ways. Automakers can post production schedules on the web. This step increases productivity, since no one has to call or fax each supplier affected by a change in the schedule. The asynchronous nature of web communication could facilitate communication with a global supply base. ...read more.

Conclusion

Low entry and exit costs make the Internet and web-based applications affordable at any stage of a buyer-supplier relationship. Web-based technologies provide a full portfolio of functionality ranging from simple information transformation to telepresence. With increased connectivity, the web provides virtual free platform to enhance transparency, eliminate delays, reduce costs and mitigate bullwhip phenomena. The catalog hubs, or meta-catalogs offer the possibility of bringing together a virtually unlimited offers from different suppliers all over the world. The web-based technologies have provided an infrastructure that enables better matching of supply and demand by offering manufacturers a larger choice of suppliers and suppliers increased access to manufacturers, both increase reach to each other. Web-based technologies do provide extended reach into a wide pool of potential suppliers. Beside that, web-based technologies can drastically reduce day-to-day purchasing costs. The web-based technologies also allow for the customisation of orders for each specific customer. It also enabled transparency by facilitating connectivity for effective communication and collaboration. Conclusion In juxtaposition, web-based technologies are the key enabler to achieve collaborative and synchronised supply chain. Internet has been used to streamline the products or services flow through the supply chain pipeline. To streamline the supply chain pipeline, it is a must to adopt build to order strategy, modularise the design complexity, mass production and mass customisation, standardisation, adopt e-procurement, replacing with electronic machines and design for recyclability. All of these processes could simplify the supply chain. To synchronise the supply chain, it is a need to achieve greater transparency of data, collaboration between parties, exploitation in e-commerce and automating purchasing steps for quick receive of supplies. There are some barriers to such change. The last part of this report focus on late configuration of the 3Day Car. The report focuses on ways adopted by the 3 Day Car to fit all sub-systems and parts together in time. It also discussed about the changes that are likely to occur in the future, and the role of web-based technologies might play. ...read more.

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