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Chain Management & Quality Assurance Management Functions

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Topic Chain Management & Quality Assurance Management Functions Content 1) Introduction P.3 2) What is Supply Chain Management? P.4 3) The Business of Supply Chain Management P.4-P.6 4) The Transfer of Information in Supply Chain Management P.6-P.8 5) Conclusion P.8-P.9 6) Bibliography P.10 7) Reference P.11 Introduction In its early days, a distributor's job was simply to get manufacturers' products into the hands of its customers in a timely, cost-effective manner. Now, things have practically changed. Companies must focus on moving information and products quickly through the entire supply chain, distributors, suppliers and manufacturers. The faster information and decision flows through the company, the quicker it can responds to customers' needs. All organizations have a chain of networks or supply chain of varying degrees, depending upon the size of the organization and the type of product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer. In another word, a supply chain is the stream of processes of moving goods from the customer order through the raw materials stage, supply, production, and distribution of products to the customer. Managing the chain of events in the above process is what is known as supply chain management. Effective management must take into account coordinating all the different pieces of this chain as quickly as possible without losing any of the quality or customer satisfaction, while still keeping costs down. ...read more.


As Coles Myer's Chief Executive Officer Mr. John Fletcher said in September 2003, the company aimed to raise profit to 800 million dollars a year by 2006 after investing 604 million dollars over the next five years to improve computer system, revamp or close inefficient distribution centre and restock shelves faster. The first phase of the revamp is on information technology focusing on the company's food and liquor operations. The second phase is on non-food supply chain including Target using an automated sore ordering system to replace the systems that are mote than 15 years old. By introducing electronic trading between suppliers, distribution centre and stores, it helps move Cole Myer's towards a paperless system. The Transfer of Information in Supply Chain Management Coles Myer understands that customers' satisfaction (and dissatisfaction) is linked to the performance of its supply chain. (4) Supply chain management is both a source of competitive advantage as well as a lever for profit margin. If a company is not good at supply chain management, other companies will be. As Mr. John Fletcher of Coles Myer said in September 2003 that it was terrible that Australia could actually have two big retailers (Coles Myer and Woolworths) moved down a path at similar time frames on overhauling its supply chain. The various components of supply chain management for Coles Myer can best be summarized as follows: * Receipting - actual receipting of goods from the supplier any of the Coles Myer Limited Distribution Centre facilities irrespective of brand * ...read more.


Without this, a lot of time and effort is wasted in obtaining and gathering information and transforming this into a "Like for Like" scenario. Collaboration from each brand with Coles Myer Limited supply chain planner is critical to ensure the optimum channel and delivery process is achieved. After all, Myer, Kmart and Target are mostly in the same shopping centres. Therefore the delivery of like merchandise to these stores should and does occur via the same truck therefore saving time and money for each brand. To conclude, supply chain management is very important to Coles Myer and its subsidiaries. This is one area that has the biggest potential for eliminating costs on a sustainable basis. It is also one area that can truly perform cross brand processing and at the same time do it for a lower cost per carton. The savings that are currently being quoted are approximately $425M across Coles Myer. This figure would then go directly to Coles Myer Limited's bottom line profit. Companies that improved its supply chain management have not only survived - they have thrived. Those lacking the agility and commitment to change did not - and they either have failed completely or fallen further behind business world. The transfer of information as seen in Target's Supply Chain Management provided a unique opportunity to learn from many of the corporate champions of supply chain management; how they think strategically, how they adapt and focus large organizations on supply chain management excellence, and how they shape their environment and build a culture to remain ahead of their competitors. ...read more.

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