Supply Chain Management Introduction Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration:
The supply chain practice will be compared with other supply chain process. An analysis will be provided based on research and cost-benefit and the recommended changes.
The paper has taken a supply chain process exists in the Minneapolis based retail giant Target. Target has stores, 25 regional distribution centers and 3 import warehouses. Supply Chain Process The idea of supply chain is the application of total systems approach in managing the entire flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customers.
Inventory turnover and weeks of supply are two common measures to evaluate the supply chain efficiency. The global supply chain management process covers aspects of the business that includes sourcing, order fulfillment, offshore procurement, distribution, warehousing, and inventory management.
Managing the global supply chain effectively increases competitive advantage, market share and profits. The process flow chart described below gives an overview of the supply chain.
The first step in the process is deciding the product strategy of either a new or an existing item. For a new product that has not been sold previously in stores, the business sourcing strategy including the vendor the product will be sourced from, cost of the item are determined.
The next step is deciding the basic product characteristics like color, size, case pack and also other characteristics like the stores the product will be sold and retail price are decided and setup. Deciding a replenishment strategy includes determining the reorder frequency if the product is planned to be replenished automatically, safety stock required to be carried, store presentation minimums and sales pattern associated with the item.
Once the item is setup for replenishment, the orders are created and the information is sent to the vendors electronically using EDI documents. For products that are already being replenished automatically the replenishment parameters are constantly monitored and altered to meet the current market forecast and demands.
The vendors manufacture the product and ship it to Target.
The shipment mode and location is determined based on the product. Orders for Import products are not setup to be ordered automatically and orders are placed months ahead. These import products are shipped in ships and sent to the import warehouses near the port of arrival.
On arrival at the port these products are either sent to the import warehouses or regional distribution based on the need at the stores. Domestically ordered products are shipped directly to the regional distribution centers.
The main distribution strategy followed by Target is warehousing. Only a very few special orders are placed with the vendors that are either sent directly to the stores or to the guests.
Once the products are received at the regional distribution centers they can be unloaded straight from inbound trailers onto the conveyers that lead to outbound trailers to be sent to the stores.
The store distribution quantity is based on sales forecasts, store inventory and optimal distribution quantity. The received quantity ordered in excess are stored in the distribution centers for address future needs and market fluctuations.Keywords: Demand management, Agility, Sales and operations planning, Channel management, Supply management, Supply chain agility, Demand and supply integration Type: Research paper .
Purpose – To examine the state of logistics and supply chain management (SCM) research in the last five years from the standpoint of existing methodologies. Over the years many buzzwords have emerged in the field of logistics, with "supply chain management" (SCM) and all its variants being the most common examples.
In commerce, supply-chain management (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of ph-vs.comonnected or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a.
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