Supply Chain Strategies by Tony Hines download in pdf, ePub, iPad
Although outsourced manufacturing could be more expensive than in-house manufacturing, in the long term it would be less expensive than unused capacity. Because of the nearly unlimited number of possible finished products resulting from multiple combinations of parts or materials, it is practically impossible to make an accurate forecast. As a general rule, the processes before product configuration are lengthier than the configuration itself and the downstream processes. Leveraging nearly two decades of managing the global supply chains of large corporations, we can bridge the knowledge gap.
Global market competition and connectivity drives companies to compete on the effectiveness and efficiency of their supply chains. He also served as associate director of the Program.
In addition, collaborative relationships with customers become more useful because they help to reduce demand uncertainty. The production sequence should be fixed and maintained for long periods of time. Managers should focus on promoting maximum end-to-end efficiency.
As a result, the main driver of competitiveness is the reduction of market mediation costs. There are two main actions they can take to accomplish this. When the decoupling point is located farthest from the customer's end of the supply chain, product customization increases, therefore demand buffering should be supported by excess capacity. In effect, competition is virtually always based almost solely on price.
The second element, the unique value proposal, requires a clear understanding of the organization's competitive positioning in terms of its supply chain. This focus is the most important factor in ensuring coherence between supply chain execution and a business's unique value proposal. The fast supply chain model is the most demanding in terms of forecast accuracy, because it has to constantly anticipate market trends.
For the latter group, if demand variability continues even after participation in a collaborative program, then it would be advisable to evaluate whether to shift them out of those programs. Configuration and downstream processes should be managed under the criteria of an agile supply chain. Failing to manage the factors affecting your bottom line profitability can quickly put your company out of business. Correspondence may be edited for clarity or for length. This supply chain model is well suited for businesses with commoditized products, such as cement and steel.
Collaborative efforts should be oriented toward customers that generate higher sales and those with high demand variability. However, product configuration may be done in other types of processes, such as mixing, packaging, and printing, among others. Furthermore, customers with high demand variation should pay higher prices. Examples include product price markdowns to compensate for excess supply, and lost sales when demand exceeds supply.
Competitive positioning is founded on offering a unique configuration of the finished product according to the end consumer's needs. Processes before configuration should be managed under the criteria of an efficient or a continuous-flow supply chain, in accordance with the characteristics of the demand profile. Shannon is resourceful and focused on delivering optimal value to her peers, customers and stakeholders.