Tutorial 7 : Supply Requirement (Key Issue in SCM (Supply chain…
Tutorial 7 : Supply Requirement
Key Issue in SCM
Supply chain integration and strategic partnering
This is concerned with the complex issue of strategic inter organizational partnership for achieving competitive advantage.
This is concerned with the distribution of the firm's products.
This is concerned with the levels of inventory to be held at various points in the supply chain.
This is concerned with the design of the product and its impact on total cost of the product.
The key issue is the definition of customer value in an age of increasing consumer power.
Configuration of distribution network
This issue deals with the design of a distribution network to serve a specific market
Drivers of risk in supply requirement
Inflexibility of supply source
High capacity utilization at supply source
Information infrastructure breakdown
Extensive system networking
Inaccurate forecasts due to long lead times, seasonality, product variety, short life cycle
The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain.