SUPPLY REQUIREMENT (Key Issue; ( Distribution strategy
- several strategies available such as the classical distribution strategy/direct shipping.
- design of the product & its impact on total cost of the product
- determine the strategies of inventory & transportation
- determine the length of product life cycle/demand
Supply chain integration & strategic partnering
- concerned with the complex issue of strategic inter organizational partnership for achieving competitive advantage
- sharing information & efficient use of the information for coordinating business procesess
- increasing the customer power which is how supply chain provide value and define value towards the customers
- focuses on location, storage, recording & accounting of inventories
- helps to supply the inventory to different departments/units
- keeps a record of inventory issued to the department
- provides prompt & proper service to all department/units
- helps to maintain inventories at lowest costs
- bifurcates high-value & low-value stock of goods
- avoids over-stocking & under-stocking of raw-materials.
- specify pricing & volume discounts, delivering lead times, quality, returns etc.
Configuration of distribution network
- deals with the design of a distribution network to serve a specific market.
- determine the level of service available to the customer
Information technology & decision support system
- critical enabler of effective supply chain management.
- is a inaccurate forecast due to long lead time sustainability, product variety, short product cycle etc.
- occurs when changes in consumer demand causes the company in a supply chain to order more goods to meet new demand
- usually flows up the supply chain, starting with the retailer , wholesaler, distributor, manufacturer & then the raw material.