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SUPPLY REQUIREMENT (KEY ISSUE IN SUPPLY CHAIN MANAGEMENT (Configuration of…
SUPPLY REQUIREMENT
KEY ISSUE IN SUPPLY CHAIN MANAGEMENT
Configuration of Distribution Network
Deals with the design of distribution network to serve a specific market
Inventory Control
Concerned with the level of inventory to be held at various points in the supply chain
Supply Chain Integration and Strategic Partnering
Issue of strategic inter organizational partnership for achieving competitive advantage
Distribution Strategy
Identify the best suitable distribution of the firm's products to achieve its supply chain and corporate goals
Product Design
Concerned with the design of the product and its impact on total cost of the product
Customer Value
Define the customer value in an age of increasing consumer power
Supply Contracts
Relationships between suppliers and buyers that specify pricing and volume discounts, delivery lead times, quality and returns
Information Technology and Decision Support Systems
Proper analysis and data processing
The Drivers of Risk in Supply Requirement
DISRUPTIONS
Natural disaster
Labor dispute
Supplier bankruptcy
War/Terrorism
DELAYS
High capacity utilization at supply source
Inflexibility of supply source
FORECAST
Inaccurate forecasts due to long lead times, seasonality, product variety, short life cycle
Information distrortion
SYSTEMS
Information infrastructure breakdown
Extensive system networking
Key Issue in Supply Chain at Various Level
Strategic Level
Made with long term objectives with long lasting effects.
Location of various facilities
Manufacturing plant
Distribution warehouses
Structure of distribution channel
Tactical Level
Concerns purchasing and production functions, inventories policies and transportation strategies including the frequency with which customers are visited
Will be updated on an annual basis
Operational Level
Concern day to day management of activities such as scheduling, routing, lead time quotations and vehicle loading
What is bullwhip effect?
It refers to small changes of customer demand may affect the supply chain
It is
BAD
in logistics which causes:
Wholesaler store extra inventories
Local store hold extra inventories and delay next order
Manufacturers overproduced