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Supply requirement (Discuss the drivers of risk in supply requirement?…

- - - - This is a complex issue of strategic inter organizational partnership for achieving competitive advantage. This is about sharing of information and efficient use of the information for coordinating business process to deliver a superior value to the customers.
    - - Distribution strategy is concerned with the distribution of the firm's products. These are several strategies available such as the classical distribution strategy or direct shipping.
    - - This issue deals with the design of a distribution network to serve a specific market. This will consist of a set of warehouses and retail outlets, together with the manufacturing plant and supply sources, based on consideration of location and capacity of each of these elements. This will also determine the level of service available to the customer.
    - - This is concerned with the levels of inventory to be held at various points in the supply chain. As inventory represents costs, the sensible approach is to hold as low an inventory as possible but businesses are forced to hold inventories as a buffer to counter the affects of an uncertain demand. This is one of the key issues in supply chain management.
        
        Provides prompt and proper service to all concerned departments or units.
        
        keeps a record of inventory issued to the concerned department.
        
        Helps to maintain inventories at lowest costs.
        
        Helps to supply the inventory to different departments or units.
        
        Bifurcates high-value and low value stock of goods.
        
        Focuses on location, storage, recording and accounting of inventories
        
        Avoids over stocking and under stocking of raw materials.
    - - Product design concerned with the design of the product and its impact on total cost of the product. It is possible that the design determines the strategies to be followed regarding inventory or transportation. The design may also determine the length of the product life cycle and the extent of uncertainty associated with demand for this product.
        
        The step in the design process
        
        STEP 2
        -Development
        -Testing
        
        STEP 3
        -Implementation
        -Evaluation and conclusion
        
        STEP 1
        -Design brief
        -Specification
        -Problem Solving
        -Presentation
        
        STEP 4
        -Corrections made
    - - In traditional supply chain strategies, each party in the chain focuses on its own profit and hence makes decisions with little regard to their impact on other supply chain partners. Relationships between suppliers and buyers are established by means of supply contracts that specify pricing and volume discounts, delivery lead times, quality, returns, and so forth.
    - - Customer value is define as customer value in an age of increasing consumer power. How will supply chains will be designed to provide value to the customers and how will firms define value.
    - - Information technology is a critical enabler of effective supply chain management. Indeed, much of the current interest in supply chain management is motivated by the opportunities that appeared due to the abundance of data and the savings that can be achieved by sophisticated analysis of these data. Proper analysis and data processing is depend on many other factors and that may be a hurdle in supply chain management.