Supply Chain assignment Sample

Part A

Introduction

The author talks about the manufacturing company’s supply chain process. A supply chain consists of the companies’ suppliers and distributors supplying a specific product. A supply chain management strategy involves the flow of products and services, storage of raw materials, inventory and finished goods, movement of the storage, and movement of products from manufacture to supply. In addition to retailers, distributors, shippers, and retailers who participate in production, the supply chain encompasses wholesalers, distributors, retailers, and suppliers involved in production. In an organization, supply chain management plays a significant role in achieving goals and also in reducing costs.

Consider the Push, Pull, and Push-Pull applications within organizations when reviewing supply chain optimization axioms

A supply chain analysis does not work without pushing and pulling. It can take many forms, such as raw material, work in progress, finished goods and many others, since a company is trying to market a product in a competitive market. In the push process, customer demand is unknowable, yet the process operates in a doubtful environment. Customer demand is projected long term in the push process. A push strategy involves manufacturing products based on the customer order. Build-to-inventory or built-to-thumps is another name for this model. (Gou, Sethi, Zhang, 2016). This model produces products in advance of customer demand. A car company, for example, offers discounts and offers on their products in order to encourage customers to choose and buy their products.

Marketing that expects to draw customers to a company’s products and services is known as pull marketing. In the production process, the pull system indicates a method for reducing waste. Usually, these types of systems are used in the manufacturing process so that the company will be able to meet its customers’ demands. This is how customers are attracted to a company by a push strategy. A lot of tactics are applied to pull the customers such as mass media promotion, advertising and word of mouth referrals, discounting, sales promotions, and customer relations. These all are meant to be useful in attracting the customer’s communication. One example would be bringing a door and towering oneself to open it.

How organisation can streamline supply and demand considering the change in focus from mass production to mass customization

In order to help companies, respond more quickly to market changes while improving operational efficiency, an organization can streamline its supply chain and demand by following six tips, such as thinking ahead, leveraging existing systems, eliminating duplicate data, reviewing and optimizing supply chain processes, and analysing and streamlining the supply and demand. Businesses will be able to respond faster to changes in the market by following these tips. Streamlining is a way of reducing the number of unnecessary procedures in an organization( Snyder, L, 2019). There are five components to logistics: planning, inventory, production, sourcing, information, transportation, location, and returns of goods. Streamlining purchasing includes identifying weaknesses, centralizing or decentralizing, pre-approving vendors, increasing perching authority, and improving purchasing schedules. These goals include reducing risk and ensuring supply security, lowering costs, managing relationships, improving quality, sourcing suppliers, finding suppliers, setting prices, placing orders, and evaluating suppliers.

Mass customization is relating to a advertising and marketing and production approach which incorporates flexibility and personalization of product with low devices price with mass manufacturing. Mass customization is permitting client to creating layout of the positive product marketplace with low price manufacturing. Mass customization noticeably effect at the product income with mass manufacturing, it’s far allows to will increase the client`s pleasure and additionally will increase an organization`s income, and revenue. Mass manufacturing is a gadget that makes use of in an organization`s manufacturing residence to fabricate a massive amount product with low price. It has a few advantages and drawback additionally. Such as better client retention, quick, green manufacturing, procedure begin and finished, a better rate factor for custom designed products, with better profit, it’s far very bendy procedure to managing noticeably custom designed orders. These all its gain and its drawback is hard to devise for rush ahead in product demands, not possible to accumulate inventory in advance of time.

Situation where an organization has a very slow reaction to changes in customer demand

An organization faces various changes resulting from its life cycle, sometimes slowly, and sometimes rapidly, as well as changing its strategy, management, customer demand, and suppliers depending on its current state of affairs. It discusses here how customer demand varies with time, as it basically refers to inventory and service demands. The demands of customers indicate that their expectations are also determined by their custom needs. Some of these elements are changing through some process such as planning carefully, telling the truth, being as transparent as possible, communicating, creating a roadmap and involving as many people as possible. Normally, the customer’s demand can be broken down into five components such as their appreciation, their action, their price, their service, and quality price. Information, option, and alternative, fairness, control, understanding, and empathy are the six components of the customer’s change in demand. Friendliness, the most basic need of all customers, is being greeted politely and with warmth. Product quality and price are two major changes in customer demand in this region

Characteristics of a Pull environment

In supply chain, pull systems are essential, since they work by receiving signals and then producing more production. Pull systems contrast with push systems, which include mass production. With a pull system, more product must be produced according to signals and orders via one process after another. As a manufacturing strategy, a pull system reduces waste in the manufacturing process. The components in these types of systems make goods to satisfy customer demands. The system is capable of changing the environment of an organization; it is used to increase productivity and to launch the various products on the market. An organization can identify their customers’ needs through this strategy as well as survive in a market that is populated by their competitors. The pull strategy minimizes overhead and optimizes storage costs for the organization. A decision is also made when a company needs to manufacture goods and what its customers want. As a result, pull systems are today used in all basic industries because they help increase productivity and efficiency of workflow. It provides the organization some advantages for changing their surroundings, such as adapting quickly to changes in the work process, reducing waste of resources, improving flow efficiency, increasing productivity, and delivering work items much more rapidly.

Fig- Pull environments changing

 Conclusion

The supply chain system is implemented in this company’s organization and in the production process. Additionally, we can observe that a manufacturing company is able to change their working environment, and increases their working flows, by fulfilling their customers’ demands, by implementing this strategy, and they are also able to provide better service to their customers. The mass customization of a manufacturing product is a way for a company to cut costs and make better products

Part B

Introduction

Here, the author provides an analysis of SMEs’ supply chain systems, and also shows how supply chain optimization contributes to the increase in production within the organization. Supply chain optimisation is about managing your supply chain efficiently. There are several factors of supply chain system that help manufacturing organizations to increase production and revenue, including excellent customer value, organizational responsiveness, and high-quality networks.

Analyze the research and implementation gap

SME refers to a medium or small business. An important part of any country’s economy is small and medium businesses. Manufacturing companies primarily use SMEs as vendors, service providers, suppliers, and subcontractors. SMEs are mostly responsible for linking large organizations to SMEs. They are therefore involved in the supply chain of larger businesses. When large industries invest in supply chain systems, that is when small and medium enterprises will benefit. Small and medium businesses will be able to compete more effectively. Effective supply chain management increases the industry’s profits and develops manufacturing technology and productive purchasing, inventory management, warehousing and transportation. For this reason, SMEs need to implement a supply chain management process in their work systems. Some of the obstacles SMEs face in adopting supply chain management strategies. Below are some key strategies that can help SMEs overcome obstacles such as-

• Awareness – it is a means of providing a better product and service to the customer.
• Excellent Management practice- SMEs do not have access to top management systems due to their limited capital. Therefore, SMEs should be able to utilize COX management systems to increase their business efficiency.
• Advanced technology- For effective supply chain management, SMEs must adopt ERP (enterprise resource planning) and CRM (customer relationship management).
• In addition to priority, networking, family owned businesses, outsourcing, E-marketplace, and agility are other factors. These factors ensure that small and medium-size businesses can overcome supply chain barriers and implement effective supply chain management

 Figure 1 indicates supply chain implementation in SMEs

Optimising the supply chain has many benefits for an organisation

An efficient supply chain management is known as supply chain optimisation. Outstanding customer value, a responsive organization, a built-in network system, and good financial support are included. As part of supply chain management, there are five ways to optimize, including thinking globally, using mobile technology, developing a responsive supply chain, focusing on core strengths and all other activities, and improving collaboration between manufacturers/suppliers and retailers for forecasting demand data and inventory levels. The supply chain management optimization task has ten important strategies, these are: Set up the supply chain council in the company, without which a company is unable to implement an effective supply chain management. This helps the manufacturing company to make a good decision. Ensure that the supply chain is appropriately structured and staffed with consideration for efficiency. Assess the impact and efficiencies that technology can bring to the supply chain process. Be sure to maintain healthy relationships with suppliers. During procurement, consider the total cost of ownership in preference to the price. When engaging in strategic collaboration with suppliers, consider the source. The responsibility for managing contracts should be transferred to the supply chain. Reduce costs by optimizing inventory levels. Ensure efficiency and avert risks through regular review of contracts (Horvath, L, 2001). Engage in sustainable activities and take action to protect the environment. Organize your supply chain system to perfectly cope with all of these requirements. A manufacturing company can achieve its goals and increase its revenue by using this system. They can also provide a better customer experience and better service by using this system.

 Use the diagrams and tables to demonstrate inventory reduction, cash-to-cash cycle time, on-time delivery, order fulfillment, lead time reduction, and profitability improvements.

An important component of supply chain management is inventory management, which refers to the supervision of non-capitalized assets and stock items. From the point of manufacture, goods flow to warehouses and finally to the point of storage. A manufacturing organization is greatly affected by this supply chain element. An organization’s inventory management process ensures the availability of raw materials, work-in-processes, and finished goods. Supply chain management is based on inventory management. It helps to manage downstream and upstream suppliers. Inventory types include raw materials, work in progress, finished goods, anticipatory inventory, transit inventory, duplicate inventory, cycle inventory, and buffer inventory. Flow Figure 1 shows how inventory is maintained by tables and diagrams. Calculations are made by days, such as 0 days, 14 days, 25 days, and 36 days. Another aspect of inventory management is cash to cash. A business uses it to keep track of stock or inventory. Manufacturing companies also use it to keep track of their accounts. An organization’s cash to cash cycle measures the amount of time between the time it receives cash and the time it recovers it

Cycle time from cash to cash equals days’ sales outstanding (DSO) + inventory days of supply (IDS) – financial inflows

– DPO (days payable outstanding)

Keeping credit terms can also help cut the cash-to-cash cycle, and keeping on top of past due receivables is also important, as the likelihood of losing them significantly reduces with time. According to its definition, it represents how long it takes to fulfill an order if all inventory is on hand, a key component of a company’s supply chain, as well as an important element of the company’s productivity.

Conclusion

We can see that the author discusses some very important factors, such as inventory management, cash-to-cash cycle system, and supply chain optimization, which are crucial to a manufacturing company’s supply chain. All these things are crucial to any organization. By increasing productivity and increasing revenue, a manufacturing organization can provide a better quality of goods and services to their customers.

Reference

Gou, Q., Sethi, S., Yue, J. and Zhang, J., 2016. Push and Pull Contracts in a Local Supply Chain with an Outside Market*. Decision Sciences, 47(6), pp.1150-1177.

Kumar, S., Choe, D. and Venkataramani, S., 2012. Achieving customer service excellence using Lean Pull Replenishment. International Journal of Productivity and Performance Management, 62(1), pp.85-109.

Snyder, L., 2019. From platinum to smartphone: How maths models can be used to streamline supply chains. Futurum Careers,.

Heshmati, A., 2013. DEMAND, CUSTOMER BASE-LINE AND DEMAND RESPONSE IN THE ELECTRICITY MARKET: A SURVEY. Journal of Economic Surveys, 28(5), pp.862-888.

Blatherwick, A., 1998. Vendor‐managed inventory: fashion fad or important supply chain strategy?. Supply Chain Management: An International Journal, 3(1), pp.10-11.

Alaskari, O., Ahmad, M. and Cuenca, R., 2014. Critical success factors for Lean tools and ERP systems implementation in manufacturing SMEs. International Journal of Lean Enterprise Research, 1(2), p.183.

Amin, F. and Karningsih, P., 2021. Literature Study of Lean Implementation Framework for Small and Medium Enterprises (SMEs) in Indonesia. PROZIMA (Productivity, Optimization and Manufacturing System Engineering), 4(2), pp.1-9.

Hemalatha, S. and Annadurai, K., 2020. Inventory models involving lead time crashing cost as an exponential function with ordering cost reduction dependent on lead time. Materials Today: Proceedings,.

Fakhrzad, M. and Bazeli, S., 2018. The fuzzy multi-objective optimisation model for a green supply chain under uncertainty. International Journal of Value Chain Management, 9(4), p.330.

Horvath, L., 2001. Collaboration: the key to value creation in supply chain management. Supply Chain Management: An International Journal, 6(5), pp.205-207.