If you are looking for practical and strategic approach to managing global supply chains, this book will prove to be a useful guide for you. The book is both a practical, thorough and easily understood resource that will benefit researchers and practitioners alike. This book is highly recommended. It explains the fundamental concepts and processes that underpin strategic supply chain management. The authors have provided a step-by-step methodology for achieving strategic supply chain objectives. Practitioners and researchers alike will enjoy this book.
Demand-driven supply chains
Demand-driven supply chains are strategic supply chains that respond to changes in demand. Companies can anticipate customer needs and respond to them in real-time. It differs from the traditional model, where the supplier announces the availability of a new product and the retailer takes delivery. This model helps companies increase efficiency and keep their inventory under control. In this way, demand-driven supply chains enable companies to meet customer demands faster and more efficiently.
Planning
Organization-based tools are used for optimizing the supply chain. The planning approaches differ in the extent of decision-making that they support. A company that is successful should have an annual strategic business plan and identify growth opportunities. Many companies use supply chain planning software in order to plan and optimize supply chains. This article outlines the many types of planning. You can choose one based on the type of planning process you prefer.
Execution
Strategic supply chain management is the formal approach to managing the supply chain network of an organization. The supply chain manager devises a strategy for maximising value, efficiency, as well as resilience. It must be in line with the overall company strategy. Successful supply chain management requires careful planning and execution. It is important to fully understand the role of your supply chain in your business strategy. Here are some ways to manage your supply chain effectively. Start by creating a strategic vision to guide your supply chain.
Monitoring
Effective management depends on information. Managers will not make the best decisions if they don't have the data or tools to take corrective action. As supply chains continue to grow in complexity, managers that are not diligent about monitoring the process are unprepared to handle disruptions and potential hazards. Monitoring your supply chain is vital. Monitoring your supply chain has many benefits. Here are a few. Read on to find out how to get started.
Sustainability
Achieving true sustainability in a strategic supply chain is not easy. It's more difficult to achieve true sustainability in a complex supply chain. The procurement team should designate an individual to be the sustainability point person and monitor the progress of suppliers. The procurement team should also establish specific sustainability goals and demand that suppliers meet them. This will make the whole process transparent. It is a good way to gauge supplier performance by measuring the number of services or products that support the company's sustainability goals.
Variations based on product type
A wide range of products is essential for companies to be able to provide optimal performance to their customers. They often introduce product variations without realizing if they will cause additional complexity in their supply chains. Consumer-goods companies saw a 60 percent increase in the number of new products that they introduced each year from 2002 to 2011. This increased demand caused an increase of costs in their supply chains. In the United States, consumer goods companies saw an increase in new products by 60% during the same time period. This inevitably pushed up costs in many areas of the company's supply chain, but at a steady rate of only 2.8 percent per year.
FAQ
What is TQM?
The quality movement was born during the industrial revolution when manufacturing companies realized they could not compete on price alone. They needed to improve the quality and efficiency of their products if they were to be competitive.
To address this need for improvement management created Total Quality Management (TQM) which aimed to improve all aspects of an organization's performance. It included continuous improvement and employee involvement as well as customer satisfaction.
How can we make our company culture successful?
A positive company culture creates a sense of belonging and respect in its people.
It's founded on three principal principles:
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Everyone has something valuable to contribute
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People are treated with respect
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People and groups should respect each other.
These values are reflected in the way people behave. They will show consideration and courtesy to others.
They will respect other people's opinions.
They encourage others to express their feelings and ideas.
In addition, the company culture encourages open communication and collaboration.
People are free to speak out without fear of reprisal.
They are aware that mistakes can be accepted if they are treated honestly.
The company culture encourages honesty and integrity.
Everyone knows that they must always tell the truth.
Everyone recognizes that rules and regulations are important to follow.
No one is entitled to any special treatment or favors.
Why is project management so important?
Project management techniques are used in order to ensure projects run smoothly, and that deadlines are met.
This is because most businesses rely on project work for their products and services.
These projects must be managed efficiently and effectively by companies.
Without effective project management, companies may lose money, time, and reputation.
What are the steps of the management decision-making process?
Managers face complex and multifaceted decision-making challenges. It involves many factors, including but not limited to analysis, strategy, planning, implementation, measurement, evaluation, feedback, etc.
It is important to remember that people are human beings, just like you. They make mistakes. There is always room to improve, especially if your first priority is to yourself.
This video shows you how management makes decisions. We will explain the importance of different types decisions and how every manager can make them. The following topics will be covered.
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External Links
How To
How is Lean Manufacturing done?
Lean Manufacturing techniques are used to reduce waste while increasing efficiency by using structured methods. These processes were created by Toyota Motor Corporation, Japan in the 1980s. The aim was to produce better quality products at lower costs. Lean manufacturing eliminates unnecessary steps and activities from a production process. It has five components: continuous improvement and pull systems; just-in time; continuous change; and kaizen (continuous innovation). The production of only what the customer needs without extra work is called pull systems. Continuous improvement refers to continuously improving existing processes. Just-in-time refers to when components and materials are delivered directly to the point where they are needed. Kaizen refers to continuous improvement. It is achieved through small changes that are made continuously. Last but not least, 5S is for sort. These five elements can be combined to achieve the best possible results.
Lean Production System
Six key concepts underlie the lean production system.
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Flow - focus on moving material and information as close to customers as possible;
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Value stream mapping - break down each stage of a process into discrete tasks and create a flowchart of the entire process;
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Five S's, Sort, Set in Order, Shine. Standardize. and Sustain.
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Kanban is a visual system that uses visual cues like stickers, colored tape or stickers to keep track and monitor inventory.
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Theory of constraints: Identify bottlenecks and use lean tools such as kanban boards to eliminate them.
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Just-in-time delivery - Deliver components and materials right to your point of use.
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Continuous improvement - Make incremental improvements rather than overhauling the entire process.