A Study about Supply Chain Management in Food Chains: Improving Performance by Reducing Uncertainty
This paper investigates the impact of Supply Chain Management on logistical performance indicators in food supply chains. From a review of quantitative and more qualitative managerial literature, we believe that Supply Chain Management should be concerned with the reduction or even elimination of uncertainties to improve the performance of the chain. The following clusters of sources of uncertainty are identified: order forecast horizon, input data, administrative and decision processes and inherent uncertainties. For each source of uncertainty, several improvement principles are identified. A case study was conducted in a food chain in which a simulation model helped quantify the eects of alternative configurations and operational management concepts. By comparing this simulation study with a pilot study, the model is validated against real data, and organisational consequences are identified.
Introduction: Recent literature on Supply Chain Management has been stressing the need for collaboration among successive actors, from primary producer to end-consumers, to better satisfy consumer demand at lower costs (see, for example, Scott and Westbrook, 1991; Ellram, 1991; Towill, 1996). Jones and Riley (1985) define Supply Chain Management (SCM) as an integrative approach to dealing with the planning and control of the materials how from suppliers to end-users. According to Fearne (1996), SCM seeks to break down the barriers which exist between each of the links in the supply chain, in order to achieve higher levels of service and to substantially reduce costs. “It seeks to achieve a relationship of mutual benefit by defining the organisational structures and contractual relationships between buyer and seller, which up until now have been classified as adversarial” (Fearne, 1996). Iyer and Bergen (1997) emphasise Pareto improvement, referring to the situation in which all parties are at least as well o, and oneparty is better o than before. Keep reading…
National Semiconductor supplies Nokia with analog components used in handheld wireless devices and network equipment. Compliance with the European Union’s forthcoming RoHS directive is a topical focus in cooperation between National and Nokia. Martin Schnepf, EFS and packaging expert from the Quality Assurance Department of National’s European headquarters, says National had already previously eliminated five of the six substances whose use is restricted by the directive, leaving only lead to work upon. The work started back in 2000 and by the end of 2004 lead-free versions were available for over 90 percent of products. Some high-power packages still use lead as a high melting temperature die attaches material. This use is exempted by the RoHS directive.
National has chosen the strategy of continuing to offer its customers leaded and lead-free versions of its products to enable the customers to transition smoothly from the standard production process to the lead-free environment. “We don’t want to put the customer under pressure and say, you have to accept lead-free components as of tomorrow as only those will then be available,” Schnepf says. The lead-free solders have an undesirable environmental side effect: they require a higher reflow temperature than lead-containing solders. Some products will have difficulty withstanding the thermal strain at the strictest moisture sensitivity level. Click here to read more…
A Case Study about Shell Retail Network Development Programme
Shell Employs sKM to manage the construction of new service stations across eight countries in asia. Our task starts with assisting shell to obtain any necessary authority approvals for each new retail site and ends with handing over the completed facility.
SKM also upgrades and extends existing facilities to improve environmental performance, increase sales volume and improve customer experiences.Each year about 50 new sites are commissioned, and work is undertaken on about 1,000 existing sites. On-site work can vary between one day and four months.The programme operates in Malaysia, Indonesia, Singapore, Thailand, the Philippines, Hong Kong, India and Pakistan. Keep reading…
If we take a close look at the strengths and weaknesses of SCOR, It quickly becomes clear that SCOR methodology fills a major need in a Lean and Six Sigma program – identification, prioritization and strategic alignment of
project opportunities with the capability to execute them. Read more to know why?
Study about Human Resource Management Practices: Supply Chain Department of Square Pharmaceuticals Ltd.
Abstract: Human resource management practices are now considered as one of the key contributing factors to the success of an organization. The organizations are putting increased emphasis on the policies and practices of HRM to gain competitive advantage. Throughout the whole case study several HRM practices related to the supply chain department of Square Pharmaceuticals Ltd. are discussed. These HRM practices include human resource planning, recruitment and selection, induction, training, performance appraisal, employee development, compensation plan, etc.
Introduction: Human Resource Management (HRM) is a relatively new concept in Bangladesh. It was few years ago that this was considered as a part of the administrative functions of an organization. There was no individual identity for HRM. But as time passed people recognized the importance of HRM in organizations. They realized that HRM is not just to hire people. Apart form hiring, HRM has lots of functions which help an organization to gain competitive advantage (Islam, 2006). Effective HRM practices support business goals and objectives. That is why effective HRM practices are strategic. It can improve the performance of an organization by improving customer satisfaction, innovation and productivity. Keep reading…
American Tire Distributors (ATD), headquartered in Huntersville, N.C., is the largest replacement tire distributor in the United States. The company’s success is no accident. In fact, ATD is growing at the rate of 10-20 percent annually, partly through aggressive acquisitions, and partly via organic growth, including the expansion of its Tire Pros franchise operation.
ATD has also recently launched an Internet-based tire storefront. The site allows consumers to select tires directly from the ATD inventory; when they purchase tires, the sales are channeled through local ATD retail partners for processing and delivery. Keep reading…
Study about Cross-Functional Alignment in Supply Chain Planning: Sales and Operations Planning
Abstract: In most organizations, supply chain planning is a cross-functional effort. Functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities. We report findings from a detailed case analysis of a successful supply chain planning process. In contrast to traditional research on this area, which focuses on incentives, responsibilities, and structures, we adopt a process perspective and find that integration was achieved despite an incentive landscape that did not support it. By drawing a distinction between the incentive landscape and the planning process, we identify process as an additional mediator beyond the incentive landscape that can affect organizational outcomes.
Introduction: In most organizations, supply chain planning—the administration of supply-facing and demand-facing activities to minimize mismatches and thus create and capture value—is a cross-functional effort. In most cases, this means that each functional area, such as sales, marketing, finance, and operations, tends to specialize in its own portion of the planning activities. Such specialization is notorious for generating conflicts over differing expectations, preferences, and priorities with respect to how the matching of demand and supply should be accomplished (Shapiro, 1977). The reconciliation of these conflicts is generally referred to as coordination. Coordination in the operations management literatures generally assumes some agreement in the assessment of the firm’s environment and on the options available for an organizational response: the challenge centers on the details of the organizational response. Keep reading…
Case Study about Reducing Costs through Production and Supply Chain Management
Introduction: IKEA, the Swedish home products retailer, is known for its good-quality, inexpensive products, which are typically sold at prices 30–50% below those of its competitors. While the price of products from other companies continues to rise over time, IKEA claims that its retail prices have been reduced by a total of 20% over the last four years.
At IKEA, the process of cost reduction starts at product conception and continues throughout the process of design, sourcing of materials and components, production, and distribution. For example, the “Bang” mug has been redesigned many times to realize shipping cost savings. Originally, 864 mugs would fit into a pallet. After redesign a pallet held 1,280 mugs, and with a further redesign 2,024 mugs could be squeezed into a pallet, reducing shipping costs by 60%.
A Case Study about Social Production Factors in Supply Chain Cooperations
Abstract: Supply chain management concepts largely rely on cooperation. Therefore the economic success of companies within supply chain cooperations depends on the ability and capacity of these companies to build up and nourish cooperation relations. This capacity with its ‘social factor inputs’ as e.g. trust, experience and motivation can be modelled as a destinctive production factor as it is scalable and relevant for the production output as well as economic value indicators respectively.
Introduction: Companies within a supply chain usually try to optimize their cooperation with instruments described in Supply Chain Management (SCM) concepts . For example companies in the textile industry use web portals and extranets to integrate information between companies and in the chemical industry inter-company integrated planning projects are carried out . But besides these instuments and the specific situation and market factors influencing the quality and productivity of supply chain cooperations there are social factors as shown in figure 1 within these company cooperations in a supply chain.
A Case Study about Supplier Relationship Management
Abstract: Supplier Relationship Management (SRM) plays an important role in the reduction of costs and the optimization of performance in industrial enterprises. Despite enormous investments in innovation, the health care sector has not experienced fundamental change yet. However, increased market dynamics and the implementation of economic principles will force health service providers to optimize cost structures as well as effectiveness and efficiency of business relationships. This paper reviews the current state of the art in the field, translates and amends the current findings for the health care context, and presents a case study illustrating the impact of the implementation of SRM principles in a leading Swiss hospital.
Introduction: The adoption of information and communication technology (ICT) in health care is currently seen as an opportunity to improve not only effectiveness, efficiency, and quality of health services but also the transparency of the economic activities and the availability of information in real time. Despite enormous investments in innovation and the magnitude of the opportunities for innovators, the health care sector has not experienced fundamental change yet. However, the pressure to achieve effectiveness and efficiency is set to increase significantly as in many countries economic principles, such as fixing rates for medical treatments or charges for medical registration, are introduced in order to reduce health expenditures and enhance the competition among the health care providers.