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…
A Case Study about a Public Organization: ERP Implementation
Abstract: The implementation of ERP systems in the organizations is a complex process and a challenging task. Various factors may affect ERP system implementation leading to its success or failure in the organization. The on-going case study attempted to understand how and why different factors impeded successful ERP implementation in a public organization that outsourced the development and implementation of ERP system to a multi-national software company. The case study analysis explains that lack of consideration of certain factors such as top management support, user involvement, vendor support, overlooking of change management aspects, turnover of vendors team member, transfer/posting of top management of beneficiary organization affected ERP systems implementation in the organization and the project run over cost, behind schedule and was unable to meet user requirements.
Introduction: Organizations are adopting Enterprise Resource Planning (ERP) systems to meet the existing challenges of information era and for competitive advantages. ERP systems facilitate organizations to get the key business processes to be automated and integrated. ERP systems facilitate timely flow of information among different parts of the organization freely which consequently helps the management in making strategic decisions. ERP systems are integrated enterprise wide systems that automate core enterprise activities such as human resources, manufacturing, finance and supply chain management etc. to generate and access information in real time environment (Rasmy et al., 2005; Nah and Lau, 2001). Various factors relevant to ERP implementation success or failure have been highlighted in the past research, however, mostly the research has been carried out in developed countries. (Moohebat et al., 2010). At present developing countries are also taking keen interest to adopt ERP systems in their organizations, so the factors that affected ERP implementation in developed countries may also need to be studied in the context of developing countries. 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?
The term “boundaryless” has come to describe the business organization of today and the future as well as its employees. A boundaryless organization is the opposite of a bureaucracy with numerous barriers and divisions. In contrast, the organization without boundaries offers interaction and networking among professionals inside and outside the organization. The organizational model is fluid and highly adaptive, much like an open system in biology. The form of the business is ever-changing. Professionals inside the organization form networks and links and emphasize collaboration on projects. Business relationships are informal and people come together when they share a common need or problem. Employees are grouped by competencies centered around technology, information, and expertise.
To be successful in the new boundaryless world of business requires a person to have strong team skills. It is important for employees to feel at ease with the free-form work structure and a situation that may border on chaos. The tremendous networking and linking that occurs changes the role of employees to that of a consultant. Employees no longer work in isolation but work as part of a team on broad, company-wide projects, like quality management, just-in-time methods, lean production, and supply chain management. Strategic alliances and collaborative arrangements, often between competitors and vendors, are another facet of the boundaryless organization. Keep reading…
Case Study about Diversified Distribution Solutions, Inc
Overview: Diversified Distribution Solutions, Inc. (DDS) provides total supply chain management services to a number of market sectors, particularly major retailers and distributors.
Situation Analysis: With a customer base that includes some of the most recognizable companies in North America, DDS decided a few years ago to take the company to the next level. Wade Wilson, Executive Sponsor at DDS, knew that to accomplish this, they would need a set of inventory management solutions to provide scalable growth, incorporate innovative solutions, and most importantly, these solutions would be part of the strategic foundation on which they intended to build.
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.
Case Study about Critical Factors Affecting Supply Chain Management
Introduction: Supply chain management is applied by companies across the globe due to its demonstrated results such as delivery time reduction, improved financial performance, greater customer atisfaction, building trust among suppliers, and others. According to D’Amours, Ronnqvist, and Weintraub (2008), companies resort to supply chain practices to improve their performance. Thus, it is important to first understand how their supply chains work.
Identification of Supply Chain Management factors: In order to understand how a supply chain works, it is important to identify the factors affecting supply chain management. The identification of these factors has been based on previous work by Li (2002), and Quesada and Meneses (2010). The following sections show generic supply chain management factors and sub-factors that might affect supply chain management activities.
Case Study about Vendor Managed Forecasting: Small Enterprise
Abstract: Enterprises use supply chain management practices for improving business or supply chain performance. It is observed that supply chain technologies like VMI are now becoming an integral part of enterprise’s strategy. Even small and medium enterprises can adopt this practice and improve the performance of supply chain. This paper discusses vendor managed forecasting with the help of case study. It shows how a small enterprise improves supply chain performance by using demand related information obtained from retailer.
Introduction: In recent years, many enterprises have been compelled to share demand and inventory information with their suppliers and customers to get the competitive advantage. Vendor Managed Inventory (VMI) is one of such information sharing mechanisms adopted by organizations. In VMI, the vendor or supplier is given the responsibility of managing the customer’s stock, based on the shared information between them. Vendor coordinates and integrates all supply chain activities into a seamless process.
Situation: The adidas sporting goods brand is famous across the world and, like any household name, it could potentially become the target of protests and media pressure if its parent company’s policies and practices fail to win public approval. Using an external supply-chain has allowed adidas-Salomon to keep its costs down and remain competitive. However, the company’s supply chain is long and complex, relying on about 570 factories around the world. In Asia alone, its suppliers operate in 18 different countries. Moreover, its cost-saving use of external suppliers is not without risks: in particular, the company has less control over workplace conditions at its suppliers’ factories than it would have at company-owned sites.
Targets: Outsourcing supply should not mean outsourcing moral responsibility. Recognizing this, and having regard to the risks and responsibilities associated with managing a global supply-chain, adidas-Salomon has designed and implemented a comprehensive supply-chain management strategy. That strategy is to source the company’s supplies from the cheapest acceptable sources rather than from the cheapest possible. The company has its own so-called “standards of engagement” (SOE) and the level of acceptability is based on the values of the company itself. Contractors, sub-contractors, suppliers and others are therefore expected to conduct themselves in line with adidas-Salomon’s SOE..