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The Supply Chain
Transcript of The Supply Chain
It deals with with external resources brought and used in the organization for production.
knowing the right model of procurement, can contribute to the function of the supply chain design. Challenges in
Supply Chain Purpose of Supply Chain Design Definition of Supply Chain Supply Outline Elements on Designing Supply Chain Merchandise Flows Market Structure Chain Challenges in supply chain deign Fetoun AlZahrani
Shomoukh Aldakheel MARKET STRUCTURE is the number of firm producing identical products which are homogeneous. PROCUREMENT COST It is the buying of goods at a lowest possible cost to meet the needs of consumer in terms of quality, quantity, time and location. PRODUCT COSTS It is the cost from labor,
materials, supplies and manufacturing overhead
which are used for production. IBM Analytics "Smarter Commerce" Production Process Managing constraint and margins
Balancing strategic objectives with operational Design Done by : Supply Chain is : a process where various departments come together to perform certain functions such as buying raw materials from suppliers. Demand Estimation Supply Chain : DEMAND ESTIMATION is a process that involves estimation the amount of demand for a product or service depending on particular period of time. a process where various departments come together to perform certain functions such as buying raw materials from suppliers. Secondly, to transform the materials into finished goods. And lastly is to distribute the finished goods to retailers for customers Market Segment Market segmentation is dividing the market to target certain types of costumers depending on their need to be able to satisfy them. Segment customers using one of several approaches Detailed Process Design Demographics Geographic Behavioral. Suppliers Manufacturing Facility Storage Facility Transport Vehicle Distribution Center Retailer LOGISTICS COSTS It is the cost of management process where goods move from one country to another. It can relate to certain costs such as transportation. Converting inputs into outputs depending on what market needs. This will involves two resources Materials and components that are transformed into end products. Managing constraint and margins If product demands are highly variable, the lowest cost solution will not lead you to the highest profits. 1) It will affect profit , cost , facility ,supplier and demand allocations. production process includes a sequence of links in a production chain.
This will add value for both manufacturing process as well as marketing process. Manufacturing Facility Design Managing risks Manufacturing facilities design is "the organization of the company's physical facilities to promote the efficient use of the company's resources such as people, equipment, material, and energy" (Meyers & Stephens, 2005, p. 1) There is uncertainty and risk in demand,supply and lead times that companies need to factor in when designing supply chains Companies need to be able to adjust to unforeseen market changes. Companies need to balance short-term outlooks with longer-term plans and objectives Balancing strategic objectives with operational Manufacturing Facility design depeding on Location, Number of factories, size of division, plant layout, and materials handling HOW TO OVERCOME CHALLENGES IN SUPPLY CHAIN DESIGN 2) 3) Viewlocity Technologies enable you to employ techniques that maximize profits It helps you to predict how alternative risk management strategies will impact your performance and ability to react to market changes help you optimize long-term capacity plans for production and warehousing as well as allocation of customers’ orders to warehouses and plants. Review Literature Case Study (Finch 2006). "It aims to link all the supply chain agents to jointly cooperate within the firm as a way to maximize productivity in the supply chain and deliver the most benefits to all related parties" • Designing Supply Chain Network for each industry or business involves arriving at a satisfactory design framework taking into all elements like (Management Study Guide 2008). Product Market Process Technology Costs External environment
and their impact Besides evaluating alternate scenarios suiting your specific business requirements When it comes to supply chain, company should understand how to organize assets based on operations and performance of financing. (Viewlocity) Thus, one must know what the challenges that might arise and how to overcome all challenges in the supply chain design. EXAMPLES Supply Network Upstream Downstream Overhead Overhead are indirect expenses that is a part of operating a business. It can either be fixed or variable expenses. This is linked with the supply chain design to manage incurred costs that may be crucial to the supply chain design. Thus, the company has to control overhead costs to avoid errors throughout the process. Cost COST OF SALES Most expenses are linked to the activities that are controlled through the supply chain processes and the usefulness of these processes determines the cost of each activity Developing supply chain process affects the process competencies which affect the cost of sales and also the profitability. BEST FIT PROCUREMENT MODEL The starting point of every production depends on Procurement. Thus, knowing the right model of procurement, can contribute to the function of the supply chain design It deals with with external resources brought and used in the organization for production. •FG Supply Chain consists of all activities involved in movement, storage and distribution of Finished Goods from the Delivery point of Plant to the Point of Sale.• Finished Goods supply chain network Depend on Number of warehouses, location & size of warehouses, inventory flow and volume decisions, transportation. Buildings, machinery, computers, and people that carry out the transforming processes Transforming Resources Transformed Resources
They have to consider how to market their product or services as well as the doing the advertisement and promotions. Sales and Marketing Decisions Business manager must considering the sales pricing, sales channel, network strategy, order management and fulfillment process. This connects with logistic costs.
Several companies started to move their supply chian and shipping centers where they know is more cost effective.
Thus, this action reduces as well as improve the costs incurred by the company. OPTIMIZATION AND REDUCTION COST: Review Literature
Definition of Supply ChainProcess
DesignElements on Designing Supply
Chainpurpose of Supply Chain
DesignChallenges in Supply ChainHow to
Overcome Challenges in Supply Chain Design