Customer linking supply chain with

Linking the Supply Chain with the Customer Functional and innovative supply chains Use of Quality Function Deploymentfor capturing customer requirements... 

Section 5.1.3 described the differences between innovative and functional products, which are compared in Table 5.3. A requisite to linking the supply chain with the customer is recognizing the difference between the two types. 

Linked supply chain companies can also have varied models within their networks. For example, an MTS company might sell components to a MTO company. This would likely be the case with Dell component suppliers. The suppliers use the MTS model to quickly provide components on demand, while Dell uses the MTO model to fulfill customer orders. 

Supply chains that burst to many tier 1 customers/suppliers will strain corporate resources and limit the number of process links the focal company can integrate and closely manage beyond tier 1. In general, managers in companies with immediately wide vertical structures actively manage only a few tier 2 customers or suppliers. Some companies have transferred servicing small customers to distributors, thus moving the small customers farther down in the supply chain from the focal company. This principle, known as functional spin-off, is described in the channels literature (Stem et al. 1996) and can be applied to the focal company s network of suppliers as well as to its customers. 

Thousands of activities arc performed and coordinated within a company, and every company is by nature in some way involved in supply chain relationships with other companies (Bowersox 1997b Stigler 1951 Coase 1937). When two companies build a relationship, certain of their intemtil activities will be linked and managed between the two companies (Hakansson and Snehota 1995). Since both companies have linked some internal activities with other members of their supply cheiin, a link between two companies is thus a link in what might be conceived as a supply cheiin network. For example, the internal activities of a manufacturer are linked with and can affect the interned activities of a distributor, which in turn are linked with and can have an effect on the interned activities of a retailer. Ultimately, the internal activities of the retailer are linked with and can affect the activities of the end customer. 

With customer requirements and the type of distribution determined, management must select supply chain institutions for both inbound and outbound portions of the supply chain. Factors to consider when selecting supply chain members include fintmeial strength, capabilities ability to link up processes, ability to grow with the business, and competing supply chains. 

The focus of a company is to be competitive in the marketplace and thus be profitable. A competitive supply chain has to provide customers with the expected or superior performance. But what does it mean to be competitive The competitiveness of a supply chain refers to two aspects of the supply chain (1) the link between a supply chain s choice of its competitive metric and the corresponding choice of its architecture and (2) the impact of competitors on a supply chain s performance. While successful firms in every industry often have unique capabilities, an important question for every firm is to adjust its supply chain architecture to remain competitive in the presence of a changing environment. 

There is a variety of software packages for each link in the supply chain. As computers and telecommunications equipment become cheaper, there will be even more advanced types of software available. To simplify the presentation of the types and role of the software used, software will be discussed here in 3 major sections. The internal linkages (software integrating our own firm s functions) will be discussed first, because this usually serves as the platform for integrating the firm with other software. Second, software that links our firm to our customers will be examined. Third, software that links our firm to our suppliers will be the final type that is reviewed. 

The story illustrates forgotten obstacles facing those who bring solutions to user-customers at the end of supply chains. These innovations save time and money for both buyer and seller. However, it is not always easy to link with the customers and convince them to adopt your innovation. 

We introduce these topics by recommending that, to link with the customer, supply chain design not be left to happenstance. In companies with isolated functions along the supply chain, this is rare. Higher-level... 

The discussion of the demand management function raises the issue of responsibilities assigned to what we will call the supply chain manager. This is certainly a nontrivial consideration because many companies have done just this. Erecting a management function with this title and real power over the supply chain will be seen as disruptive to other functions in a mature organization. Each company must assess whether or not it will improve links with the customer. 

Third order optimization of effort across the activities and with suppliers and distribution channels. Third-order fit includes the elements often referred to as supply chain integration. Flexible Production and Finished Goods provide options for distributor customers competing with just-in-time contracts. Flexible Interfaces increases the ability to link up with the supply chains of Acme s customers — notably distributors. 

This case describes the role of consolidation centers in the lean supply chain. The description here articulates the rules for designing a consolidation center, a supply chain middle man that makes the total chain more effective. Consolidation centers are playing an increased role in many supply chains, particularly as feeders to manufacturing operations that produce complex products with many components. Every supplier cannot or will not link its operations with its customers. The consolidation center enables this linkage — at least until better suppliers can be found. In some cases, consolidation centers are under the control of third-party logistics providers responsible for ordering material, its transportation, and its preparation for the manufacturing center. 

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