Proactive supply chains

Nortmann, Andreas Ulf Jansson. 2004. Ericsson s proactive supply chain risk management after a serious sub-supplier accident. International Journal of Physical Distribution Logistics Management 34(5) 434- 56. 

Smeltzer L.R., Siferd S.P., 1998, Proactive Supply Chain Management The Management of Risk, ICFAI Journal of Supply Chain Management, 34(1), pp. 38-45. 

Fig. 4.1 The predictive-proactive supply chain risk management methodology Samir Dani, 2007...

Industry uses benchmarking for everything costs, supply chain, all those kinds of things. Maybe that is where people need to go in hiring to benchmark departments in terms of what is or is not a good environment and to look for the blind spots. We heard from folks who have a proactive department they have a critical mass of women, yet it is still perceived to be a hostile environment. Where are the blind spots Benchmarking should be able to help. 

Many companies, both within the chemical industry and in other sectors, have recognized benefits from involving their suppliers and customers in various aspects of their business. The area of supply chain management (SCM) has become a critical element in the overall business strategy of improved productivity, reduced costs, and better control of the quality and potential risks associated with raw materials and intermediates. Proactive management of supplier environmental performance, as practiced by Hewlett Packard, can lead to product and process simplification, improved resource efficiency, product quality enhancement, reduced liability, and customer perception of the company as an industry leader. 

Most companies do not have the luxury to wait for demand to occur and then react to a customer order. Because of the intricacies of supply chain processes, they must plan to be ready to fulfill channel sales. This includes sensing demand signals, proactively shaping demand, and translating demand into the most effective supply response to meet customer orders. 

Demand management is the process that balances the customers requirements with the capabilities of the supply chain. With the right process in place, management can match supply with demand proactively and execute the plan with minimal disruptions. A good demand management process uses point-of-sale and key customer data to reduce uncertainty and provide efficient flows throughout the supply chain. 

Based on Croxton et al. (2002), the demand management process is concerned with balancing the customers requirements with the supply chain capabilities. This includes forecasting demand and synchronizing it with production, procurement, and distribution capabilities. A good demand management process can enable a company to be more proactive to anticipated demand. 

Keith Kennedy of CGR Management Consultants describes the next level as proactive systems. These systems offer ways to produce competitive advantage using technology to speed the decision-making process. Later we describe how proactive systems can improve the cost effectiveness of supply chain operations. 

Once the first two elements are in place, the coordination element offers the best leverage for better supply chains from information systems. This will eome through the implementation of proactive systems, which will be by no means trivial. 

In supply chain management (SCM), linkages play the roles of eon-ductor and sheet music. The SCOR model from the Supply-Chain Couneil is an example of one method for coordinating the supply chain. Another example, in the Toyota Production System, is the kanban system that signals the need for more parts. Proactive systems deseribed in Chapter 30 that use business rules to automate decision making are another example. The decision to use any particular technique at a point in time is an important supply chain design feature. 

SCO Supply chain orientation. A term coined by the University of Termessee Supply Chain Research Group. It is a management philosophy that recognizes the implications of proactively managing both the upstream and downstream flows of products, services, finances, and information. 

Workflow A class of software application that includes automation of the flow of information according to process rules. Similar to, but not as encompassing as, a proactive systems approach in which the recjuirements of decision makers are part of the redesign of the supply chain. 

Khanna M, Speir C (2007) Motivations for proactive environmental and innovation pollution control. Am Agric Econ Assoc Annu Meet 1-35 Kumar S, Teichman S, Timpemagel T (2012) A green supply chain is a requirement for profitability. Int J Prod Res 50(5) 1278-1296... 

Proactive education of customers to set expectations and encourage close working relationships Knowledge of long-lead items, visibility to supply resources, agreement on levels of flexibility 5-Supply chain governance 0 X... 

Proactive education of Knowledge of long-lead items, visibility 5 - Supply chain governance o... 

Levi s, which has long been known as a sustainable business leader in its industry, says it s taken the Detox Pledge in China, responding proactively to yet another report, this one by live Chinese non-profits. Sustainable Apparel s Critical Blind Spot. It too lists Levi s as linked to environmental contamination through its supply chain in China... 

It is evident that e-supply chain strategy will be mostly drivai and financed by large multi-site and multi-national companies. Only partial benefits will be achieved if the e-supply chain initiatives of larger companies focus solely for their own operations and sites and do not include the key suppliers. Proactive policy should be in place in larger organizations to involve and train key partners in the development and implementation of an e-supply chain network. 

The VCI is an extension of the type of information sharing practised in ECR. It aims to improve end-to-end supply chain efficiencies from the sourcing of raw materials to the dehvery of finished products in the consumer s hands. The goal of VCI is to link systems applications in a number of supply chain industries (e.g. distribution, import/export, warehousing) and share dynamic business information between new and existing trading partners. Sainsbury s is a proactive partner of VCI. 

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