Supply chain business units

Strategic Strategic projects at the supply chain, business unit, or functional levels Identified in strategy, or Develops strategic capability... 

The determination of transfer prices between internal business units is out of the scope models to determine transfer prices in supply chains are described for example by Gjerdmm et al. (2001). 

United Parcel Service (UPS) is another company epitomizing innovation. UPS has become entrepreneurial by (1) implementing a new higher-margin service, (2) managing its customers supply chains, and (3) providing financial services to small businesses. UPS is not only... 

We now discuss a recent example of simulation that models three alternative configurations for a supply chain in the mobile communications industry at the Ericsson company in Sweden. A supply chain consists of several links which may be separate companies or independent business units of a single large company. Examples of links are retailers, wholesalers, distributors, and factories. Customary strategies imply that, at the individual links of the supply chain, decisions are made based on... 

Typical TRPM systems perform some of the same operational tasks as transportation administration and management systems but have the ability to plan and execute enterprise-wide pians rather than single business unit plans. Such systems, therefore, must consider inbound, outbound, and replenishment demands throughout a global supply chain network. 

Companies are not limited to only one of the four types. Instead, each company can be involved in several company network types on a horizontal as well as a vertical level. In the automobile industry, for example, it is common practice for companies to cooperate in regional networks with companies on the same value-adding level and at the same time be part of the global supply chain of an automobile manufacturer. In other words, companies do not necessarily have to focus on one cooperative arrangement. Different business units might establish different cooperative arrangements. 

Can the trend to keep moving operations offshore be reversed I believe that it can, but it will require a change in the w many U.S. companies are currently doing business. As we look at the subject of making the needed quantum leap by managing the supply chain, we will see an opportunity to develop and maintain efficient and competitive businesses within the United States. 

As companies rely more on their business partners or suppliers, scheduling within production units has to be extended to coordinate between members in the supply chain. 

In the third quarter of 2011, Sony s consumer product and services unit sales fell 24 percent year-over-year. Sony reported The floods in Thailand were one of the major factors behind the significant decrease in sales and deterioration in operating results for the quarter. Several overall manufacturing facilities incurred direct damage, resulting in a halt in production and the delayed launch of certain products. Moreover, the supply chain across the entire industry was impacted and the demand decreased as companies we do business with were affected. The decrease in sales and significant deterioration in equity in net income of the affiliated companies caused us to report an operating loss for the quarter. ... 

Level 1 Supply Chain Level 2 Strategic Business Unit Level 3 Individual... 

The third level of strategy is functional. The business unit strategy should drive the functional area strategies such as Marketing Sales, R D, Finance, Distribution, and Manufacturing. In this model, the supply chain is an anomaly. It is neither a function nor a business unit. In fact, it rises above both. It is a collection of cross-functional processes that extends beyond the borders of the business unit. 

However, supply chain processes like product development, launching new products, and customer fulfillment are horizontal processes. The collaboration required makes it difficult to write a process-oriented substrategy for the business unit. A fresh challenge arises in pushing those horizontal processes outside the company, like one must do for the supply chain. 

These thoughts call certain questions to mind with respect to the supply chain. Are not the eight areas applicable as much to a supply chain as they are to the manufacturing function at a link company Will not a structural decision on vertical integration depend on the availability of viable trading partners Does not the supply chain have to mesh with the business unit strategy — even if we must redefine the business unit as a chain or extended enterprise rather than a stand-alone company ... 

If it exists, is the business unit strategy relevant to manufacturing, much less supply chain, decisions Are patterns of decision making within manufacturing and other supply chain functions consistent Would the best decision for manufacturing be the best for the supply chain ... 

Actually, it is relatively easy to have a business unit strategy. But, can a supply chain have a strategy if it is a collection of partners linked for the common good Who is the governing authority for heading the strategy effort In a recent MBA class in China, a student observed that a... 

What level is the project — function/department, company or strategic business unit (SBU), or supply chain ... 

Changes Competition SI Function S2 Business Unit S3 Supply Chain... 

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