Supply chain components

The beer game demonstrates the value of sharing information across the various supply chain components. In practice, supply chains are usually more complex and much harder to manage. Current research has investigated that in practice the bullwhip effect is due to the following reasons ... 

RETAIL SUPPLY CHAIN COMPONENTS 776 5.5. Information Technology 782... 

This figure symbolizes all the logistic supply chain components drawn from the Supply Chain Master reference model. To improve their logistic performance, companies have these drivers available dedicated to reliability. 

In this chapter, it will be briefly reviewed the supply chain processes based on the work developed by Lambert (2008), then it will be presented the three Demand Driven Supply Chain components proposed by the author, followed by a literature review for each one of the compraients. The reason to choose Lambert s processes review was due to its broad coverage of supply chain processes, including customers and suppliers. 

Supply chain components make use of a variety of software. Integration of these components and software under one platform would gain momentum, paving a path for new software in the market. 

The dimensions, in the left-hand column in Table 6.6, are markets, products, and operations. Markets are the segments as defined by the company. Products are those sold to that segment. Operations are the supply chain components (suppliers, manufacturing, and distribution organizations, equipment, and facilities) used to source, make, and deliver the products to the customers. 

Our recommendation is that planners create an Enable sphere, an idea introduced in Section 9.3. This sphere would include activities supporting product-producing spheres, the domain of SOURCE, MAKE, DELIVER, and RETURN. In short, if multiple spheres rely on common business rules, systems, and other supply chain components, they should be included in the Enable sphere. Here we describe and comment on each Enable process. 

Links can be of two types. Eirst, links are the ways partners in the supply chain coordinate their joint enterprise. Links can include any of the supply chain components — physical, information, financial, or knowledge flow — and the business rules that go with them. Strong links lead to a well-coordinated effort weak ones to an uncoordinated effort. Links are also... 

The concepts and methods outlined within CM preparation are intra-organi-zational, meaning that they were solely applied to the company s situation and its environment. A further inter-organizational assessment can be conducted by applying the concepts to supply chain components within different companies. The given methods can be applied analogically. By doing so, the core competencies within the supply chain of the company and the competencies of the competitor s supply chain can be assessed. 

All of the above performance measures are at one level of the supply chain, be it first, second, third tier supplier of materials, manufacturer, processor, distributor, warehousing, or retailer. Obviously, the immediate upstream provider and the immediate downstream customer will have an impact on the performance of a supply chain component and in turn each member will be judging the performance of its immediate upstream suppliers. However, the purpose of all the measures listed above, be they financial, operational, marketing or by investors is to achieve internal efficiency and ultimately to achieve an acceptable ROI. 

The Plan process covers the boundaries of the supply chain under consideration. As shown in Figure 23.1, this is presumed to be a multicompany affair. Each supply chain component can have Source, Make, and Deliver processes. These may be more or less important from partner to partner. For example, one partner may be a distribution company. Its Make component could be minor or nonexistent. Of course, a "make" capability could be significant as part of a postponement strategy. With postponement, also described in Chapter 26, the supplier commits to the final configuration late in the process — often in response to actual customer orders. 

A small incident may lead to the disruption of the entire supply chain network. Companies must understand both the risks and the vulnerability of their supply chain components to balance business efficiency and risk (Asbjomslett 2009 Craighead et al. 2007 Fahimnia et al. 2015 Hohenstein et al. 2015 Jiittner 2005 Kungwalsong 2013). 

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