Supply chain levels

In addition to the general systems inertia already mentioned, the uncertainties that always remain in view of all iimovations represent significantly more effective barriers to iimovation than all positive or negative motives and interests of the participants, which could be ascertained in the various case studies. The need to focus on innovation systems at supply chain level as well as overcoming system inertia and uncertainties and/or lack of knowledge, as fundamental barriers to innovation are some of the important findings of the SubChem project . However, this in turn produces new questions. 

Model of innovation systems at supply chain level ... 

The example of the textile chain demonstrates (i) how much the techni-cal/aesthetic quality of products and chemicals-related product security are interdependent and (ii) what requirements exist for a quality management system beyond the supply chain level. Only the major brands can take this initiative on a global scale. For cosmetic, medical devices and food products, as well as technical products with high safety requirements (such as aircraft), management systems beyond supply chain level have now become a matter of survival. The same holds true for products that are subject to special waste and design regulations in Europe (such as automotive vehicles and electronic equipment). 

The ability and willingness of producing companies to co-operate is limited by the competitive situation. This is not only due to subjective interests but also concerns branch cultures and limited management resources. In a moderating and catalytic role, state institutions could initiate branch dialogue (branch agreements), new cooperations at the supply chain level as well as the development of instruments for practical communication and assessment. This can... 

Applications of sustainable manufacturing can be found across various scales, from the global/ supply chain level down to the process level of manufacturing (see Duflou et al. 2012 for a review of how energy and resource efficiency is addressed at the different scales). At the global level, techniques can be utilized to optimize the... 

The supply chain level study revealed that technologies, such as RFID, allow supply chain partners to redefine the rules of business and roles of participants within the life cycle of a product (or a service). For instance, the RFID-enhanced... 

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

To be effective at the supply chain level, a process focus (i.e., top-down) is a necessity. Reasons include avoiding local optimums at the expense of the overall system, the basic interdependence of departments and businesses in the supply chain, and the advantages of shared knowledge to solve problems. But there are also many obstacles, including physical separation, suspicion, poor cost accounting, counterproductive performance measures, and lack of skills or numbers. So, collaboration... 

CPFR is a good example of an industry s response to the need for supply chain change. But what general form might collaboration take between two or more trading partners An earlier article outlined a vision for Stage 3 supply chain collaboration efforts. " The term Stage 3 comes from the third, or supply chain, level as shown in Table 3-3. Multicompany collaboration features include ... 

Intermediate-term roles and responsibilities, often defined as monthly, quarterly, or yearly, involve production planning and customer fulfillment policies. This could include the S OP process described earlier in this chapter. Another option is operating cost reduction — supply chain level This implies that the supply chain manager will undertake or participate... 

Operating cost reduction — supply chain level + + + + ... 

In Section 15.2.2 we suggest that a steering eommittee guide the destiny of each project. The senior member should represent the appropriate organizational level. In strategic projects at the business unit and supply chain levels, that should be the business unit chief executive. 

The emergence of the supply chain function in companies may bring a solution to this conundrum. As a company grows in complexity, the need will grow to invest ownership of supply chain metrics, not with Operations or Sales, but with the supply chain function — the experts in tools needed to manage supply chain level metrics. 

Develop extended product services to fill that space between supply chain levels. An activity system such as Acme s described in Chapter 10 is the recommended approach for this task. 

We have also observed that some volume fluctuations are completely within the control of management. Excess cost from these causes is self-inflicted due to nontechnical, nonmarket reasons. Their root cause lies in management practice. This indulgence of poor practice at the company level is especially destructive at the supply chain level. 

The consequence is that the product is launched and soon runs into trouble. Some of these consequences could have been avoided with better planning. The advent of competition on the supply chain level, added to rapid change in product design and shortened product life cycles, will make planning in the design phase even more important. Examples of such planning include ... 

Drum-buffer- rope In the Theory of Constraints, a generalized process to manage resources to maximize throughput. The drum sets the pace of production to match the system s constraint. Buffers protect the system from disruption and uncertainty. They are often placed to ensure that the constraint always has work. The rope communicates between the constraint and the gating operation that controls release of work into the system. The model can be applied at the factory and supply chain levels. (Adapted from APICS Dictionary, lOth edition)... 

Level plant loading Efforts to reduce variability in production at the business unit and supply chain levels. Level plant loading is considered a best practice for achieving effective supply chains. Drumbeat and takt time are related terms. 

PLAN processes SCOR processes that balance supply and demand. PP processes cover long-range planning at the supply chain level. PS, PM, PD, and PR cover shorter-term planning for Source, Make, Deliver, and Return. 

Sponsor An executive champion for a supply chain improvement effort. The level of the individual will depend on the level of the project — functional (department level), business unit level, or supply chain level. 

A between (global or supply chain level) vertical integration within a tier (comprising all units) would be to implement common strategies and policies to achieve a common (global) objective across units in their tier. 

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