Supply chain response time

PLAN processes have an operational focus, such as generating production schedules. They also cover periodic replanning project efforts, such as evaluating assets and supply chain partners. These are neglected in many companies, with replanning done only in response to a crisis of some kind. The effectiveness of PLAN processes is measured by supply chain response time and flexibility to react to supply and demand changes. 

The Supply Chain Council (www.supply-chain.org/) recommends a metric system for performance covering the four areas of customer satisfaction/qual-ity, time, cost and assets. They provide a range of measures for each category and also provide benchmarking for their members. A sample measure is supply chain response time (SCRT). 

Consumer packaged goods (CPG). The most common type of CPG supply chain is based on flows turn volume, promoted volume, and new product introductions. Hirn volume (frequently ordered products with stable demand) supply chains are designed to drive an efficient response. Heavily promoted items require a responsive supply chain and new products need an agile supply chain. New product introductions introduce the greatest variability and risk. The challenge is adapting the supply chain over time as companies launch promotions and new products into the market. 

The supply chain learning system is in our future. Rules-based ontologies, sentiment analysis, learning algorithms based on industry benchmarking in the cloud, and real-time learning systems for supply chain planners are all possibilities. Within 10 years, companies will systemically test and learn based on real-time data. While today s supply chain response is a fixed and often a dumb response based on historic data, the supply chain of the future will listen, test, and learn in real time. 

Pull-based ATP Models Pull-based ATP models perform dynamic resource allocation in direct response to actual customer orders. Models of this type can range from a simple database lookup to sophisticated optimization. The purpose of pull-based ATP models is to make best use of available resources (including raw materials, work-in-process, finished goods, and even production and distribution capacities) to commit customer order requests over a period of time across a supply chain. The time horizon in pull-based ATP models is usually so short that a company can assume full knowledge about the availability of production resources. Pull-based ATP models are responsible for matching complicated customer requests with diversified resource availability. The specific decisions usually involve which orders to accept and, for each order, what quantity and which due date to promise. 

Mature risk management should also take the aspects of supply chains responsibility into account in social and environmental terms. At the same time, this type of management means the conscious identification and evaluation of risk, noticing the dependencies between risks and potential scenarios, concentration on transparent communication on risk in the whole company and in the supply chain (Deloitte 2011, p. 10). 

Where domestic companies can compete is on response time. I can manage my supply chain 10 times better with domestic companies in a weekly replenishment model. 

Despite these recent studies, a critical gap in the literature remains in assessing the trade-offs between supply chain efficiency (i.e., total logistics costs) and supply chain responsiveness (i.e., supply delivery time, demand fulfillment) for aerial delivery operations in the entire military HA/DR supply chain network. None of these previous studies considered the delivery of HA/DR consumable aid via aerial delivery mechanisms. Further, none of these previous studies considered the trade-offs of response time, total cost, and amount of demand satisfied. Therefore, we seek to fill the gap in the literature while providing military HA/DR decision makers with strategic decision support using a multiple criteria decision analysis (MCDA) framework. 

The state provides to industry a harmonised framework for determining, evaluating and communicating risks in the European market (REACH). This also includes a form of standardisation for procedures, responsibilities and time frames in the chain, and options for state sanctions. This increases the market potential and innovation incentives for demonstrably application-safe chemical products. At the same time the basis is created for efficiency gains by employing universal IT solutions in the European market. However, the required framework also means that implementation is left to the industry and the market in many areas in order to leave enough scope for diversified solutions that are specific to the different supply chains. Simply the announcement of the REACH system has improved vertical communication in the supply chains and supported the consolidation of substance and application knowledge. 

The political requirement within Europe, that the industry should be responsible for the assessment of the 30,000 substances currently on the market and their applications is in line with the voluntary commitment of responsible care by the chemicals industry. Implementation of this -commitment has so far failed because many users of chemical products have not complied with it. The REACH system proposed by the EU Commission would create a regulative framework for structuring responsibility and information flow along the supply chain, in a binding marmer for the first time. The commercial institutions should respond to this state initiative. 

Over the course of time, chemical distributors have developed in the complex small-volume, rapid-response area of chemical distribution into playing an important role in the supply chain from chemical producers to consumers. In addition to fundamental delivery capabilities, distributors offer value-added services, skills in complying with environmental and safety standards, and economy of delivery to remote and small customers. 

Production management is responsible in the short term for planning production in order to cover the overall supply chain demand, and for delivering timely, complete, and quality-checked production volumes accordingly. In the long term, it optimizes the production network configuration and available capacity. 

Figure 22.5 shows how product, customer, and market characteristics can determine different SCM strategies and design implications. For example, the strategic choice to serve niche customers with high price specialty chemicals is only tenable if the high-value inventory is centralized to reduce costs, and if a fast, responsive supply chain is set up to fill customer orders within the requested lead time from central inventory. 

The lure of parametric release to commercial organizations is undoubtably monetary, either as reduced inventory costs or as reduced lead times within the supply chain. The cost balancing this out is better process control. From the standpoints of quality, sterility assurance, and responsibility to the recipient of the sterile product, the loss of a wholly inadequate end-product test is a low price to pay for more attention being given to the process characteristics that really influence sterility. 

Working with supply chain partners (implementing security countermeasures) Technology can be used for both safety and security (e.g., GPS to indicate location en route, emergency response to accident, and monitoring time-sensitive chemicals/materials). Technologies focused on security should not distract the main function of the carriers (e.g., the safe transport of chemicals from point A to B). 

Online auctions for business are an extension of supply chain applications of the Internet, by which firms seek parts and supplies from a large pool of potential business partners. The real-time interaction in these auctions differs significantly from contract-based supply relationships, which may be stable but often inefficient in terms of costs. A more flexible and responsive supply chain relationship is required as the manufacturing process itself becomes more flexible to meet changing demands in real time. Especially for digital products, the business relationship between suppliers and producers may be defined by the requirement for immediate delivery of needed components. 

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