Synchronous supply chain

Supply chain simulation, global Supply chain software Supply chain system leader Supply chain, synchronized Supply chain, inter-corporate Supply chain, intra-corporate Supply chain vision Supply chain visualization Supply chain value analysis Synchronized processes... 

Build inventory of high-demand or predictable-demand products When most of the products a firm produces have the same peak demand season, the previous approach is not feasible. In such an environment, it is best for the firm to build products that have more predictable demand during the off-season, because there is less to be learned about their demand by waiting. Production of more uncertain items should take place closer to the selling season, when demand is more predictable. Consider a manufacturer of winter jackets that produces jackets both for retail sale and for the Boston police and fire departments. Demand for the Boston police and fire jackets is more predictable these jackets can be made in the off-season and stocked up until winter. The retail jackets demand, however, will likely be better known closer to the time when they are sold, because fashion trends can change quickly. Therefore, the manufacturer should produce the retail jackets close to the peak season, when demand is easier to predict. This strategy helps the supply chain synchronize supply and demand better. 

The framework is mainly based on the supply chain management framework of Rohde et al. (2000). Rohde s work is gradually enhanced to address the aspects of synchronized decision making within the value chain and the integration of supply, demand and value management concepts as shown in fig. 17. The framework is structured into the areas value chain, processes and methods. 

Scharlacken JW, Harland D (1997) Global Supply Chain Planning Synchronizing Operations and Logistics with the Pulse of the International Marketplace. 40th APICS International Conference Proceedings 211-219... 

A similar solution but deriving from a business environment is offered by SAP, a leader in business software. The business software mySAP permits a transparent and synchronized supply chain with direct access of the production management to yield, personal costs, maintenance, raw material and energy consumption [105],... 

Anderson, D., and Lee, H. (1999), Synchronized Supply Chains The New Frontier, Achieving Supply Chain ExceUence Through Technology Project, www.ascet.com/ascet. Understanding the New Frontier. 

An integrated/synchronized set of supply chain and operations planning tools that cover the strategic planning (facUities, products, suppUes... 

Efiicient Consumer Response (ECR). These are associations of companies to synchronize the supply chain. (Disney et al. 2002). 

One measure of competition is response time or speed of response. Blackburn [6] and Stalk [86] describe firms that compete on delivery speed. One example is Atlas Door, an industrial door company that coordinated its supply chain to offer custom door delivery (for reactors or furnaces) within two weeks, when the industry standard was over four months. Atlas performed at this level by coordinating order quotation and scheduling production, excess capacity, and tools, synchronizing all components so that a complete kit was delivered to the construction site. Atlas s market share increased rapidly to 80% of the industry volume within five years, with a 15% price premium. 

Traditional supply chains are operationally disconnected and reactive to demand. Demand volatility and operational complexity require supply chains to become more resilient. Market-driven value networks begin with conscious choices that integrate and synchronize supply with demand channels and product portfolios. 

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. 

Demand uncertainty Information sharing and tight coordination can allow companies to regain control of supply chain efficiency. Sharing of demand information and synchronized planning across the supply chain are crucial for this objective. 

Before applying the five focusing steps, it is important to define the system or the scope of the process to be synchronized. The system could be a plant, a value stream within a plant, or a supply chain composed of several plants including suppliers and the customer. In any case, it is important to first decide what the boundaries of the system to be synchronized are. Next, we must describe the purpose of the system and decide how to measure it. As stated earlier, we must know just what we are seeking and we must set up measurements to achieve those results. It cannot be overemphasized that the measurements will determine the performance, so we had better be monitoring the important things and not just the traditional cost accounting factors such as efficiency and utilization. 

This model is based on the concepts of constraints management and synchronous flow, which are rooted in the fundamental laws of physics. (See Chapter 7 for a further description of Constraints Management.) Focusing on a single control point and subordinating all other resources and processes to that point can synchronize any system. The obvious point to use as the control of a supply chain is the market that it serves. It makes no sense to produce or process any more than the market demands and it is fully intuitive that the entire system should be focused on producing just what the market wants. While this seems like a statement of the obvious, there is ample evidence that the business world does behave in this manner. To quote Mark Twain Common sense is not very common. ... 

The synchronized supply chain has been tested repeatedly and it does address the more common problems of the traditional approach. The key is communication from the market. Material and information is released into the system based on the consumption at the primary control point. Every supplier of raw material as well as every producer along the supply chain is linked to that actual demand. Strategically sized and located buffers of inventory are designed to absorb the unpredictable variability, and sufficient protective capacity is planned to maximize the velocity of the product flow. As a result, the waves of demand are avoided and the productivity of the entire system is made much more predictable. As well, the properly synchronized system is more stable and easier to manage. 

A key factor for the successful construction of e-network is that each organization in the supply chain looks beyond the basic function within the business and synchronizes its processes with the entire supply chain. Based on this concept, the network construction may not achieve the required result without mapping the process and considering the capacities of the other processes of the entire chain (Al-Hakim, 2003). Standardization of business processes is necessary to allow the communication and integration between business partners of the supply network since the complexity of processes in the supply chain has grown exponentially (Gunasekaran, Patel, Tirtiroglu, 2001). 

E-supply chain technologies have played a very critical role in making this possible by providing the visibility needed for effective synchronization and compressing the time requirements. 

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