Supply-chain Systems

Motives for the introduction of the new business model - higher competitiveness - cost reduction - strong supply chain system - long-term business relationship ... 

Obviously supply chains are global these days, and shipments are typically made by a variety of means, including cargo ships, air, rail, and trucks all of these can be late or can get in trouble because of the weather, traffic, industrial disputes, or other reasons. Supply chain systems like this are very complex, because of the uncertainties in deliveries, parts and shipments are lost and/or stolen, goods get damaged during shipment, or the number of international ports and customs often take unpredictable time to check shipments with different levels of safety/security, and many other reasons. 

Considering supply-chain systems, the use of relatively non-hazardous raw materials is envisaged. Hazardous products should be used only locally and intermediately. If both products and raw materials are hazardous for a given process, it is recommended to include further processes until returning to non-hazardous raw materials. In this case, an entire sequence of plants is needed. In this context, Rinard outlines a supply-chain system for the manufacture of toluene diisocyanate. Although chlorine is used in the system, it is not present in either the starting raw materials or the product. 

The distribution system may also be the initial point at which returns to the warehouse reenter the supply chain system, for example, if goods are supplied to wholesalers on a sale or return basis. Depending on the functionality and interfaces of the system, upon completion of successful deliveries, it may provide confirmation of this activity back to the Sales Order Processing System. 

Shang, J. S., Li, S., and ThdikamaUa, P. Operational design of a supply chain system using the taguchi method, response surface methodology, simulation, and optimization. International Journal of Production Research, 42(18) 3823-3849, 2004. 

Zarandi, M.H., Pourakbar, M., Turksen, I.B. A fuzzy agent-based model for reduction of bullwhip effect in supply chain systems. Expert Syst. Appl. 34(3), 1680-1691 (2008)... 

A 400 million upgrade to Nike s supply chain systems resulted in 100 million in lost sales and a 20 percent stock dip. The reason given by Philip Knight, then Nike s chairman and CEO, was "complications arising from the impact of implementing our new demand and supply planning systems and processes. 

Sainsbury s had exceptional expenses of 145 million in information technology and 119 in supply chain costs following the implementation of a new supply chain system. 

A weak link. Many of the projects implemented in this period were hastily defined and implemented. Knowledge of software and supply chain systems was scarce and the rate of change was rapid. Today s supply chain leader has inherited many of these poorly designed systems from the prior decade. 

In 2004, Scotts Miracle-Gro faced a crisis. Retailers were unhappy, sales were lagging, and on-shelf availability was an issue. Because of demand volatility (a combination of season, climate, weather, consumer preference and competifive behavior), Scotts traditional supply chain systems were just not up to the task of delivering the right product at the right time at the right place. The lack of supply chain reliability had become a major issue in their three major retail relationships Home Depot, Lowe s, and Walmart. This was significant. These three relationships represented more than 80 percent of the company s channel volume. 

As companies move forward in the definition of new processes, they will quickly realize that their supply chain systems are obsolete. Existing technology providers will fight this awakening, ft will be uncomfortable. Solving the problem is a revolution that cannot be tackled as an evolution. To build the effective market-driven value network, the supply chain will require a redesign. 

The supply chain is a complex system with complex processes and increasing complexity. As we approach 2020, business complexity will continue to increase, putting pressure on the supply chain system. Some general trends are clear ... 

Supply chain talent, as shown in Figure 6.9, ranks fourth as a gap in priority for supply chain executives today, ft follows dirty data, product proliferation, and commodity price escalation. As the first generation of supply chain pioneers continue to retire through 2012, it will become a more pressing issue. To solve it, a new industry will evolve to support the development of company-specific training. To help companies understand the complexity of supply chain systems, new forms of experiential training programs will evolve. 

Ayers J (2006) Handbook of supply chain management, 2nd edn. Auerbach, Boca Raton Ayers J, Malmberg D (2002) Supply Chain Systems Are you Ready Information Strategy The Executive s Journal... 

Muckstadt, J.A., Murray, D.H., Rappold, J.A., Collins, D.E. (2001). Guidelines for collaborative supply chain system design and operation. Information Systems Frontiers, 5(4), 427-453. 

E-Supply Chain System at Valvex and Its Integration with... 

E-Supply Chain Systems at Valvex and /fs Integration with ERP Systems... 

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