Drivers and Participants of Supply Chain Management PDF

Drivers and Participants of Supply Chain Management Introduction – There is a particular collection of needs for each sector or community of consumers in the hospitality industry. These demands must be met efficiently by the supp...

Drivers and Participants of Supply Chain Management Introduction – There is a particular collection of needs for each sector or community of consumers in the hospitality industry. These demands must be met efficiently by the supply chains that represent various markets. Any markets are demanding and are paying for strong responsiveness. Some markets need to rely more on the quality of their supply chains. The cumulative impact of each driver’s decisions determines how well the supply chain serves its demands and how profitable it is for the actors in the supply chain Learning At the end of this chapter, you should be able to: Objectives Define the different organizations that participate in any supply chain; Identify the major supply chain drivers Differentiate the different supply chain drivers based on responsiveness and efficiency; and Asses the main steps to align supply chain and business strategy and realize how they affect the way a company implements the major supply chain drivers. Supply Chain Major Drivers Supply chain administration is the transfer of various practices and procedures of products from one location to another. Providers, stores shipping, logistics, supply and services. Customer experience management, order delivery, package design, and refund management are the main processes in the supply chain. The rivers of the supply chain are assisted by these features. As a result, logistics, storage, inventories, knowledge, and purchases of goods and services are among the main factors of supply chain management. The following are the major drivers of Supply Chain – Production – Inventory – Location/Facility – Transportation – Information Production – Refers to the ability and storage capability of a supply chain. In this operation, master planning of plant resources, workload balance, quality control, and maintenance are developed. This activity involves the questions “What is the industry looking for?” and “How much and by when should these goods be produced? Inventory – What stock should be stored in a supply chain at each stage? What stock should be kept as untreated, semifinished, or finished products? The inventory’s main objective is to serve as an insecurity shield in the supply chain. Inventories may be categorized into 3 groups, e.g., inventory of raw substances, process inventory, and inventory of finished products. This is one of the leading forces in supply chain management which would enable potential inventory demand for more output to be predicted and, thus, raw material requirements to be managed. To prevent high output and poor production, the recording of all inventory forms is important. There should be a specific amount of stock to satisfy consumer demand, such as when there is a market supply shortage under some circumstances. Location / Facility Where can manufacturing and stock storage facilities be located? Where are the most economically priced places for inventory production and storage? Should current or new equipment be used? Locations/ Facilities are the location of the stock, the fabrication or the assembly. This enables plants to be classified into processing plants and warehouse installations. When we speak of processing plants, all the production processes occur like producing a specific product, and no further supply chain operation can be continued without a production supply chain because when there is a product, it is often necessary to store the whole product where the whole inventory remains. First in, first out (FIFO), and last in, first out (LIFO) storage methods can be used to minimize losses. If the stock is first stored and is then late, then the check and balance of the storage will be disturbed and the company will suffer a loss because of this feature Transportation How can stock be transferred from one place in the supply chain? When is the mode of transport easier to use? The goods cannot be transported to the correct location at the right time without providing an appropriate transport system. An efficient and successful transport system is important to increase the movement of good commodities from output to consumer. Otherwise, consumer demand will not be filled in due time, and other rivals may take of this deficiency of the enterprise. The automotive industry should also pay particular attention to this practice, or market development would not take long because transport is negligent. Transport types include highways, aircraft vehicles, trains, and pipelines. Companies should assess objectively which transport source is efficient and cost-effective. This will enable the business to decrease commodity costs and to deliver them at a low cost to consumers, for when the costs are high, it will probably charge higher prices in order to retain profit margin Information – How much of the information should be gathered and shared? The decision-making and future plans play an important role not just in the supply chain, but also in other market intelligence functions. Information may be used specifically to improve other drivers’ efficiency. The knowledge flow in the supply chain management process has a significant effect on the judgment of the organization Supply Chain Driver Responsiveness Efficiency 1. Production Excess capacity No excess capacity Flexible manufacturing Narrow product focus Many smaller plants Few large plants 2. Inventory High inventory levels Low inventory levels Wide range of items The narrow range of items 3. Location Many locations close to Few central locations customers 4. Transportation Frequent small shipments Few large shipments Fast and flexible modes Slower and cheaper modes 5. Information Collect and share timely Cost of information drops and accurate data while other costs rise Participants of Supply Chain Participants of Supply Chain – Producers – Distributors – Retailers – Customers – Service Providers Producers – Manufacturers or producers are companies producing a commodity. Companies that manufacture raw materials, as well as companies that produce finished products, are included. Organizations that dig for minerals, drill for oil and gas, and cut timber are examples of raw material suppliers Distributors – Distributors are companies that take stock of producers in bulk and provide customers with a package-related product lines. Wholesalers are mostly known as dealers. They usually market to multiple firms and sell goods in greater numbers than a single customer does. Retailers – Retailers store products and distribute them in limited amounts to the general public. This company often actively monitors the needs and demands of the consumers to which it offers. It advertises to its consumers and often uses a mix of price, product range, service, and comfort as the primary appeal to gain customers for the goods it offers. Customers are attracted to discount retail stores because of their affordable costs and varied merchandise ranges. Upscale retail shops have a one-of-a-kind selection of merchandise as well as exceptional support. Fast-food restaurants entice customers with ease and low costs Customers – Any company that buys and consumes is referred to as a buyer or a client. A consumer company may buy a product to integrate it into another product that it will market to other customers. Alternatively, a buyer may be the actual end consumer of a commodity that orders it to use it. Service Providers – Some companies provide services to manufacturers, dealers, suppliers, and consumers. Service providers have established advanced experience and capabilities that are based on specific tasks requested by a supply chain. As a consequence, they will deliver these resources more efficiently and at a reduced expense than manufacturers, dealers, merchants, or customers, may it be on their own.