Business Memo

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Business Memo
To:BOB Kai: Operations Manager and Bo Dickison: Warehouse Manager CC:All Staff: Operations and Warehouse
From:Chastity High Bear: Operations Team Management
Date:01/15/2013
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Many companies face a challenge that seems to burden them with contradiction: how to reduce transportation and operations costs while increasing customer service levels. Designing the right global supply chain network provides a solution to both issues. Although there are many factors to consider when designing a supply chain network, with the right partner the process is not overly complicated. The key is to analyze your network across the entire supply chain spectrum from source to consumption. Unlike other firms that consider DC-to-store or DC-to-customer. Implementing an optimal network is especially beneficial to those companies who must effectively and efficiently consolidate two different networks prior to or following a merger, as well as those who are considering expanding into new territories. Organizations that put off designing a new network, or making improvements to an existing one due to perceived complexities or complications, are actually putting their competitive advantage at risk.

The supply chain strategic fit concept requires that companies achieve the desired responsiveness and efficiency in its supply chain that best meets their needs for a competitive strategy. The performance of a supply chain (responsiveness and efficiency) is determined by decisions in the areas of inventory, transportation, facilities and information. Hence these four areas are identified as drivers of supply chain performance. A Framework for Structuring Supply Chain Drivers

Supply chain managers have to take research and development efforts to improve both responsiveness and efficiency of their supply chains on a continuous basis. In the past there were technological and managerial breakthroughs which can improve one of...
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