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Characteristic of Effective Supply Chain Management

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Characteristic of Effective Supply Chain Management

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  • May 2011
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TITLE: CHARACTERISTICS OF EFFECTIVE SUPPLY CHAIN MANAGEMENT

Table of Content

Executive Summary1

Introduction2

Effective Distribution Networks 4

Effective Network Design 5

Effective Global Supply Chain Networks 5

Planned Demand and Supply 7

Managed Uncertainty (Safety Inventories)7

Optimal Product Availability 7

Designed and Planned Transportation network (Logistics Management)7 Managed Cross-Functional Drivers 8
Managed Prices and Revenue streams 8

Information Management in a Supply Chain 8
Supply Chains must be Coordinated Throughout 9 Conclusion 9

References10

Executive Summary

The supply chain includes all parties involved in fulfilling a customer’s request. It can involve manufacturing, supplier, transportation, warehouses, distributors, retailers and customers. Today the importance of the supply chain is cutting costs and customer satisfaction. Supply chain profitability is the total profit to be shared across all supply chain stage and intermediaries. Having an effective supply chain will reduce costs in all stages and satisfy the customer with what they want when they want it. We have listed the characteristics of what it takes to have an effective supply chain. In this paper you will learn that the important factors influencing the success of the supply chain. Starting with having an effective distribution and network design, because having poor designs can hurt customer satisfaction and increase costs hurting the profitability of the company. What it takes to have an effective global supply chain if this route is chosen. You will learn the importance of forecasting and managing uncertainty along with having optimal product availability. Designing and...

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