Contribute 3
Logistics Questions – Ellen’s part (1-5) 1.
1) What is Supply Chain Mgmt, and with what issues does it concern itself with? Briefly name and explain the 5 core principles of SCM.
Supply Chain Mgmt is a set of approaches used to efficiently integrate suppliers, manufacturers, warehouses, and customers so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time in order to minimize system wide costs while satisfying service-level requirements.
SCM key issues: networking planning, inventory control, distribution strategies, supply chain integration and strategic partnering, product design, customer value, information technology and decision-support systems.
5 core principles:
Connectivity: This principle deals with the connectivity network of supply chain partners.
Connectivity can be strategic in dealing with planned linkage information integration and network architecture.
Collaboration: Collaboration allows a closer integration of the supply chain partners by integrating, planning, forecasting and over all decision making processes across organization boundaries. True collaboration is an ongoing investment in the extended supply chain network.
Synchronization: Synchronization between vendors, manufacturing, sales and marketing, finance, customers, and third parties is an integral part of supply chain development. When finely developed interface within the firms are between the firm and its partners are seamless, frictionless and transparent.
Leverage: The Principle of Leverage simply suggests that the firm cluster and focus their assets on high payout opportunities with core suppliers, customers, and 3PL’s.
Scalability: Scalability as it is used here, refers to the ability of the firm to develop a set of supply chain processes that can be easily duplicated with additional suppliers, customers, and 3PL’s. The Principle of Scalability requires a balance between customization and scalability.
1) What is Supply Chain Mgmt, and with what issues does it concern itself with? Briefly name and explain the 5 core principles of SCM.
Supply Chain Mgmt is a set of approaches used to efficiently integrate suppliers, manufacturers, warehouses, and customers so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time in order to minimize system wide costs while satisfying service-level requirements.
SCM key issues: networking planning, inventory control, distribution strategies, supply chain integration and strategic partnering, product design, customer value, information technology and decision-support systems.
5 core principles:
Connectivity: This principle deals with the connectivity network of supply chain partners.
Connectivity can be strategic in dealing with planned linkage information integration and network architecture.
Collaboration: Collaboration allows a closer integration of the supply chain partners by integrating, planning, forecasting and over all decision making processes across organization boundaries. True collaboration is an ongoing investment in the extended supply chain network.
Synchronization: Synchronization between vendors, manufacturing, sales and marketing, finance, customers, and third parties is an integral part of supply chain development. When finely developed interface within the firms are between the firm and its partners are seamless, frictionless and transparent.
Leverage: The Principle of Leverage simply suggests that the firm cluster and focus their assets on high payout opportunities with core suppliers, customers, and 3PL’s.
Scalability: Scalability as it is used here, refers to the ability of the firm to develop a set of supply chain processes that can be easily duplicated with additional suppliers, customers, and 3PL’s. The Principle of Scalability requires a balance between customization and scalability.