5. Major concepts related with supply chain
A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the difficulty of the chain may vary greatly from industry to industry and firm to firm.
It is a dynamic system that evolves over time. Indeed, not only do customer demand and supplier capabilities change over time, but supply chain relationships also evolve overtime. For example, as the customer’s power increases, there is increased pressure placed on manufacturers and suppliers to produce an enormous variety of high- quality products and to produced customized products.
Characteristic of supply chain management
There are numbers of characteristics of supply chain. The most important is that the firms understand that their future depends to al arge level on the success of channel and they involved themselves as part of the channel. Relationships are viewed as long term, and the corporate cultures, philosophies, and missions are similar. There is joint planning of products, locations, and quantities of inventory to be kept in the system. Great deal information sharing between firms in order to coordinate the efficient flow of goods. The modern computing and communication technology, such as electronic data interchange, is used to rapidly provide information within the channel as needed. Cost advantages are exploited wherever possible.
Other characteristics are:
Competing goals and objectives
Cost reduction and on time delivery of goods
Dynamic operating conditions
Emphasis on responsiveness to design changes
Process of supply chain management
The planning process needs to account for demand and cost parameters varying over time due to the impact of seasonal fluctuations, trends, advertising and promotions, competitor’s pricing and strategies.
The process is made up of the flow of materials, flow of information and services and monitoring the control of this flow, that includes raw materials procurement, production, inventory management, processing of orders, warehousing, transportation and distribution.
8. Key concepts related to customer service and performance measurements in the SCM function
Four methods of developing customer strategy
Stay in touch
Show your customers how you value your business through keeping in touch with them by sending them updates about your company. Use newsletters, individual letters or emails to deliver new things and products and promotions of the company. You can also send a thank you note if a customer made a major purchase and ask them for some feedbacks and suggestions. With all of this information you gathered from your customer, you can come up with solutions to the problems and meet their needs.
Empower your staff
There are some cases where there is no policy and the policy need to be flexed. To do this you have to empower certain people to make decisions, bend the rules and use wise judgments. Have them documented these special cases by providing a pad paper of forms and let them input some information to the computer. You can also designate one person per shift as chief problem-solver.
Manage customer relationships
Once you have gathered information about your customer, you can identify them and give them rewards. You can offer the frequent customers discounts for their next purchase and make a follow...