top-rated free essay

What Is The Right Supply Chain For Your Product

By ton-y Apr 12, 2015 381 Words
Executive reaction - What is the right supply chain for your product, Newsvendor
1) What were the main supply chain issues or concepts presented in the article? (Use a bullet point list)








Utilizing the right supply chain for products is critical to improve performance Understand the nature of demand for products helps managers to devise supply chain that can satisfy that demand
Products that are classify by demand patterns are either functional or innovative Each type requires a different supply chain
Functional products require physically efficient process and innovative products require a responsive process
Functional products can become innovative products and vice versa over time. Mismatch between type of product and type of supply chain leads to waste and inefficiencies

2) What "take away's" did you get from the article? (i.e what did you learn that seems useful) The first step in devising an effective supply chain strategy is to figure out if you have a functional or innovative product. Since, functional products (staples such as toilet paper or toothpaste) have a predictable demand, companies can focus exclusively on minimizing physical cost to minimize inventory, maximize production efficiency, and maximize overall profits. Whereas innovative products have uncertain demand making the focus on market mediation more important because of the higher profit margins, higher cost of excess supplies, and shorter life product cycles. Thus, only when managers understand their product, they can more effectively manage the supply chain to gain a significant competitive advantage. In particular, the article provides really useful strategies between physical efficient and market responsive process. For example, physical efficiency focus should maintain high average utilization rate, generate high turns and minimize inventory, shorten lead time, select supplier based on cost and quality, and try to maximize performance by minimizing cost. For market responsive process, one should try to employ excess buffer capacity, deploy significant buffer stocks of parts or unfinished goods, invest to reduce lead time, select supply for speed, flexibility, and quality, and use modular design.

Lastly, managers should not become passive to one process because the products that are functional can transform to innovative types and vice versa. For examples computers companies were focus on physical efficiency, but when the market changed, and the product become more innovative, they needed to learn to become more responsive process.

Cite This Document

Related Documents

  • What Is the Right Supply Chain for Your Product?

    ...The main problems in supply chain of many industries are the excess of some products and the shortage of others because of unpredictable demands for these products. In this paper, a framework that helps manager to understand the nature of demand for their product and manage their supply chain in line with their product requirements is suggested...

    Read More
  • Article Review- What Is the Right Supply Chain for Your Product?

    ...Review- What is the right supply chain for your product? by Marshall L. Fisher What is the right supply chain for your product ? is the question asked by Marshall L. Fisher in his article titled, “What is the Right Supply Chain for Your Product ?” published in March-April 1997 issue of the Harvard Business Review. Author raises the qu...

    Read More
  • Review on Article - What Is the Right Supply Chain for Your Products

    ...What Is the Right Supply Chain for Your Product ? Article by Marshall L.Fisher INTRODUCTION • Marshall L.Fisher is the Stephen J.Heyman Professor of Operations and Information Management and co-director of the Fishman-Davidson Center for Service and Operations Management at the University of Pennsylvania’s Wharton School in Philadelphi...

    Read More
  • What Is the Right Supply Chain for Your Product?

    ...What is the Right Supply Chain for Your Product? Summary The technology has improve glaringly the capacity of enterprises , make the supply chain every time more efficient thank to globalization we can contact rapidly but at the same time new markets grow and the competence with new ideas. Nevertheless having an excellent tool as communic...

    Read More
  • Supply chain Management

    ...largest convenience store chain Seven-Eleven in Japan, and the way it became Japan’s top leading super market chain. Seven–Eleven started its operation in Japan in November 1973 under an area licensing agreement between Ito-Yokado Co., Ltd., and The Southland Corporation. With more than 15,500 stores worldwide, Seven-Eleven Japan Co., Ltd (S...

    Read More
  • supply chain

    ... LAHORE SCHOOL OF ECONOMICS MBA II STRATEGIC SUPPLY CHAIN MANAGEMENT ASSIGNMENT NO: 2 QUESTION: In the light of Triple A supply chain reading, explain how Unilever aligned its supply chain? NAME: Umair ur Rehman DATE: 21st May 2014 SUBMITTED TO: MS. MAHVESH MAHMUD Unilever is one of the leading companies of t...

    Read More
  • Supply Chain Management of Product

    ...Springs, New York. One dinner guest felt George’s French fries too thick for his liking and rejected the order. In order to rile the guest Crum decided to make fries too thin and crisp. But seeing the browned, paper thin fries the guest was overjoyed and other guest present there also started requesting Crum’s potato chips. There after potat...

    Read More
  • Quality Metrics for the Product and Supply Chain

    ...Quality Metrics for the Product and Supply Chain Lenovo is dedicating to being a responsible and positive enterprise citizen, consistently working to improve its business while contributing to the development of society. “The company embraces the values of customer satisfaction, product and technical innovation, operational excellence ...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.