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SUPPLY CHAIN MANAGEMENT ASSIGNMENT HELP
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What Is supply chain management
Supply management is never easy. However, companies with a predefined supply allocation strategy, and the technology to support it, have an advantage in managing the recent and next global supply chain crisis.
Supply chain management includes the control, monitoring, review and optimization of material, information and cash flows throughout a company’s value-added process. This extends from the procurement of parts, through production and finishing, to the end customer – and back again.
The metaphor of the chain, with a fixed beginning and an end, only partially applies to the supply chain. Rather, it is a “Supply and Information Circle”. The product is created on the way from the supplier to the end customer. This in turn provides information in the form of increasing or decreasing demand, which in turn affects the suppliers. It is therefore a closed cycle that must be constantly questioned and adjusted.
You should know: SCM is more than logistics. Controlling and optimising logistical processes is an important aspect in the value chain and contributes significantly to successful SCM. However, there are other, overarching facets to consider in supply chain management, such as:
Were planned production figures achieved? If not, why not?
What has to happen in order for them to be reached?
Are the flow of information and money running smoothly?
Are there already bottlenecks or are they imminent, both in terms of material and production as well as human resources?
How does our supply relate to demand and vice versa?
How is the supply chain broken down?
The supply chain can be roughly divided into the following three areas:
production and intralogistics
Supply management has become a reality for many manufacturers to some extent and may continue to be necessary for the foreseeable future, at least for some critical components.
Manufacturers that reactively allocate their supplies run the risk of under-optimising their profits and doing further unnecessary damage to their businesses.
Basing supply allocation decisions on a predefined strategy, a holistic view of data, and case-by-case modelling is the best way to take control of the situation, mitigate negative impacts, and be prepared to respond to future supply disruptions. supply chain.
Managing your supplies to whoever shouts the loudest is not a sustainable strategy.
While no one could have been fully prepared for the perfect storm we are experiencing, companies that have not thought about proactively allocating their supplies are much more likely to fall into the reactive allocation trap, giving their limited inventories to the salesperson who yells the loudest, the customer who has the most volume, or the order that is the furthest behind. When the allocation needs continue for some time, as it has and will continue to do with many critical components, the flaws in this approach become painfully apparent.
Without a solid supply allocation strategy and the ability to analyse and understand the implications of those decisions, manufacturers often end up unintentionally under-optimising their profits. They fail to find a balance between what is best for their customers and their long-term business.
The blows continue to hit global supply chains. Manufacturers tell us that none of the usual tricks are working to secure needed supplies, their frustration levels are always high and all they can do is sit back and distribution phone to ring with news that supplies are on the way.
While it is true that there is not much to be done about the thousands of containers lying on the ocean floor or the blocked channel, which complicates an already incomprehensible situation, those who have been thinking proactively about supply allocation are in a better position. to handle the chaos. They are more capable of playing a bad hand well, or at least playing it to the best of their ability to minimise the negative consequences
In fact, those who are finding ways to successfully manage through this crisis are controlling the things they can control, including the impact of supply allocation decisions on income statements. The ability to do this well requires three essential elements that must work together for best results: A solid allocation strategy, the right data, and the ability to run what-if modeling scenarios.
Logistics And Supply Chain Management
Logistics and supply chain management both belong to the logistics industry. But what exactly is the difference? We answer these questions and more in this article.
What is logistics?What is supply chain management?What is the difference between logistics and supply chain management?
At a time when trade and shipping are becoming increasingly important, logistical processes are indispensable. Goods and information must be perfectly coordinated when they reach the customer, and this requires many different processes. Logistics and supply chain management both deal with the value and supply chain and enable the efficient flow from raw material delivery to shipping.
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