HealthpartnersWe focus on two classes of enablers: business processes and information technology. Keywords: supply chain management; performance. Performance of most supply chains be explained by lack of effective business processes? The selection and application of these indicators provide various. The Supply Chain Operations Reference Model. It not only measures supply chain performance but also effectiveness of supply. Various activities like vendor. Supply chain capabilities are guided by the decisions you make regarding the five supply chain drivers. Each of these drivers can be developed and managed to emphasize responsiveness or efficiency depending on changing business requirements. As you investigate how a supply chain works, you learn about the demands it faces and the capabilities it needs to be successful. Adjust your supply chain drivers to meet those needs. The five drivers provide a useful framework in which to think about supply chain capabilities. Decisions made about how they operate will determine the mix of responsiveness and efficiency a supply chain is capable of achieving. The five drivers are illustrated in the diagram below 1. Production – This driver can be made very responsive by building factories that have a lot of excess capacity and use flexible manufacturing techniques to produce a wide range of items. To be even more responsive, a company could do their production in many smaller plants that are close to major groups of customers so delivery times would be shorter. If efficiency is desirable, then a company can build factories with very little excess capacity and have those factories optimized for producing a limited range of items. Further efficiency can also be gained by centralizing production in large central plants to get better economies of scale, even though delivery times might be longer. Using SCM Globe you simulate decisions about production by the products and production rates you define in the supply chain, and the facilities you create to make those products. Inventory – Responsiveness can be had by stocking high levels of inventory for a wide range of products. Vw beetle engine serial number location. Additional responsiveness can be gained by stocking products at many locations so as to have the inventory close to customers and available to them immediately. Efficiency in inventory management would call for reducing inventory levels of all items and especially of items that do not sell as frequently. Also, economies of scale and cost savings can be gotten by stocking inventory in only a few central locations such as regional distribution centers (DCs). Using SCM Globe you simulate decisions about inventory by setting product production and product demand levels at facilities, and by defining on-hand amounts for different products at facilities throughout the supply chain. Location – A location decision that emphasizes responsiveness would be one where a company establishes many locations that are close to its customer base. For example, a fast-food chain like McDonald’s uses location to be very responsive to their customers by opening up lots of stores in high volume markets. Efficiency can be achieved by operating from only a few locations and centralizing activities in common locations. An example of this is the way Dell serves large geographical markets from only a few central locations that perform a wide range of activities. Simulate this decision in SCM Globe by the way you locate your facilities (factories, warehouses and stores), and the storage capacities and operating expenses you define for those facilities. The screenshot below shows an example of this. (click on screenshot to see larger image) [ If you are a supply chain or logistics instructor you can get a free 30-day evaluation account on — send request to: [email protected]. If you already have you can load a copy of the Zara supply chain from the online library. This is an advanced case so be sure to look at. ] 4.
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