The Use of the Concept of Supply Chain Management in the Business Environment

The concept of supply chain management is widely employed in the business environment. In recent years, the interlinking between supply chain and quality management has gained significant attention. Through this relationship, it is possible to identify quality management issues within the supply chain environments, both internal and external. Today, the business environment faces the challenge of competition. Companies are required to constantly improve the quality of the end product in order to overcome the market dynamics. Therefore, supply chain managers are increasingly embracing quality management.

Quality Concepts and Theories for Supply Chain Management

A supply chain is the core of business activities because it facilitates the flow of materials and information from upstream to downstream members of the supply chain. Supply chain activities facilitate the processes involved in the planning, production, and delivery of products and services. This implies that supply chains are the lifeblood by which business survive and thrive. Quality management, on the other hand, focuses on the flow of elements in the supply chain: processes, materials, information, and funds. According to Foster (2016), the flow of these elements ought to be efficient and effective to guarantee quality.

A range of quality concepts is implemented in supply chain management. Different quality dimensions are used to define the quality of the supply chain. Among the dimensions of quality associated with, products, include performance, conformance, features, durability, reliability, serviceability, aesthetics, and perceived quality. With regard to services, dimensions of quality include tangibles, service reliability, assurance, empathy, and responsiveness (Foster, 2016). These dimensions are instrumental in enhancing the quality of all supply chain processes, thus enabling a company to derive benefits such as improved process efficiency, cost reductions, as well as enhanced resource management.

Additionally, various quality improvement theories are associated with supply chain management. Although there is no unified theory explaining the concept of quality improvement in relation to supply chain, different approached to quality improvement have been established. The major contributors of the quality improvement movement include Deming, Juran, Ishikawa, Feigenbaum, Crosby and Taguchi. Deming employed a transformational approach to quality improvement by emphasizing on the management practice. He emphasized that continuous quality improvement occurs through efficient management practices and systems. In this regard, he identified 14 points of management that can help improve quality of products and services (Foster, 2016).

Juran employed a strategic approach to quality improvement, through which he indicated that quality problems arise from ineffective and insufficient planning. According to Juran, companies can increase the quality of processes by reviewing the strategic plan. Juran’s approach emphasizes on the need to set goals and devise them through effective plans because this enhances quality (Foster, 2016). Juran Trilogy indicates that there are three basic processes for quality improvement: planning, control, and improvement. Ishikawa indicated that it is essential to involve employees in quality improvement programs and insisted on the importance of training. He identified the seven tools (B7) of quality that are shown to democratize statistics. Crosby, on the other hand, emphasized that quality improvement entails having products and services that have zero defects. He argued that human resources have a significant impact on the quality; hence, companies should engage workers in quality improvement. This implies that worker input is fundamental to the successful implementation of a quality improvement program.

Among the different quality dimensions are process-driven and customer-driven quality aspects. Process driven quality dimensions focus on the design specifications of different business processes. Heravizadeh, Mendling, and Rosemann (n.d.) identifies four major processes in operations management. They include process flow, process cost, process quality, and process flexibility. This indicates that process quality plays a significant role in the efficiency of the supply chain. Process quality focuses on how a process can be used to enhance the quality of products. The major dimensions aligned with process-driven quality include reliability, accuracy, and conformance to product specification. These elements are crucial in ensuring that internal processes enable a company to create a positive external perception towards quality in terms of goods and services.

Quality based dimensions are based on the functions of an organization, which operates under different functions: human resource, marketing engineering, and finance among others. Each organizational function has its own processes; therefore, quality dimensions depend on the function (Heravizadeh et al., n.d.). For instance, the marketing function may perceive process- driven quality as conformance to design specifications. The human resource function, on the other hand, may perceive, process-driven quality as effective resource utilization.

Process-driven quality reflects in different business environments and is used by different companies to gain a competitive advantage. For example, today a company like the Caterpillar, which offers products to farmers, enhances quality through its processes. During harvest season, the company’s supply chain department ensures that farm equipment is delivered earlier than scheduled in a bid to enhance product or service quality.

Customer-driven quality focuses on the needs of customers. Some of the quality dimensions that are customer driven include aesthetics and product features. The goal of customer-driven quality is to enable a company to overcome competitors. For example, a company like New York’s Chemical Bank focused on customer-based quality. The organization launched a user survey to establish the needs and preferences of the customers. The findings indicated that customers needed rapid response to inquiries regarding their account status. In this regard, the bank installed a computerized system to ensure customer’s calls are received immediately. Consequently, the bank was ranked fourth in the industry as far as quality is concerned. This example indicates that a company can improve quality by focusing on customer needs and preferences.

The Impact Quality Theories on Manufacturing and Service Industries Quality improvement theories play a critical role in ensuring efficiency and effectiveness of operations, thus enhancing the quality of products and services. Manufacturing and service industries can employ quality theories to enhance the quality of products and services. Various assumptions provided by quality improvement theories are applicable in the business environment, thus can help manufacturing and service industries to improve the quality of their offerings by increasing the efficiency of processes across the supply chain. For instance, Joseph Juran indicated that quality could be controlled by looking into avoidable and unavoidable costs (Foster, 2016). For instance, manufacturing industries may minimize avoidable costs by minimizing wastes such as defects and inventory.

For instance, companies may improve product quality by preventing failures that lead to complaints, repair, and rework. Unavoidable costs on the other hand, should be prevented to enhance product qualities. For example, manufacturing industries should conduct quality control activities such as sampling and inspection to improve product quality. In this regard, manufacturing industries can employ Juran’s approach to quality improvement by reducing failure costs. Based on Feigenbaum’s approach, manufacturing companies should engage in improving quality by focusing on total quality control. This means that high-quality products can be achieved if all organizational functions operate in as a team.

Service industries can as well employ assumptions of Crosby’s theory, which emphasizes on the importance of involving workers in quality improvement. This theory indicates that companies should ensure that employees are aware of the importance of quality improvement. For instance, service industries could deliver zero-defect services by capitalizing on employee development programs. The human resources function is one of the major contributors to quality in the service industry. Therefore, service-oriented companies could definitely gather insight from this theory.

Evidently, quality management is an important component of supply chain management. The integration of these two concepts is associated with different benefits, among them efficiency, effectiveness and a competitive advantage. Therefore, managers and other organizational leaders should implement quality concepts in their supply chain in order to deliver the desired results. Nevertheless, it is important to understand that perception towards quality differs based on a variety of dimensions inherent to products and services. In this regard, companies should define perceived quality based on the dimensions that relate to both customers and processes.

Read more

Wawa Research Paper

The top of the hierarchy was still under development but included sales/production, forecasting and replenishment system. In the middle was an under development strategic sourcing program. At the bottom was the operational master data set: articles files for warehousing, ordering, pricing and scanning up to 45000 SSW. This technology was used to keep records of inventory, orders being processed for suppliers and keep records of the past months orders, which could be used as information to make many Important decisions.

An important part of the new IT architecture was the Introduction of Dif (Demand Influencing factors). This system would forecast the changes (holidays, promotions and weather) and factor these changes Into the recommended order that It generates for the stores. Way also started selling gas as convenience stores when it comes to gasoline procurement. In the past they had seven or eight carriers that monitored the gas supply in their assigned stores through technology and they communicated once a day and these carriers did everything for Way.

The technology strategy required Way to unite WBI, NCSC and the Fresh Channel integrated under one banner to create a competitive advantage and be cost- effective. The IT strategy was effective for Way. The Dif that would automatically take demand influencing factors into account and forecast and replenish the system. This system saved a lot of time, energy, and effort for the store managers as rather than having to remember the fact that something is on promotion next week or that the demand has changed due weather/holidays this system takes all the factors into consideration and generates a recommended order.

This gives the store manager more time to focus on many different things. In my belief their gas supply strategy was very effective. Way had an advantage when it came to gas distribution as they never owned a gasoline truck and never hired a gasoline driver or invested money in logistics. They were virtual when it came to gas distribution. The store managers never had to worry that the fuel would run out; they Just had to focus on selling it. I think this system increased Haw’s profit margins for selling fuel, as they did not have a lot of capital investment.

Their strategies in technology helped the firm become more customer focused, which was their mission to simplify daily lives of people. Way technology strategies helped in reducing a lot of workload for the workers in the store so they could concentrate on customers. Way was in the process of developing a new systematic supply chain as their egoistic had reached capacity and their vendors had been inconsistent in supplying the stores. Way wanted to own the software but not the hardware. They wanted a consolidated facility, owned and operated by a third party.

If they wanted to build their own distribution centre, it would have cost them at least the equivalent of 10 to 11 new stores. Way choose Mclean Company of Texas, as they were by far there largest convenience store distributor in the country. They were in a strategic “100 – 100 partnership”. NCSC was a 220,000 square-feet building and had 5 different imperative zones. The NCSC used to dispatch trucks between 1 am and 4:mama and every store had consistent deliveries with a 2-hour EAT. This allowed the management to plan for enough labor so they could shelf the products upon arrival.

In the convenience story industry many of Haw’s competitors did not realize that delivery timings were affecting their customers. It has happened to me a number of times when I go to a 7-11 and if they are getting a delivery their parking lot will be full and the store will be over crowded and understaffed as most the workers are emphasizing on shelving he items instead of paying attention to customers. NCSC handled 1800 SKU and it turned over products in ten days. Although Way owned the inventory, Mclean use to do everything for Way.

They used to give orders to the vendors, manage inventory and inform Way how much they owe to the vendors. NCSC was able to such that all the Way stores could be reached in a day. Way did not want to waste capital on building their own facility as their competitors suffered by doing so. NCSC had only 6 Way employees and their Job was to maintain relations between Haw’s marketing department and Mclean merchandising department. This also is a very important lesson for their competitors, as they also should maintain good relations with their distributors because one party cannot succeed at the expense of others.

Bluebells stated that the relationship is like a marriage. Most employees of Way and Mclean consider this a strategic partnership and their partnership was a testimony for other players in the industry. NCSC was impressive in the technological aspect also. It promised to be an impressive array of third party logistics, cross docking, virtual management and mutual adjustment within and amongst organizations. Operations in NCSC and Fuel supply were meticulously choreographed, tightly coupled and highly efficient..

Outsourcing this process, like the NCSC and Fuel channel, to experienced companies would allow Way to develop an efficient distribution network at a significantly less cost, and concentrate the majority of their resources on the customers. Haw’s SCM going forward was quite impressive as well. They were going to implement the fresh channel. Fresh channel would be a central kitchen where food items could be prepared which were previously made in stores. This was done in order to maintain uniformity and increase the flexibility. Way has one of the most impressive and effective distribution channels in the industry.

Going forward I think the company should continue its traditions of giving the customer more importance. Way should find another company like Mclean or offer Mclean a contract for another location so they could expand on their stores and be NCSC was expected to last until 2012 but it is already full at the moment, which gives the organization very little room for growth. The Fuel Channel is one of Haw’s best supply channel so I think they could add more gas stations to their stores as I have seen many Haw’s thou gas stations.

This would help the company expand their market and geographical radius. I think Way should also have websites or mobile phone applications, which tell the customers about the number of people in the store or the approximate waiting time. They should also let customers order their food from their kitchen freshly made in the store online. I consider Way to be green to an extent as they have reduced their number of truck deliveries and Fuel channels do not even use one truck. Way is virtual in gas distribution. Way could start using recycled labels on their private products.

Read more

AS/RS and conveyors

Racks are “flow-through” racks In which the unit load Is stored from one side of the rack by a dedicated SIR machine, and Is retrieved by another machine from the pick did of the rack. 3. Monomial AS/RSI: is a system designed to handle small loads that are contained in bins or drawers in the storage system. A. Generally smaller than a unit load AS/RSI and is often enclosed for security of the items stored. B. Uses special SIR machines to retrieve and transport the bins to the P&D station at the end of the aisle in order to be able to withdraw individual items from the bin. C.

P&D station is manually operated by a worker. D. The bin or drawer must then be returned to its location in the system. 4. Man-on-board AS/RSI: this system is dedicated for retrieving single items from outrage. A. Human worker drives a carriage of the SIR machine. B. Permits individual item that he picked directly at their storage locations. 5. Automated item retrieval system: a storage systems designed for retrieval of individual items or small product cartons. A. Items are stored in lanes. B. In retrieval process item is pushed from its lane and dropped onto a conveyor for delivery to the pickup station. . The supply of items in each lane is periodically replenished, allowing first-in. First-out Inventory rotation 6. Vertical’ lift storage modules (EVILS): These are also called vertical lift automated outrage/retrieval systems. A. Uses a center aisle or more. B. Capable of holding large Inventories while saving valuable floor space In the factory. Three application areas can be distinguished for automated storage/retrieval systems: 1 . Unit load storage and handling. Commonly found in: Warehousing for finished goods. Manufacturing facilities e. G. Deep-lane systems are mostly used in food industry. 2.

Order picking. As order picking involves retrieving materials in less than full unit load quantities, monomial, man-an-board, and item retrieval systems are used for this application area. 3. Work-in-process storage systems. It’s a new application recently developed of automated storage technology. The following ways are ways to manage unavoidable WIPE: a. Buffer storage in production. Used between two processes which production rates differ significantly. An in-process buffer is needed between these operations to temporarily store the output of the first process as the input for the second process. . Support of Just-in-time delivery. Just-in-time TIT) is a manufacturing strategy that follows the pull strategy in which parts required in production are received immediately prior they are needed in the plant. As this strategy is very risky in terms f stock outs that occurs due to late supplier deliveries, usually plants install automated storage systems as storage buffers for incoming materials. C. Kitting of parts for assembly. When an order is received, the required components are retrieved, collected into kits, and delivered to the production floor for assembly. . Compatible with automatic identification systems. Uses automatic identification devices; bar code readers which allows loads to be stored and retrieved without human interaction to identify the loads. E. Computer control and tracking of materials. Used to identify the location and tutus of work-in-process in the facility. F. Support of factory wide automation. Part 2: Prepare a report about manual and automated conveyors. CONVEYOR SYSTEMS Conveyors are used when material must be moved in relatively large quantities between specific locations over a fixed path.

Conveyors divided into two basic categories: 1 . Powered conveyors The power mechanism is contained in the fixed path, using chains, belts, rotating rolls, or other devices to force loads along the path. They are usually used in automated material transport systems in manufacturing plants, warehouses, and distribution centers. 2. Non-powered conveyors. Tat or by using gravity from one height to a lower height. Types of Conveyors 1. Roller and Skate Wheel Conveyors. Roller conveyor: The pathway consists of a series of rollers that are perpendicular to the direction of travel.

The fixed frame contains rollers that lifts the pathway above floor level from several inches to several feet. Flat pallets carrying unit loads are moved forward as the roller rotate. Applications: manufacturing, assembly, and packaging. Skate-wheel conveyors are similar to roller conveyors but skate wheels rotating on shaft connected to a frame to roll pallets along the path way instead of rollers. Applications of skate wheel conveyors are similar to those of roller conveyors, except that the loads must generally be lighter. 2.

Belt Conveyors. Belt conveyors consist of a continuous loop: Half its length is used for delivering materials, and the other half is the return run. Belt conveyors are typically available in two types; Flat belts for pallets, individual parts, or even certain types of bulk materials; Thorough belts for bulk materials. Conveyors Driven by Chains and Cables. Uses chains that forms endless loop on which loads are carried directly. The loop forms a straight line with a pulley at each end. This is usually in an over-and-under configuration.

These conveyors are categorized as the following: 1. Chain: a. Used to transport heavy unit loads. B. Parallel chain configuration used to transport pallets. 2. Slat conveyor: a) Uses discretely spaced slats connected to a chain b) Unit being transported retains its position c) Orientation and placement of the load is controlled d) Used for heavy loads or loads that might damage a belt e) Bottling and canning plants use flat chain or slat conveyors because of wet conditions, temperature, and cleanliness requirements f) Tilt slat conveyor used for serration 3.

In floor towline conveyors: . Uses towline to provide power to wheeled carriers such as trucks, dollies, or carts that move along the floor b. Used for fixed-path travel of carriers (each of which has variable path capabilities when disengaged from the towline) c. Towline can be located either overhead, flush with the floor, or in the floor a. Uses a series of trolleys supported from or within an overhead track b. Trolleys are equally spaced in a closed loop path and are suspended from a chain c.

Carriers are used to carry multiple units of product d. Does not provide for accumulation e. Commonly used in processing, assembly, packaging, and storage operations 5. A power-and-free overhead trolley conveyor: a. Similar to trolley conveyor due to use of discretely spaced carriers transported by an overhead chain; however, the power-and-free conveyor uses two tracks: one powered and the other non-powered. B. Carriers can be disengaged from the power chain and accumulated or switched onto spurs c.

Termed an Inverted Power-and- Free Conveyor when tracks are located on the floor 6. Cart-on-track conveyors: a. Used to transport carts along a track b. Carts are transported by a rotating tube c. Connected to each cart is a drive wheel that rests on the tube and that is used to array the speed of the cart (by varying the angle of contact between the drive wheel and the tube) d. Carts are independently controlled e. Accumulation can be achieved by maintaining the drive wheel parallel to the tube 7.

Screw conveyors: a. Consists of a tube or U-shaped stationary trough through which a shaft-mounted helix revolves to push loose material forward in a horizontal or inclined direction b. One of the most widely used conveyors in the processing industry c. Many applications in agricultural and chemical processing 8. Vibration-based conveyors: a. Consists of a trough, bed, or tube b. Vibrates at a relatively high frequency and small amplitude in order to convey individual units of products or bulk material c.

Can be used to convey almost all granular, free-flowing materials 9. Vertical lift conveyors: is a power-based conveyer that moves products automatically from one level to another. A. Carrier used to raise or lower a load to different levels of a facility (e. G. , different floors and/or mezzanines) b. Differs from a freight elevator in that it is not designed or certified to carry people c. Can be manually or automatically loaded and/or controlled and can interface with horizontal conveyors

Read more

Digital Supply Chain Managment

Table of contents

INTRODUCTION

AMR SUPPLY CHAIN TOP 25: STRONG SHOWINGS BY APPLE AND WALT DISNEY

Apple stays on top with an unbeatable combination of killer financials and stellar opinion scores. AMR Research The AMR Research institute recently published its list of the companies boasting the best Supply Chain Management procedures (see Appendix 01). Two of the top 25 players represented a radical departure from the traditional Supply Chains. Apple tops the list with a supply chain which is as much a revolution for traditional supply chains as it is a negation of almost everything the supply chains have previously been characterized by. For one, Apple’s supply chain for its online store iTunes is completely digital in nature.

It is the apex and materialization of what Management Information Systems and Information Technology Disney combines demand-driven advancements had hinted at. Another company in the top 25, the entertainment giant Walt Disney combines a digital supply chain with a streamlined traditional one with spectacular results. replenishment with new collaborative models for pure content distribution. AMR Research As lines between companies’ offers of physical and digital products become blurred, Apple and Disney are the forerunners of what will be the future of supply chains: The Digital Supply Chain.

Additionally, both the companies’ supply chain models are based on the “demand driven excellence” model which is the modern solution to meeting the needs of the global market.

GROWING IMPORTANCE OF CONTENT AND INTELLECTUAL PROPERTY

The reason why the supply chains of Apple and Disney were able to rank so high is because both the companies were able to recognize the immense significance of digital content and Intellectual Property in the modern era. The music industry has by far experienced the most significant effects (positive AND negative) of digitization of music (in the form of mp3s and other digital formats).

However where piracy quickly became the biggest challenge for the industry, sales of digital music have exploded over the past couple of years, thanks to Apple’s ubiquitous online store iTunes. iTunes started with 99 cents per song- now it’s a thriving market leader that encompasses music, movies, TV shows, apps, eBooks, podcasts and so much more. Disney benefits from “the best of both worlds” (as the title character of its popular Hannah Montana TV show would say) by combining a digital supply chain with its traditional practices such as that of supplying stores such as Blockbuster and Netflix with DVDs of its movies and TV shows.

THE DIGITAL SUPPLY CHAIN

WHAT IS THE DIGITAL SUPPLY CHAIN?

At the core of Apple and Disney’s fantastic success is the digital supply chain. The question arises as to what the digital supply chain is and how it differs from traditional supply chains. Before getting into the specifics, it is important to define the digital supply chain. According to Wikipedia: “Digital supply chain is a new media term that encompasses the process of the delivery of digital media, be it music or video, by electronic means from the point of origin (content provider) to destination (consumer).

Similar to how a physical medium must go through a supply chain process in order to mature into a consumable product, digital media must pass through various stages in processing to get to a point where the consumer can enjoy the music or video on a computer or television set. ” All supply chains work within the same framework- the delivery of product from its origin to the hands of the end-user, while being worked on in every step on the way. Broadly, the digital supply chain involves the process of transferring digital content (music/video) from the content provider to the end consumer online and in a suitable format.

The digital supply chain is different in four major ways:

  1. It exists solely online and for digital items.
  2. It is highly compressed and shorter.
  3. It has lower attached costs.
  4. It has an unbeatable inventory turnover rate.

Recognizing the market forces and new technologies that are reshaping the industry, Capgemini has introduced its practice of digital supply chain, the content value chain: Capgemini is not the only company that has invested in digital supply chain solutions. HewlettPackard (HP) offers Digital Entertainment Services- solutions for digital supply chain needs of companies.

The reason why the digital supply chain works is because of the immense increase that digital content has seen in its adoption. The results of a recent IBM digital consumer survey show a high trend towards digital content in every leading economy. Online access to digital content is most common in: Media and Entertainment (Music, Movies, Games, eBooks etc). E-learning Software Given the evolution in media, technology and the marketing scenario, the supply chain to manage this evolution requires a new set of complexities and metrics.

Warehouses are being replaced with data centers, boxes replaced by bits, and trucks replaced by bandwidth. And it may very well be an easier supply chain to manage, with no inventory carrying costs, purchase orders, supplier scorecards, MRP, trucks, excess and obsolete, or quality issues, but it will take a new way of thinking. Long gone is the plan, buy, and make functions supply chains have been built on. Within the digital supply chain, you receive one item into inventory and sell it a million times over without restocking. Vendors can be paid for each digital asset sold, without having to stock inventory that may never move.

Combine the enormous growth of the mobile market, a highly fragmented market expertise, and the asset costs to build and maintain a digital supply chain, and it’s clear the model is transforming traditional practices. So far, digital supply chains have been controlled by the innovators. But with the amount of digital content increasing dramatically and the Internet providing a point-to-point access for customers, the following will become increasingly important:

  1. Innovation—This goes for product and supply chain delivery methods.
  2. Time to market—Since digital products can be made once and sold many times, speed of collaboration between design and delivery will be a major measure of success
  3. Customer service—This includes quality of the transaction and product, speed of activations, and ease of refunds.

THE DIGITAL SUPPLY CHAIN PROCESS

The digital supply chain involves three players: Content Provider (Task: Encoding and Ingesting) Content Processor (Task: Vaulting and Processing and Transformation) Digital/Physical Retailer (Task: Packaging and Distribution)

  • Intermediate components include processes like Quality Control, Digital Asset Management, Metadata entry, Digital Rights Management and the Content Delivery Network.
  • Media is converted from source to file.
  • Vaulting
  • File based media mezzanines are stored and backed up.
  • Content is processed and transferred according to consumer needs.
  • Packaging and Distribution
  • Media files are packaged and delivered to customers over the network.
  • Encoding and Ingesting
  • Processing and Transformation

Apple and Disney both have a high degree of streamlining at every step of the process.

The main functions of a digital supply chain are as follows: True on-demand product availability Ease of use and speed for content search and activation Pricing and subscriptions Quality management built on licensing and refunds One thing to remember is that there is no ONE digital supply chain. It’s as dynamic as it is flexible as you can see from the table below: Different media types Different business models Different technologies Different maturity of markets Different distribution models Audio / Video / Software / Games / Books Electronic sell through / subscriptions / free content Devices / offline vs. nline usage / formats / DRM Established structures vs. new models Direct-to-consumer / Aggregation

COMPARISON WITH TRADITIONAL SUPPLY CHAINS

The following table compares the digital supply chain with the traditional structure on the basis of some key processes associated with SCM. Value Addition Because of the inherent structure, each step of the digital supply chain has a higher percentage of contribution to the value delivered. As mentioned earlier, computer storages have taken the place of physical warehouses.

The digital supply chain is at a high risk of security issues because of problems relating to piracy, hacking, viruses and data mishandling. Virtually, self-replenishing and never runs short! Because of superior communication, time costs are reduced. Disney is a good example of how on-demand product availability made possible by digital supply chains Increasing Download Speeds, Content Quality, Speed of Activation and Ease of Refunds are some of the benefits offered by the digital supply chain that give it an edge over the traditional supply chains when it comes to Customer Service.

DEMAND DRIVEN EXCELLENCE

The “Demand Driven Excellence” model has three overlapping areas of corporate responsibility: Supply Management (Manufacturing, logistics and sourcing) Demand Management (Marketing, sales and service) Product Management (R&D, engineering and product development) Basically, Apple and Disney’s strength is that they don’t treat their supply chain as an isolated business process.

It is a crucial part of what makes the entire thing work and in order for its maximum efficiency, management of demand and products is essential simultaneously. Only thus, the supply chain is able to give such top-notch results. With visibility, communication and reliable processes all these three functional units can be made to work together for optimum performance. When these overlapping areas work together, thanks to compatible and efficient business processes, businesses are able to respond directly, quickly and efficiently to opportunities arising from demands from the market or the customers.

Because all the three areas are able to rise up to any occasion of business opportunity and the tasks keep shifting back and forth among the units as required, in a hybrid, dynamic web of solution formation, Apple and Disney are Defining characteristics of supply chains built able to achieve superior results while each to this design [demand driven excellence] of their functional area benefits from include the ability to manage demand rather collaboration with the other two. AMR Research cites the demand driven exellence model as the reason why companies like Apple and Disney are able to perform so well.

The new phrase that’s making the rounds in the corporate world is that “pull” is the new “push”. Creating solutions and coaxing customers to purchase them is fastly becoming a redundant technique. The modern business strategy is responding dynamically to consumer needs and making your solutions fit their demands than just respond to it, a networked rather than linear approach to global supply, and the ability to embed innovation in operations rather than keep it isolated in the laboratory.

The demand-driven model is inherently circular and self-renewing, unlike the push supply chains of our factory-centric industrial past. AMR Research like a glove. The focus is to make them want what you are offering- and not wanting them to purchase what you’ve put out. Apple’s iTunes store is the perfect example. Previously, record labels put out albums out on the market and they were expected to sell based on the couple of singles released to the airwaves. The albums were “pushed” to the customers. These days, iTunes allows consumers to purchase individual tracks- and only the ones they want to- from any album.

That way they are shifting control of the purchase entirely to the customer and it has only helped in mutual growth. The demand driven global supply chain is assessed by two key measures: Operational Excellence (Key Metrics: Perfect Order Rate, Total SCM costs) Innovation Excellence (Time to Value, Return on New Product Launch) The relationship of demand driven excellence and the key measures can be see in the following table which differentiates between market leaders and losers on the basis of their performance in the above mentioned areas.

APPLE AND DISNEY

SPECIFICS

Apple’s digital supply chain comprises procuring content from record labels and television networks (among others), processing the content to digital format and then making it available on its iTunes store. eBooks, Podcasts and Applications for its iPod and iPhone devices also form a big portion of the content that is distributed on its digital supply chain.

The success of Apple’s digital supply chain is due to “an intoxicating mix of brilliant industrial design, transcendent software interfaces and consumable goods that are purely digital”, according to the authors of an AMR Research write-up. The authors also note that “the mechanical and financial benefits of this approach include extremely high inventory turns, minimal material or capacity limitations to growth, and excellent margins. ” Following is an excellent article by a blogger on how iTunes manages suppliers and customers.

ARTICLE 1

By Cara Smith As far as iTunes is concerned, both upstream and downstream supply chains apply. I feel iTunes use both strategies simply because in the case of upstream, iTunes acquire the vast majority of its digital content from well known music labels and film producers, who will trade with iTunes who will then use a downstream approach in order to sell their products and services onto their customers. Push vs pull supply models Nowadays with the digital music market at an all time high with sales hitting the roof, customers are experiencing a new way of purchasing.

In terms of iTunes we can see that ‘pull’ is the new ‘push’ simply because customers are able to purchase individual tracks produced by an artist rather than having to purchase the entire album to only like one or two songs from the track listing. This then gives the customer the opportunity to customize their very own iTunes library or playlists with a range of songs made my various artists meaning that customers will want to hear what is in that playlist without having tracks or items pushed towards them.

With the pull strategy concentrating solely on the customer the main importance of the company is to ensure they provide value and ensure the service will be one in order to ensure customer satisfaction as well as attracting new customer leading to a broadened customer base as well as increased sales rather than to deter customers from purchasing or visiting at all. Vertical integration vs disintegration vs virtual integration I would say that iTunes would most likely operate using ‘Virtual Integration’.

I feel iTunes would operate using this strategy in its day to day running simply because they rely on management activities being undertaken and controlled by outside sources such as the record labels, film producers, application developers and many others, supplying them with all their up to date, high quality digital media and services of which their customers will purchase or subscribe to.

Due to dealing with so many widely known record labels and film producers etc, iTunes always ensures to maintain a strong relationship in order to help secure any future deals these labels may offer as well as trying to broaden their supplier base at the same time.

Evidence of value networks In terms of value networks I would say that by ensuring their customers are well looked after by providing them with everything they need and are satisfied with the products and services they are receiving, including the time in which it takes for a product to download or the quality of their purchase, iTunes will always maintain a good relationship with its customer and supplier base in terms of how they work in partnership with each other.

By ensuring that their customers are always happy with what they are receiving it will be hard for iTunes to loose many of its customers at any one time unless some new top of the range platform was developed with extraordinary features of which iTunes has never thought of. Through continuously updating its platform and interface, whilst adding new and improved features and services iTunes always has something new for customers to explore giving them a sense of ease as they know customers will always be around to check out what new meaning that they are more likely to stay around and use its facilities.

Evidence of efficiencies in supply chain As Apple iTunes continuously strive to provide the best quality service and produce top of the range goods they are always making changes to the way in which they deliver products and services to customers. With iTunes being considered the ‘Number 1’ music platform and online digital retail store, iTunes have proved they can be successful in every way possible by exceeding cashflow and turnaround targets through the huge demand for online digital content of which many of music record labels and film producers supply and give permission for iTunes to sell on to its customers at price.

With this success iTunes will do anything and everything in order to keep its existing customer and attract new customers in, so with their ideas of continuous new and improved updates to the iTunes interface and by introducing better ways of syncing and managing your iPod or iPhone contents on the iTunes platform. In terms of ensuring customer have all the content they require iTunes it always up to date with the current charts and applications, however when a customer has made a purchase the item(s) will automatically start to download and will be accessible to listen to or view as soon as the download is complete. ttp://csmithcom425. wordpress. com/2009/10/30/week-6-supply-chain-management/ Apple’s revolutionary digital supply chain (nurtured by its demand driven excellence focus) is in addition to its distribution of its own physical products, the aforementioned iPod and iPhone as well as Macs and Macbooks. Whereas the line between the products that travel through Apple’s digital supply chain (music, movies, eBooks) and the ones that are distributed through its traditional supply chain (iPods, Macs) is quite distinct, Disney has a more blurred array of products offered on its digital and traditional supply chains.

While it maintains its practice of maintaining top-notch physical distribution channels with its retailers (such as Blockbuster which carries Disney DVDs) the same content is also offered through its digital network (on-demand movies, online premieres, digital books), albeit not in the same format. The simultaneous existence of both the supply chains is necessary for Disney even though the content distributed differs only in format because the modern market demands ask for digital content whereas it has to fulfill the continued, if diminishing, demands of its physical etailers and varied businesses such as the supply chain needs of its theme parks. The Arvato Digital Services model can be used to understand how Disney manages the distribution of the same content across the two channels, digital and physical. Also, see the model on the next page for more detailed insight on how the Digital Supply Chain relates to Disney and other entertainment industry players.

RECOMMENDATIONS

Our recommendation for both the companies would be to draft better licensing deals, capitalize on the immense potential of the digital supply chain, and use the internet to distribute digital content worldwide and not a select list of geographic locations. People in third world economies like Pakistan can make online purchases and download digital content as well. Without incurring significant additional costs, Apple and Disney can make their entire repository of digital content and access available without exceptions on the basis of location, and reap the financial benefits that will surely come.

Apple has been doing a fantastic job of managing its supply chains but whereas its physical chain is finally sounder than it once was, the company needs to be careful not to underestimate the incredible popularity of its online content. Recently, during the rollout of a new iPhone, the physical supply chain was able to endure and accommodate the rush of early purchasers but the digital supply chain became overtaxed with demands of device activation and content synchronization which led to a slew of wait times, customer service issues and of course, unhappy customers.

Disney should start preparing for a future where distribution of its content, that can be provided digitally, would be extinct. That would pose several new challenges for the company- Should it form lucrative liaisons with online retailers like Apple’s iTunes or sell its own content such as the TV Network NBC? An analysis of the pros and cons of both the alternatives could make better decisions possible in planning its supply chain strategies for the future. The biggest challenge we’ve been confronted with, preparing for, and have every expectation we’ll be successful in is how technology will dramatically change the way consumers worldwide enjoy entertainment content,” DVD sales are already facing a slump (they slid by – Bill Patrizio, senior VP of 6. 9% last year). Studios are facing the dilemma of strategic sourcing and devising profitable solutions for the new age while procurement for Disney. trying to maintain profitability from the decreasing momentum of the cash cow that was the DVD market.

Our recommendation in this respect would be to brainstorm a fresh business model instead of trying to teach the old dog new tricks. A complete overhauling of the way the company thinks of content could be the solution for the problems that are sure to arise in the near future. The rumored “Keychest” could be a step in the right direction. Disney has always shown business savvy (as is obvious from the quote from 2005 display above) and we’re sure the company has some smart strategies thought out.

REFERENCES

  1. Wikipedia Digital Supply Chain http://en. Wikipedia. org/wiki/Digital_supply_chain
  2. AMR Research www. amrresearch. com
  3. PC World “How Apple’s Supply Chain fared during the 3G Rollout” http://www. pcworld. com/businesscenter/article/148429/how_apples_supply_chain_fared_during_t he_3g_rollout. html
  4. Cara’s Com425 Blog http://csmithcom425. wordpress. com/2009/10/30/week-6-supply-chain-management/
  5. “Understanding the Digital Supply Chain” Presented at Media-Tech Conference, 23rd April 2009 by Sven Deutschman, CEO, Arvato Digital Services EMEA http://www. media-tech. et/fileadmin/templates/europe09/pdf/presentations/MEDIATECH_2009_Sven_Deutschmann. pdf
  6. Business Week “Hollywood Is Worried as DVD Sales Slow” http://www. businessweek. com/magazine/content/09_09/b4121056770437. htm
  7. MESA Disney developing ‘Keychest’ for Digital Content Access http://mesalliance. org/blog/2009/10/21/disney-developing-‘keychest’-for-digital-content-access/
  8. Information Week “Q&A with Disney’s Patrizio: Digital Content Is the Future” http://www. informationweek. com/news/globalcio/interviews/showArticle. jhtml? articleID=160403913

Read more

Marche shoe district

Logistics Is simplified by the geographical concentration of firms in the district and the personal knowledge and trust that characterizes relationships amongst district entrepreneurs. Flexibility by the small firms’ supply network enables the ups or downs of fashions to be met. Since asses, however, the district network has had to come to terms with an outsourcing trend to low labor-cost countries that is always a threat to mature and labor-intensive industries in developed countries. As a result, production of low-cost shoes has been outsourced almost fully, first to Eastern Europe and then to the Far East.

In low-price product ranges, district companies retain only high-value activities of design, marketing and distribution in the Macerate district. Outsourcing has also affected the core district products In medium- to high- quality footwear. Here, however, foreign partners are Involved In only less complex tasks to preserve Italian style and quality. The result Is an Increasingly widespread network. Processed leather is brought into the district after initial processing in Asia eastern Europe for further processing (mainly to Romania and Albania for sewing and hemming).

Prepared leather is returned to the district for finishing and assembly. Such partial outsourcing – called outward processing traffic – preserves he high-quality standards of district shoes, whilst cutting down on costs. This makes logistics a critical activity. Transportation costs per unit have increased, and responsiveness has been put at risk. This is of particular concern to a business that is linked to fashion, where season collections and sales campaign deadlines cannot be missed.

Whilst offshore sourcing has led to significantly longer lead times, increasing inventories and lot sizes are not an effective answer. Most district firms offer differentiated products based on fashion trends, and therefore loud face a high risk of markdowns at the end of season. Therefore, firms normally order only 25-30 % of requirements for a seasonal collection from their suppliers and the basis of forecasts, and these are mainly carry-over models and “classic” leather. Orders for the rest of the collection are made in line with incoming orders from fashion fairs, distributors and boutiques.

The new international network (including a sales network that is extending progressively towards Asia) has become so complex that even large companies find it difficult to manage. Leading district firms are tackling logistics issues through increased information processing capabilities and through advanced services from logistics service providers. In order to manage a production network pning from nearby district suppliers to Eastern Europe (mainly for shoes) and China (for clothing), Forward has installed SAP-OAFS (Apparel and Footwear Solution).

This new ERP system has allowed the company to improve visibility over production planning an tighten control over suppliers. Forward has outsourced outbound logistics, and is considering a logistics platform to handle information exchange for districts abstractors and foreign suppliers to reduce costs, an RIFF system to improve responsiveness to European customers and a logistics network to support its strong selling presence in China.

However, most district companies are not large enough to become attractive propositions for IT or logistics service providers. Whilst they can’t afford to lose outsourcing opportunities, theses small firms risk being unable to manage the more complex networks that result. Moreover, most district entrepreneurs do not fully support the potential advantages of sharing outsourced services. Since they lack the accounting tools for getting a complete picture of logistic costs, the do not perceive logistics as a competitive weapon.

They care only about emergencies when a rush order is required or when a planned delivery is late, but dealing with such emergencies becomes more difficult when distant foreign partners are involved. Developing the infrastructure, the skills and the mind-sets, in order to manage such a radical change in international supply chain management, is probably the biggest challenge district companies will face in the next 5-10 years.

Read more

Informative Essay on Supply Chain Management

CHAPTER 1 INTRODUCTION 1. Background PT. DAS motor is dealer of Yamaha Motorcycle, they play an important roles in supply chain management. They link the manufacturer to the customer, while in their activity the perform actions and making profit. In indonesia, motorcycle is one of in demand transportation for middle to low class society. In this era of globalization, companies are involved in tight competition, so that proper procedure of supply chain is needed to gain competitive advantage upon the other competing industry especially chinese motorcycle. PT.

DAS motor is specilized in distribution of Yamaha motorcycle in Jakarta Barat. They have two branches in west region. To support supply chain management, they well managed every activities by knowing exactly their position on the distribution process. To make a good sytem in supply chain management, every steps should be well managed efficiently, effectively, and economically. PT. BKM also perform warehousing and logistic, so they should take care of these things. PT. DAS Motor should carefully forecast the demand of the market and capacity of their warehouse.

All the personnel in the company and related parties in YAMAHA should be well informed and communicate well to achieve excellent system in supply chain management. As a distribution company, they also perform activies that bring them to be close to the end customer. By giving facilities and extra services such as fast delivery and discount. But there are several term that allows the company to give discount. Because these discount may increase competition between each YAMAHA dealer. So there are specific rules and regulation.

The current knowledge about the company and process: • DAS MOTOR as dealer to distribute product to current customer • Build relation with customer. • Provide warehouse and showroom for YAMAHA’s customer. • DAS MOTOR benefit from incentives given from YAMAHA and leasing company for credit payment. • Distribution channel which in this case is DAS MOTOR help to market and advertise the product. • DAS MOTOR becomes chain in supply chain management. 2. Scope There are several scope include in this thesis project: The DAS motor involvement in the distribution process of YAMAHA motorcycle. • The activities of DAS motor in their contribution of YAMAHA distribution process. • The importance of distribution channel (dealer) in supply chain management of motorcycle company • The existing problem in the process of distribution of PT. DAS motor. 3. Aims and Benefit These are several aims and benefit of these thesis project: • To better understand their distribution process in supply chain management, on how they produce, distribute and deliver products to final customer.

Briefly, we will study on how this distribution process affect to the company revenue in next future. We will examine the flow process that related in our study of supply chain management in order to seek the best results. • To help improve our knowledge about management process in supply chain management. It would be more specific on how they can manage the product in high quantity for several days to be delivered to the customer. • To help us examine and analyse the major problem occurs in the company, what is the problem and how they can solve it.

The aim is to know how the company solve the particular problems. CHAPTER 2 THEORITICAL FRAMEWORK 2. 1 Supply Chain Management Supply chain management is the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage. In brief, it represents a conscious effort by a firm or group of firms to develop and run supply chains in the most effective and efficient ways possible. First, we know that organizations in the supply chain are linked together through physical flows, information flows, and monetary flows.

It is on how we can combine those attributes into the simple management system to be more effective and efficient. Supply chain is also a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage through to the end user. It is simply like how the manager in one company can build a system to manage their product to be distributed and consumed for end user. The supply chain management is the important phase in the company to be redirect to the company management system.

It’s not only how the system looks a like, but it is especially on how we can manage our product and keep maintaining the flow of distibution. 2. 2 Warehousing A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload goods from trucks. Sometimes warehouses load and unload goods directly from railways, airports, or seaports. . 3 Distribution Channel Distribution is also a very important component of Logistics & Supply chain management. Distribution in supply chain management refers to the distribution of a good from one business to another. It can be factory to supplier, supplier to retailer, or retailer to end customer. It is defined as a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the ‘distribution chain’ or the ‘channel. Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. A number of alternate ‘channels’ of distribution may be available: • Distributor, who sells to retailers via direct marketing, or brokers can also be used, • Retailer (also called dealer or reseller), who sells to end customers • Advertisement typically used for the consumption goods Distribution channels may not be restricted to physical products alice from producer to consumer in certain sectors, since both direct and indirect channels may be used.

Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. process of transfer the products or services from Producer to Customer or end user. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services – the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors.

For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas. 2. 4 Type of distribution channel 1. Intensive distribution – Where the majority of resellers stock the ‘product’ with convenience products, for example, and particularly the brand leaders in consumer goods markets (price competition may be evident). 2.

Selective distribution – This is the normal pattern (in both consumer and industrial markets) where ‘suitable’ resellers stock the product. 3. Exclusive distribution – Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the ‘product’. 2. 5 Inventory Management System Inventory management is primarily about specifying the shape and percentage of stocked goods. It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials.

The scope of inventory management concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. . 6 Logistic Logistics is the management of the flow of goods and services between the point of origin and the point of consumption in order to meet the requirements of customers. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. Logistics is a channel of the supply chain which adds the value of time and place utility. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software.

Logistics is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer and legal requirements. A professional working in the field of logistics management is called a logistician. Logistics management is known by many names, the most common are as follows: • Materials Management • Channel Management • Distribution (or Physical Distribution) • Business or Logistics Management or Supply Chain Management CHAPTER 3 COMPANY PROFILE 3. 1 Company Profile • Company name: PT. Dwikarya Anugrah Sejati (DAS motor). • Location: Jl Utan Jati Blok LB 5 No. 26. Daan Mogot baru, Kali deres, West Jakarta • DAS company was established on 2002 • DAS motor specializes in selling all type of YAMAHA Motorcycle. • It has 2 branches, 1 of them is only showroom and the other having showroom and repair shop. • Their target market are Jakarta and surroundings (Tangerang, Bekasi), and region with license plate B 3. 2 Company’s Supply Chain [pic] 3. 3 Business Ethics The company only allowed to sell the product in one location ( Jakarta and surrounding, license plate B) if we sell to other region. The company will get STNK violation. • The company can’t supply to channel which is not authorized dealer. • There’s must be distance coverage between one dealer and another. For example: 2 km. • If our relatives already open authorized dealer. We can’t open another YAMAHA dealer. 3. 4 DAS MOTOR purchase procedure • Manufacturer allocates the purchase unit for 4 periods / month (week 1 – 4). • Then they fax these allocation purchase unit to finance department of DAS motor. Then we open 4 “GIRO MUNDUR” according to allocation period. We should pay to manufacturer one month after we purchase the units e. g. we purchase motors for January week 1, we pay them in week 1 ,next month (February). • We send the “giro mundur” to them and they will release the unit according to their allocation unit (depends on the allocation period). Then, administration unit department will check the unit physically, and completeness of the unit (helmet, tool kit, etc). • If there are defective unit, we should return at that time immediately before we record into document.

When we received the unit, we got travel pass (surat jalan) from manufacturer then we prepare document for prove of unit received (bukti penerimaan barang). 3. 4. 1 DAS MOTOR purchase cycle flowchart [pic] 3. 5 DAS MOTOR revenue cycle Customer come to the dealer, they negotiate about the price. If they have met the agreement about the prices, the sales person prepare document “PERMOHONAN PENGIRIMAN” which is should be sign by finance department and forwarded to administration unit(operational department). Then finance department make receipt for sales unit (3 copies), one copy for customer, two copies for accounting department.

Unit administration prepare all the things ( unit+accesories) 3. 7 Inventory Management of PT DAS MOTOR sories) and create document “BUKTI SERAH TERIMA BARANG” (including travel pass because the motor do not have STNK). Unit and receipt are sent to customer and then finance administration will receive cash, they transfer to company’s account and enter them in cash/bank receipt journal. Dispatch process: Administration Unit: Travel pass with photocopy of ID card are sent to “Administrasi Balik Nama”. That photocopy ID card is used to request the invoice to YIMM (manufacturer).

Invoice and other required document are sent to service agency, and then service agency will process the STNK and BPKB to provincial police. After STNK and BPKB are released they are sent to customer. 3. 5. 1 DAS MOTOR revenue cycle flowchart [pic] 3. 6 Credit sales Procedure of PT. DAS motor Customer come to the dealer, they negotiate about the price. If they already met the agreement, the sales counter will survey the customer about customer’s creditworthiness. Then sales counter will inform the leasing department about survey by phone. Then leasing will survey the customer.

If they accept the credit, the leasing department will make purchase order and then it will be sent to the sales counter. According to this PO, we prepare “PERMOHONAN PENGIRIMAN” document. So, these PO is the supported document of the “PERMOHONAN PENGIRIMAN”. The document of PERMOHONAN PENGIRIMAN should be sign by finance department which are sent to administration unit. This document is also used to release the unit. Administration finance prepares the receipt but only for the initial payment . There are 3 copies of receipt (1 for customer, 2 for accounting department, 3 for leasing).

Administration unit prepare all the things (unit and accessories) and create document “BUKTI SERAH TERIMA BARANG” (including travel pass because the motor do not have STNK). Unit and receipt are sent to customer and then we will receive down payment which is transfer to bank and record in cash/bank receipt. Administration finance: Based on the PO leasing, we prepare receipt bill to leasing. The receipts, copy of travel pass, PO, SPP BPKB were sent to leasing department. Leasing department will process the payment then they transfer it to our account.

Dispatch process: similar with cash sales procedures, but the difference is the customer will not received the BPKB, the BPKB are given to the leasing department. If the customers have completed the payment, then the leasing company will give the BPKB to them. 3. 6. 1 Flowchart of credit sales procedure [pic] 3. 7 Inventory Management of PT DAS MOTOR PT. DAS motor use inventory management software for their inventory stock opname. The software that they use is MYOB, this software are for accounting purpose and link to the inventory information.

They also do check of inventory, to match the amount of real inventory and amount of inventory in the MYOB data. PT. DAS motor forecast the market demand and supply from YAMAHA each month, while YAMAHA also see past sales of PT. DAS motor to allocate the inventory according to ability of DAS motor to sell products. PT. DAS motor forecast are not 100% reliable because of fluctuating market condition and market ability to purchase product. PT. DAS motor always makes sure that their product fit in the warehouse and showroom.

The condition and security of the warehouse should be maintained by authorized person and key keeper. Inventory checking also important for Das motor to operate because they have to check the amount of motorcycle that they order in the warehouse. For example, they order 100 motorcycles every month but they also sell the motorcycle in one month’s so they should check the amount of motorcycles that they sold and the amount of the motorcycles that are still in the warehouse every month whether the inventory is balance or there is missing either the motorcycle or the mistake of the accountants.

On the day PT. DAS stock their motorcycle, they should check the amount of the motorcycles that their order whether the amount is the same that they order or not. Checking the condition of the motorcycle should be implemented also because if there is broken part they should complain and return back directly on that day. They should not receive the broken motorcycle because it hard to return back the motorcycle to the manufacturer because the manufacturer might think that PT. DAS is the one who broke it. 3. 8 Logistic of PT. DAS MOTOR To transport motorcycle from YAMAHA factory to PT.

DAS motor, YAMAHA hire third party logistic to send motorcycle to authorized dealer. The third party logistic provide assurance and on time delivery to each dealer because transportation for motorcycle is quite unsafe. YAMAHA focused on the production and hire third party logistic to do logistic for their product. To transport motorcyle from DAS motor to customer, they use their own transportation. They have driver and co-driver to bring down motorcycle from truck. In doing transportation DAS motor should make sure that motorcycle accepted by the right person.

Because if they ship motorcyle to wrong person, it become DAS motor responsibilty for the losses. DAS motor should maintain the product quality, no scratch or breakage during transportation. They also equipt the driver with travel permit and letter of authorization, driver should ask customer sign after receiving goods (evidence of product acceptance). CHAPTER 4 PROBLEM AND DISCUSSION 4. 1 Role of PT. DAS MOTOR in supply chain management of YAMAHA DAS motor as an authorized dealer of YAMAHA plays an important roles in the supply chain management of the product. To be an authorized dealer of YAMAHA, PT.

DAS motor should met several criteria (prodcut knowledge, strategic place, ability to market the product, and the company’s competitive advantage upon other dealer). YAMAHA should make sure that there is no fight between dealer by price margin, advertising, and etc. In this part, DAS motor help YAMAHA to market the product and gain market share in the society. As a distribution channel, DAS motor not only play a role in handling inventory and bridge between YAMAHA to end user. But they also help YAMAHA to forecast market demand, advertise, and provide credit sales (using leasing company such as ADIRA).

DAS motor also provide showroom and workshop equiped by sparepart and repairing facilities. DAS motor provide roadshow using budget from YAMAHA. This shows that DAS motor plays an important role to bring the product to end customer in supply chain management. Function perform by DAS motor: • Stroring product (warehousing) • Transportation to end customer • Forecast market demand and capacity of dealer • Showroom • Perform credit sales • Build relation with customer 4. 2 Problem in storing product (warehousing) There are several problem face in storing product or warehousing: Place for storing product and showroom are in the same place. So the place are crowded and force them to place some product out of showroom. The air condition and security are not maintain, especially if there crowded customer in the showroom. • If there’s no empty space in the first floor, they have to use third floor and they have to use elevator to move goods to third floor. Elevator only be reach by minimum goods that’s only one product can be fit to the elevator. • The security system in the warehouse is more simple than the other security system.

The company should provide more high and effective security system to avoid theft, fire,etc. The company should hire security company to provide high technology security to avoid those problems. • The warehouse capacity is too small for storing products. It should be larger than the previous space, so it will be easier to store big quantity of the products. • The product classification in storing management is fall apart. It should be classify and differentiate between one type to another type , so it would be more efficient. 4. 3 Solution to problem in storing product ( warehousing ) Assign authorize personnel in charge for security and placed hood to cover motorcycle from hot sunny day and rain. It should separated or hire a new space for warehouse, workshop and showroom to make the company more easily in stroring the product. • Reconstruct the elevator, so the company can store the product in high quantity. It means to reduce cost, time and makes the company more efficient in storing product. • Hire security company or hire security people to avoid theft, fire, etc. Although it added more cost by hiring security people or company, but it will makes the product more safe. Build extra space in warehouse to added lot of quantity inside. By extending space in warehouse, we can easily store high quantity product and manage the product more easily than before. • It should be classify from the types of product, so the company can easily see where the product have been placed in the warehouse. 4. 4 Problem in transportation to end customer • When transport the product to the final customer, the major problem is the product could be damaged during the process. • Delayed in meeting the customer satisfaction. ot of traffic occured especially in jakarta, it will create additional cost whether the product itself should be passes to the customer in one day, but it should takes another one or two days later to deliver the product to end customer. • The transport limitation. We can’t transport product outside JABODETABEK, so it all means that we can’t reach fully the customer satisfaction. • The company doesn’t provide security during logistic. The increasing criminilatiy in Jakarta may bring insecure logistic process. Road and highway condition in Jakarta create a possibility to defect product (bumpy road, etc). We have to delivered the product to the right person or customer, because we have to get a letter of acceptance from the right customer to avoid error in delivering the product. 4. 5 Conclusion to the problem in transportaion to end customer • Provide a big plastic cases to covered the product, so the product will be safe delivered to the end customer • The company should find another direct road, so the product can delivered on time to the customer. • The company should hire third party logistic, so the they can delivered the product if the customer live outside JABODETABEK. In order to avoid criminality and road/highway condition in jakarta, the company should hire number of people or security to maintained the product and believe that the product is safe delivered to the customer. • Offered the end customer with a letter of acceptance to avoid missunderstanding in delivering the product or certain error in delivering the product. 4. 6 Problem in Forecast market demand and capacity of dealer • In fact, forecast is not really needed and it is not accurate if the company wants to order the motorcycle.

The quantity and capacity that the company order per month can change anytime. It depends on the number of sales in the company. 4. 7 Solution to the problem in forecast market demand and capacity of deal • The company create the forecast report to YAMAHA and make forecast is important and needed. 4. 8 Problem in perform credit sales • Sometimes when the company offers credit sales to the customer, some customers usually will not paid back the maximum mounts. They usually run away from the mounts and it accessily harm the company. Complex procedure in perform credit sales. The company should makes several agreement with the bank. 4. 9 Solution in perform credit sales • Hire number of people to directly meet and interview the customers if they have late payment. • Find bank with simple procedure to easliy make agreement and it will aimed to the customer satisfaction. 4. 10 Problem in build relation with customer • Company may find difficulties in maintain customer relationship. Customer sometimes being cool and not fully understand the aim of the company in building customer relationship. There are different behaviors between the customer and sales people in the company. 4. 11 Solution in build relation with customer • Satisfy the customer by send them a gift or premium item. Create an unique gift so the customer will satisfy and remember the company. It will create a strong relationship and will keep the customer buying back company’s product. • The sales people should treat the customer with good behaviour. It means that sales people has to prioritizing customer, and treat them in a good term to achieve customer satisfaction.

Read more

L & Fung

Mis / Enterprise System Li & Fung Export Trading Company was founded in 1906 by Fung Pak-Liu and Li Toming in Guangzhou, China. Li & Fung Ekspor Dagang Perusahaan didirikan pada tahun 1906 oleh Pak-Fung Liu dan Li Toming di Guangzhou, Cina. Between 1920 and 1930 the company was diversified into manufacturing and warehousing. Antara 1920 dan 1930 adalah perusahaan manufaktur menjadi diversifikasi dan pergudangan. After the passing of Fung Pak-Liu in 1943, his son Fung Hon-Chu assumed charge of the company. Setelah lulus dari Pak-Fung Liu di 1943, anaknya Fung Hon-Chu diasumsikan biaya dari perusahaan.

In 1974 the company was owned and operated by Fung Pak-Liu, William and Victor. Pada tahun 1974 perusahaan ini dimiliki dan dioperasikan oleh Fung-Pak Liu, William dan Victor. In 1980 they expanded operations throughout the Asia pacific region. Pada tahun 1980 memperluas operasi mereka di seluruh wilayah Asia Pasifik. By 1995 they expanded their offices around the globe. 1995 oleh mereka memperluas kantor mereka di seluruh dunia. They also launched an intranet to link their corporate offices together. Mereka juga meluncurkan sebuah intranet perusahaan mereka link ke kantor bersama.

In 1997 they launched a secure extranet to connect to their customers and suppliers. Pada tahun 1997 mereka meluncurkan extranet aman untuk menyambung ke pelanggan dan pemasok. By 2000 they were a $2 billion global export trading company with 3600 employees world-wide, and with sales of 69% in the United States and 27% in Europe. 2000 oleh mereka yang $ 2 miliar perdagangan ekspor global perusahaan dengan 3. 600 karyawan di seluruh dunia, dengan penjualan dan 69% di Amerika Serikat dan 27% di Eropa. Their Product mix consisted of hard and soft products. Produk yang terdiri dari campuran hard dan soft produk.

Li & Fung employed a Holistic Supply chain management that provided value-added services across the entire supply chain in a borderless manufacturing environment. Li & Fung yang bekerja Holistic Supply manajemen rantai yang memberikan nilai tambah layanan di seluruh rantai suplai yang tak terbatas dalam lingkungan manufaktur. This borderless manufacturing environment provided customization of the supply chain. Ini tak lingkungan manufaktur yang disediakan kustomisasi dari rantai suplai. With the acquisition of Camerley in 1999 they were able to offer clients virtual manufacturing and product design.

Dengan akuisisi Camerley pada tahun 1999 mereka dapat menawarkan klien virtual manufaktur dan desain produk. However none of this could have been accomplished without the culture of Li & Fung. Namun tidak ada ini telah dapat dicapai tanpa budaya Li & Fung. The culture of the company was modest, quick thinking and very responsive. Budaya perusahaan yang sederhana, cepat berpikir dan sangat responsif. The people are externally focused on the tasks of the company. Orang-orang luar yang difokuskan pada tugas-tugas dari perusahaan. Communication was fostered across the Group.

Komunikasi yang dipupuk di seluruh Grup. Separate and individual management teams were employed worldwide. Terpisah manajemen tim dan individu telah digunakan di seluruh dunia. They operated under a corporate umbrella with centralized IT, financial and administrative support. Mereka beroperasi di bawah payung perusahaan dengan sentralisasi TI, dukungan keuangan dan administrasi. The future growth of Li & Fung was seen coming from three areas: organic growth, expansion through acquisition and extension of its supply chain to new markets via the Internet (E-commerce).

Pertumbuhan masa depan Li & Fung dinilai berasal dari tiga bidang: pertumbuhan organik, ekpsi melalui akuisisi dan perpanjangan dari rantai suplai ke pasar-pasar baru lewat internet (e-commerce). To help launch their e-commerce they employed an IT division consisting of 60 employees, using outsourced software development. Untuk membantu mereka memulai e-commerce mereka yang digunakan sebuah divisi IT yang terdiri dari 60 karyawan, dengan menggunakan outsourced pengembangan piranti lunak. In 1995 the intranet was… Intranet pada tahun 1995 yang telah …

Read more
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Close

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp