Supply Chain Management A Logistics Perspective Pdf 12

Supply Chain Management A Logistics Perspective Pdf 12

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Supply chain management (SCM) refers to the management of operations that are involved in the procurement of raw materials, their transformation into finished goods, and their distribution to the end consumer.

The simplest supply chain includes your suppliers, you, and your customers. However, most manufacturing organizations have a more complex supply chain that includes multiple suppliers and even outsourcing operations.

Any company will benefit from proper supply chain management as it strives to streamline the processes found at each step of the supply chain to ensure that consumers are receiving the right amount of the right item at the right time. When you are able to deliver on your promises, you are more likely to secure future business with your customers and maintain a competitive advantage in the market.

Good supply chain management ensures that you maintain a balance between demand and supply. In order to reduce waste, increase profits, reduce costs, and ensure the timely delivery of products, supply chain management must be efficient. This is why understanding the five functions of supply chain management is essential for manufacturing organizations as it will provide insight into how to improve the efficiency of your operations. Therefore, here are the five functions of supply chain management.

The first function of supply chain management is purchasing. In the manufacturing process, raw materials are required to produce goods and products. It is important that these materials are procured and delivered on time so that production can begin. For this to occur, coordination with suppliers and delivery companies will be required to avoid any potential delays.

Demand planning and forecasting are usually required before materials can be procured, as the demand market will dictate how many units to be produced and how much material is required for production. This function is important in supply chain management as organizations must accurately forecast demand to avoid having too much or too little inventory that will lead to losses in revenue. Therefore, demand planning and forecasting must be tied in with inventory management, production, and shipping to avoid such mistakes.

Logistics is the part of supply chain management that coordinates all aspects of planning, purchasing, production, warehousing, and transportation so that the products will reach the end-consumer without any hindrances. It is helpful to have adequate communication between multiple departments so that products can be shipped to customers quickly and at the lowest cost.

Information sharing and distribution is what keeps all of the other functions of supply chain management on track. If the information workflow and communication are poor, it could break apart the entire chain. Many disruptions that arise in supply chains can be prevented by increased visibility and communication. Having a consistent system that is used by all departments will ensure that everyone is working with the same set of data and will prevent miscommunications and time spent updating everyone on new developments.

It is important for any manufacturing organization to understand the five functions of supply chain management. However, many manufacturers around the globe have trouble keeping up with the rapidly changing demands and challenges involved in supply chain management.

Manufacturing operations looking to take their company to the next level, improve their production efficiency, and take a hold of their supply chain management should consider implementing an Advanced Planning and Scheduling software.

The past two years have been a time of tremendous stress due to the COVID-19 pandemic and product shortages in key areas. The surge in ecommerce and consumer demand and public health challenges during the pandemic put pressure on manufacturing and distribution facilities around the world. With much of the developed world having shifted to off-shore manufacturing and just-in-time supply chains, it did not take long after COVID-19 appeared for global supply chains to become overstretched and frayed.

Businesses that had gotten used to manufacturing key products in the developing world and having quick turnaround to global markets discovered that pandemics wreak havoc on component supplies, manufacturing, distribution, public health, and the workforce. Products that might be available in a matter of days shifted to schedules that took weeks or months. There was no easy way to address supply chain issues when manufacturers had product shortages and sick workers.

In recent years, labor shortages and economic shocks have roiled supply chains and generated delays, cost increases, and a range of logistical challenges. As a result, inflation has returned as an economic problem, and there are complications linked to underlying shifts in the workforce.

The unanswered question right now is how many of these pandemic issues will be short-term or will remain part of workforce issues going forward. The country is grappling with a number of workforce shifts such as rising automation, digital transformation of many sectors, and a future of work characterized by AI, machine learning, and data analytics.22 Each one of these developments complicates supply chain challenges but taken together generate considerable uncertainties regarding the path ahead.

Limited market competition fuels supply chain problems by making it difficult to prevent abusive market practices. In several areas, large firms have significant market power and sometimes use their control to raise prices and engage in anti-competitive practices. That accentuates market problems and aggravates supply chain problems.

In the United States, the Jones Act for many years has limited American shipping to U.S.-owned boats. Although this requirement originally had the intention of boosting the domestic shipping industry, the legislation keeps shipping costs high while not always offering the protections that members of Congress sought. It artificially boosts costs and imposes bureaucratic barriers on domestic shippers without being very successful at aiding American firms. It may be time to revisit that legislation by lifting some of its provisions and consider ways to lower costs and improve supply logistics.26

The geopolitical situation has grown more complex as Russia invaded Ukraine, relations between the U.S. and China have become more combative, and various countries have imposed tariffs, sanctions, and barriers to entry on other nations. With many goods, from electronics and medical equipment to clothes and furniture, being made in China, it is difficult to maintain open supply chains as long as geopolitical conflict intensifies and economic and security risks are high.

Due to the risks of Chinese and Indian suppliers, some experts have called for a decoupling of America from foreign supply chains in critical areas.29 The argument is the U.S. should enhance its own domestic capabilities and wean itself from a dependence on China in key sectors. While that advice is well-taken in certain critical areas, it would take years in other sectors to implement such a strategy and build domestic capabilities within the United States.

The same logic applies throughout supply lines and illustrates why it is so challenging to address these matters. Resolution is going to require progress on many different fronts. There will need to be improvements on a variety of factors to make a difference in production, logistics, and distribution. Progress will not be easy or quick but can be made if there is a clear and comprehensive strategy to deal with the multiple challenges and complex interconnections.

Today, the two terms - agility and leanness are frequently encountered in the literature due to their effects on industrial sectors. They are the two basic paradigms of the businesses that help them to build strategies and to gain a competitive advantage. This study aimed to explore the emerging research topics and the main research trends within agile and lean supply chain (SC) paradigms in recent years and to explore the interrelationships between them. A word co-occurrence analysis technique was adopted in this study. A data set of 526 publications, obtained from the Web of Science database, had been analyzed. The findings show that many topics such as SC strategy, green SC, and SC agility are present since 2018. Besides, the topics such as SC design, collaboration, cold SC, lean and agile SC, and SC risk management were emerging topics. The most common research areas revealed are; environmental risks in the agile SC, combining lean SC with agile SC, leagile SC strategies, SC risk management, and agility in SC integration.

Automation will affect the supply chain far beyond the walls of the warehouse and sorting center; it will change the way goods flow across all modes (exhibit). In the first article in this series, we addressed the impact of autonomous trucking, a critical automation technology, on roads, rails, and ports. And our colleagues recently produced a detailed look at other forms of port automation. They find that while ports are accelerating their adoption of automation, they are not yet recouping their costs. Moreover, while operating expenses are falling as expected (by 15 to 35 percent), throughput is falling as well (by 7 to 15 percent). Port operators can take several steps to get the most out of automation. Among other moves, they can build automation-ready capabilities rather than simply automating old processes. And they can apply better project discipline to ensure that automation investments account for all attributes of port operations.

Five issues are holding the sector back. Two are the flip sides of the forces (e-commerce and technological advance) that are motivating the renewed interest in automation. Also clouding the outlook are purchasing problems, the potential for change in the omnichannel supply chain, and the risks associated with short-term contracts. 2b1af7f3a8