Showing papers on "Supply chain published in 1990"

Supply Chain Management, Partnership, and the Shipper ‐ Third Party Relationship

Abstract: The paper begins with an overview of some of the forces that have shaped supply chain management and partnership relationships Next the potential benefits and risks of involvement in supply chain management/partnership relationships are discussed from the perspective of both the shipper and the service provider (warehousers and transportation firms) Results from a major survey of shippers, warehousers and transportation providers are used to illustrate the risks and benefits Means of minimizing the potential risks are also suggested The paper concludes with a discussion of issues in supply chain management that would benefit from further analysis and research These issues include determination of whether a firm should use a supply chain management approach, the management structure to use in supply chain management, and modelling supply chain management systems

Successful Supply‐Chain Management

Abstract: The supply chain is the flow of both information and material through a manufacturing company, from the supplier to the customer. Traditionally the flow of material has been considered only at an operational level, but this approach is no longer adequate. It is now essential for businesses to manage the supply chain in order to improve customer service, achieve a balance between costs and services, and thereby give a company a competitive advantage. Managers must work to integrate the supply chain – i.e. to ensure that all the functions and activities involved in the chain are working harmoniously together. To develop an integrated supply chain means managing material flow from three perspectives: strategic, tactical and operational. At each of these levels, the use of facilities, people, finance and systems must be co‐ordinated and harmonised as a whole. The article describes how this can be achieved in practice by working through three phases: (1) evaluation of the competitive environment; (2) diagnostic review of the supply chain; (3) development of the supply chain, which involves functional integration, internal integration and finally external integration. Companies which develop an integrated supply chain, with all that this involves, will benefit hugely in the marketplace. Those that do not will get left behind in the struggle for survival.

Co‐makership as an Extension of Quality Care

Abstract: The role of quality and how it is defined in a supply chain are discussed and the change in the meaning of quality as relationships evolve from supplier to co‐maker described. The way in which the supplier′s responsibility for quality grows as co‐makership develops is dealt with and the appropriate steps in this process outlined.

Electronic data interchange in the retail supply chain: the distribution contractor′s role

Abstract: Electronic Data Interchange (EDI) can bring many benefits. It allows orders, invoices and other commercial information to be relayed directly between different firms′ computer networks. Distribution contractors must, like the suppliers, become integrated into these EDI networks.

Enhancing Supply Chain Efficiency ‐ The Strategic Lead Time Approach

Abstract: Accepted logistics theory states that short lead times are consistent with high accuracy of customer service and low levels of inventory. Yet global or theatre based manufacturing strategies are lengthening lead times, extending supply chains and increasing risk of both excessive inventory and poor customer service. Logistics strategies to manage the conflicting interests of manufacturing and marketing and distribution have proved difficult to evolve. Strategic Lead Time Management is a computer modelling approach designed to identify and maximize the value added: cost added ratio in supply chain design. It is based on simulating the relationship between organisational process and procedure and the flow of inventory through the supply chain. This paper describes the approach and the results that can be achieved.

Extended Supply Chains

Abstract: Describes a new approach to improving customer/supplier partnerships. Asserts that Western managers tend to perceive every other company as a potential threat. Contends that Japanese companies have realized that global battles are between groups of companies acting in networks or extended supply chains. Shows how supply chain competitiveness can be improved through the buyer/supplier relationship audit. Concludes there is still much to be done before we emulate the Japanese role models and create competitive alliances of companies which would have a strong root culture of quality on which the health of each part would depend.

Effects of flexibility through set-up time reduction and expediting on integrated production-distribution systems

Abstract: A model of an integrated production-distribution system is applied to the question of the impact of flexibility (setup time reduction and expediting) in manufacturing on stock levels throughout the supply chain. The analysis is based on a three-echelon supply chain model consisting of three locations: a factory work center, a finished-goods (FG) stockpile, and a retailer stocking point. One product is manufactured and distributed. Two model variations are introduced to represent systems in which the FG stockpile may or may not expedite in the event of a stockout. The ability of the factory to expedite represents the second aspect of flexibility considered. Since expedited orders interrupt the processing of replenishment orders, production scheduling is directly linked to the inventory-stocking policies at the FG stockpile. FG policies are, in turn, affected by stock control at the retailer. The results indicate that the cost of holding inventory will be less when manufacturing has low setup times and that the gains from implementing an expediting system are realized only in high-setup-time facilities. >

Logistics and the single market

Abstract: Information technology is already used to support manufacturing operations. In the future its most important role will be in managing the many and varied communications which occur throughout the supply chain.

Swp 39/90 after sales support strategy

Abstract: For some time there have been models for considering manufacturing strategy which focus on the product but which essentially ignore dimensions of after sales support. This paper presents a framework for an after sales support strategy and links this to a manufacturing strategy model to produce a comprehensive strategy for customer satisfaction over the life time of a manufactured product. Introduction Manufacturers of many products are increasingly realising that unless a product is either so reliable its does not require support during its operating lifetime or the cost of repair is much greater than the cost of replacement a product requires support. The support may be at the time of purchase, during installation, in operation, under repair and maintenance or upgrading. If the two activites of manufacture and support are treated in isolation without recognising the interaction between them an objective of overall customer satisfaction is unlikely to be achieved. The most important factor appears to be customer up-time (Clark, 1988) which we would see to be influenced by three factors, design, manufacture , and support . The philosophy of Total Quality Management would have a firm link the three areas but mechanism for deciding on the best routes are still not well developed. . Paper delivered to the OMA-UK Conference on Manufacturing Strategy, Warwick 25th, 26th June 1990 Cranfield School of Mangement, Cranfield, Bedford, MK48 OAL, Tel (0234) 751122, Fax (0234) 761806, Telex 826559. A number of authors (Skinner 1985, Hayes and Wheelright 1984, Hill 1985, New 1988) have written on the subject of manufacturing strategy and presented models which identify critical success factors for the manufacturing operation, called by Hill order winning criteria. All of the models link the marketing and the maunufacturing strategies in an attempt to achieve congruence between the two. We would not differ from this approach with regard to manufacturing but assert that this is insufficient for a many manufacturing companies who are attempting to gain competitve advantage via a mixture of product and support. We need models which will handle more than the isolated dimensions. The supply chain model of managing the flow of materials within and between business units has been extended into a game plan for the delivery of customer service in the a view presented of global logistics (Christopher 1989). The extension of the original concept of the flow of materials to one which encompasses other aspects of the delivery of service delivery is one to which we would ascribe. However we feel the present models in this area are not well enough developed to assist those responsible for the management of after sales support operations and the subsequent ideas are an attempt to establish more concrete frameworks. The starting point must be with the competitive strategy of the firm. Developing a Competitive Strategy A common approach to the development of the manufacturing strategy by way of a definition of the manufacturing task follows the sequence outlined in Figure 1 (Collins, 1989). First there must be an understanding of the external environment of the firm and second of its competitive position with respect to the area of business with those it perceives to be its competitors; here the five forces model suggested by Porter (1980, 1985) is useful. The third stage is the development of the competitve strategy for a business unit and the fourth the translation of this strategy into functional strategies with their operational systems. The development of the competive strategy has been suggested by Porter to be on the basis of differentiation, cost leadership, or focus. Mathur (1988) has suggested an extension of the Porter model for competitive strategy. Mathur’s approach is one of building a model around differentiation and undifferentiation with respect to the two components of a product-service package, namely, the merchandise and the support, Figure 2. This device results in four generic strategies depending on whether the merchandise and support dimensions are differentiated or not which are given the terms of service, system, product, and commodity. In the commodity position being undifferentiated in both dimensions price is the only competitive tool, (which is not to say that the other positions cannot include price as a differentiating feature). . Mathur develops his model further by subdividing on the basis of differentiated or not the support dimension into expertise and personalisation, and the merchandise into content and image, Figures 3&4.. The terminology for the support and merchandise split are as follows: Support * Consultant: Differentiated on Expertise and Personulisution * Specialist: Differentiated on Expertise but not on Personulisution * Agent: Differentiated on Personulisution but not on Expertise

Distribution of Engineering Polymers to the UK and Eire

Abstract: Considerable emphasis is put on service to customers of Engineering Polymers (Du Pont) making rising logistics increasingly important. The current supply chain serving customers in the UK and Eire was developed when service was considered less important. Analysis of this supply chain revealed many operational defects. New systems of performance measurement had to be developed to allow this analysis. As a result operational improvements were made and continued performance analysis should demonstrate that improved service is being provided. In addition,it was recognised that the real need was for an integrated supply chain that enabled the total logistics concept to be put into practice. Two such tactical requirements were the need for a customer service strategy and a logistics cost analysis system – recommendations are made as to how both could be developed and how future systems could meet the needs of an integrated supply chain.