Supply Chain Engineering

10 Key excerpts on "Supply Chain Engineering"

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  eBook - ePub

  Supply Chain Engineering

  Models and Applications

  • A. Ravi Ravindran, Donald P. Warsing, Jr., Paul M. Griffin(Authors)
  • 2023(Publication Date)
  • CRC Press

    (Publisher)

  Given this broad background on the subject of the book, let us now spend some time carefully setting the stage for the various topics that will be covered in the chapters that follow. In this chapter, we begin with the meaning of Supply Chain Engineering and describe, at a high level, the types of decisions made in managing a supply chain. We introduce a variety of supply chain performance measures and show how they relate to a company’s financial measures. We then discuss the importance of Supply Chain Engineering and the distinguishing characteristics of those firms recognized as leaders in supply chain management. We end with a chapter-by-chapter overview of the textbook.

  1.1 Understanding Supply Chains

  Before we formally define Supply Chain Engineering, we begin with the definition of what a supply chain is.

  A supply chain consists of the following:

  1. A series of stages (e.g., suppliers, manufacturers, distributors, retailers, and customers) that are physically distinct and geographically separated at which inventory is either stored or converted in form and/or in value.
  2. A coordinated set of activities concerned with the procurement of raw materials, production of intermediate and finished products, and the distribution of these products to customers within and external to the chain.

  Thus, a supply chain includes all the partners involved in fulfilling customer demands and all the activities performed in fulfilling those demands. Figure 1.1 illustrates a typical supply chain.

  FIGURE 1.1 Typical supply chain network.

  It is important to recognize that the different stages of the supply chain (suppliers, plants, distribution centers (DCs), and retailers) may be located in different countries for a multinational company with a global supply chain network. It is also possible that a firm may employ fewer supply chain stages than those represented in Figure 1.1 , or perhaps more. Indeed, some business researchers (e.g., Fine, 2000 ) argue that the supply chains in various industries follow historical cycles that move from periods of significant vertical integration to periods of significantly less integration, where firms in the supply chain rely more on partnerships than on owning substantial portions of the value chain within a single firm. In vertical integration periods, the supply chain may employ only a few stages from raw material extraction to final production, owned primarily or exclusively by a single firm. A good example of this would be the early days of Ford Motor Company in the 1920s. In the less integrated periods, it is the horizontal, across-firm relationships that are prominent. A good example would be in the 1990s and early 2000s, when Dell led the global market for personal computers with a highly decentralized supply chain in which they served only as the final assembler and direct distributor. In this latter case, Dell not only relied heavily on its suppliers to independently manage the production and supply of components but also simply bypassed independent distributors and retailers and dealt with the final consumers directly, without the “middlemen.” Of course, in the early 2000s, Dell added the retail “middlemen” back to its supply chain and morphed into a more traditional, build-to-stock computer manufacturer as PCs increasingly became commoditized products. Apple, however, is a good example of how Fine’s (2000

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  Supply Chain Management

  New Perspectives

  • Sanda Renko(Author)
  • 2011(Publication Date)
  • IntechOpen

    (Publisher)

  When more and more outsourcing activities in the industry, multiple stages supply chain is not uncommon in end product holding companies such as cell phone giants Nokia, Apple etc. Those are strictly SCM players and they are micro-managing multiple-tiers supply chain. However, it is still retained in procurement level and it is not common to include the engineering in regular practice. Therefore the most popular reference standard SCOR model from Supply Chain Council and protocol RosettaNet are not included that. There are many reasons to keep the Process Technology in-house and most important one is technical challenges about intra-operationability because engineering integration is heavily involved in Process Technology industry such as semiconductor, and chemical process factory. In a raising industry, that barrier is competitive advantage to keep inside but once the industrial cycle is matured. That barrier becomes a major show stopper for who wants to go assert-lite especially to those capital intensive industries. Supply Chain System Engineering: Framework Transforming Value Chain in Business Domain into Manageable Virtual Enterprise and Participatory Production 639 Therefore for Industry who has complicated collaboration intensive activities in house and consider moving out partial to full production outside but still keeping the core competency inside, they need SCSE. Those engineering intensive activities are not the procurement or customer relationship department can handle. It has complicated Supply Chain Delivery Process in fig 11 in pervious section and coming out with multiple functions organization other than Procurement and Customer Relationship functions. How an enterprise connects the external resources into internal organization is also enterprise dependent.

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  Introduction to e-Supply Chain Management

  Engaging Technology to Build Market-Winning Business Partnerships

  • David Frederick Ross(Author)
  • 2002(Publication Date)
  • CRC Press

    (Publisher)

  199 Manufacturing and Supply Chain Planning: Linking Product Design, Manufacture, and Planning to Provide Value to Customers e-SCM applies Internet-enabled application toolsets and the SCM business model to architect collaborative supply chain networks that closely integrate customers, suppliers, business partners, logistics providers, and other functions that have coa-lesced into various forms of channel con Þ gurations. The objective is to engineer the real-time transfer of information anywhere, any time, within the network and provide the connectivity necessary to coordinate and optimize the ß ow of materials, products, and services. One of the most critical components, which stands perhaps at the heart of this convergence of business functions, is manufacturing. In fact, it can truly be said that all channel value starts with the conversion of raw materials and components through the production process into products. Once goods have been produced, they then enter the supply channel, where various support functions and services, from sales and marketing to distribution and delivery, augment and complete the transfer to the end consumer. Optimization of supply chain value can therefore be said to start with the ability of companies to optimize their productive resources in an effort to make and dis-tribute their products as ef Þ ciently as possible. Managing productive processes means planning for and controlling the resources, such as product design, materials, labor, and overheads, expended during the process of product conversion. Underlying this management process is, Þ rst of all, a model of the plant itself, which describes characteristics such as capacity, cost, cycle times, and constraints. This model, in turn, enables the particular con Þ guration by which the plant executes productive processes to achieve targeted objectives such as quality, order due date completion, quantity, and cost.

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  Introduction to Industrial Engineering

  • Avraham Shtub, Yuval Cohen(Authors)
  • 2015(Publication Date)
  • CRC Press

    (Publisher)

  The actions across the supply chain transform natu-ral resources, raw materials, and components into finished products that are supplied to the end consumers. Investopedia defines a supply chain as follows: The network created among different companies producing, handling, and/or distributing a specific product. Specifically, the supply chain encom-passes the steps it takes to get a good or a service from the supplier to the customer. The Business Dictionary ( www.businessdictionary.com) defines a supply chain as follows: Raw material inventory Next link raw material inventory Production Time Time Time Finished product inventory Transport • Load • Drive • Unload • Test • Receive FIGURE 11.2 Inventory levels of a single link (manufacturing organization) in the supply chain for deter-ministic and fixed demand. 296 Introduction to Industrial Engineering Entire network of entities, directly or indirectly interlinked and interde-pendent in serving the same consumer or customer. It comprises vendors that supply raw material, producers who convert the material into prod-ucts, warehouses that store, distribution centers that deliver to the retailers, and retailers who bring the product to the ultimate user. Supply chains underlie value chains because, without them, no producer has the ability to give customers what they want, when and where they want, at the price they want. Producers compete with each other only through their supply chains, and no degree of improvement at the producer’s end can make up for the deficiencies in a supply chain which reduce the producer’s ability to compete. 11.2.2.2 Supply Chain Management The APICS defines SCM as follows: The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.

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  Handbook of Supply Chain Management

  • James B. Ayers(Author)
  • 2006(Publication Date)
  • Auerbach Publications

    (Publisher)

  289 Chapter 25 Supply Chain Technology Applications When designing and implementing a system, remember that system effectiveness is inversely proportional to the complexity. —George Plossl 1 Information systems — by virtue of expectations for improvement and the effort, time, and expense involved in their implementation — are a prominent feature in supply chain improvement. The Preface of this book profiled eight categories of supply chain software that included hundreds of product choices. In many companies, the centerpiece of the supply chain improvement effort is implementing information technology. The objectives here are to discuss the basics with regard to SCM and information technology. These include: Understanding that information technology, or IT, is meant to improve processes as described in the three previous chapters. Putting the process, not the technology, first is important. Many IT products make terrific promises. These can be confusing to managers. Until one has analyzed the process, it is difficult to make a sound decision to use a technology. Implementation of IT is fraught with risk. Project management is required to reduce this risk. 290 Handbook of Supply Chain Management, Second Edition 25.1 Caution Is Warranted The opening quotation from Plossl is worth heeding. Just because com-puters can perform sophisticated algorithms does not mean they are right for a particular business. Innovation in the supply chain puts new demands on information systems and the people who develop and manage them. Making information systems work to improve supply chains is an important SCM skill. However, putting technology ahead of strategic design and operational requirements is a frequent shortcoming. Consequently, much effort is wasted or even counterproductive. Systems issues present some monumental challenges to senior man-agers in particular.

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  Supply Chain Management For Dummies

  • Daniel Stanton(Author)
  • 2020(Publication Date)
  • For Dummies

    (Publisher)

  More important, analysts can help to protect you from the mistake of buying software that isn’t a good fit for your business. Anticipating the Future of Supply Chain Software Technology is evolving from helping people plan tasks to executing those tasks automatically. In that sense, supply chain software is evolving from a planning role to an execution role. Referring to any software platform as a supply chain execution solution implies that it somehow addresses all your supply chain needs, which isn’t the case — yet. The day may come when all these software platforms are truly integrated, which would eliminate the need for people to be involved in any part of a supply chain. Artificial intelligence may someday lead to autonomous digital supply chains, and at that point, fully automated supply chain execution will become reality. CHAPTER 13 Integrating Advanced Manufacturing into Your Supply Chain 203 Chapter 13 Integrating Advanced Manufacturing into Your Supply Chain W ith machines getting smarter, stronger, and faster every day, dealing with the rapid pace of innovation has become an important part of sup- ply chain management. Many of the principles of supply chain man- agement are built on assumptions about the capabilities of manufacturing and distribution processes. How much you can make, how far you can move it, and how much it will cost all depend on what technologies you use. New technologies are changing the way supply chains work, and will require supply chain managers to reevaluate the best ways to plan, source, make, deliver, and return products in the future. The problem with these new technologies is that it is hard to predict how quickly they will become available and how significantly they will affect a supply chain. In many cases, new technologies provide new ways to perform the same tasks we’re already doing, but the technologies enable us to do those things better, faster, and cheaper.

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  Handbook On Business Information Systems

  • Angappa Gunasekaran, Maqsood Sandhu(Authors)
  • 2010(Publication Date)
  • World Scientific

    (Publisher)

  At the same time, however, they represent a potential trap for managers thinking that they will supplant the need for effective strategy formulation, appropriate management of resources, or effective change and knowledge management systems. The management of the supply chain will be facilitated by more sophisticated tools, but the organizations that are likely to benefit most will still be able to choose, implement, and manage the appropriate set of tools in the right combinations. This chapter has sought to identify and analyze the challenges and opportuni-ties for managers when implementing technology-enabling management of supply chains. The results also show that organizational performance (and by extension the performance of supply chains) will still be determined by issues (to a large extent) independent of these technologies. Managers hoping to find in these technologies a source of competitive advantage, without addressing fundamental issues of strategy and organizational competence, will be disappointed. Put another way, the more things change in the world of supply chain technology implementation, the more they stay the same. The firms that can be expected to extract most value from the brave new world of open system-based connectivity and Internet-enabled collab-oration will be those that have been able to adapt their management processes to the requirements of their competitive domain. The significance of understanding this when moving forward cannot be underestimated, as it implies a clear focus on matching organizational capability with an understanding of technological require-ments, rather than on the technologies per se . This focus should provide managers with a clearer understanding, discrimination, and know-how to enable them to make Supply Chain Enabling Technologies 671 more appropriate technology choices, implement them successfully, and ultimately extract value.

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  Strategic Supply Chain Management

  The Development of a Diagnostic Model

  • Safaa Sindi, Michael Roe(Authors)
  • 2017(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  This has increased the widespread use of the term “supply chain” as a result of globalisation increasing the need for logistics strategies to deal with complex networks spanning multiple continents (Cooper et al. 1997). The term “supply chain” arose to refer to strategic issues while the term “logistics” began to refer to tactical and operational issues (Tan 2001). This resulted in the Council of Logistics Management changing its name again to Council of Supply Chain Management Professionals. This marked the distinction that logistics is part of a supply chain process that plans, implements and controls the efficient, effective forward and reverse flow of goods, storage, services, customer requirements and related information between the point of origin and point of consumption (Cooper et al. 1997). Globalisation has 10 2 The Evolution of Supply Chains and Logistics brought new risks and challenges, such as short product life cycles and uncertain demand. This has led companies to invest in technologies and approaches for enhancing supply chains in order to gain competitive advantage (Cavinato 1992). With supply chain complexity leading to new risks, efficiency, price discrimination and low-cost resources, out- sourcing jobs has become increasingly common, although it has created global winners and losers (Johnson 2006). There are now two distinctive supply chain strategies “Lean Supply Chain and Agile Supply Chain”. “Lean Supply Chain” was initiated by the Japanese business method. The term “lean supply” implies the use of lean production that aims to eliminate waste and enhance customer value with the continuous improvement of manufacturing system, prac- tices and techniques (Ugochukwu 2012).

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  Supply Chain Management For Dummies

  • Daniel Stanton(Author)
  • 2023(Publication Date)
  • For Dummies

    (Publisher)

  The day may come when all these software platforms are truly integrated, which would eliminate the need for people to be involved in any part of a supply chain. This process is called digital transformation, and it is the topic of Chapter 13. As digital transformation takes hold, artificial intelligence may someday lead to autonomous digital supply chains, and at that point, fully automated supply chain execution will become reality. The LogTech Map is a project that organizes supply chain technology companies into a chart that shows how they solve logistics challenges. It is available at www. refashiond.com/news/2021/11/22/new-logistics-technology- market-map-seeks-to-center-buyers-of-logistics-technology-and- services. (continued) CHAPTER 12 Integrating Advanced Manufacturing into Your Supply Chain 181 Chapter 12 Integrating Advanced Manufacturing into Your Supply Chain W ith machines getting smarter, stronger, and faster every day, dealing with the rapid pace of innovation has become an important part of supply chain management. Many of the principles of supply chain management are built on assumptions about the capabilities of manufacturing and distribution processes. How much you can make, how far you can move it, and how much it will cost all depend on what technologies you use. New technologies are changing the way supply chains work, and will require supply chain managers to reevaluate the best ways to plan, source, make, deliver, and return products in the future. The problem with these new technologies is that it is hard to predict how quickly they will become available and how significantly they will affect a supply chain. In many cases, new technologies provide new ways to perform the same tasks we’re already doing, but the technologies enable us to do those things better, faster, and cheaper. In other cases, new technologies disrupt entire industries and could make the tasks we’re doing today obsolete.

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  Fundamental principles of supply chain management

  • Mbanje S, Lunga J (Editors)(Authors)
  • 2016(Publication Date)
  • Van Schaik Publishers

    (Publisher)

  7.10 THE SUPPLY CHAIN AND E-COMMERCE The introduction of the internet into the supply chain has made it possible to be more accu-rately aware of the exact position of any product at any moment in the supply chain. “Supply chain visibility is the ability to see every move, transaction and event that takes place from the sourcing of raw materials from suppliers to the delivery of the finished product to the final cus-tomer” (Atkinsons, 2001). The concept of supply chain visibility is enhanced by the internet as the vehicle for providing supply chain information. E-commerce helps suppliers, procurement firms, distributors and logistics companies to share information about orders, production, inventory levels and the delivery of products and services so that they can source, produce and deliver goods and services efficiently. The main effect of e-commerce on supply chain manage-ment can be summarised under the following headings: DISTRIBUTION PROHIBITED TRACKED BY CUSTOS MEDIA TECHNOLOGIES 111 THE GROWTH OF INFORMATION TECHNOLOGY IN SUPPLY CHAIN MANAGEMENT 7 • Facilitation of the processes of the system • Integration with regard to business activities and information • Virtualisation of the supply chain and its processes and activities. In line with this global approach, the supply chain is also thus defined to emphasise its dynamic and integrative nature (Ross, 1998: 9). Supply chain management (SCM) is a continuously evolving management philosophy that seeks to unify the collective productive competencies and resources of the business functions found both within the enterprise and outside the firm’s allied business partners located along intersecting supply channels into a highly competitive, customer-enriching supply system focused on developing innovative solutions and synchronising the flow of marketplace products, services and information to create unique, individualised sources and customer value.

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