Discuss 3 challenges which may be faced when collecting and reporting data to senior management
- Lack of coordination in technology-
Different suppliers are likely to use different systems to control and monitor data
Safety standards differ with countries
- Improper and competing perfomance metrics-
different measurements in countries
- Data integrity
Are they telling the truth
- Differentiating reports for the different senior management and stakeholder levels
Characteristics of timely reporting of data
- In depth analysis
Accurate and up to dateinformation - Decision making
- Benchmarking
Accurate comparisons against competitors - Control and monitoring
- Problem solving
- Stability
- Responsiveness
How can supply chain data help ensure the matching of supply and demand?
- Demand issues- how is the demand of the new product
- Supply issues- communicating of challenges in advance to the customers.
- Product life cycle
Inroduction, growth, maturity, decline
KPIs
Are performance standards that can be used to ensure that an organization is fulfilling requirements of their supply chain partners
KPIs which could be used
- Perfect order- number of orders shipped to customers without issues.
- Quality of products
- Ethical and environmental standards
Characteristics of perfomance measures
SMART
Supply chain systems integration strategies
- JIT
- MRP
- DRP (Distribution requirements planning)
- DPP ( Direct product profitability) total costs of the product
Factors to consider when determining the number and location of operating facilities
- Proximity to customers
- Proximity to suppliers
- Community/government access
- Competitive considerations
- Environmental factors
- Labour
- Taxes and financing
- Transportation
- Utilities services
Business process re-engineering
Helps organisations to reduce business costs and ensure that any redundancies within processs and systems are minimised through optimal utilisation of the processes
4 Key principles of Business processs reengineering
- Radical rethinking- innovative
- Dramatic improvement- sudden change
- Short fat processes- shortening the length of time from start to finish
- Control and action- ensuring that those who control and manage the work are not separated from it
Advantages of BPR
- Streamline decision making processes
- Reduce costs
- Create efficiencies
- Minimisation of inventory
- Increased output
Disadvantages
1. It may be difficult to get buy in from stake holders
- It can be used by large organizations to make people redundant
- BPR is a huge project to take and it may be difficult for small organisations to implement
Strategic fit
When the supply chain is designed to provide efficiently and effectively to the market, this is what is known as achieving strategic fit
Organization must match a product supply and demand to its supply chain characteristics
Four dimensions of demand uncertainty
- Functional product and stable process
e.g groceries, school uniform, food, oil
- Functional product and evolving process
e.g solar and wind power, rare minerals
- Innovative product and stable process
e.g fashion apparel, laptops, music streaming
- Innovative product and evolving process
e.g smartphones, emerging technology
4 issues that can affect responsive (agile) supply chain and efficient (lean) supply chain
- Poor supplier section
- Technology
- Visibility and information sharing
- Fluctuations in demand
Discuss 3 challenges facing global supply chain management today
- Supply chains now have a wider customer basis
- Increased uncertainty in globalised supply chain
- Challenge of dealing with hidden costs eg tariffs which can change overnight
4.
Fragmentation (same as outsourcing)
Means that many parties have come into the supply chain, which makes it more complex.
Occurs when the production of a final good requires multiple stages
Advantages
1. Specialization
2. Risk sharing
3. Cost saving
Disadvantages
1. Human rights
2. Income gains
3. Employment gains
4. Sustainability
5. Exploitation of mineral wealth
6. Fraud
What is Benchmarking ?
An organization compares the performance metrics and supply chain processes against those of other organizations, competitors and industry.
What are the types of benchmarking?
- Internal benchmarking
- External benchmarking
- competitive benchmarking
- Strategic benchmarking
- Process benchmarking
- International benchmarking
Benefits of benchmarking
- Identification of Best Practices: Benchmarking allows businesses to identify industry best practices and adopt them to improve their own processes. For example, if a competitor has a more efficient supply chain management system, benchmarking can help the company identify and implement similar strategies.
- Performance Improvement: By benchmarking against top performers in the industry, companies can set realistic performance goals and benchmarks to improve efficiency, quality, and customer satisfaction.
- Enhanced Decision Making: Benchmarking provides valuable insights that aid in decisionmaking processes. For instance, by comparing pricing strategies with competitors, a company can make informed decisions about pricing adjustments to remain competitive.
- Stimulates Innovation: Benchmarking encourages innovation by exposing businesses to new ideas and approaches. It prompts companies to think creatively to adapt and improve their processes
Limitations of benchmarking
- Limited Applicability: Benchmarking may not always be applicable across different industries or contexts. What works for one company may not necessarily work for another due to differences in resources, market dynamics, or customer preferences.
- Data Accuracy and Availability: Obtaining accurate and relevant benchmarking data can be challenging. Competitors may not disclose sensitive information, or the available data may be outdated or incomplete, leading to inaccurate comparisons
- Overemphasis on Competition: Excessive focus on benchmarking against competitors can lead to a narrow perspective, overlooking opportunities for innovation and differentiation within the company’s own unique strengths and capabilities.
- Cost and Resource Intensive: Implementing benchmarking processes requires significant t ime, effort, and financial resources. Small businesses or those with limited resources may f ind it challenging to conduct thorough benchmarking analyses
