Solution of supply chain problems
From other IT-based solutions for supply chain management problems, we examine a few cases.
Changing a linear supply chain to a central core (hub)
In linear supply chains, information is processed sequentially, which slows down their flow. A solution to change the linear chain to a central core (hub). It means becoming a comprehensive and accessible database for other active actors in the supply chain. Using this method, the cycle time is 50-70% shorter than the traditional linear supply chain model. Transforming a linear chain into a core requires the creation of supply chain teams. A supply chain team is a group of highly coordinated employees who work together to serve the customer. Each task is performed by a member of the group who is in a better position to perform it than other members, has received better training and is able to perform that specific task regardless of the company he works for (apart from creating a team). In terms of supply chain, creation of virtual factories is considered as one of the mechanisms for solving supply chain problems.
Collaboration throughout the supply chain
Supply chain management and inventory management require coordination of all activities and various links of the supply chain. Successful coordination enables the smooth and timely movement of goods from suppliers to manufacturers and from manufacturers to customers. This allows the organization to keep inventory levels and costs low. Since supply chain partners are interdependent, but do not always move together for the same goal, their cooperation is essential. That is, suppliers and buyers must participate in the design or redesign of the supply chain to achieve common goals. An example of an effort to cooperate is that business partners must learn to trust each other.
In fact, to properly control uncertainty in the supply chain, it is necessary to identify and understand its causes, determine how uncertainty in some activities affects other activities up and down the supply chain, and then formulate special ways to reduce or eliminate it. to do Therefore, the need for an effective and efficient communication environment between all business partners is added to the previous requirements. The rapid flow of information throughout the supply chain helps improve efficiency. For example, point of sale information can be quickly transferred to distribution centers, suppliers and transport actors. Because having this information helps companies achieve more optimal inventory levels.
Another example of supply chain collaboration that requires systems integration is product development systems. Suppliers have the possibility to enter the internal network of customers, receive product specifications and view images and videos of a production process. For example, Walmart is known for its ability to work with supply chain companies. The company can use it to reduce operating costs and reduce prices by combining the information of its suppliers with demand data and store inventory. So much so that a company like Nestlé USA is creating a senior vice-president level just to manage its relationship with Walmart.
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This post is written by Rimaazz1