-how do supply chain management systems coordinate planning, production, and log
ID: 380665 • Letter: #
Question
-how do supply chain management systems coordinate planning, production, and logistic with suppliers?
-describe the challenges of global supply chains and how internet technology can help companies manage them better?
-distinguish between a push-based and pull-based model of supply chain management and explain how contemporary supply chain management systems facilitate a pull-based model?
-Explain how supply chain management systems help reduce the bullwhip effect and how they provide value for a business?
Explain how supply chain management systems help reduce the bullwhip effect and how they provide value for a business.Explanation / Answer
1. Explain how supply chain management systems help reduce the bullwhip effect and how they provide value for a business?
In the Bullwhip effect, the inventory is piled up at each of the location including Retailer, Wholesaler, Distributor, Manufacturer, Supplier, Raw material supplier. This is because of the uncertainty in demand. And this brings down the overall surplus of the supply chain due to the huge amount of accumulated Inventory carrying cost. Thus, in order to avoid this Supply Chain Management System Software, has to be implemented for the smooth flow of information from the Retailer to the Wholesaler to the Distributor to the Manufacturer to the Supplier so that they could forecast with more accuracy and may not have any mismatch with their anticipation and the actual demand. This can increase the value of the product because of the low supply chain cost.
2. how do supply chain management systems coordinate planning, production, and logistics with suppliers?
The lack of information flow had put the entire supply chain lame. The uncertain order at the Retailer's end disrupts the entire supply chain because the severity of the uncertainty rises from Retailer to the Supplier. Thus we needed a collaborative effort in which it would become possible to know the current inventory available at Supplier or Retailer. This makes them able to go for Just in Time, Assemble to Order and Make to Order. The information flow has become quick and efficient. Therefore, Supply Chain Software helps the entire Supply Chain intermediaries to have a collaborative planning, scheduling and Production to carry out an effective supply chain.
3. describe the challenges of global supply chains and how internet technology can help companies manage them better?
The major challenge in Global Supply chain is high transportation cost, varying prices, local taxes, cultural differences etc. So even if we have a low-cost advantage supplier in abroad but due to the aforementioned problems traditional Global Supply Chain Management practices were not successful enough.
The Internet-based software has helped the organizations in Sourcing, Transportation, Communications and International finance. Thus the internet software has helped in Product routing, product development, warehouse management, production scheduling, work in progress tracking, problem identification and tracking etc.
4. distinguish between a push-based and pull-based model of supply chain management and explain how contemporary supply chain management systems facilitate a pull-based model?
In the push type of supply chain, the Manufacturer anticipates the demand and forecasts according to the earlier demands and the intuition. And so the manufacturer pushes the product from its end to the wholesaler and wholesaler pushes it to the Retailer. The major inventory is piled up at the Retailers end. And all the supply chain intermediaries are not satisfied because of the high holding costs especially the Retailer. In the Contemporary supply chain Push type supply chain management was followed because they were not concerned about the customer satisfaction but were only focused on high short term profit margin.
Whereas in the Pull type supply chain, it is more of a customer-driven approach. According to the demand of the end customer, the order moves from the Retailer to the Wholesaler to the Manufacturer and from Manufacturer to the Supplier.
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