Supply Chain Management
Business competition is changing in a major way. A new model calledthe supply chain model is being developed that goes beyond producing orselling a superior product. Success now depends on companies that can cometogether, discuss and find a way to supply the best product at the bestprice. Supply chain management is the mix of resources that aid a companyto improve the way it sources its raw materials, manufactures the same andsupplies it to the customers. Across all entities, there are five basiccomponents of a supply chain. These are operating Plans or the method ofplanning, Sourcing, Making or to make a product, Delivering and Returning.Planning is the most strategic plan; there should be a strategy formanaging all the resources that needs to be present to meet the customer'sdemand for the company's product or service. It should be efficient,involve cutting costs but delivering the best quality. Under Sourcing, oneneeds to choose the suppliers who will supply the product or service neededby the company to create its own final product or service. For this, thecompany needs to maintain standard and stable relationships with the
2 billion in unusable stocks, all due to certain problems and confusionin the supply chain. This project would enable others to place alltheir cards on the table; in other words, they would gain 'visibility'. However, the inherent flaw in the dependence onthis method is the lack of proper and sufficient testing. These tasks may includecommunicating any delays to those concerned, communicating with customers,reducing any errors, and calculating expected imports. Joint-service agreements must be written, as well asvendor managed inventory agreements. This in turn has successfully cut down theinventory level and the processing of the order now takes up as little as aweek (not even a month!) furthermore, Nike provides good point- of- saleintegration with the retailers. This improved matters and Levi's now delivers, on time,95% of its products, as compared to the past when it was able to deliverjust 65% of its products on time. Thus the supply chain has been changed from amade- to- order to made- to- sell, and is referred to as the 'Futures'program because the entire supply chain is created on a six-month ordercycle. These would allow suppliers to stockup on the products as needed. This message is enabled to reach individual Wal-Mart storesthrough real time satellite link-ups that alert the factory whenever a P&Gproduct is sold. (Gaining Trust from Suppliers) A certain amount of customer data exists on the supply chain. (SupplyChain) Though globalization and the rise of different industries and differingobjectives have been taking place, the issue of supply chain management isthe most important one of all, and the risks that are inherent in adoptinga new software for the purpose need to be taken in the right spirit inorder to improve the supply chain management issue for the future. In Nike, the crisis becameprominent in 2001. When this shared information is accurate, it will reveal atrue picture of the current trends and values as in Nike's supply chainproject, which manufactures according to the retailer's orders, 90% ofwhich are placed six months in advance of the delivery date. (Supply Chain) The end result wouldbe that retailers would sell more while manufacturers would order just asmuch stock from suppliers as was done before.
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Nike Story,
Chain Management,
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Acceptance Essays
