The well-known fate of the manufacturing companies in the United Kingdom has led to a growing demand for reduction of internal costs, and now more than ever, the focus has been on the cost of the supply chain. The nature of supply chains and their structure is often overlooked, and many of the internal costs by examining the entire supply chain strategy will be eliminated. By developing a supply chain that meets the needsinternal customers, many of the previously identified deficiencies can be remedied, and improves subsequent performance.
There are three categories of products that are used in order to define the supply chain strategy for a typical manufacturing company. First there are the core products that are produced on an ongoing basis and form the bulk of production in a given period. Secondly, there are products that are manufactured to meet regularlycustomer requirements or to satisfy a recurring demand, and finally there are those products that are manufactured to specific customer requirements on an irregular basis. The three categories are sometimes referred to as Runners, Repeaters and Strangers.
There is an unquestionable link between the classification of these product types and the supply chain organisation that is required to support them. Each classification requires a different supplier strategy and stock Policy in order to maximize inventory turns. For example, systems such as Kanban replenishment may be very used for rotor components in the group because of the prices of consumption, but Strangers asked the group to introduce higher levels of inventory in the long lead time parts can. The selection of appropriate supply chain strategies will therefore lead to the fact that two different systems, one for the runners and one for foreigners. The Runners Supply> Chain are usually highly efficient, with a focus on the component cost, quality and delivery capability of suppliers. The Strangers supply chain, however, must respond to the irregular sales orders, and the focus is more on supplier lead time and the ability to predict these requirements difficult to meet. The repeaters are probably the two systems and require case-by-case decisions to take over, followed by the for each component. Therefore, the repeaterare usually for strategic storage requires periodic review, but is a function defined for production.
The classification of the products identified in this way, the needs of production and in turn the type of supply chain to identify support required to achieve the desired output volume. More importantly, and often over-looked in relation to these strategies rather simple analysis based on customer needs support.
Having definedthe groups of products and styles of the supply chain required to support the diverse needs of these product groups, the supply chain itself must be developed in accordance with these needs. The resulting supplier development program can therefore be adapted to support the various supply-chain requirements and needs, so the production and retail in the most appropriate way to adapt again.
There are many tools and techniques availableDeveloping improved supply chain performance, but few have been taken to help a supplier development strategy.
A technique called "Supplier Positioning" maps customers' perception of risk and the importance of their suppliers and service providers especially the customer's perception regarding the importance and the ease of the economy. This can provide useful information by identifying suppliers are not capable of supply chain supportImprovements. For example, many companies still producing relatively small quantities of parts from large retailers, whose part of the cost, quality and delivery beyond the control of the customer through the exercise of the vendor that the customer purchase "of little value". These suppliers have, therefore, a disproportionate ability to adversely affect the possibilities for the production of its smaller customers.
In improving the supply chain and the creation of developmentStrategy "can be used supplier positioning" to ensure that the integrity of security of supply because an understanding of how the various suppliers to the customers and the degree of interaction required to be maintained in order to maintain good relations. This technique has an additional advantage in that it identifies potential weaknesses or gaps in the supply chain relationships, which can be solved once emphasized.
The application of the product classification andthen adjust the development of the supply chain for the production requirements can undoubtedly help to improve the strategic direction for the supply chain. The resulting measures will not only develop a more streamlined supply chain, but greater control over inventory and establish a better understanding of the needs of internal customers.
It is a connection between the fused together the three main influences in every manufacturing company.Determination of demand, production capacity and the material must satisfy to this, with clearly defined parameters and processes combine to produce the required performance. Weaknesses in a certain area will lead to a domino effect means that errors will be delivered on time in full and, ultimately, dissatisfied customers.
The share of demand defines the requirements for performance and material needs to be but never isolated or ignored, as is often the case. Changes in demand orCustomer orders can only efficiently be met by a balanced circuit.
Each function in this model is dependent on the others and must therefore reach only within the limits of a common goal. The key therefore to reduce the inefficiencies in the supply chain lies in understanding and managing these relationships, which is the starting point for the realization of a reflective supply chain.
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