Logistics Supply Chain Management is one of the most modern and challenging concepts in today's business world. Due to the growing global business demand; transportation, procurement, production, distribution has increased considerably. Today, large companies focus on SCM to reduce costs and constantly strive to develop a new innovative strategy to meet consumer demand to achieve competitive advantage.
2 Supply Chain Management:
the right product at the right place at the right time, in the right amount and in an appropriate amount. For example in a supermarket if the consumer is in a product shelf, there is a tag for the product, but no product shelves; what do you think? Yes, this is due to poor management of SCM. Specifically, SCM is the management of incoming and outgoing logistics processes for purchases, suppliers, vendors, warehouses, distributors, consignments and warehouses to meet customer needs.
3 Why Supply Chain Management Is Important  Global competitions are increasingly gaining customer choice and needs. For example, if an umbrella is needed in the rainy season, and if he asks for 20,000 umbrellas from the vendor in the summer and is expected to be available at the beginning of the rainy season;
According to this scenario, for example, reporting on suppliers' response over the past two weeks, he began to slowly procure and then began production and commodities at the end of the rainy season. As a result, in this case the buyer faces enormous losses.
Think about how we can change our scripts with an effective strategy: consider that the umbrella is the summer's end. The supplier's response can be transported most efficiently from procurement to distribution, within one week prior to the end of the summer. Delivery arrives in time and arrives in the summer thirty days. The customer is happy to receive the batteries in time and allows the customer to deliver products through a distribution channel and, with the proper forecasting of demand, the buyer records the market at the right time and earns money.
supply chain leaders, as they are trying to meet customers' needs quickly, but now the customer is termed a long-term competitive advantage. Accordingly, in order to meet customer needs, companies become a customer-oriented strategy (a good example of this is the "Dell computer").
4 Key Logistics Supply Chain Management:
From the analysis, I have found a variety of journal articles, textbooks, web research on globalization, sustainability, cost consciousness, customers, suppliers, technology and transport.
External forces (ie political, economic, socio-cultural, technological, legal and environmental), local competition, ongoing political and regulatory changes, international brands pressure and everything that meets market needs. Thus, companies face enormous challenges to meet the requirements worldwide. Without removing barriers to products, no product deals with domestic products, but because of globalization, companies regularly change policy and strategy. In addition, they are investing in foreign investors in several countries, which force local companies to improve the quality of their existing products, which pose major challenges in the procurement, manufacturing, distribution, and distribution activities of companies.
For example, a company can develop products in the United States, manufacture it in China and sell it worldwide, namely Apple. This is a complex and challenging activity for the company. In order to maintain global demand, Apple offers a strategic choice to build global manufacturing and engineering infrastructure in California, Ireland and Singapore to gain market access in the United States, Europe and Asia. This is Apple's global strategy that allows the company to benefit from gaining a big market. This strategy allows Apple to become the world's number one innovative company.
Creating a sustainable chain is a cause for concern for companies. Regulatory, geographic, socio-economic impacts, constant changing pressure of international policies and principles are complex for the management of SCM.
For example, green environment (ie carbon dioxide emissions); the local government always introduces regulations that affect the manufacturer. For example, manufacturing and manufacturing in developed countries, such as Europe, is a huge challenge because it is similar to countries such as Asia due to strict environmental rules and policies.
There are four key areas for cost awareness:
4.3.1 a) Location: Convenient, feasible location, convenient location, which includes availability resources, including all facilities, is the primary step towards creating a strategic network. However, due to geographical distance and cost, companies often did not cope with customer expectations.
4.3.2 b) Production: From the perspective of strategic decisions, fluctuations in the cost of production levels are a critical issue. the product to be manufactured, which contains the sets for distribution and production.
4.3.3 c) Inventory: Inventory cost varies from raw materials to finished product at different levels. Costs have also been associated with buffer stocks, security stocks, even inventory times, and price increases during inflation periods.
4.3.4 d) Transport: 30 percent of the logistics costs associated with shipping costs mean companies are thinking of air, ship and road distribution channels. Consignments are fast, reliable, but expensive while shipping is time consuming.
Customers are the most unpredictable variables to determine demand. The frequent change in demand and new expectations, the changing approach of the existing product, and the influential behavior on products all define the development of the innovation strategy of the customer product. For example, Apple deploys business on the basis of computers, but after understanding consumers' needs, the iPhone, iPad, and iPod have become an innovation strategy that satisfies the customer, but it also introduces devices such as ITunes, Music, Software
The example here is a key learning tool to "let the company understand its customers for the competitive advantage", which makes us think about what strategy they are following. Apple's strategy is to outsource iPhone and iPad components (ie components). Specifically, Apple manufactures very few components, hardware is provided by the contract manufacturer, and software is provided by millions of software developers to provide different devices for devices that minimize costs.
is important for quality, cost, and delivery expectations for product production, as they have a greater impact on battery performance. For example, Dell's direct strategy requires direct processing of orders from the customer. Dell's pull strategy to serve customers' specifications and deadline. To support the model, Dell delivered the suppliers within 15 minutes of the production site. Virtually all products are made to order. The factory planning system sends a computer message to the suppliers every two hours, detailing the parts that the plant needs. This means that the factory does not have a list of parts or products and this is only due to a healthy relationship with the suppliers.
For the benefit of technology, the customer is increasingly technology-oriented, trading, online delivery, online payment, online information, online virtual chat, and so on. This technological process has a greater impact on customers, and nowadays, customers are constantly willing to receive more information, get answers about their choices and preferences. Dell can be an ideal example of technology's impact on business and revenue growth. The success of Dell's direct selling strategy largely depends on the continuous development of technology considerations as customers are more willing to connect and help them develop a cost-effective quality product strategy.
The transport system is the most important economic component of business logistics systems. About one-third or two thirds of the cost of the business is spent on logistics costs for transport costs. In addition to good transport, it is difficult to transport the product in good time. It thus allows the goods to flow from one place of destination to another and ensures that the time limit is secured; Companies need to understand the proper supply chain strategy. The unorganized transport system, labor, policies, laws and regulations, the unclassified root system is a big obstacle to supply chain solving. If there is an adequate transport network, the delivery of the product on the market does not provide supply chain activity.
5th Logistic Supply Chain Management Strategic Futures:
IBM's Challenges in the Future Supply Chain are based on cost isolation, supply chain visibility, supply chain risk management, customer needs, and globalization . Here, cost savings relate to rapidly changing operating costs, the visibility of supply chains includes information and cooperation with external partners where supply chain risk management predicts customer needs and higher costs, customer requirements affect customer needs identification , approaches, product attitudes, and globalization refer to global issues such as geographical distance, cultural barriers, transport system, resource feasibility, rules and regulations, etc. Thus, to solve such problems, IBM has developed a future supply chain strategy based on "tools", "connectivity" and "intelligence"
RFID (ie radio frequency identification) GPS system for tracking reduces inventory costs and visibility. This enables evidence of actual facts in the supply chain. In addition, forecasting demand will be much simpler than the tracking level and the technology's estimated sales level. Production, distribution and transportation are also monitored and supervised by intelligent means to eliminate waste and increase efficiency. Thus, in addition to technology, IBM creates a sustainable global supply solution by placing more emphasis on customers.
Connecting to a global network, ie suppliers, manufacturing facilities and collaboration with external partners and corporations can reduce global issues. In addition, shared decision-making also involves local, regional and international competencies and identifies risk sharing.
Effective sophisticated modeling and simulation capabilities enable the sustainability model, network delivery system and distribution strategy for IBM. Thus, more intelligent supply chains enable intelligent modeling for key-driven power
Woolworths, Australia's largest retailer, is faced with multiple turbulence to find an efficient supply chain at first. Sustainability (environmental issues), customer focus, suppliers, transport system and technology challenges are facing. However, after eliminating these barriers, it is based not only on meeting the needs of its customers, but also through the expansion of business chains in Australia and New Zealand and the development of a strong supply chain strategy with market competitive advantages
Success Stories collaborating with strong networking with suppliers, , rules and regulations, technology and new innovation (ie fresh food).
A strategy for sustainability creates "fresh foods" and carbon dioxide emissions. For example, "40 percent reduction in carbon dioxide emissions by 2015 will lead to a 13 percent reduction in project growth by 2015, estimated at about 500,000 tonnes of carbon dioxide savings by 25 percent reduction in carbon dioxide emissions per square meter for new stores. Woolworths currently has an average of 25, It measures 08% of carbon dioxide emissions per square meter "(Our planet, nd). Additionally, introducing new products on the market, such as Woolworths Pet Insurance, the android application places sustainability on the market.
From the point of view of customers, the strategy is more customer-oriented to provide the most enjoyable, quality shopping experience to meet demand at the right time.
Woolworth's most important strategy is to build a strong and committed relationship with suppliers and product customers. the right place. This focuses on a centralized distribution model for all incoming and outgoing logistics.
Technologically, the company has applied a new technique to the pace of technological development. For example: EFTPOS system.
5.3 Procter & Gamble
Proctor & Gamble faces challenges with global alliances, a constructive network distribution channel, a healthy transport system, incoming and outgoing logistical support. To this end, a supply chain strategy was first developed to understand the target customer based on their level of satisfaction and loyalty, and then optimize the supply chain (ie always ensuring product availability). More and more technologies like RFID, which increase product visibility for better supply chain management. In addition, it maintains close contact with retailers, such as Wall-mart and the implementation of online web support, enabling customers to connect to their premium-based, sustainable environment based on customers.
Globalization, sustainability, technology, customers, suppliers, and transportation are all related to the supply chain. Now the opportunities of barriers have been minimized, which encourage foreign investors to invest, implement and operate. Above and beyond, in terms of sustainability; cooperation, policies, rules and rules, technology, transport adoption builds constructive communicative strong relationships with external partners, which is an ideal solution to maintain the global market. Most importantly, focusing on customers is vital to enhancing growth and choosing the right choice strategy for the supply chain is essential to ensure the right product at the right time in the right order and by appropriate measurement
Source by sbobet