While building a supply chain system, it is necessary to have a look at the existing processes and an attempt should be made to reengineer those. If this is not done there is a risk that any system will only automate the existing inefficiencies.
The best systems are those that blend technologies with the organizational practices.
The best practice is to control velocity and variability in the supply chain by Visibility.
Visibility is the ability of an organization to have an unobstructed view of all the information related to planning and execution.
From a waterfall model ( where high level design leads to strategies and tactics), the present view of supply chain is a component-based aggregation of solution that has an inbound and outbound perspective.
The Four P’s of Visibility of the Supply Chain are:
1. Product Visibility
It includes item definition, localization, life cycle and quality
2. Process Visibility
It includes planning operations ( e.g. demand forecast), manufacturing operations, purchasing processes, performance analysis, billing and returns logistics.
3. Partner Visibility
Supplier portfolios can be created with target margins set for each product, based on demand for product. These targets can be used to negotiate and understand the company’s margins.
4. Profit Visibility
This basically includes how supply chain operations are impacting the bottom line.
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