Chapter -3
SUPPLY CHAIN DRIVERS AND METRICS
DRIVERS OF SUPPLY CHAIN PERFORMANCE :
Logistical drivers:
Facilities, Inventory, and Transportation
Cross-functional drivers:
Information, Sourcing, and Pricing
These drivers interact with each other to determine the supply chain 's performance in terms of responsiveness and efficiency. As a result, the structure of these drivers determines if and how strategic fit is achieved across the supply chain.
Drivers: Meaning and Impacts :
Facilities are the actual physical locations in the supply chain network where product is stored, assembled, or fabricated. The two major types of facilities are: production sites and storage sites. Decisions regarding the role,
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Although this framework is generally viewed from the top down, in many instances, a study of the six drivers may indicate the need to change the supply chain and potentially even the competitive strategy.
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FACILITIES:
ROLE IN THE SUPPLYCHAIN :
If we think of inventory as what is being passed along the supply chain and transportation as how it is passed along, then facilities are the where of the supply chain. They are the locations to or from which the inventory is transported. Within a facility, inventory is either transformed into another state (manufacturing) or it is stored (warehousing).
Components of Facilities Decisions :
Role; Location; Capacity;
Facility-Related Metrics:
Capacity; Utilization; Theoretical flow/cycle time of production; Actual average flow/cycle time; Flow time efficiency; Product variety; Volume contribution of top 20 percent SKUs and customers ; Processing/Setup/Down/Idle time; Average production batch size ; Production service level
OVERALL TRADE-OFF: Facilities
The fundamental trade-off that managers face when making facilities decisions is between the cost of the number, location, and type of facilities (efficiency and the level of responsiveness that these facilities provide the company 's customers. Increasing the number of facilities increases facility and inventory costs but decreases transportation costs and reduces response
5 Plants 25 Potential Warehouse Locations Distance-based Service Constraints Inventory Holding Costs Fixed Warehouse
Reorders are placed at the time of review (T), and the safety stock that must be reordered is:
Layout: both companies arrange their facilities and focusing in utilization and use practically for this decision.
Moving the warehouse in between the shipping and receiving departments will reduce the amount of time needed to pull orders for shipment thus reducing the staging time needed. By having one location for both the finished goods and raw materials allows for the cross training between shipping and receiving as well as allows both departments to have access to each part of the building they need without adding extra work to one department.
An effective supply chain is the key to creating business value, and with expansion on the horizon. Good planning and willingness to adapt to changes are key to maximizing our results. In order to do this we have come up with a plan that will make Lady Americana mattresses a household name in our target expansion markets. In the state of Oklahoma, Lady Americana has already become a brand that has a bed in almost every home. The current systems in place are effective for todays operations, below are some challenges and recommendations to improve upon this to create an effective supply chain, that will grow with you as your business does.
The end result is as supply chain design may ultimately be the competitive advantage as much as the product it produces. Supply chain design must now be part of the overall strategy for an organization rather than something that “just happens”.
In recent years, the importance management of supply chain has been a popular topic for a discussion and debates especially among the researchers, academician and practitioners. Still, the literature on supply chain management (SCM) especially in exploring the supply chain performance measurement is very limited. This limitation is due to the affected (in return) by many aspects of the firm’s environment and operations. The lack of investigation on understanding the supply chain measurement will affect the objectives and motivations of several supply chain concept even though there is a lot of literature on number of conceptual frameworks, discussion on characteristics, hierarchy and structure of performance measurement framework.
What is the right supply chain for your product ? is the question asked by Marshall L. Fisher in his article titled, “What is the Right Supply Chain for Your Product ?” published in March-April 1997 issue of the Harvard Business Review. Author raises the question stating the fact that new ideas and technology implemented haven’t lead to improved performance. Performance has not become better but rather in at least some cases, has worsened due to costs rocketing to unprecedented levels.
At kicks there are several key aspect to our operations. One of the key aspects is the facility where we will make our product. We are not outsourcing because I want to have full control over my products end result (www.fdcpa.com). There is a lot of cost and time lost when choosing to in source, however, because we are starting out as a fairly small company, I would like to have the good and bad fall on our shoulders. The fact that this is a new product, it is very important that the quality and end result is perfection. Our plan is to lease an older warehouse facility, this way we save money on the leasing fees. Older warehouse facilities will go for a cheaper cost than a new facility. Leasing the facility will save our company money on
All these vectors of the model show how companies work as one with their networks in order to find a balance in their supply chain management strategy, and can be completed by one of Porter’s other famous model: cost leadership, differentiation and focus.
Define the effect of transportation on the situation Greater prospects are available for truckload shipping volumes with consolidated distribution centers and assorted product shipments. This would necessitate fewer outbound shipments, with each in larger quantities for better transportation savings. The possible longer distances from distribution centers to customer locations might be the only disadvantage to transportation cost.
This report has been prepared to analyze the supply chain management process, design and planning of this particular Domino’s location. Theoretical parts have been used to evaluate the company’s supply chain process in terms of its product and service offering. This report also focuses on the daily operations of this franchise. The focus has been placed on the daily operations processes of the Dominos store located on lakeshore Blvd. (w), Toronto, ON. This report is a result of team research, case study analysis, a store visit, interviews and insights from Dominos existing employees, application of theoretical concepts, models and prior experience. This study shows how Dominos has been able to position itself as a market leader in its segment. Finding various aspects of the company’s processes, provides as an token of appreciation to the company’s efforts to continuously grow in the changing market conditions by taking new product design into consideration and being innovative against its competition.
The facilities make an impact on the competitiveness of the organization, the efficiency of the workers and the quality and quantity of the products. Some objectives to be met by the facility layout are:
A warehouse is a commercial center is built for stocking goods. They come furnished with stacking docks to load and empty trucks; or in some cases are stacked specifically from railroads, airport terminals, or seaports. They have cranes and forklifts for moving merchandise, which are normally set on ISO standard pallets stacked into pallets racks