Assume that you are a supply chain manager for a manufacturer company
Words: 2200
Pages: 4
124
124
DownloadSupply Chain Management
[Name]
[Institution affiliation]
[Date]
Introduction
In the past production companies run separate inventories in the acquisition, logistics, production and sale records. However, with the rapid nature of globalization, the need to manage all these factors concurrently is on the rise. Globalization means that companies are sourcing materials further and in multiple locations as well as selling products across the globe. It also means that more industries are sharing the same markets. For this reason, producers have to effect high efficiencies to reduce operational cost and improve customer satisfaction simultaneously. (Arndt, 2008) Luckily, this need is accompanied with improved diversification in communication and transportation technologies that ease logistical planning. The result has been a combination of numerous previously independently run departments into the critical concept of supply chain management (SCM).
Supply chain management engages a control of the process that includes the procurement of materials, production, marketing and distribution of projects. This process is vital because it determines how well a company does in reducing costs and increasing sales. (Mentzer et al., 2001) A proper management of this segment intricately combines the aspects of time, volume, and cost to ensure maximum value is met. This is because the chief aim of a supply chain management is to reduce inventories. It means that goods must be produced exactly when the consumer needed them and availed at end points for consumption.
Wait! Assume that you are a supply chain manager for a manufacturer company paper is just an example!
The products must also be produced in the amounts needed by the consumers to avoid backlog in inventories. (Cooper & Ellram, 1993) To achieve this efficiently, procurement of raw materials must be done in the proper time to prevent easy assembly of products which can undermine the quality of the product. The supply chain management segment is also tasked with managing relationships between wholesalers and retailers and thus must be concerned about the image of the product. (Cooper, Lambert, & Pagh, 1997) The success of a product in the market thus requires a definite plan of operation to manage these complex relationships and thus the need for a clearly defined supply chain management plan. For this case, FADTEL, an emerging smartphone manufacturing company model will be used ot formulate an efficient SCM model.
Four Keys flows
Flows in SCM indicate the main components of the plan. They represent the fundamental aspects of the program that must be maximized to attain efficacy. There are four main flows in SCM that determine the level of effectiveness from procurement to distribution. (Rouse, 2016)
forward Flow
The forward flow is concerned with the development and distribution of the product. The development of the product begins with the selection of materials and the procurement of the materials. It, therefore, involves relationships with the suppliers and logistical operations that will ensure timely delivery of these raw materials. (“Supply Chain Forecasting, Supply Chain Management, Demand Planning | Institute of Business Forecasting & Planning – IBF”, 2016) It also includes the assembly, manufacture or improvement of the products in the factory. Finally, the flow includes the physical process of delivering end products to the outlets. In the modern world, there are many shopping options beginning with wholesalers, retailers and online shops that maybe operated from the factory premises. The end point of the forward flow is the consumer. The level of satisfaction reported by the customer is vital because this is the only real source of resources for business. The following is an example of forward flows for FADTEL
468122010160Consumer
Consumer
351726510160Outlets
Outlets
609610160Suppliers
0Suppliers
1096645-7620Logistics team
Logistics team
223647010795Manufacturing
Manufacturing
109220309880
Cash flow
The concept of cash flows, as the term denotes, involves the movement of money in both directions of product development. This means that the manufacturer is moving funds from the consumer towards the company as well as from the company to the suppliers. Success running of a business depends on the level with which a company can minimize cash flows towards the raw materials vendor and increase cash flows from the clients. This is a critical aspect of balance. The value that a customer is willing to pay for a product is tied to the perceived quality of the product. (Sweeney, 2002) To achieve substantial quality, a manufacturer must be prepared to utilize the considerable resource in materials acquisition. However, a consumer is only willing to add a specific level of funds to satisfy particular needs past which the markets become overshot. To maintain a proper balance, the SCM team needs to keep abreast of the market situation on the ground. The following is an example of cash flows for FADTEL.
5334000-2032Users
0Users
4333240-1270Outlets
Outlets
03810Supplier
0Supplier
3456432254000334645025361929138885461Manufacturing company
Manufacturing company
16703045461Logistics
Logistics
34564311219200104140
Reverse flow
9569452730500Company
00Company
31573472730500User
0User
19507202730500Outlets
0Outlets
In this flow, the manufacturer concentrates in retrieving a used product from the consumer to the factory for recycle or safe disposal. Reverse flows are a rather new trend in SCM. However, they have become a vital part of the business for two reasons. The first reason is that it can be very useful in reducing operational costs. (Daniel, Guide, & Van Wassenhove, 2016) This is because of the used products, especially in electronics, are likely to contain useful components that can be used to make newer products without procuring new parts. These older parts may also be sold in other markets where consumers still prefer products that may be unpopular in some markets. The second reason for the increased need for reverse flows is the growing need for environmental conversation. International laws on environmental conservation and anti-dumping policies are requiring manufacturers to provide safe disposal or reuse of their products. Manufacturers are hence required to determine efficient means of collecting already used products. (Daniel, Guide, & Van Wassenhove, 2016) The high turnover of products such as smartphones in the modern world is enough to indicate the vitality of this department. If inefficiently managed, the department could cost a manufacture millions of funds. The following is an example of reverse flows for FADTEL.
92049699695
Information flow
Information flow involves the flow of communication in respective directions. This is the information that is dispatched to suppliers as well as information that is given to consumers. The data flow begins in the factory with the decision for the introduction of a new product. This is followed by communication to suppliers about the specifications of required materials. In the manufacturing factory, many decisions will be communicated to engineers and other individuals in the production sector. The information flows will then shift towards communications with warehouses and other outlets concerning the release of the products and the pricing. (Sweeney, 2002) Eventually, information flows concern marketing to the consumer about the nature of the product and the cost. It also involves communicating with them about the forecasts for future specs. This process is vital in product positions which determine the reception and performance of the product. The following is an example of information flows for FADTEL.
23284181456692316481336042621280225044262128019431004650740297815User
0User
571520320Supplier
0Supplier
117602020320Logistics
00Logistics
353568026035Outlets
00Outlets
207835538100Company
0Company
2846832102108284683216764257238516383-304791021080
3.0 Make Process (500 words) Diagram needed.
3.1 master production schedule (MPS)
2316483401568Cost of production
Required time for manufacturing
Number of phones in demand
Specs desired by consumers
Time of delivering new product
Cost of labor
0Cost of production
Required time for manufacturing
Number of phones in demand
Specs desired by consumers
Time of delivering new product
Cost of labor
The MPS is a well-detailed plan for at least near the exact amount of the end-products that will be produced in a short-range for example one week. To achieve this, the supply chain management team will require 6having various forms of data. Among the most primary data is the number of customer orders or level or demand. This will determine the number of end-products that need to be manufactured within a specified duration of time. The company then needs to gather data on the cost of production. This information will be determined by the cost of materials as will and the cost of assembling a unit product. This value will help the company prepare the required funds for the entire process. The production process is also needed when formulating the MPS. This is determined by the lead time required to prepare the end products. The results of having this information are the output of the MPS. Among the outputs of the schedule is the physical endpoint products in the number anticipated from the demand forecast. (Thomas & Griffin, 1996) Another variable is the staffing levels. Since scheduling involves volumes of the goods required against the lead time available for the entire process, it must also include the dynamics of staffing. This is especially critical in the production phase. For example, is 100 employees typically produce 2000 garments weekly and an upcoming festive season required an approximated 50000 production weekly, then the manufacturer has to shift the numbers appropriately to maximize production. All these factors must be combined very carefully to produce a well-balanced portfolio. An anticipated MPS for FADTEL is presented below
348081661087Staffing levels
Inventories
Final phone in both quality and volume.
00Staffing levels
Inventories
Final phone in both quality and volume.
290715751219119626585548632328672365887MPS
00MPS
3.2 Material requirements planning (MRP)
22067522038604User
(Demand for phone)
0User
(Demand for phone)
Materials requirement planning heavily relies on the production schedules that have been achieved in the previous level. This segment relies heavily on the integrity of the data that is used to make the plan. There are three ways in which and MRP will help advance the product development. Firstly, it will help determine what, when and how much of materials to order at a particular time. This leads to the second benefit which is the minimization of wastage by proper appropriation of procured materials into the process. Finally, this plan ensures there is not lagging in inventories as only the required products are produced at a particular time. (Lambert, Cooper, & Pagh, 1998) Ultimately, this is an essential tool in minimizing the operational costs and maximizing the income from sales. To achieve maximum results, there should an organization must ensure it has adequate data and information collection tools. The following is a tentative functional MRP for the operations at FADTEL Company.
351701016357602700528180644823713441805940291998470891426454106720849387841635760969264129438420783551239266Company
New product announcement
0Company
New product announcement
-249555672465Manufacturing team
Materials needed
Time needed to deliver
Quality anticipated
Staffing required
00Manufacturing team
Materials needed
Time needed to deliver
Quality anticipated
Staffing required
19933922403856Supplier
Cost of materials
Capacity that can be delivered
00Supplier
Cost of materials
Capacity that can be delivered
44977051488440MRP
00MRP
Supply Chain forecasting (500 words) using Qualitative, Quantitative or both.
Forecasting is undoubtedly an important aspect of supply chain management. The chief reason for this is that demographical preferences keep changing. To carry out healthy business, the firm must determine the market dimensions. In technological companies, markets are either overshot or undershot. Overshot markets mean that clients already feel that the specs available are already enough to satisfy their use are therefore not willing to pay more for more advanced gadgets. This is an indicator that the producer could need to diversify to lower-priced devices. On the other hand, undershot markets are instances where clients desire more complexity and are willing to engage more resources more for advanced features which can solve more functionality in their daily lives. The company, therefore, needs to improve its products. It must do so cautiously keeping in mind how much the client is willing to add. Forecasting is also essential in other industries. (Lambert & Cooper, 2000) For example, fashion industries experience high turnover of presences depending on the trending dynamics. Forecasting is thus indispensable to determining which products should be eliminated and which be introduced or advanced to retain customer loyalty and expand the market share.
FADTEL can be classified as businesses that are categorized under disruptive entrants. Such companies target markets that are left out by established manufacturers. In technological companies, these markets are mainly in developing economies. The markets are characterized by high desirability from the specs available in high-end smartphones with the un-matching financial capability to purchase these components. The main strategy is thus to find a way of providing great specs at a low price. The economic background in developing markets shows a gradual shift of the poor into middle-income societies. This is a good indicator for demand in FADTEL products. Survey had indicated a possible rise in demand by up to 1 million gadgets in the next year. The forecast is more favorable in Asian and African markets and thus forward flows will concentrate on these markets.
A projection has also indicated that markets are aligning to specific specs such as RAM > 2GB, camera > 8MP, memory> 8GB. The average costs that a client is willing to pay for such a product is 100 USD. FADTEL will, therefore, position itself process towards reducing productions past this level while achieving the desired quality. It forecasts that the product could exceed these expectations by going to memory >16GB. It is therefore expected that when the logistics are implemented, the product will perform exceptionally well.
Conclusion (200 words)
Adequate planning is an essential part of every successful endeavor. Supply chain management provided all the necessary planning for a company. This is because it organizes all the processes required for procurement of materials up to the eventual sale to the end point consumer into a clear schedule. This helps the management of the business in multiple terms. First of all, it ensures that quality materials are acquired at the right time and the best prices. This minimizes operational costs and ensures that the production begins in time. It also ensures that the processes are not conducted arbitrarily and therefore reduces wastage of both material and time during production. Eventually, SCM ensures that the products are distributed to outlets in proper time and at prices sufficient in covering the entire cost of a product and generating substantial profits for the producer. Additionally, SCM is used to gather information on the market scenario to make decisions for new products and those that need to be phased out. This process is thus an integral part of the business that cannot be ignored. The above laid plan is intended to produce favorable results for FADTEL manufacturing company. Through it, the management can get a clear insight on exact measures that need to be taken to enhance business efficiency.
References
Arndt, H. (2008). Supply Chain Management. http://dx.doi.org/10.1007/978-3-8349-9743-2
Cooper, M. & Ellram, L. (1993). Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy. The International Journal Of Logistics Management, 4(2), 13-24. http://dx.doi.org/10.1108/09574099310804957
Cooper, M., Lambert, D., & Pagh, J. (1997). Supply Chain Management: More Than a New Name for Logistics. The International Journal Of Logistics Management, 8(1), 1-14. http://dx.doi.org/10.1108/09574099710805556
Daniel, V., Guide, R., & Van Wassenhove, L. (2016). The Reverse Supply Chain. Harvard Business Review. Retrieved 30 November 2016, from https://hbr.org/2002/02/the-reverse-supply-chain
Lambert, D. & Cooper, M. (2000). Issues in Supply Chain Management. Industrial Marketing Management, 29(1), 65-83. http://dx.doi.org/10.1016/s0019-8501(99)00113-3
Lambert, D., Cooper, M., & Pagh, J. (1998). Supply Chain Management: Implementation Issues and Research Opportunities. The International Journal Of Logistics Management, 9(2), 1-20. http://dx.doi.org/10.1108/09574099810805807
Mentzer, J., DeWitt, W., Keebler, J., Min, S., Nix, N., Smith, C., & Zacharia, Z. (2001). DEFINING SUPPLY CHAIN MANAGEMENT. Journal Of Business Logistics, 22(2), 1-25. http://dx.doi.org/10.1002/j.2158-1592.2001.tb00001.x
Rouse, M. (2016). What is supply chain management (SCM)? – Definition from WhatIs.com. SearchManufacturingERP. Retrieved 30 November 2016, from http://searchmanufacturingerp.techtarget.com/definition/supply-chain-management
Supply Chain Forecasting, Supply Chain Management, Demand Planning | Institute of Business Forecasting & Planning – IBF. (2016). Ibf.org. Retrieved 30 November 2016, from https://ibf.org/index.cfm?fuseaction=showObjects&objectTypeID=87
Sweeney, E. (2002). The Four Fundamentals of Supply Chain Management (1st ed.). Dublin: Dublin Institute of Technology.
Thomas, D. & Griffin, P. (1996). Coordinated supply chain management. European Journal Of Operational Research, 94(1), 1-15. http://dx.doi.org/10.1016/0377-2217(96)00098-7
Subscribe and get the full version of the document name
Use our writing tools and essay examples to get your paper started AND finished.