| Topic : Supply Chain - An important item on CEO's agenda...... |
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Activity:
82 views;
last activity : 06 25 2011 12:12:29 +0000
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Fierce Competition
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SCM is emerging as the most powerful differentiator & the largest scope for cost optimization
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Supply chain drives value chain!
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hmmm....yes delivery matters but not all time !!
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Econimic growth.
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good supply chain..reduces investments n space
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Delivering quality product is no more competitive advantage
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Premier the latest at the sales outlets
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Role of logistics in S & C
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Today's business climate has rapidly changed and has become more competitive as ever in nature. Businesses now not only need to operate at a lower cost to compete, it must also develop its own core competencies to distinguish itself from competitors and stand out in the market. In creating the competitive edge, companies need to divert its resources to focus on what they do best and outsource the process and task that is not important to the overall objective of the company. |
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what ,atters at the end is delivery. how you do it , in what time and with what cost. if every one is happy - it is nothing but the efforts of the supply chain people in the organozation.
Thanks for the referral Ms. Isha Verma and I accept the views posted.
thanks Isha for referal.apart from fierce competition,today we are living in the world where customer is boss.supplier (other than monopolist) is forced to accept customer terms in every thing i.e.QCD.bcoz of this situation,manufacturer should curtail over heads and other unneccessary costs and that's why we are seeing lot of JIT's,KANBAN's,2bin system etc in all manufacturing process.
SCM is emerging as the most powerful differentiator & the largest scope for cost optimization
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Supply-chain has emerged from the shackles of godowns, trucks etc level in the India scenario to a major differentiator in the almost cluttered market of many sectors/verticals. Earlier trends of combining scm under finance, administration, commercial etc is not fetching the required RoCE in the long term. This realization in almost all enterprises are leading to ERP implementations encompassing SD, MM, WM modules for uplifting the depth and breadth of distribution. So that availability of goods/services at the right time, right cost, right qty, at the right spot eventually becomes the differentiator and thereby leads to attain the golden market leadership. Cash guzzling activities of the historic SCM activities like blocked paid up inventory, obsolete inventory, huge warehouses adding to the cost of transportation to the deepest corners of the market, redundant human capital - all these present a huge opportunity to optimize the cost incurred and to stretch both staff & other resources efficiencies and productivities. The each rupee saved helps in the CEO's or top mgmt's standing in the entire stakeholder community. Feel these two factors are the main reasons that Supply chain is coming into the agenda priorities!! |
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Very correctly said, Mr. Deeso. Effective supply chain management means timely delivery gives you customer satisfaction, by that you get more recommendation leads to more customers , ultimately growth & more profit.
True?
Or is it because I am into Supply chain biz?
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Companies need to service their customers on time. Unless your supply chain is streamlined you cannot provide quality products and services.
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Mr. Deeso is may be right,timely deliverance matters allot as it makes an impression in the eye of the customer,but to meet the escalating production demand quality is the prime factor which suffer's.
Nw hw supply chain management can make difference? The procurement of material should be on time, n of best quality...which makes production process easy, Proper Forecasting led to sure success, as there is no term like Poor supply chain Mechanism it is only because of poor management.
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Indian economy is one of the fastest growing economy. Manufacture, supply and distribution is the back born of any economic growth. So the economy needs a well organized supply chain.
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well, simple reason, it is very costly to store evry thing in advance, it needs lot of space n money, it will increase ur investments, so if ur supply chain is really reliable u dont have to store evry thing in bulk,,for example in line assembly we need all parts of vehicle at time of assembly, we cant store all spare parts of vehicle in advance[[[10days]] suppose a manufacturere makes 40 vehicles a day if he stores materials for 10 days ,, it means he will have to store materials of 40x10=400 vehicles this seems foolish,, so only solution is effective supply chain so that u get material for 40 vehicles evry day.
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Delivering quality product to the customer on time is no more a competitive advantage, it is a requirement in the market place. This is forcing the organizations to come together into a chain and deliver the market needs. The globalization, the dynamism of technology developments are also contributing for emergence of supply chains and their management. |
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In today's S & C management ,inventory has gone back benches.i notice that even outlets selling branded products wear a deserter look. CEO therefor make it a point that inventory need rejuvenation by replacing with latest and fresh arrivals. No business can afford a scant look when store is full of material. |
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Role of logistics in S & C |
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