supply chain responsiveness-1
Post on 27-Apr-2015
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Submitted To:Dr Akhilesh Barve
Submitted By:Swati Tarun chopraVijendra SinghVikash choudharyVivek Khantwal
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Supply chain
A supply chain is the process of moving goods from the
customer order through the raw materials stage, supply,
production, and distribution of products to the customer
All organizations have supply chains of varying degrees,
depending upon the size of the organization and the type of
product manufactured
Included in this supply chain process are customer orders,
order processing, inventory, scheduling, transportation,
storage, and customer service
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Supply Chain Responsiveness
It includes a supply chain’s ability to do the following –
Respond to a wide ranges of quantities demanded
Meet short lead times
Handle a large variety of products
Build highly innovative products
Meet a high service level
Handle supply uncertainity
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SCR: conceptual frameworkDemandanticipationManufacturingflexibility
InventoryProductarchitecture /postponement
Informationintegration
Coordination andresource sharing
Spatial integrationand logistics
Organisationalintegration
Operational factors
Supply chainintegration
Supply Chain Responsiveness
Demanduncertainty
Demandvariability
Control factor:Ability to meetrequirements(delivery reliability& quality)
Externalproduct variety
Lead-time
InternalDeterminants
ExternalRequirements
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Supply Chain Agility
Supply Chain Agility is an operational strategy focused on
inducing velocity and flexibility in the supply chain
Speed and flexibility are the keys to the success of an agile
supply chain
To achieve this all physical and logical events within the
supply chain enacted swiftly, accurately, and effectively
The faster parts, information, and decisions flow through an
organization, the faster it can respond to customer needs
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Relationship between Responsiveness and Flexiblity
Delivery Vol.
Responsiveness
Response
Uniformity
Range
DimensionInternal External
Others
Program
Expansion
Routing
Operations
Material handling
Machinery
Mix Product
Types of Flexiblity
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Role of responsiveness in a supply chain
It increases product availability
It helps in fast movement of inventory
Responsiveness provides quick information
Responsiveness easily matches Demand and Supply
Helps in achieving Strategic Fit
Helps in gaining Competitive advantage
Responsiveness can easily build customer satisfaction
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Internal determinants of SCR
Operational factor
Demand anticipation - The accurate anticipation of demand can help supply chains to respond to customer requirements faster
Manufacturing flexibility - Traditional focus of the flexibility and responsiveness discussion . It can directly reduce the production lead-times and change-over times for products in supply chains
Inventory - Can both increase and decrease the responsiveness of supply chains . It often used as buffer against uncertainty and closely linked to the decoupling point, which is a common criterion for classifying supply chain strategies, such as build-to-order supply chains
Product architecture/postponement - Determines to a large extent where the decoupling point can be placed and thus how responsiveness can be achieved . It also determines manufacturability and internal product variety/complexity
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Supply Chain Integration
•Information integration - Can help reduce internal demand amplification andeliminate delays due to slow information flowsEliminating unnecessary demand uncertainty andvariability facilitates a better focus on end customerdemand
•Coordination and resource sharing - Removes delays and unnecessary activities in supply chains and leverages synergies
•Organisational integration - Reduces demand variability and uncertainty Can increase the responsiveness and general performance of supply chains in various ways Particularly important impact on trust, which is required For a variety of interactions between supply chain members
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Cost – Responsiveness Efficient Frontier Responsiveness High
Low High Low
Cost
This figure is showing the lowest possible cost for a given level of responsiveness
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Conclusions Based on our review, we propose that:
1) There are different types of responsiveness, both in terms of the unit of change (product, volume, mix and delivery responsiveness) and in terms of the time horizon affected (short, medium or even long-term responsiveness)
2) A supply chain can (and is even likely to) exhibit different levels
of responsiveness, depending on where in the supply chain its responsiveness is measured
3) One needs to distinguish between factors that require a supply
chain to be responsive and those that enable it to be responsive. This leads to the conclusion that at any point in a supply chain, the supply chain will have a potential and
demonstrated responsiveness
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THANK YOU
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