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A Critical Analysis of Supply Chain Collaboration Techniques

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A critical analysis of Supply Chain Collaboration Techniques

By
Arun

Table of Contents Introduction 3 Supply chain Management and Drivers of supply chain performance 3 Retail Industry supply chain overview 4 Bullwhip Effect 5 Reducing the “Bullwhip Effect” 6 Mitigating Bullwhip Effect by Improving Information Accuracy 7 Collaborative planning, forecasting and replenishment (CPFR) 8 Drawbacks of CPFR 9 Vendor Managed Inventory (VMI) 9 Drawbacks of VMI 10 Mitigating Bullwhip Effect by Improving Operational Performance 10 Vendor consolidation 11 Risk in using 3PL for vendor consolidation 13 Reducing Replenishment Lead time using Cross docking 14 Supplier selection for cross-docking 15 Benefits of Cross-docking 16 Disadvantages of Cross-docking 17 Conclusion 18 Appendix 19 Appendix A 19 Products suitable for cross-docking 19 Types of cross-docking 19 References 21

Introduction
A Supply chain consists of all the participants and processes which are involved in satisfying the customer demand. The large amount of participants, variety of processes, dynamics and uncertainty in materials and information flow prove that the supply chain as a complex system in which coordination is considered as a key element for success. The lack of supply chain coordination between the participants results in a “Bullwhip Effect”. This report analyzes different techniques followed by Wal-Mart to improve coordination for reducing the bullwhip effect. Wal-Mart’s use of CPFR, VMI to mitigate the bullwhip effect by improving information accuracy is explained and the drawbacks of those systems are discussed. Wal-Mart’s revolutionary use of cross-docking and vendor consolidation programs to achieve coordination by improving operational efficiency is analyzed. Based on these analyses the requirement for efficient coordination and the important

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