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Right Supply Chain

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Submitted By vinayksaxena123
Words 399
Pages 2
Supply chains plays an important role in maximizing the profit in the organization. Success of any product in the market depends on right supply chain model.
It’s performance depends on how quickly collecting customer response & reacting to it by using flexible manufacturing, automated warehousing & rapid logistics. Performance can be further improved by using the new technologies by adopting new concepts such as quick response ,effective consumer response ,accurate response ,mass customization ,lean & agile manufacturing.
It is being observed in many studies that poor coordination among partners of supply chain resulted into losses because of not able synchronized with customer end demand.

Supply Chain based on Nature of product.
For functional products which are having predictable demand, satisfying basic needs & available in wide range in retail outlets needs supply chain where we can schedule production a plan for next six month to minimize inventory & maximize production efficiency.
Whereas for innovative products where the demand is uncertain based on market reaction, needs to read early market signals & react quickly within the product life cycle, so that we would not lose sale because of short supply. Critical decisions to be made about keeping inventory & capacity not about minimizing cost but about where in the chain to position inventory & capacity in order to fulfill uncertain demand . Suppliers are also chooses based upon flexibility & quick response instead of low cost.
Example Sports Obermeyer major supplier of fashion skiwear , every year 95% product are having new design with limited life cycle ,required response quickly if they misjudge the demand.
Whereas Campbell’s product have only 5% new product every year & hence can predict accurate demand & can able to fulfill it.
Functional product

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