Designing the optimized distribution network for carbonated soft drink industry
Introduction
National and International businesses are becoming ever more dependent on logistics and supply chain management in order to keep pace with the demands of an increasingly global economy. This is why business leaders acknowledge that the supply chain can be a value creator and a source of competitive advantage.
Logistics management is defined according to The Council of Supply Chain Management Professionals (August, 2013) as “Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of
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The key concept of supply chain management is to combine all parts of the supply chain (both internal and external) of an organization.
A comprehensive definition of supply chain management is described Stock et al (2009) as:
“The management of a network of relationships within a firm and between interdependent organizations and business units consisting of material suppliers, purchasing, production facilities, logistics, marketing, and related systems that facilitate the forward and reverse flow of materials, services, finances and information from the original producer to final customer with the benefits of adding value, maximizing profitability through efficiencies, and achieving customer satisfaction.”
There are four broad areas mentioned by Stock et al (2009) in the above definition of Supply Chain Management:
1. This relationship shows supplier customer relationship. All business entities are either supplier or customer.
2. All departments with and without the organization are dependent to each other. A department cannot survive alone within the market. Team work is essential internally and externallyin the organization.
3. It is a
Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.
Supply chain management definition in operations management text book explain that the management of activities related to procuring materials and services, transforming them into intermediate goods and final products, and delivering them through a distribution system. The objective is to build a chain of suppliers that focus on maximizing value to the ultimate customer.
The procedures of this chain that takes place in a good way or efficient way they will make their organization have a good outcome, and they will produce more customers.
Supply chain management from the source to the final customer by aligning the capability of supplier manufacture, distribution channel and customer. To optimise all the process and thereby go beyond function excellence (excellence within department) and ensure cross-function integration and cross-function excellence (i.e. total excellence cross the company).By optimising the supply chain thus wish to achieve world class performances by companies by insuring that the total system from source to customer is full optimised and fully integrated. What are trying to do is to ensure that at each point we add value to the process (not wasted cost).
The supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It
Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between
or indirectly with the firm) and by developing and fostering appropriate ties with both customers and suppliers, firms
With global operations, becoming more complex, companies in manufacturing, retail and technology and the consulting firms that service them, they are scrambling to hire people with Supply Chain expertise, but these experts are hard to come by. Supply Chain Management has moved from a "necessary evil" to a "core competency" at companies across industries.
The supply chain management basically involves processes and activities which are involved in the planning, organising, controlling and implementing the cost effective flow of goods from the point of origin to the point of consumption. The whole process will have different players like the supplier, manufacturer, distributor, retailers and the customers themselves as the end point of consumption. The supply chain has changed drastically over the years. This days they are very global in nature. Involving various complex interactions and flow of goods, data and funds between companies which are situated in different countries and continents. Even though the companies are spread across the world the manufacturing plants generally follow a similar structure which normally comprises of the suppliers, manufacturing plants, distributors, retailers, inbound and outbound logistics providers. There were a lot of challenges which arose because of the competition which made the companies to rethink their strategies in order to get the product to the right place at the right time at the lowest cost possible. The companies should always look at improving the whole supply chain and every player in the chain should coordinate with one another if they want to increase the efficiency. The organisation should realise the strategic importance of supply chain as it is a key to building a sustainable competitive edge. (Li, Ragu-Nathan, Ragu-Nathan, & Rao, 2006).
Supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials in to intermediate and finished products and distribution of these products to the customers. Supply chain Management (SCM) is the management of flow of information, products and services across a network of customers, organization and supply chain enterprises. It incorporates the development and capacity of raw materials, work-in-progress of stock, and finished products from purpose of origin to purpose of utilization. Interconnected or interlinked systems, channels and hub organizations are included in the vision of items and services required by end users in a supply chain. Supply
A supply chain consists of multiple organizations linked together in a partnership and their overall goal is to satisfy the needs of the end customer.
Topic: Do the terms, ‘logistics management’ and ‘supply chain management’ have the same meaning in operations and why logistics management might be of strategic importance to a manufacturing or service organisation.
According to APICS Supply Chain Management is the process of organizational planning, execution and control flows of raw materials, work in process, finished goods, as well as ensuring efficient and fast service receiving of timely
The Supply Chain required the cooperation of all the company 's internal departments with external parties, for example, the supplier to get a product that meets market needs in a timely manner. And that there is integration of all parties in terms of the information involved at the right time to get the right product for the right quantities in the right place at the right time for the client to meet the requirement of the
There is a basic outline to the exercise of supply chain management. It involves several elements that help in the movement of the product or service from the manufacturer to the customer. The elements involved are customer, planning, purchasing, inventory, production and transportation.