I am writing a 6 page report for a Supply Chain Management class. I need detaile

Question

I am writing a 6 page report for a Supply Chain Management class. I need detailed answers (atleast a paragraph) including key terms. A good description, examples, and real life scenarios. I can take it from there if I have a good idea of what each question is about.

1) How would you create a supply chain?

2) How would you manage that interlocking set of companies?

3) Why can it be complex for a company to implement programs such as ERP, VMI, & E-collaboration?

4) How would you solve a supply chain problem? Describe a problem and how you would solve.

5) How can you streamline a supply chain?

Thanks so much.

Explanation / Answer

1) Creating a Supply Chain:

Supply chain can be created by first assessing the requirements for product inputs and location facilities, transportation. For product inputs, the bill of material showing all the materials and components that go into making a finished product must be analysed. Then for those components that have to be externally sourced or manufactured by third parties, suppliers must be selected. The decision is based on factors like cost, location and tiers of supplier network (suppliers of supplier). For example, if Toyota is planning to manufacture from a new emerging market in India, they would set up assembly plant in a strategic location and build a network of suppliers (tyre makers, engine makers, etc.) around them to source the components. In turn the suppliers of components will source from auto ancillary units (rubber suppliers for tyres) thereby creating a chain.

2) Managing the interlocking set fo companies

In a supply chain, the suppliers are interlocked with each other due to the interdependence of material requirement and meeting each other’s demand. The processes of the companies can be managed by collaborating and sharing the information amongst each other. Information on capacity availability, pending orders, material description, etc can be shared through a common information system to facilitate planning control. For example, if Dell’s laptop assembly unit can access the battery supplier’s plant capacity availability, they can plan their procurement and production accordingly.

3) Complexity of ERP, VMI and e-collaboration

Implementations of large integrated information systems can be complex due to many factors like value of data, lack of skilled professionals, inter-departmental coordination, resistance from users to adopt change, poor training, complexity of technical infrastructure, heavy reliance on system integrators and expert consultants, lack of commitment from top management, budget and schedule overruns due to scope creep and too much of customisation of a packaged software.

4) Solving a problem in Supply Chain

Supply chain management faces several problems like poor supplier performance, high lead times, inventory pile up, bullwhip effect, etc. The problems can be solved by implementing agile systems and continuous improvement of processes. For example, high inventory problem can be reduced by adopting just in time strategy, wherein assembly line operations can be planned in such a way that material required can be released at the exact time when they are needed on the shop floor. Purchase and stock transfer orders have to be synchronised with the production orders to achieve a state of zero inventory. Similarly, procurement costs can resulting inventory can be managed by optimisation techniques using economic order quantity calculations.

5) Streamlining Supply Chain

Supply chain can be streamlined by optimising supply chain data from end-to-end. Processes of demand estimation, capacity planning, MRP run, procurement, storage, transport and documentation have to be tightly integrated. OEMs usually standardise the terminologies, documents, item codes across their chains, thereby streamlining the traceability and identification of item information. Bar codes and RFID are technologies that assist in streamlining the supply chain operations.

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