Without a strong supply chain management model in place a business will not thrive. A good example is a manufacturer that produces products for different industries, their supply chain must be flexible to meet the needs of the specific client. %PDF-1.5
This week they may be making bags for an electronic manufacturer to house components, next week they may be making plastic plugs and screws for a furniture manufacture. It is a flexible model. With increased reliance on sole-source suppliers and expanded levels of supply chain integration, the pressure on each supply chain participant to consistently meet its commitments increases. endobj
A supply chain … A supply chain model example of this group is the commodity manufacturer that is making low cost clothing and they are fighting for customers. While there are 6 models of supply chains all of them fit into either one of two categories. Unlike the efficiency models that are built on sameness and schedules these models require quite a bit of human interaction which of course leaves the system prone to human error. They must have the flexibility in their supply chain to quickly switch raw materials and other supplies. Today thanks to the global economy the supply chain looks more like a web with the manufacturer in the middle of the web. Chapter two will discuss the different types of supply chain relationships and which processes could be linked between companies. 12 A Framework and Key Techniques for Supply Chain Integration Yanfang Huo 1, Xinyue Jiang 1, Fu Jia 2 and Bingguang Li 3 1School of Management, Tianjin University 2Cranfield School of Management, Cranfield University, 3Byrd School of Business, Shenandoah University, 1P.R. Supply chain integration is a close alignment and coordination within a supply chain, often with the use of shared management information systems. Every supply chain should be efficient and responsive to deliver the best in support, improve productivity and meet the consumers demands. An efficient focused supply model will help the producer have the materials they need when they need them to stay competitive and create the volume that will keep costs down thereby appealing to the consumer base. Understanding the models and their purposes are critical to the success of any business. Most industries that use an efficiency model do it to help save on costs or are offering low value items that are produced in very high volume. The custom configured models focus on providing custom configurations especially during assembly and production. The agile model is primarily a method of supply chain management that is ideal for businesses that deal in specialty order items. The market is flooded with similar manufactured products all selling to the same type of consumer. Consumers may not realize the unique value of a certain product and all they are looking at is the cost. Supply models are similar in so many ways because they all have similar goals: Of course, the way they reach those goals are an entirely different story. �[�_�Ne0I��U By integrating the best of both worlds, giants like McDonalds, Unilever and Amazon have been able to create the completely integrated supply chains that have elevated their business to a whole new level of success. Supply chain management is critical to every business. Supply chains exist in both service and manufacturing organizations. It is ideal for commodity manufacturing and is one of the most traditional supply chain models. The models that fall into the “efficiency” category have components built into the supply chain to ensure that things are moving quickly and with a certain rhythm. Supply chain management models are broken down into 6 separate categories (though some argue there is 4) although they all have the same goals and typically rely on similar components of the supply chain. A plethora of supply chain management (SCM) definitions have been developed in recent years. Today’s market place requires supply chains that are both efficient and responsive to deliver what the modern business needs to stay competitive. We study this phenomenon by focusing on requirements and mechanisms for internal supply chain integration (SCI). endobj
There are several definitions that define what a supply chain is but none simpler than it is a sequence of events that helps a commodity move from manufacturing to market. All three of these models put efficiency first and are geared toward certain industries like paper industries, cement industries, commodity producing industries and even budget fashion industries. 1 . Supply chain integration research in maritime logistics area Previous studies have shown that there are a number of benefits to integration strategies in the maritime transport industry. Introduction Supply chain integration is a new kind of organizational model, taking dynamic alliance of McDonald’s Supply Chain Management is The Secret to Their Success! 2 0 obj
The basic models are good models that have served many businesses well, but to take a step above the rest, you should be thinking outside the box. INTRODUCTION Since the middle of the 1990’s, the researchers and practitioners within the construction industry have moved towards Supply Chain Management (SCM) philosophy in order to make construction industry more effective and more efficient. <>
KEYWORDS: Automobile Industry, logistics, lean and agile supply chain and supply chain. There are several things that are determinants when reviewing the types of supply chain models and which one will deliver the support a business can depend on: Each model has unique qualities that can support the overall organizations goals. It works well with a business that must change their products frequently and that needs to get them out fast before the trend ends. It is a model that focuses on the ability of the supply chain to amp up in some cases but also be solid when there is not much movement happening. Supply and logistics are the backbone of every business. stream
Every supply chain today is less like a chain and far more like a web. 2. Replacing unreliable members of highly integrated supply chains and rebuilding required levels of trust and knowledge can be an expensive and painful process. The efficiency models can bring powerful benefits, but they can also have a few downfalls like: The three responsive supply chain models are the agile model, the flexible model, and the custom configured model. areas of supply chain integration and supplier-buyer relationship came in 1990s when the concept as we know it today was gradually established. Through application of such a system, the organization can receive real-time demand information that can be used to develop and modify production plans and schedules. It can affect the success of a business and unfortunately also be the downfall of a business. These models are based on end to end efficiency. Supply chains historically were straight line models that looked something like this: Raw materials>>>>supplier>>>manufacturer>>>>warehouse>>>shipping>>>end user. This integration is often achieved through use of an information system that is fully integrated (an enterprise system). These three models offer the flexibility for industries that provide custom order products, trendy products and for manufacturers that often make changes in the products they produce. 3 Easy Ways to Save your Money in Supply Chain Management, 5 Mistakes Young Companies Make in Supply Chain Management, Everything You Need to Know About Stretch Wrapping Films, Take A Few Tips from Auto Supply Chain Management, What You Need to Know About Protective Packaging, What You Need to Know About SKU Rationalization, Ways to Save Space in a Warehouse and on the Road, Reusing Packaging You no Longer Need: Be Creative, The value proposition that the business has to offer, It may not be the most cost-effective model in all cases, It depends on the ability of human prediction to predict trends, Untrained or undertrained staff can make critical costly errors with these models. supply chain integration, internal integration, integration issues, integration type, integration boundary . �|����G����d�? We will look at these 6 models and discuss important factors of each model. Every industry has a supply chain. The efficient chain model is a model that is best for businesses that are in very competitive markets and where end to end efficiency is the premium goal. It can be switched on and off easily. 3 0 obj
Supply chain integration (SCI) is, to a great extent, concerned with the development of more integrated approaches that hold out the prospect of eliminating many of the inefficiencies directly attributable to supply chain fragmentation. Every logistic expert started their career by learning the fundamentals of supply chain models.