Introduction
In general, the supply chain and logistics process seem to be a very straightforward and simple to a common man, he only considers that an order is placed by a customer to a supplier and the supplier sends the ordered products to the customer. However, there are a lot of steps and different departments involved in this process, which somehow make the system complex. A proper measurement needs to be in place to improve the efficiency in the supply chain and logistics process. Supply chain management experts consider implementing key performance indicators (KPIs) or metrics to identify who is involved, what are the bottlenecks in the process, is the system steering towards achieving organizational goals? These metrics should be used …show more content…
The information flow involves when an order is received and recorded in the system, it also includes the delivery status. The finance flow, as the name indicates, consists of payment information like credit payment terms, consignment and etc.
SCM in 1980s and 1990s
Most organizations in the 1980s and 1990s focused their supply chain approach towards redeveloping costs associated with supply chain structure. Many companies underwent corporate restructuring and internal improvement as companies strategies shift in response to the speed of change taking place in global markets.
SCM Today
There is a complete new shift and a driving force in this era that we see in today’s corporate strategy that is making customers happy. Due to the globalization, customers today find themselves in more power and that is one of the reasons that customers have become increasingly demanding, expecting high levels of products and service performance with competitive rates.
Well Managed SCM Example …show more content…
By April, 2015 it pulled all of its stores from Canada in response to losing $1 billion as sales were not as expected. One of the very prominent reasons of short in sales was low inventory, empty shelves on the sales floor and poor product selection for the customers.
Target Canada’s new president, Mark Schindele told Reuters that poor planning led to supply chain problems, further he added, “It all starts with having the right content in the store, being priced right and the right inventory levels.” “A key issue, distribution center staff had told Reuters, was that shipments of many products coming into warehouses did not match data in Target’s computer system. That created a bottleneck as staff scrambled to reconcile differences” (Reuters and The Canadian Press,
In general, the supply chain and logistics process seem to be a very straightforward and simple to a common man, he only considers that an order is placed by a customer to a supplier and the supplier sends the ordered products to the customer. However, there are a lot of steps and different departments involved in this process, which somehow make the system complex. A proper measurement needs to be in place to improve the efficiency in the supply chain and logistics process. Supply chain management experts consider implementing key performance indicators (KPIs) or metrics to identify who is involved, what are the bottlenecks in the process, is the system steering towards achieving organizational goals? These metrics should be used …show more content…
The information flow involves when an order is received and recorded in the system, it also includes the delivery status. The finance flow, as the name indicates, consists of payment information like credit payment terms, consignment and etc.
SCM in 1980s and 1990s
Most organizations in the 1980s and 1990s focused their supply chain approach towards redeveloping costs associated with supply chain structure. Many companies underwent corporate restructuring and internal improvement as companies strategies shift in response to the speed of change taking place in global markets.
SCM Today
There is a complete new shift and a driving force in this era that we see in today’s corporate strategy that is making customers happy. Due to the globalization, customers today find themselves in more power and that is one of the reasons that customers have become increasingly demanding, expecting high levels of products and service performance with competitive rates.
Well Managed SCM Example …show more content…
By April, 2015 it pulled all of its stores from Canada in response to losing $1 billion as sales were not as expected. One of the very prominent reasons of short in sales was low inventory, empty shelves on the sales floor and poor product selection for the customers.
Target Canada’s new president, Mark Schindele told Reuters that poor planning led to supply chain problems, further he added, “It all starts with having the right content in the store, being priced right and the right inventory levels.” “A key issue, distribution center staff had told Reuters, was that shipments of many products coming into warehouses did not match data in Target’s computer system. That created a bottleneck as staff scrambled to reconcile differences” (Reuters and The Canadian Press,