In William Walker’s book Supply chain architecture: a blueprint for networking the flow of material, information, and cash (2016), supply chain architecture provides the understanding, direction, and tools to apply the five APICS Principles of Supply Chain Management - Velocity, Variability, Vocalize, Visualize, and Value - to improve a company 's supply chain network competitiveness. According to Roy, Anciaux, Monteiro and Ouzizi (2004), the supply chain is viewed as a set of tiers (corresponding to the nomenclature levels), in which each partner, called a virtual enterprise node (VEN), is in relation with customers and suppliers on the adjacent tiers. The origin of the products come from the natural world, and go to the end users. Every
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For example, a leading appliance manufacturer in China is used to be one of the most competitive brand in the local market; they faced a tremendous failure when entering the oversea market. The main reasons of failure are two parts: weak customer services and high operating costs. The weak customer service lead to a bad overall service and a terrible experience for its customer, and the operating costs are relatively high, these two factors have strongly affected the brand image in the global market and even block the increasing of the entire competitiveness. To solve the problem and get over the difficulties, the company decided to update its spare parts management for its overseas business. The IBM project team found the solution and built a customized plan based on its business services and current operating model at the foreign market. The plan has included six topics that covered the key processes in the management, for example, the material requirements planning, order management, purchase & logistic management, and so on. When the topic of the innovation is getting clear, it will be easy for the company to figure out the blueprint for the entire management innovation. As the article mentioned before, IBM is able to set the future objectives based on the client’s condition. From knowing the condition of the company itself, the company will be able to make a feasible plan with detailed processes. At the end, the new management model works well, which truly cut down the lead time, reduce the inventory costs, increase the fill rate for spare parts and even drive the sales growth. IBM makes a series of structure, procedure and technology improvement to meet the client’s need. The optimization of the operational model is not only to cut down the costs, but also to increase the work effectiveness for companies to deal with its supply
For example, a leading appliance manufacturer in China is used to be one of the most competitive brand in the local market; they faced a tremendous failure when entering the oversea market. The main reasons of failure are two parts: weak customer services and high operating costs. The weak customer service lead to a bad overall service and a terrible experience for its customer, and the operating costs are relatively high, these two factors have strongly affected the brand image in the global market and even block the increasing of the entire competitiveness. To solve the problem and get over the difficulties, the company decided to update its spare parts management for its overseas business. The IBM project team found the solution and built a customized plan based on its business services and current operating model at the foreign market. The plan has included six topics that covered the key processes in the management, for example, the material requirements planning, order management, purchase & logistic management, and so on. When the topic of the innovation is getting clear, it will be easy for the company to figure out the blueprint for the entire management innovation. As the article mentioned before, IBM is able to set the future objectives based on the client’s condition. From knowing the condition of the company itself, the company will be able to make a feasible plan with detailed processes. At the end, the new management model works well, which truly cut down the lead time, reduce the inventory costs, increase the fill rate for spare parts and even drive the sales growth. IBM makes a series of structure, procedure and technology improvement to meet the client’s need. The optimization of the operational model is not only to cut down the costs, but also to increase the work effectiveness for companies to deal with its supply