SCM Topics :Supply Chain Management, SCRC Articles Library
SCM Topics: Supply Chain Management Articles
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Energy (Utilities) Sustainability Report
Key Sustainability Issues in the Energy Industry Reliance on coal (especially on the east coast) Limited suppliers Expense of constructing new Nuclear Plants Issues with current plants – Florida’s Crystal…
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Supplier Management – The Need of the Hour [Webinar Recording]
This webinar focuses on the topic of supplier relationship management, and deals with the questions that many supply chain managers have on this subject. Rob Handfield hosts a number of questions on how to manage supplier relationships, and the challenges that exist in dealing with strategic vs. reactive issues with suppliers. The issue of public vs. private company relationships is examined, as well as the requirements for building solid supplier relationships in global supply chains, including the many complex issues that arise when dealing with global suppliers.
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Introduction: Inventory Management Models : A Tutorial
INTRODUCTION Learning Objectives Tutorial Outline Learning Objectives By then end of this module, you will be able to: Describe the functions and drivers of inventory. Distinguish between independent demand and…
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SUMMARY: Inventory Management Models : A Tutorial
SUMMARY Inventory serves a useful purpose in the supply chain. That said, firms can help minimize the need for inventory by carefully managing those factors that drive inventory levels up.…
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REFERENCES: Inventory Management Models : A Tutorial
REFERENCES Most introductory textbooks in Operations and Supply Chain Management offer a good discussion of inventory systems. Inventory functions and drivers, independent demand models, and safety stock calculations are routinely…
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REORDER POINT FORMULA: Inventory Management Models : A Tutorial
REORDER POINT FORMULA The reorder point formula allows us to determine the safety stock (SS) needed to achieve a certain cycle service level. In general, the longer the lead times…
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SAFETY STOCK ANALYSIS: Inventory Management Models : A Tutorial
SAFETY STOCK ANALYSIS EOQ tells us HOW MUCH to order…but WHEN should we order? Safety Stock What Happens when either Demand or Lead Time Varies? What is the Chance of…
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PERPETUAL SYSTEM: Inventory Management Models : A Tutorial
PERPETUAL SYSTEM The two classic systems for managing independent demand inventory are periodic review and perpetual review systems. This section focuses on the Perpetual System. What is a Perpetual System?…
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ECONOMIC ORDER QUANTITY (EOQ) MODEL: Inventory Management Models : A Tutorial
ECONOMIC ORDER QUANTITY (EOQ) MODEL The economic order quantity (EOQ) is the order quantity that minimizes total holding and ordering costs for the year. Even if all the assumptions don’t…
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FUNCTIONS AND DRIVERS OF INVENTORY: Inventory Management Models : A Tutorial
FUNCTIONS AND DRIVERS OF INVENTORY Inventory serves a useful purpose in the supply chain. That said, firms can help minimize the need for inventory by carefully managing those factors that…
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PERIODIC REVIEW SYSTEM: Inventory Management Models : A Tutorial
PERIODIC REVIEW SYSTEM The two classic systems for managing independent demand inventory are periodic review and perpetual review systems. This section focuses on the Periodic Review System. What is a…
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INDEPENDENT VS DEPENDENT DEMAND INVENTORY SYSTEMS - An EXAMPLE: Inventory Management Models : A Tutorial
*h2. INDEPENDENT VS DEPENDENT DEMAND INVENTORY SYSTEMS – An EXAMPLE Inventory items can be divided into two main types: Independent demand and dependent demand items. The systems for managing these…
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References: An Analysis of Supplier Evaluation
References 1 Barlas, D. August 2001. When EDI is mandatory. www.line56.com. 2 Browing, J. September 2000. Developing “fast track” policies and procedures. CAPS Research. 4(1): 7-13. 3 Carr, A. &…
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Future Developments: An Analysis of Supplier Evaluation
Future Developments If corporations continue to increase their use of manufacturing and services outsourcing, then the demand for supplier evaluation should increase. It should also follow that there will be…
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Case Studies: An Analysis of Supplier Evaluation
Case Studies Boeing Commercial Airplanes Group Top Suppliers Boeing Commercial Airplanes Group Boeing Commercial Airplanes Group, BCAG, is a firm that demonstrates excellence in the area of supplier evaluation (22).…
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Expected Costs and Benefits: An Analysis of Supplier Evaluation
Expected Costs and Benefits Benefits Costs Benefits By becoming more competent in supplier evaluation, firms can expect a number of financial and non-financial benefits. Each particular quality sought in a…
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Implementation Issues: An Analysis of Supplier Evaluation
Implementation Issues 7-Stage Process 1. Develop a high-level plan 2. Develop a process plan 3. Acquire data 4. Evaluate supplier 5. Select / develop supplier 6. Implement the project 7.…
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Associated Technologies: An Analysis of Supplier Evaluation
Associated Technologies Business-to-Business Networks (B2B) Electronic Data Interchange (EDI) Extensible Markup Language (XML) Web Exchanges Trust and Information Sharing Given the variety of services and products that the economy provides,…
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Performance Measurements and Metrics: An Analysis of Supplier Evaluation
Performance Measurements and Metrics Categorical System Weighted Point Method Cost-Based System Total Cost of Ownership Approach Frequency of Assessment How Measurements are Used Based on the more current partnership approach,…
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Definitions: An Analysis of Supplier Evaluation
Definitions Economic Order Quantity Just-in-Time Total Quality Management Life Cycle Electronic Data Interchange (EDI) Extensible Markup Language (XML) Supplier Evaluation is a sourcing strategy used to assess suppliers in terms…
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Background: An Analysis of Supplier Evaluation
Background Adversarial Model Economic Order Quantity Concept Partnership Model Supplier Evaluation Adversarial Model It was not until the late 1960s that purchasing was considered more than a clerical function (11).…
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References: Developing Collaborative Supplier Partnerships
References 1 Burnes, B. & New, S. (1997). Collaboration in customer-supplier relationships: Strategy, operations and function of rhetoric. International Journal of Purchasing and Materials Management. Fall 1997; V33. 2 Monczka,R.,…
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Future Developments: Developing Collaborative Supplier Partnerships
Future Developments The shift in business today is clearly towards more collaboration between all members of the supply chain. One such development to be seen is more companies undertaking supplier…
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Case Studies: Developing Collaborative Supplier Partnerships
Case Studies Dell Computers Eric Scott Limited Volkswagen Brazil Dell Computers (27) Early on Dell Computers recognized the benefits of collaborative supply chain relationships and adopted the practice while developing…
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Expected Costs and Benefits: Developing Collaborative Supplier Partnerships
Expected Costs and Benefits Quantifiable costs Quantifiable benefits Non-quantifiable benefits As with any initiative, there are costs related to supplier development that must be absorbed. Most of these costs are…
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Implementation Issues: Developing Collaborative Supplier Partnerships
Implementation Issues Gather data Develop a supplier presentation Develop a purchasing profile Develop specific negotiable issues Conduct negotiations Award the business Provide joint resources as required Develop monitoring and evaluation…
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Associated Technologies: Developing Collaborative Supplier Partnerships
Associated Technologies Workstation Collaboration Portals Electronic Data Interchange (EDI) The foundation of supplier collaboration is the ability to communicate effectively and efficiently with individuals and companies who provide the organization…
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Performance Measurements and Metrics: Developing Collaborative Supplier Partnerships
Performance Measurements and Metrics Delivery Quality Cost Benchmarking Tracking the performance of suppliers is instrumental in evaluating whether or not they are showing improvement. Each company must assess what measurements…
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Definition: Developing Collaborative Supplier Partnerships
Definition In order to maintain pace with today’s increased competition, larger organizations are becoming more dependent on suppliers. Outsourcing has become a way of life at many companies as they…
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Background: Developing Collaborative Supplier Partnerships
Background Collaborative partnerships between companies and their suppliers are a recent development in the business world. Throughout a great portion of the twentieth century the relationship between company and supplier…
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The Relationship between Disruption Amplifiers and Risk Reduction Mechanisms: A Managerial Framework
The Relationship between Disruption Amplifiers and Risk Reduction Mechanisms Clearly, some of these actions (improved planning and collaboration) can be adopted with a minimal level of investment, and may provide…
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Risk Reduction Mechanisms: A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain
Risk Reduction Mechanisms To manage the amplifiers of supply chain disruptions with their roots in supply chain globalization and product/process complexity, firms have deployed a variety of different Risk Reduction…
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Inventory Management Systems
Software applications that permit monitoring events across a supply chain. These systems track and trace inventory globally on a line-item level and notify the user of significant deviations from plans.…
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Methodology: A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain
Methodology To benchmark risk planning and mitigation practices, we conducted a series of focused interviews and captured various insights into the area of supply chain disruptions. We interviewed executives from…
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Introduction: A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain
Introduction Recently the topic of Enterprise Risk Management appears at the top of many corporate agendas. Although most discussions on risk management are confined to financial reporting and internal controls…
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Executive Summary: A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain
Executive Summary Low-cost sourcing has now become a staple of competitive strategy in many retail and manufacturing sectors. As organizations source a greater proportion of manufactured products from China, India,…
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Amplifiers of Supply Chain Disruptions: A Managerial Framework for Reducing the Impact of Disruption to the Supply Chain
Amplifiers of Supply Chain Disruptions Certain attributes of a company’s global supply chain environment may amplify or mitigate the impact of disruptions. In the case of Nokia and Ericsson, one…
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How Do Supply Chain Risks Occur?: A Managerial Framework for Reducing the Impact of Disruptions to the Supply Chain
How Do Supply Chain Risks Occur? Supply chain risk management systems comprise the set of systems and processes used to manage supply chain disruptions. Disruptions are defined as major breakdowns…
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References: What Should the Professional Supply Chain Manager Know about Six Sigma?
References 1 Harry, M., & Schroeder, R. 2000. Six Sigma. New York. Currency. 2 Statistical Six Sigma Definition. http://www.isixsigma.com/library/content/c010101a.asp Acces.sed on April 3, 2003. 3 Hahn, G. J., Hill, W.…
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Future Developments: What Should the Professional Supply Chain Manager Know about Six Sigma?
Future Developments If corporations continue to increase their use of manufacturing and services outsourcing, then the demand for supplier evaluation should increase. It should also follow that there will be…
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Case Studies: What Should the Professional Supply Chain Manager Know about Six Sigma?
Boeing Commercial Airplanes Group Top Suppliers Boeing Commercial Airplanes Group Boeing Commercial Airplanes Group, BCAG, is a firm that demonstrates excellence in the area of supplier evaluation (22). It has…
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Expected Costs and Benefits: What Should the Professional Supply Chain Manager Know about Six Sigma?
Expected Costs and Benefits Benefits Costs Benefits By becoming more competent in supplier evaluation, firms can expect a number of financial and non-financial benefits. Each particular quality sought in a…
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Implementation Issues: What Should the Professional Supply Chain Manager Know about Six Sigma?
Implementation Issues Infrastructure Training Project Selection and Execution In order for firms to increase their ability to effectively utilize Six Sigma, they must focus their resources on three major areas:…
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Associated Technologies: What Should the Professional Supply Chain Manager Know about Six Sigma?
Associated Technologies Statistical Process Control (SPC) Software Critical to quality (CTQ) trees Process maps Histograms Pareto charts Process summary worksheets Cause-effect diagrams Scatter diagrams Affinity diagrams Run charts Control charts…
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Performance Measurements and Metrics: What Should the Professional Supply Chain Manager Know about Six Sigma?
Performance Measurements and Metrics Brainstorming Balanced Scorecard Four Perspectives Approach When six sigma is used as a metric, it means that defects per million opportunities (DPMO) must be below 3.4.…
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Definitions: What Should the Professional Supply Chain Manager Know about Six Sigma?
Definitions Critical-to-Quality (CTQs) Methodologies Six Sigma is a business process that allows companies to achieve drastic financial improvements by “designing and monitoring everyday business activities in ways that minimize waste…
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Background: What Should the Professional Supply Chain Manager Know about Six Sigma?
Background Six Sigma traces its origins to the quest to achieve higher quality at Motorola. This quest began in 1979 when executive Art Sundry proclaimed, “The real problem at Motorola…
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Cash to Cash: Toyota, Inventory Management and Heijunka
Both Accounting and Supply Chain professionals rely on Cash to Cash (C2C) measures to make processes more efficient and cost-effective. C2C is generally the number of days it takes to…