Review on Article - What Is the Right Supply Chain for Your Products
What Is the Right Supply Chain for Your Product ?
Article by Marshall L.Fisher
INTRODUCTION
• Marshall L.Fisher is the Stephen J.Heyman Professor of Operations and Information Management and co-director of the Fishman-Davidson Center for Service and Operations Management at the University of Pennsylvania’s Wharton School in Philadelphia. • His current research focuses on how to manage the supply of products with hard-to –predict demand.
Devising the Ideal Supply-Chain Strategy
• According to research by Marshall L.Fisher, before devising a supply chain, consider the nature of the demand for your products. • For example , product life cycle, demand predictability & patterns ,product variety & market standards for lead time & service. • The companies must make sure that they are taking the right approach. • First step – the managers must determine whether their products are functional or innovative as it will determine the next step to a different kind of supply chain. • Next step – the managers to decide whether their company’s supply chain is physically efficient or responsive to the market.
Is Your Product Functional or Innovative
Functional Products
• Functional products include the staples that people buy in a wide range of retail outlets, such as grocery stores & gas stations. • Normally the products are basic needs, which don’t change much over time, stable, predictable demand and long life cycles. • Many competitors and often leads to low profit margin.
Innovative Products
• Many companies introduce innovations in fashion or technology to give customer an additional reason to buy their offerings. • The products are fashion apparel, personal computers. • Achieve higher profit margins, unpredictable demand and short life cycles. • Innovative products require a fundamentally different supply chain than stable, low-margin functional.
Is Your Product Functional or Innovative
Functional Products
• The predictable demand of functional
Article by Marshall L.Fisher
INTRODUCTION
• Marshall L.Fisher is the Stephen J.Heyman Professor of Operations and Information Management and co-director of the Fishman-Davidson Center for Service and Operations Management at the University of Pennsylvania’s Wharton School in Philadelphia. • His current research focuses on how to manage the supply of products with hard-to –predict demand.
Devising the Ideal Supply-Chain Strategy
• According to research by Marshall L.Fisher, before devising a supply chain, consider the nature of the demand for your products. • For example , product life cycle, demand predictability & patterns ,product variety & market standards for lead time & service. • The companies must make sure that they are taking the right approach. • First step – the managers must determine whether their products are functional or innovative as it will determine the next step to a different kind of supply chain. • Next step – the managers to decide whether their company’s supply chain is physically efficient or responsive to the market.
Is Your Product Functional or Innovative
Functional Products
• Functional products include the staples that people buy in a wide range of retail outlets, such as grocery stores & gas stations. • Normally the products are basic needs, which don’t change much over time, stable, predictable demand and long life cycles. • Many competitors and often leads to low profit margin.
Innovative Products
• Many companies introduce innovations in fashion or technology to give customer an additional reason to buy their offerings. • The products are fashion apparel, personal computers. • Achieve higher profit margins, unpredictable demand and short life cycles. • Innovative products require a fundamentally different supply chain than stable, low-margin functional.
Is Your Product Functional or Innovative
Functional Products
• The predictable demand of functional