Supply Chain Management
Introduction
Supply chain management, which involves inventory management, cost reduction, transportation, configure the distribution network, strategies development for product distribution, aims to improve the efficient and effective in the production activities. With better improvement in managing the current resources to operate profitability, and to minimize the inventory costs and reach the demands from market. Through the upstream and downstream linkages, different products and service which helps in forming products and services to fulfill the requirement of ultimate customers.
To manage the network of supply chains, a systematic tool is required to measure and manage the transactions between partners. Accordingly, key performance indicator (KPI) was developed, is a number or value that can be used for comparison an internal targets or external targets as an indicators for evaluate the performance. Moreover, collected value or number should be calculated for the process or activities improvement.
2 Literature review
2.1 Diagnostic Method
It is important that companies develop a supply chain management strategy that is consistent with their overall business strategy. A key tool to achieving this is to develop a supply chain "diagnostic method" that can be used to improve operations and reduce inventories (see Kilty, 2000). The first consideration here is for the company to examine and understand their supply and demand planning. This is the key to optimizing resources as well as the timing of activities associated with procuring raw materials and producing and distributing products. The next step is to begin the process of transitioning from a functional organization to a process organization. And finally, as companies reorganize to be process driven, then the performance measures for the various functional departments should be changed to support the overall supply chain management goals. Some examples of
Supply chain management, which involves inventory management, cost reduction, transportation, configure the distribution network, strategies development for product distribution, aims to improve the efficient and effective in the production activities. With better improvement in managing the current resources to operate profitability, and to minimize the inventory costs and reach the demands from market. Through the upstream and downstream linkages, different products and service which helps in forming products and services to fulfill the requirement of ultimate customers.
To manage the network of supply chains, a systematic tool is required to measure and manage the transactions between partners. Accordingly, key performance indicator (KPI) was developed, is a number or value that can be used for comparison an internal targets or external targets as an indicators for evaluate the performance. Moreover, collected value or number should be calculated for the process or activities improvement.
2 Literature review
2.1 Diagnostic Method
It is important that companies develop a supply chain management strategy that is consistent with their overall business strategy. A key tool to achieving this is to develop a supply chain "diagnostic method" that can be used to improve operations and reduce inventories (see Kilty, 2000). The first consideration here is for the company to examine and understand their supply and demand planning. This is the key to optimizing resources as well as the timing of activities associated with procuring raw materials and producing and distributing products. The next step is to begin the process of transitioning from a functional organization to a process organization. And finally, as companies reorganize to be process driven, then the performance measures for the various functional departments should be changed to support the overall supply chain management goals. Some examples of