What Is the Right Supply Chain for Your Product?
What is the Right Supply Chain for Your Product?
Summary
The technology has improve glaringly the capacity of enterprises , make the supply chain every time more efficient thank to globalization we can contact rapidly but at the same time new markets grow and the competence with new ideas. Nevertheless having an excellent tool as communication the enterprise makes a mistake don’t choosing the appropriate supply chain for their products. The costs are so high due to the bad relationship between the company and the retailers, Dysfunctional industry practices, Overconfidence in promoting, Poor coordination between the chain links and Excess demand or shortage. It’s important to predict the demand and the profit to choose the right supply chain. It must consider demand predictability, product life cycle, market standard response, product variety, and service. When products have a stable demand as milk , brain , basic products pattern and therefore are reasonably predictable, the planning of their supply is easy although the competition is intense and the profit is low. On the other hand are unpredictable products often carry higher profit; these products are innovative, are new product developments and incorporate new technology as clothes , music, movies etc. These have unpredictable demand, a greater risk of shortage or oversupply. The supply chain performs two functions: one physical and other market intermediary and the market mediation function must ensure that the variety of products that come to market match which consumers want to buy. The companies have a need to identify whether their products are functional or innovative. The traditional continuous cost reductions companies have reached the point of reducing profitability within them, now turn toward better coordination with suppliers and customers with support of electronic communications networks. To the extent that increased information and resources, increase the capabilities of each of the
Summary
The technology has improve glaringly the capacity of enterprises , make the supply chain every time more efficient thank to globalization we can contact rapidly but at the same time new markets grow and the competence with new ideas. Nevertheless having an excellent tool as communication the enterprise makes a mistake don’t choosing the appropriate supply chain for their products. The costs are so high due to the bad relationship between the company and the retailers, Dysfunctional industry practices, Overconfidence in promoting, Poor coordination between the chain links and Excess demand or shortage. It’s important to predict the demand and the profit to choose the right supply chain. It must consider demand predictability, product life cycle, market standard response, product variety, and service. When products have a stable demand as milk , brain , basic products pattern and therefore are reasonably predictable, the planning of their supply is easy although the competition is intense and the profit is low. On the other hand are unpredictable products often carry higher profit; these products are innovative, are new product developments and incorporate new technology as clothes , music, movies etc. These have unpredictable demand, a greater risk of shortage or oversupply. The supply chain performs two functions: one physical and other market intermediary and the market mediation function must ensure that the variety of products that come to market match which consumers want to buy. The companies have a need to identify whether their products are functional or innovative. The traditional continuous cost reductions companies have reached the point of reducing profitability within them, now turn toward better coordination with suppliers and customers with support of electronic communications networks. To the extent that increased information and resources, increase the capabilities of each of the