University:
MacEwan University
Course:
SCMT 200 | Introduction To Global Supply Chain Management
Academic year:

2023
Views:

193

Pages:

3
Author:

Arthur M.

Chapter 10: ordinationin'n a supply SUPPLY CHAIN COORDINATION: Improves all stages of the Chain take actions that are alig- ned & increase total supply Chain Surplus LACK OF COORDINATION BULLWHIP EFFECT: •communication fluctuations in orders increase as they move chain from retailers the supply whole's- manufacturers to alers to Suppliers distorts demand info wlin chain LACK OF COORDINATION CAN CAUSE • Increased variability, hurts surplus • increased manufacturing costs • increased inventory cost • increased replenishment lead times •increased transportation costs increased labor costis relating w/ Shipping & receiving • hurts level of product augilability more Stockouts in chain negative effect part of chain. on performance in every • loss among trust between stages OBSTACLES IN COORDINATION: any factor that leads to local optimization by different stages of Chain or increase cred in info delay, distortion, & variability 5 CATEGORIES Incentive info- processing • operational operation • pricing benavioral INCENTIVE OBSTACLES: incentives offered in different Stages which increase variability & redute chain profits local optimization functions incentives that Pocus only on local impact of action, doesn't help surplus, helps only firm not whole chain ex: transportation manager lowers transportation costs even man service nutts Inventory cost & customer Sales force amcentivesex sales incentives vsually on exceedin thresholds during exceeding sales evaluation period pe • sales based measured by manufacturer are on quantity sold to distributors/ retailers (sell-in) not final customers (sell through) INFORMATION-PROCESSING OBSTACLES: demand informat- ion is distorted as it moves between Stages of chain ↑ variability • Forecast bared on orders not demand Lack of information Sharing: planned sales increase OPERATIONAL OBSTACLES: actions taken in course of placing of filling increased orders lead to variability •ordering in large lors orders in lot sizes much larger than demand • orders placed first week of month •leads to large order quantity & long replenish- ment PRICING OBSTACLES: fluctuations in price, discounts, promotions BEHAVIOR OBSTACLES: problems in Stroblems butelearning his formon to distortion Supply chain member alone • unable to see impact on other members Unable to find root causes • unable to learn from actions LEVERS TO IMPROVE COORDINATION: overcome obsta- des -ALIGNING GOALS & INCENTIVES: to Surewery activity Increase surplus works Suitable pricing schemes, two part tariffs • IMPROVING INFO & VISIBILITY: of Designing replenishment, Continous replenishment programs, vendor point conamanaged →colaborative + replenishment planning, forecasting, inventory. •IMPROVING OPERATIONS TO SYNC DEMAND: reducing replen- Ishment lead time order electron- ically online or electronic data interchange (EDI), advance shipp- ing notices cross do sizes full truckload "Reducing less than truckload Lis Shipping, RFID tracking, receiving •DESIGNING PRICING STRATEGIES TO STABILIZE ORDERS: encourage retailers to order in smaller lots & meduce forward buying, volume discount over rolling time window, not size quantityou discounts, Stabilize pricing levery Pricing) • BUILDING STRATEGIC PARTNERSHIPS & TRUST: