If the supply chain must be responsive and flexible, it cannot also be efficient conversely, an efficient supply chain will not be as flexible and responsive of course, these are relative definitions and most supply chains will exhibit some characteristics of both efficiency and responsiveness, but it’s useful to discuss the extremes to. Responsive when you must, efficient when you can competition is more global and fiercer than ever not many companies are able to dominate the market and hence for most companies cost price is a ‘qualifier. An effectively managed cash supply chain must be efficient and responsive at the same time responsiveness can be defined as the ability of the supply chain to respond purposefully and within an appropriate timeframe to customer requests or changes in the marketplace. List of tables table 1 contrasting supply chain management with traditional management 14 table 2 overview of the main characteristics of food supply chain networks and their impact on logistics and information and communication technology 17 table 3 supply chain scenarios for expo 23 table 4 physically efficient versus market-responsive supply chains 32 table 5 business processes that.
The first of two modules covering supply chain strategies learn the differences between efficient and responsive supply chains and the correct strategies to use based on your product type and location in the product life cycle. Efficient supply chains -these supply chains essentially have strategies in place that combine the strengths of hedged and responsive supply chains -they are agile because they have the ability to be responsive to the changing, diverse, and unpredictable demands of customers on the front end, while minimizing the back-end risks of. An agile supply chain must be responsive to actual demand, and capable of using information as a substitute (to some degree) for inventory through collaboration and integration with key customers and suppliers.
• fisher (1997, p106): “the root cause of the problems plaguing many supply chains is a mismatch between the type of product and the type of supply chain” other views on defining supply chain strategy supply chain strategy and product characteristics source:fisher, m l (1997. Supply chains in many industries suffer from an excess of some products and a shortage of others owing to an inability to predict demand a good structure in the supply chain can avoid such problems and reduce the costs. In other cases when a company has an unresponsive supply chain for innovative products, the right solution is to make some of the products functional and to create a responsive supply chain for. In such a scenario we use a combination of responsive and efficient supply chain the supply chain process for melons has been illustrated below in the critical time period between picking and cooling (t0 to t1), product loses value at a rapid, exponential rate and the supply chain must be responsive.
Supply chain managementin other words scm is about the coordination of supply chain flows (product, information, money) across functions and across companies to achieve competitive advantage for individual companies in the supply chain and supply chain members collectivelyfew characteristics of scm to be noted are:scm. Responsive supply chain: a competitive strategy in a networked economy or process these, to some extent, define the characteristics of an agile workforce these characteristics also include separation principles and theory of constraints (toc) tools may be combined in the integrated development of responsive and efficient supply chains. It’s time for the evolution of supply chain: 4 characteristics to watch for with supply chain 20 the right product, at the right place, at the right time the decades-old challenge of supply chain is now more difficult to solve than ever before. The selection of the supply chains to admire is the result of a 24-month effort it is based on the analysis of both performance and improvement of publicly-held manufacturing, distribution and.
(sabath, 1998) nowadays responsive supply chains have become keys to competitive success and survival (fisher, 1997 christopher, 2000, 2005) due to the increasing and the main quantitative characteristics of responsiveness of process supply three factors in order to balance responsiveness to customer demand and supply chain efficiency. Two distinct supply chain designs used for competitive advantage are efficient and responsive supply chains (fisher, 1997) the purpose of efficient supply chains is to coordinate the flow of materials and services so as to minimize inventories and maximize the efficiency of the supply chain members. The difference between an efficient supply chain and a responsive one comes down to the ability to meet uncertain demand an efficient supply chain can corral its suppliers, manufacturers and retailers to manage orders and processing, and meet a stable, predictable demand at a lower cost.
So this section will explain some characteristics of apple supply chain through various metrics and compare them with amazon supply chain 31 inventory turnover inventory turnover is a traditional financial measure to determine how efficient company uses its financial resources to create sales, the higher number is the better. Characteristics of efficient or responsive supply chain problem 1) what are some characteristics of efficient/responsive supply chains what factors should a supplier consider when trying to establish a long-term relationship with one of its customers. Their supply chains must be flexible and responsive to customer and market needs management must be cognizant of issues of procurement, manufacturing, inventory, and distribution that impact satisfaction and loyalty. Words, to create and balance an efficient and responsive total supply chain is the next imperative goal for the automotive industry the recent studies and literature in the automotive supply chains seem to emphasize.
Make the supply chain efficient and great things will happen it is the conventional wisdom however, if you say to a supply chain leader that the most efficient supply chain is not the most. Matt, your article is a sensible introduction to agile vs lean supply chain management is rarely so simple, readers may be left wondering what are the options in the other two quadrants of your matrix, and what are the trade-offs at the boundaries. Characteristics in terms of life cycle length, demand predictability, product variety, and transformed through a responsive supply chain that has extra capacity, the capability for a physically efficient supply chain that focuses on cost minimization and high utilization of resources should handle this kind of product. Supply chain 1) what are some characteristics of efficient/responsive supply chainswhat factors should a supplier consider when trying to establish a long-term relationship with one of its customers what are the advantages in using the postponement strategy.