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Coordination in Supply Chain
This document discusses supply chain coordination and the challenges involved. It notes that the supply chain consists of different stages with different owners, and the main challenge is achieving coordination despite multiple ownership. It discusses the bullwhip effect where order fluctuations increase as you move upstream. Lack of coordination negatively impacts costs and performance. Obstacles to coordination include incentive issues, information processing, operations, pricing, and behaviors. Managerial levers to improve coordination include aligning goals, improving information, operations, pricing strategies, and building partnerships.
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Coordination in Supply Chain
- 1. COORDINATION IN SCM E.P. JOHN
- 2. INTRODUCTION ◦ SUPPLY CHAINCOORDINATION IMPROVES – ALL ◦ SUPPLY CHAIN CONSISTS OF STAGES WITH DIFFERENT OWNERS ◦ MAIN CHALLENGE IS TO ACHIEVE COORDINATION INSPITE OF MULTIPLE OWNERSHIP AND
- 3. BULLWHIP EFFECT THE FLUCTUATIONIN ORDERS INCREASES AS WE MOVE UPSTREAM IN THE SUPPLY CHAIN FROM RETAIL TO MANUFACTURING
- 4. LACK OF SCCOORD EFFECT ON PERFORMANCE ◦ MANUFACTURING COST ◦ INVENTORY COST ◦ REPLENISHMENT LEAD TIME ◦ TRANSPORTATION COST ◦ LABOR COST FOR SHIPPING AND RECEIVING ◦ LEVEL OF PRODUCT AVAILABILITY ◦ PROFITABILITY ◦ RELATIONSHIPS ACROSS SC
- 5. OBSTACLES ◦ INCENTIVE OBSTACLES ◦INFO-PROCESSING OBSTACLES ◦ OPERATIONAL OBSATCLES ◦ PRICING OBSTACLES ◦ BEHAVIOURAL OBSTACLES
- 6. MANAGERIAL LEVERS ALIGNINGGOALS AND INCENTIVES IMPROVING INFO ACCURACY IMPROVING OPERATIONAL PERFORMANCE DESIGNING PRICING STRATEGIES TO STABILISE ORDERS BUILDING PARTNERSHIPS AND TRUST
- 7. CPFR COLLABORATIVE PLANNING, FORECASTING AND REPLENISHMENT A BUSINESS PRACTICE THAT COMBINES THE INTELLIGENCE OF MULTIPLE PARTNERS IN THE PLANNING AND FULFILLMENT OF CUSTOMER DEMAND
- 8. CPFR – SCACTIVITIES STRATEGY AND PLANNING DEMAND AND SUPPLY MANAGEMENT EXECUTION ANALYSIS
- 9. FOUR SCENARIOS OF COLLABORATION RETAILEVENT DC REPLENISHMENT STORE REPLENISHMENT COLLABORATIVE ASSORTMENT PLANNING
- 10. RISKS AND HURDLES OF CFPR CUSTOMER 1 TEAM CATEGORY TEAM CUSTOMER 2 TEAM MANUFACTURER RETAILER ORGANISATION ORGANISATION
- 11. RISKS AND HURDLES OF CFPR DEMAND PLANNING SALES CUSTOMER SERVICE MERCHANDISE LOGISTICS PLANNING BUYING DEMAND REPLENISHME PLANNING NT SALES CUSTOMER SERVICE LOGISTICS
- 12. ROLE OF ITIN COLLABORATION INFORMATION AVAILABILITY SHARING OF THE SAME HELP IN DECISIONS COMPLEXITY & DIFFICULTY TECHNICAL CHALLENGES TRUST
- 13. ACHIEVING COORD QUANTIFY THE BULLWHIP EFFECT GET TOP MGMT COMMITMENT DEVICE RESOURCES FOR COORD FOCUS ON COMN WITH OTHER STAGES
- 14. ACHIEVING COORD TRYTO ACHIEVE COORD IN THE ENTIRE SUPPLY CHAIN USE TECH TO IMPROVE CONNECTIVITY IN THE SC SHARE THE BENEFITS OF COORD EQUITABLY