Companies must meet a set of procedures to offer the end consumer, not just the finished product or service, but the satisfaction that they want to get. The demand of customers becoming more demanding, however, several companies are intertwined through a complex logistical process, in order to get consumers to get everything you need at your fingertips.
The first major challenge faced by companies is to master the basic processes that predominate in the Chain. Processes like customer interaction (contributions, take orders, deliver), demand planning, product distribution, materials supply. Mastering basic process involves having a superlative performance through rules and procedures, use of information technology, organizational capabilities, performance indicator. Still along the chain there are a number of basic activities that are not mastered. In the interaction with customers, for example, even though most of the companies state that the service is a strategic aspect.
In the field of business logistics, management regularly not only comprises administration of resources, but also the operation of these and coordinated implementation of logistics tasks, both inside and outside the company in a kind of chain. In this regard, some authors specify that this is referred to as a supply chain, which is defined as the set of firms efficiently integrated by suppliers, manufacturers, distributors and wholesalers or retailers seeking coordinated locate one or more products in right amounts in the right places at the right time, looking for the lowest cost in the activities of the value chain members, and meet the requirements of consumers. This low status, low cost and short delivery times of products manufactured.
Get your grade
or your money back
using our Essay Writing Service!
Generally, in a supply chain is able to identify the structure of corporate governance, which is commonly hierarchical with clear delineation of roles and responsibilities of each of its elements. Realigning the particular strategies, so that the entire chain is aimed at meeting the needs of the end customer with high quality services. This is feasible to the extent that the key factors in turn are aligned around the pursuit of "enterprise integration is to reduce delivery times through the implementation of information systems flexible and efficient, low a global policy of environmental friendliness.
All this focus on business competitiveness, requires a dynamic management team, updated, open organizational and technological change, and conscious of the need to consider the members of the organization as a resource to the first order to be cherished. Properly manage supply chains today is almost an imposition for organizations to survive in the business landscape and also succeed; Today, the complexity of the industry, the more goods and services and each increasing globalization of markets, do not talk about individual companies but it tends to handle increasingly the term Supply Chain.
Ganeshan and Harrison state that in the process of providing decisions are operational and strategic. First, the authors refer, are short-term decisions focused on daily activities, while the latter are related to the typical long-term decisions related to the overall strategy guiding policy from a supply chain design perspective. According to these authors, the work carried out in these decisions are intended to efficiently and effectively manage the flow of products in a planned chain "strategically".
For them, the most important decision areas in the management of the supply chain, are four: (I) Location, (ii) production, (iii) Inventories, and (IV) Transportation (distribution). Areas where there are strategic and operational decisions. With respect to the production and distribution operations, strategic decisions include what products and in what plants are to be produced, which suppliers to provide what plants, what these distribution centers, and distribution centers which markets (see Vidal, 1999).
As in the previous case, these decisions have a strong impact on revenues, costs, and the level of service companies. Given the existence of facilities and the exact path of the flow of products through the supply chain, strategic decisions considered in this context, one of the most critical factors is related to the capacity of the facilities, which depends on the degree of vertical integration of firms. Furthermore, inventory is one of the most studied topics in the supply chain, and its decisions are policy strategies for the case instrumented.
Always on Time
Marked to Standard
The inventory is in each stage of the supply chain as raw material, semi-finished products, work in process, finished goods, or goods. The main objective of inventory is intended to maintain a reserve against potential demand uncertainties along the delivery process.
Ganeshan and Harrison said the companies seek improved competitiveness through a more efficient supply chain. Thus, we can say that the size of shipments (cargo consolidation), routing and scheduling of equipment are some of the key factors in the effective management of the transport strategy of the company the importance attached to the core ( costs, cycle time, service level and quality) by the actors of the supply chain, especially the preferences granted to the level of service and quality, let you see an opportunity to begin to form efficient supply chains, hinting high chances of business integration in all its dimensions, in the medium term. The key performance factors of the supply chain, they seek to improve their level of service through timely deliveries, seeking to increase its reliability and utility