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The supply chain is made up of all the activities that are required to deliver products to the customer, from designing product to receiving orders, procuring materials, marketing, manufacturing, logistics, customer service, receiving payment and so on. Anyone, anything and anywhere that influence a product's time-to-market, price, quality, information exchange, delivery, among other activities is part of the supply chain.
E-supply chain management is digitally connecting the entire world into one big network of supply chains.
The enrich growth of Internet has completely changed the nature of business and the manner in which they compete. From internet and computer new businesses has emerged and also traditional businesses have got benefits from new lease of life which is afforded by the automation of their current activities and processes and also by transforming their existing supply chain relationships into computer mediated collaboration in e-supply chains.
E-supply chains have made from the application of internet technologies in the management of supply chain interactions. Especially, the basic provider of well-managed e-supply chains is omnipresent visibility, to all supply chain participants, of information relating to their supply chains. This visibility is only possible if the enterprise systems of all supply chain partners are integrated to share information in real-time, either through direct integration between the systems or through electronic marketplaces that centralize supply chain data and transactions. Various applications and business processes such as make-to-order, CPFR, and VMI can be defined on this ubiquitous information backbone.
2) Global Supply Chains
Supply chains today are increasingly dispersed and global in nature. No single company takes responsibility for all the activities in the supply chain. In fact, there is a tendency for companies, to focus on their main competencies and partner with other companies having complementary strengths while fulfilling the complete needs of the customer, giving rise to an integrated supply chain network. An integrated supply chin network is a group of independent companies, often located in different countries, forming a strategic relation with the common goal of designing, manufacturing, and delivering right quality products to customer groups faster than other alliance groups and vertically integrated firms.
The structure of an integrated supply chain network:
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These kinds of networks are common in the energy, automobile, pharmaceutical, aerospace, electronics, and computer, food, and apparel industry sectors. In global manufacturing of this kind, components may be sourced from several countries, assembled in yet another country, and distributed to the customers all over the world.
These kinds of networks are not generally under single ownership but are group formations of independent companies in alliance for a specific and special purpose. They compete with similar cooperating networks. A well designed logistics network provides streamlined material flow between all partners, cutting down the lead-time and cost of moving the raw materials and finish goods to their final destinations. Normally, a typical customer order happen several B2B (Business to Business) and B2C (Business to Consumer) logistical operation. An extranet, a secure and reliable communications network linking all the companies of the enterprise, provides the information integration. By providing the right information at the right time to all the stakeholders, the extranet enables efficient logistics and effective decision-making. This integration will reduce the inventory levels and also the cost of delivery. Essentially information substitutes inventory levels and also the cost of delivery. Essentially information substitutes inventory. I other words, if one knows when his/her order is scheduled on the assembly plant and on the transport carrier, then the need for inventory and safety stock is reduced.
3) E-Supply Chains Building Blocks:
E-supply Chains can be designed and studied through a systematic approach, which considers the various levels at which information technology can be applied in traditional supply chain. As mentioned earlier the fundamental building block of e-supply chains is visibility. Visibility of information across the supply chain allows supply chain partners to automate some of their inter-organizational processes. For example, if the manufacturer is aware of the inventory levels at the retailer end, he or she may automate the replenishment (to replace what has been used :) process when the inventory falls to a certain critical level, as is done in the Vendor Managed Inventory policy. Such inter-organizational workflow automation within the supply chain forms the second block of an e-supply chain. And finally, even greater efficiencies can be harnessed (to use energy, skills or resources in order to achieve strength/ control and make of use) from visibility and workflow automation through integrated planning of activities across the supply chain. Supply chain planning technologies form the third major building block for e-supply chains.
Components of an e-supply chain:
The communications technologies such as the Internet and wireless, information technologies such as XML, Java, WAP, etc. have made the ubiquitous flow of information seamless. It is now possible that a customer order placed with the retailer centre or on a corporate web-site is now instantly available to the original equipment manufacturers (OEM) and all its suppliers who can then plan and execute their activities so as to meet the unique requirements of that specific customer order. To a certain extent such a scenario was achievable with EDI (Electronic Data Interchange) links between all the supply chain partners as well. However, EDI has its drawbacks.
Draw backs of EDI:
They are very expensive to maintain.
Require dedicated links to be formed between each of the supply chain partner
Relationships cannot be formed dynamically with new partners when the customer requirements demand so.
Supply chain Workflow Automation
The second major element of e-supply chains is that of supply chain workflow automation tools that build upon the visibility within the supply chain. These workflow automation tools fundamentally automate many of the commonly occurring interaction between companies by harnessing the visibility within the supply chain. As may be expected, some of these applications are also delivered through electronic marketplaces. Some of the commonly deployed supply chain workflow automation applications include available to promise, track-and-trace and vendor managed inventory, electronic procurement and dynamic pricing.
Available-to-promise applications require complete knowledge of the material availability and unused manufacturing capacity within the supply chain. The process of accessing and processing this information to provide an availability notification can be automated only when there is visibility into the supply chain.
Ho does supply chain workflow automation
H1 does not supply chain workflow automation
1 how to control the supply chain management
2 how to controls the supply planning
3 the Prerequisites To Success issues
Controller for available-to-promise
Picture is taken from amrresearch.com
Track-and-trace services offered by the logistics companies, process the information on the activities within the fulfillment of a particular item, in order to provide the latest status report on the location and condition of the item. This concept can be further extended to include track and trace of work-in-progress, raw materials and finished goods within the supply chain.
Supply Chain Planning
Without being affected by the significant savings and tremendous opportunities afforded by supply chain visibility and workflow automation, their true power can only be harnessed when it is accompanied by intelligent decision support tools that optimize the automated movement of materials based on the information available from supply chain visibility. Such an automated and optimized process will lead to lower inventory levels and greater asset utilization while meeting customer requirements. As a result these planning tools incorporate a much greater degree of efficiency in the operation of the supply chain. For example, the planning of optimal VMI replenishment cycles built on a strong foundation of supply chain visibility along with automation provides the basis for value adding planning solution.
In terms of supply chain excellence through planning the ultimate goal is the synchronization of all the activities right from the raw material supplier to the final delivery to the customer. This may be achieved through solutions, which optimize scheduling of activities on a global level, instead of sub-optimal scheduling in individual organizations. One of the typical possibilities that arise in as a result of global scheduling is synchronization of manufacturing with the schedules of airlines, something that was not possible earlier.
Collaborative global supply chain planning and optimization
Picture is taken from an EBook
Prerequisites To Success
Effectively integrating the information and material flows within the demand and supply process is what Supply Chain Management is all about. In most companies, however, two major and very interdependent issues must be simultaneously addressed. The first deals with delivering products with customer-acceptable quality, with very short lead times, at a customer-acceptable cost - while keeping inventories throughout the supply chain at a minimum. The second issue, which tends to be less understood and accepted, is the need for high quality, relevant and timely information that is provided when it needs to be known. For many customers and manufacturers, business processes and support systems will not measure up to the task of quickly providing planning and execution information from the marketplace to production and onto vendors so that the customer's objectives are consistently met. The fact is, most information supplied is excessive, often late and frequently inaccurate.
For many companies, the nagging question about superior resupply Chain Management remains, "What is it going to take to get ahead and stay ahead of our competition?" The answer to that question is, of course, "plenty," but successful extended enterprises share some characteristics. Benchmark of how well your company is progressing with Supply Chain Management. We offers for the full range outsourced edit services .the sample browser withal real time visible real . the analysis observe to control our intelligence delivers /all services designed by package provided. To get quickly the operation service
For successful ESCM it's important to embrace collaboration with customers and suppliers in the development of planning and replenishment process. As we know suppliers and customers most band together in mutually beneficial partnership the need for better ESCM process and system is very evident and a very high business priority. The flows of information is the most important thing for ESCM and will give you edge when you have good product in the competition. To achieve the organization goal it's important to give more attention to the ESCM. It will help the organization to reduce the cost, increase the marker share, improve profits and minimize inventories. As we know now a day for many industries, market share will be lost and won based on the best ESCM performance