Tuesday, February 12, 2013

Extreme thinking on SCM(Shiyu Ling)

After 2 classes of SCM I have the following thoughts on Supply Chain Management as a subject, please give me your opinion if you don’t think the same way.

1.Supply Chain Management is Process Umbrella: 
       Process: Procurement, Production (Storage), Distribution (Transportation & Selling), Cycling (Disposal) --involved flows of information, Resources (financial and Material) and People
       Umbrella: Management of Network activities always involve with Design, Building, Testing and Redesign Cycle.
2. Supply Chain Management is about Responsiveness and Effectiveness 
       Responsiveness: Customer first, it’s a measure of value in time.
       Effectiveness: Low Cost first, it’s a measure of value in money.  
          The Problem here is that Responsiveness and Effectiveness doesn’t always agree with each other. And the easiest way to enhance one’s performance is to sacrifice the other.  
The key here is to find out the type of SCM you need and predict(forecasting) the middle trend in the Market which will help you find the most cost saving way of storage(Inventory) and logistic under the requirement of the flexible demand of market.       
         Then the question becomes what is the shortest(Effectiveness and responsiveness) way to hand the product to your customer?

        Their Similarities:
           Same tools: JIT(just in time), quality control(six sigma)
Their Differences: 
    Different focus: Project focus vs Process focus
                Project focus can be extreme and short term
                Process focus discussion is only meaningful when it's regular and long term.

 4. Challenge of SCM: 
      Incorporate Recycle and social responsibility part into the model. Appropriateness of SCM development both in technology(supply chain visibility, 3D printer, DIY, Open Resources Manufacturing) and methodology(ERP)

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