Supply chain
networks describe the flow and movement of materials and information, by
linking organizations together to serve the end-customer.
A
configuration for a supply chain network is below:
Supply chain
network enables organizations to see the value in creating partnerships; and
the value in working together to ensure the best possible value is provided to
the end-customer.[1]
It is of
great importance to develop strong partnerships within the company’s supply
network which has a flow on effect to your end customers whether you are a
manufacturer, distributor or retailer. By doing so, company can better serve
for the end-customers. Better communication will increase efficiency and
productivity. Trust is core to developing better communication and
relationships.[2]
Sometimes there might occur unprecedented boost in
demand such as UPS experienced recently. In order to make up for the Christmas
holiday rush, UPS utilized 85,000 temporary employees, 30,000 more than
planned.[3]
This caused UPS deliver lower profit forecast after holiday rush. UPS said it
delivered 31 million packages on Dec. 23, the most ever and 13% more than the
prior-year peak day.
UPS and rival FedEx faced difficulty on Christmas when consumers complained of delivery delays for
packages that retailers had promised would reach their destination in time for
the Dec. 25 holiday.
In order to
overcome such unexpected increases in demand, businesses should maintain strong
relations with the organizations in their networks. If not, how would it be
possible for a company to overcome unexpected booms in demand without cost of
losing customers or without cost of hiring temporary employers?
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