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• Traditional Methods
There are a number of approaches in Supply chain management activities which can be broadly
classified as
• Plan Driven Approaches Or Predictive methods
PRINCE Methodology
Scrum Model.
Crystal Clear,
Lean Development,
• Traditional Methods
Waterfall Model
Regardless of the methodology employed, careful consideration must be given to the overall
project objectives, timeline, and cost, as well as the roles and responsibilities of all participants
and stakeholders.
Plan Driven Approaches:
Effective management and technical support are required for the success of large-scale projects.
PERT packaged programs provide scheduling capability. However, many tasks must still be
performed by a human being, including activity plan generation, construction of activity
networks, modification of a schedule produced by PERT program, and project monitoring. To
support these tasks, we believe that the application of artificial intelligence techniques to this
area has great potential. Accordingly, we are developing an experimental project management
expert system named EPM (Electronic Project Management).
The main tasks that EPM supports are
Activity plan generation,
Activity scheduling,
Project monitoring.
The objectives of agility may put higher emphasis on the flexibility and quick
delivery to the customers. Therefore, the agile manufacturer needs to
maintain a certain degree of buffer capacity to cope with the volatile demand
and high variety of products.
• Market Sensitive: Supply chain is capable of reading and responding to real demand.
• Network based: EDI and internet enable partners in the supply chain to act upon the real
demand.
• Process Integration: Collaborative working between buyers and suppliers, joint product
development, common systems and shared information.
Some statistics
Reverse logistics accounts for 3 percent to 4 percent of a company’s
total logistics costs. Companies can save 10 percent from their annual
logistics bill by implementing an efficient reverse logistics system.
Twenty percent of this amount is saved in labor costs and the remaining
80 percent is saved in lowered freight costs and reduced pipeline
inventory (5).
Introduction
The evolution of reverse logistics for manufactured products is
developing in direct proportion to the rapid advancements in technology
and the subsequent price erosion of products as new and improved
products enter the supply chain at a faster pace. With such thin margins
and so much competition, mismanagement of the supply chain can be
devastating.
Early days
The early days of Reverse Logistics were measured by
convenience and customer accommodations. The focus was on the front
end of the return process, the ability for consumers to be able to return
unwanted or defective merchandise. The ability to facilitate a consumer
return was a courtesy that turned into a compelling competitive
differentiator in retail.
It did not take long for retail merchants to seek the same
concessions from manufacturers and distribution channels. Stock
rotation became a normal condition of business, and processes for
returning defective merchandise became standard practice. Although this
is accepted as commonplace today, it has not always been this way.
Even today there are cultural differences with regards to consumer
returns, especially for product that is not defective and returned because
of 'customer remorse'.
The next step
As the cost of Reverse Logistics continued to increase, and as the
methods of transportation became more sophisticated, manufacturers
and distributors began to look for alternatives in transportation for
savings. Planning and consolidating freight for return products was
identified as a way to reduce expenses related to fuel and labor. This
also led to detailed analysis of transportation options, like truck, air and
railway. In Supply Chain Logistics business you are either the one
driving the truck, the one pumping the gas, or the one paying the other
two.
Collaboration
The next major step in the evolution of Reverse Logistics is
collaboration with partners and external resources. It is a greater
awakening and realization of integration with the entire Supply Chain by
leveraging data exchange.
Once you know the demand and resale value for component parts
and whole units, then it is only a matter of maintaining an intelligent
planning engine that uses the input to analyze the Bill of Materials for
returned products. Before the merchandise enters the Reverse Logistics
Supply Chain, make an immediate and intelligent decision regarding the
value and intended disposition of the whole unit or the component parts.
Compliance
It's hard to believe that there are still companies that invest millions of dollars
each year in tools to forecast procurement and inventory management of spare
parts, without accurately forecasting and managing the largest single source of
surplus components that results from return merchandise. There are still
organisations that struggle to achieve freight savings purely by negotiation or
consolidation, without a achieving a balanced approach to freight avoidance,
localisation and intelligent de-configuration disposition.
In the competitive landscape of rapidly evolving technology, mass production and
eroding profit margins, managing the total cost of the supply chain and the
composite value of the components is essential to cost reduction and financial
survival. To ignore this aspect of reverse logistics can not only be costly, it can
be fatal for an organization.
For Consumer Electronics and Computer products, the Reverse Logistics
handling requirements are further complicated by compliance and regulations like
RoHS, WEEE, controls on Lead based and Mercury materials, just to name a
few. Recognising these component parts is absolutely essential to the proper
management of the intelligent engine that directs the disposition of returns
immediately upon notification that merchandise may enter the returns cycle.
Proper management is not only financially rewarding, but in the case of
hazardous materials, it is the law.
Conclusion
Agri scm:
SCM has emerged as recently as 1990s and has grown rapidly due to
various internal and external factor in the agriculture sector.
The main drive is to check the competitive behaviour in the agriculture
production side which based on the consumer requirement which is ever
changing ,affecting the agriculture business chain.
Here from the agriculture sector - Farmers, Processors, Marketers and
Distributors and finally the consumers are the major players in this
system.
Advantages:
Disadvantages:
1. If there happens any breakage or little distubances in the chain the
entire system collapsed.
. Inspite the total process is aimed to cut the overall cost,the service has
to be maintained. That is called as the Global Optimization.
Having said that I feel that the broad guideline of a e-market place
should be in line with Tea Auction House where speculative trading is
almost nil and every bidder has to take delivery, if he wins the bid,
otherwise his membership is cancelled.