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Case Abstract
They must develop a delivery system that will ensure maximum product creation and
optimal shipments to customers or other manufacturers for further use.
Tracking products through depots to make sure they arrive at their destination
In SIL they must use SKU wise take off and daily fill rate of all SKUs
based on which stocks need to be managed
Both the companies operates in consumer product sector follows basic SCOR frame work integrated with
DCOR and CCOR frameworks which helps them to decide between buy or make the product.
Economies of Scales / Scopes:
Economies of scope and economies of scale are two different economic concepts used to help cut a company's cost.
Economies of scope focuses on the average total cost of production of a variety of goods, whereas economies of scale focuses
on the cost advantage that arises when there is a higher level of production of one good.
HOC was inefficient with respect to Economies of scale and scope before implementing ERP, due to which their sales
were widely fluctuated.
SIL concentrated more on ROP and ROQ in order to achieve their Scale and scope metrics.
Key Supply Chain Metrics:
Hence we have mentioned General key metrics for supply chain:
Customer Order Cycle Time: Measures how long it takes to deliver a customer order after
the purchase order (PO) is received.
Cash to Cash Cycle Time: The number of days between paying for materials and getting paid
for product.
Inventory Days of Supply: The number of days it would take to run out of supply
if it was not replenished.
Inventory Turnover: The number of times that a company's inventory cycles per year.