7.3 Supply Chain Business Methods

Question 1

Describe how On Demand Enterprises influences Supply Chain Management

Answer 1

Premise is based on manufacturer or service fulfilment operations, starting only after an order is received
Traditionally manufacturers maintained a stockpile of goods to ship ready to respond to orders
Done to reduce overhead costs of maintaining stock in warehouse
No safety net of back-stock
Works well in supermarkets

Question 2

Describe how JIT (Just In Time) influences Supply Chain Management

Answer 2

JIT or lean manufacturing developed by Toyota
Parts and sub assemblies arrive at workstation exactly when needed
No idle equipment or staff
Lean manufacturing goal is to remove waste (energy, space, labour, materials)

Question 3

Describe how Supply Chain Collaboration influences Supply Chain Management

Answer 3

Business partners must trust each other and each other’s information systems
Supply chains can become very inefficient unless companies share data, collaborate, respond to change
Collaboration can improve profit margins

Question 4

Describe how Global Supply Chains and the Internet influences Supply Chain Management

Answer 4

Global Supply Chain issues
Greater geographical distances, time differences
Participants from different countries
Different performance standards
Different legal requirements

Internet helps manage global complexities
Warehouse management
Transportation management
Logistics
Outsourcing