Value Analysis: An Applied Concept for Manufacturing and Service Industry
Introduction All organizations strive to create value for their customers. This value creates mind space for product and services. Value analysis, therefore, is a scientific method to increase this value. Value is a perception hence every customer will have their own perceptions on how they define value. However, overall at the highest level, value is […]
Lessons for the Indian BPO Sector from the Standard Chartered and HSBC Scandals
The regulatory scandals involving HSBC and Standard Chartered (2013) have brought into focus the issue of how the outsourcing of business processes including oversight and compliance has meant that standards have been relaxed. Since both the scandals involved Indian back office operations looking the other way when they should have raised red flags, there are […]
Organizations Gain from Embracing Business Process Improvements
Business in present times is very challenging and dynamic. The nature of markets, life cycle of products and services as well as the Customers and their expectations have changed. So has competition. No business can survive this change unless and until they re-invent themselves and equip themselves to face competition. While some Organizations build their […]
Finished Goods Supply Chain Operations
FG Supply Chain consists of all activities involved in movement, storage and distribution of Finished Goods from the Delivery point of Plant to the Point of Sale. In the case of global supply chains, supply chain management gets more complicated with the variations arising out of different countries regulations and logistical practices. Computer Hardware supply […]
The Equifax Data Breach Scandal
The credit rating business in America is largely an oligopoly. It is run by three major companies, Equifax, TransUnion, and Experian. Each of these corporations contains a massive amount of data regarding sensitive financial information about millions of people. They need to have systems in place to protect this data and ensure that it does […]
The entire concept of business philosophy has moved away from traditional model to being more customer oriented, driven by demand and based on collaborative and joint operational strategies across global markets.
Supply Chain Networks have in recent times evolved from simple sequential and linear process networks to highly dynamic processes that call for information and sharing and visibility to be available across the network coupled with decision making on real time basis. Integrated approach to managing logistical tasks in a highly dynamic marketplace is necessary as it involves some internal as well as external business processes and agencies working in tandem to manage supply chains.
Logistics events at each stage of the network demands a transactional exchange of information and documentation which further leads to decision making by various stakeholders at each activity level on a continuous basis. The technology has not only reduced supply chain timelines, but increased its reliance on system and application capabilities to manage critical processes.
Applications today manage multiple functions in Supply Chain. While applications primarily function as storehouse of information, database to capture all transactional information and history, they also drive and enable processes in the supply chain.
Various technology platforms collaborate and function to enhance supply chain network functions today. Applications like ERP with various modules covering all functions like MM, SCM, etc.
Warehouse Management System, Warranty Management System and many more core business enterprise systems drive business processes in Supply Chain network.
However these systems alone do not suffice. Many more applications to support these systems are used as required depending upon specific process and needs of the business. Supporting soft wares may be used as stand-alone applications or integrated with the ERP. Most often it is found that the systems are used as stand-alone applications without having to integrate with ERP instead of the cost of integrating and the effort involved therein.
Let us take the example of a supply chain situation of managing multiple vendor supplies in a warehouse owned and managed by a 3PL service provider on behalf of multiple vendors at the buyers plant location to effect Just in Time supplies in a VMI Distribution Center. Operations involve sellers at one end, the buyer at the other end besides in-house operations and the freight services and logistics of inbound traffic. The 3PL warehouse has to be linked with Buyer to constantly publish updated inventory information and snapshots to buyer’s system to trigger call off for materials to be supplies as well as to trigger procurement cycle. 3PL warehouse system also needs to be talking to suppliers/sellers to give visibility to inventory to trigger replenishment cycles in sellers system. Further, 3PL Operations need visibility to trace and track shipments in pipeline with the freight forwarder.
All these multiple systems talking to each other in real time is made possible by communication enabling applications including interfaces, EDI, The Internet, e-mail, Web Enabling of applications, etc.
Flow of Information and Cargo in a Supply Chain Network
In a highly evolved technology-driven supply chain, the need for managing processes, events and deviations on a 24 × 7 basis is a must. Multi process network, sharing knowledge, information, and enabling transactions can be managed only with an electronically enabled technology solutions driving businesses processes. These technology enterprises need to be able to work in collaborative mode and be supported by infrastructure support and an IT strategy at the business enterprise level.
Your email address will not be published. Required fields are marked *
