Virtual operations do relatively little themselves but rely on a network of

Virtual operations do relatively little themselves

This preview shows page 25 - 28 out of 42 pages.

Virtual operations do relatively little themselves but rely on a network of suppliers that can provide products and services on demand. The core competence in a virtual operation can only lie in the way it is able to manage its supply network. Partnership relations in supply chains are sometimes seen as a compromise between vertical integration on the one hand (owning the resources which supply you) and pure market relations on the other hand (having only a transactional relationship with those who supply you). Suppliers and customers are expected to cooperate, even to the extent of sharing skills and resources, to achieve joint benefits beyond those they could have achieved by acting alone. Verspreiden niet toegestaan | Gedownload door Alytas Sinterlaas ([email protected]) lOMoARcPSD
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Customer relationship management (CRM): analysing data to understand customers. It is a method of learning about customer’s needs and behaviours in order to develop stronger relationships with them. The supply chain policies, which are seen to be appropriate for functional products and innovative products, are termed by Fischer efficient supply chain policies and responsive supply chain policies. o Efficient supply chain policies include keeping inventories low, especially in the downstream parts of the network, so as to maintain fast throughput and reduce the amount of working capital tied up in the inventory. Information must flow quickly up and down the chain. o Responsive supply chain policies stress high service levels and responsive supply to the end-consumer. The inventory in the network will be deployed as closely as possible to the consumer. Fisher matrix: The bullwhip effect is used to describe how a small disturbance at the downstream and of a supply chain causes increasingly large disturbances, errors, inaccuracies and volatility as it works its way upstream. To reduce the bullwhip effect, operations can adopt some mixture of three coordination strategies: o Information sharing o Channel alignment Verspreiden niet toegestaan | Gedownload door Alytas Sinterlaas ([email protected]) lOMoARcPSD
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o Operational efficiency Supply chain improvement can be done via business process modelling, benchmarking of performance and best practice analysis. New information technology applications combined with internet-based e-business have transformed supply chain management practice. Largely, this is because they provide better and faster information to all stages in the supply chain. Channel alignment means the adjustment of scheduling, material movements, stock levels, pricing and other sales strategies so as to bring all the operations in the chain into line with each other. Vendor-managed inventory (VMI): upstream supplier manages the inventories of its downstream consumers.
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