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Integrated Supply Cain Management Essay

1869 words - 8 pages

During recent times, many organizations have recognized tremendous progress in effectiveness and efficiency by adopting a pull strategy that establishes the pace of production at the rate of customer demand. Additional advantages accrue when a similar strategy is applied to the supply chain, as is seen with the adoption of just-in-time (JIT) approaches. However, such approaches can have disastrous effects when there is strategic misalignment between organizations. It was introduce a new conception of supply-chain integration based upon backwards pulling of strategic initiatives through the supply network in order to provision the creation and maintenance of valuable inter-organizational ...view middle of the document...

A combination of pull production within the organization and JIT supply operations are central to the lean revolution documented by Womack and Jones (1999) to have driven organizations, toward outstanding business success. However, in the experience of the authors, many attempts to introduce pull strategies both within and between organizations have resulted in malfunction and waste because of failures to understand and/or implement the necessary discipline.In order to pull production through the organization, there must shared understanding throughout production operations with regard to how work will proceed, particularly with respect to the pace of work. Obviously, work must proceed at the pace of work of those processes most closely interacting with the customer. That is, as work is pulled through production, the results of operational decisions must be pulled in the opposite direction back through production operations. While this may seem self-evident and simple-minded, a relative lack of successful implementation suggests that pull production can only result from learning the necessary elements of the disciplines associated with success. In the manufacturing, this discipline has resulted in a time-honed example of a systemic approach to managing the organization, such that the relationships throughout the organization operate with rhythmic precision (Smith, 2000; Johnson and Bröms, 2000).The reader might reasonably wonder what a description of relationships among the elements of production within an organization has to do with SCM. The answer to this quandary is just this, in both cases; the central concern is how to orchestrate relationships to accomplish the delivery of products that provide greater value to customers than can competitors. Within the organization, it is seeking to drive greater performance of the organization as a whole by systemic management of the relationships that are the foundation of the organization. In SCM it is seeking to obtain coherent performance in the creation of value by systemically managing the relationships between organizations. All must recognize that the rhythmic precision that can be observed in manufacturing, and other exemplars of pull production, is exactly what it needs to display in order to maximize the benefits of SCM.Without taking into account the relationships that exist between and define an organization's constituents, making changes can, and most often will lead to unintended consequences. Smith and Mechling (2001) have documented that the adoption of technology without attention to the human relationships in an organization can result in counter-productive rigging of the system, which creates waste and customer dissatisfaction. The solution that they propose is to seek to adopt technology that will aid and strengthen the relationships. Most important of these relationships is the linkage with the customer, meaning that in order to be productive, and the adoption of innovation...

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