I agree with the statement that supply chain integration can be readily attained by merging suppliers and industrial customers to form a larger conglomerate. Different parts in supply chain including raw materials, manufacturing and transporting should share information and work closely together to increase the efficiency. For example, with the use of share management information systems (MIS), suppliers and contributors can know the changes in demand and provide timely replenishment. This can prevent late delivery problems and some other unpredictable situations in the supply chain management. With the vertical integration, companies can work closely with suppliers and industrial ...view middle of the document...
Another kind of web site is for customers that people can have a brief overview of the company and can also leave feedbacks and suggestions to help company improve the products.
In the period article “What is the right supply chain for your product?” written by Marshall L. Fisher, the writer provides strategies and suggestions for companies to perform the most appropriate supply chain management system for different kinds of products. The flow of the logic in this article is from products types to supply chain functions to supply chain methods.
First of all, before devising a supply chain, Fisher states that managers should know which kind of product they have in the market. Fisher divide products into two categories based on different demand patterns. The first kind of product is functional product that refers to products that are related to people’s basic needs. Some of the characteristics of functional product are low profit margins, predictable demand and established product categories. The other kind of product is innovative products like fashion clothing and new technology. Some of the characteristics of innovative product are short life circle, unpredictable demand and large variety. Innovative products can enable a company to achieve higher profit margins than functional products while functional products can provide long-term and more stable profits.
Before choosing the right supply chain method for the functional product or innovative product; Fisher states that it is also important to know about two main supply chain functions. The first function is physical function that relates to the production, transportation and also the process to convert raw materials into parts, components and finished goods. The other function is market mediation refers to the relationship between supply and demand. When there is a overstocking, the manger should take deep discount; if there is an understocking, the company will lose some sales and unrealized profit.
The right supply chain method is based on products and function match. In the article, Fisher states that the functional product should use efficient process to manage supply chains. The goal is to max utilization and minimize the physical cost. The functional products should provide customers with good quality and low price. Responsive supply chain can be used for innovative products; the goals is to analyze the supply and demand in the market to come up with the best plan to put the product into the market for as long as possible. Lead time is important in responsive supply chain that suppliers and distributors should response as quickly as possible regarding to the change of demand. The mismatch of supply chain and products also exists but will cause some problems like losing profit, losing responsiveness. Managers should try to transform innovative products to functional products to keep customers and earn long-term profits.
To sum up, in this article, Fisher suggests managers...