Mostly we find a supply chain as merger of both push and pull systems, where the medium between the stages of the push-based and the pull-based systems is referred as the push–pull boundary. The terms push and pull were framed in logistics and supply chain management, but these terms are broadly used in the field…
The major differences between push and pull view in supply chain are as follows − ● In the push system, the implementation begins in anticipation of customer order whereas in the pull system, the implementation starts as a result of customer’s order. ● In the push system, there is an uncertainty in demand whereas in pull system,…
Supply chain integration can be defined as a close calibration and collaboration within a supply chain, mostly with the application of shared management information systems. A supply chain is made from all parties that participate in the completion of a purchase, like the resources, raw materials, manufacturing of the product, shipping of completed products and…
Pricing is a factor that gears up profits in supply chain through an appropriate match of supply and demand. Revenue management can be defined as the application of pricing to increase the profit produced from a limited supply of supply chain assets. Ideas from revenue management recommend that a company should first use pricing to…
As seen under the major objectives of supply chain, one of the basic objectives of SCM is to make sure that all the activities and functions within as well as across the company are managed efficiently. There are instances where efficiency in supply chain can be ensured by efficiencies in inventory, to be more precise,…
The network design in supply chain determines its physical arrangement, design, structural layout and infrastructure of the supply chain. Here the major decisions to be made are on the number, locations and size of manufacturing plants and warehouses and the assignment of retail outlets to warehouses, etc. This stage witnesses some other major sourcing decisions…
Production units are identified mostly with their decision to make or buy. In other words, do they wish to produce the desired product on their own or do they want to purchase it from the foreign market. This decision is critical because the third-party suppliers especially in countries like Eastern Europe, China, and other low-cost…
Strategic sourcing can be defined as a collective and organized approach to supply chain management that defines the way information is gathered and used so that an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace. We cannot build up the significance of operating in a collaborative manner. Several…
Supply chain performance measure can be defined as an approach to judge the performance of supply chain system. Supply chain performance measures can broadly be classified into two categories − ● Qualitative measures − For example, customer satisfaction and product quality. ● Quantitative measures − For example, order-to-delivery lead time, supply chain response time, flexibility, resource utilization, delivery performance. Here, we will be…
Decision phases can be defined as the different stages involved in supply chain management for taking an action or decision related to some product or services. Successful supply chain management requires decisions on the flow of information, product, and funds that fall into three decision phases. Here we will be discussing the three main decision…