How can supply chain management be defined? Supply chain management describes a process that manages commerce. It covers all aspects of commerce from raw materials, work-in progress inventory to the end-to–end order fulfillment process. Below we will discuss the many aspects of supply chains management. Let's take a look at four components of a supply network to help you better understand them. Below are some benefits of supply chain management, and how they can help your business.
Product portfolio planning
Planning product portfolios helps businesses create new products and manage inventories to adapt to changing market trends. The concept also involves monitoring project resource consumption. Proper financial management can supplement current expenses and even kick-start cash flow during slow seasons. Planning new products can involve multiple departments within a company. This can cause miscommunication and disconnect. It is crucial to maintain open communication and keep track of targets to avoid this.
The long-term vision of the company and its business strategy are essential to successfully implement a product collection. If a company aligns its current projects to the long-term business goals, it can expect increased sales and profits as well as greater market share. Product portfolio planning is a way for companies to decide which products are the most profitable and will provide the highest return. It also allows companies to determine which products are redundant and which are cash cows.
Distribution planning
Distribution planning, also called distribution requirements planning (DRP), is a systematic process that determines how much of each good to produce and where to store them. This type of planning minimizes shortages and costs of ordering by considering how many products a certain region will require. It employs a tree-like structure for determining the gross requirements of a source of supply and the inventory required by each item. A DRP tool helps manufacturers optimize their key performance factors to determine which distribution strategy will bring in the greatest profit margin.
Distribution planning is an integral aspect of supply chain management. It involves a variety of sub-discipline processes that improve the efficiency of the process. One such practice is just-in–time inventory. With so many moving parts distribution is crucial to your success. To achieve this goal, a solid distribution management strategy is essential. Real-time data is also crucial. Here are the key components of a successful distribution plan.
Operations and sales planning
Sales and operations planning, or S&OP, is a process used in supply chain management to coordinate activities across business units and achieve profitability. S&OP is conducted on a monthly, annual, or two-year basis. It involves demand and supply planning, forecasting, and executive reviews. The goal is to create a better customer experience, and improve the bottom line. This process should be used for companies with more than 1 location.
No matter the size of your company, you will need strong leadership and a central figure to ensure that sales and operations planning is successful. The goal is to foster cohesion between conflicting elements of the business, but a central figure must be involved to ensure that standards are met. The leader in sales should take part in the process. He or she should ensure that the process is conducted correctly.
Planned Trade Promotion
Trade Promotion Planning (TPP) is crucial for every business and is critical to the success of an organization. Trade promotion refers to the marketing activity that a manufacturer does with a retailer. This can include discounts, coupons, or other marketing activities to increase retailer demand and ultimately increase sales. These are the essential elements of trade promotion planning. The following are essential aspects of a trade promotion plan.
Promotion planning is the process of managing special events that are not forecasted. This planning process involves using causal methods to calculate the effects of promotions and project these into future periods. It's used to create marketing plans that can be used for both single and repeated events. Consensus planning involves the use of multiple data sources in order to develop a consensus demand plan. This involves many activities such as safety stock planning and distribution planning.
FAQ
What is a basic management tool that can be used for decision-making?
A decision matrix is a simple but powerful tool for helping managers make decisions. It allows them to consider all possible solutions.
A decision matrix is a way of representing alternatives as rows and columns. It is easy to see how each option affects the other options.
This example shows four options, each represented by the boxes on either side of the matrix. Each box represents an option. The status quo (the current condition) is shown in the top row, and what would happen if there was no change?
The effect of selecting Option 1 is shown in the middle column. It would increase sales by $2 million to 3 million in this instance.
The effects of options 2 and 3 are shown in the next columns. These are good changes, they increase sales by $1million or $500,000. However, these also involve negative consequences. Option 2, for example, increases the cost by $100 000 while Option 3 decreases profits by $200 000.
The final column shows the results for Option 4. This means that sales will decrease by $1 million.
A decision matrix has the advantage that you don’t have to remember where numbers belong. You can just glance at the cells and see immediately if one given choice is better.
The matrix has already done all of the work. It is as simple a matter of comparing all the numbers in each cell.
Here is an example of how a decision matrix might be used in your business.
Decide whether you want to invest more in advertising. If you do, you'll be able to increase your revenue by $5 thousand per month. However, additional expenses of $10 000 per month will be incurred.
You can calculate the net result of investing in advertising by looking at the cell directly below the one that says "Advertising." That number is $15 thousand. Advertising is more valuable than its costs.
What is the difference in a project and program?
A program is permanent, whereas a project is temporary.
A project usually has a specific goal and deadline.
It is usually done by a group that reports back to another person.
A program often has a set goals and objectives.
It is often done by one person.
How do you manage employees effectively?
Achieving employee happiness and productivity is key to managing them effectively.
It also means having clear expectations of their behavior and keeping track of their performance.
Managers must be clear about their goals and those of their teams in order to succeed.
They should communicate clearly with employees. They should also ensure that they both reward high performers and discipline those who are not performing to their standards.
They should also keep records of all activities within their team. These include:
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What was the result?
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How much work did you put in?
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Who did it and why?
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It was done!
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Why was this done?
This information is useful for monitoring performance and evaluating the results.
Statistics
- 100% of the courses are offered online, and no campus visits are required — a big time-saver for you. (online.uc.edu)
- This field is expected to grow about 7% by 2028, a bit faster than the national average for job growth. (wgu.edu)
- As of 2020, personal bankers or tellers make an average of $32,620 per year, according to the BLS. (wgu.edu)
- The profession is expected to grow 7% by 2028, a bit faster than the national average. (wgu.edu)
- Your choice in Step 5 may very likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4. (umassd.edu)
External Links
How To
What is Lean Manufacturing?
Lean Manufacturing techniques are used to reduce waste while increasing efficiency by using structured methods. They were created by Toyota Motor Corporation in Japan in the 1980s. The primary goal was to make products with lower costs and maintain high quality. Lean manufacturing focuses on eliminating unnecessary steps and activities from the production process. It is made up of five elements: continuous improvement, continuous improvement, just in-time, continuous change, and 5S. Pull systems allow customers to get exactly what they want without having to do extra work. Continuous improvement means continuously improving on existing processes. Just-in-time refers to when components and materials are delivered directly to the point where they are needed. Kaizen refers to continuous improvement. It is achieved through small changes that are made continuously. Five-S stands for sort. It is also the acronym for shine, standardize (standardize), and sustain. These five elements are combined to give you the best possible results.
Lean Production System
The lean production system is based on six key concepts:
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Flow is about moving material and information as near as customers can.
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Value stream mapping is the ability to divide a process into smaller tasks, and then create a flowchart that shows the entire process.
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Five S's: Sort, Shine Standardize, Sustain, Set In Order, Shine and Shine
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Kanban – visual signals like colored tape, stickers or other visual cues are used to keep track inventory.
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Theory of constraints - identify bottlenecks in the process and eliminate them using lean tools like kanban boards;
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Just-intime - Order components and materials at your location right on the spot.
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Continuous improvement - Make incremental improvements rather than overhauling the entire process.