Knight
Saturday, August 14, 2010
Most Amazing Memory
Friday, August 13, 2010
The upper world
Friday, September 4, 2009
Just move along around your world and you will feel the urge to know things. Variety and diversity are the economical need that has been captured as products or services. Today we find the demand escalating for different variety of commodities which initiates complexities in chain to supply the same. Worldwide, efforts are been put forward to reduce these complexities through identification of important variables that are required to understand the new supply chains and lean out the same for generating best efficiency. Value chain talks about the strategy been adopted for providing value added services or goods from suppliers’ supplier to customers’ customer and supply chain proves to be the operating mode to implement these strategies
If formation of a value chain is the initiation of any supply chain strategy then the first question that comes to forefront is, how to define the real VALUE. Any supply chain is a complete integration of various smaller supply chains run at individual levels and each such level has a different owner with his own definition for the actual value. As a universal acceptance, customer dominates the definition of final value. Thus as we move downstream in a supply chain we find every participant catering to the value driven need of the adjacent next participant and this effect moves till the final customer from the original supplier. The biggest task in complex supply chain is to capture the right demand of the customer and analyze the same to reduce error in planning and thus have a regulation over the supply chain for producing best results.
Here comes the challenging opportunity for the developing managers to identify the sources of right demand data and convert them to relevant information that can be utilized for effective forecasting in uncertain of demand scenario and thus make a move towards building an effective supply chain. Since now, every single participant of the supply chain concentrated on his own relevant data, individual decisions for the actual demand were made and utilized leading to bullwhip effects. People will thus find scattered cluster of information at different levels of the chain. Efforts are being put up to streamline this information cluster by connecting them together and making the complete information accessible to every participant in the supply chain so that they can use that for further analysis and action for increasing the overall value at better efficiency and proficiency. Information technology is the supporting platform for the actions been considered for streamlining the information chain. The answer to the complexity looks simple under the roof of developing technology; however sometimes the system becomes more complex if a process becomes slave to an automated system. Hence proper care is to be taken during the selection and implementation of automization.
After understanding the need for right information one has to think one step ahead; what is the future of information in a supply chain? One school of thought wants the information to be streamlined but on the other hand some consider information as the future currency. If that is true then every participant in supply chain will try to block this information to him and wait for higher premium reward for the same. If this process initiates then again we will land up in scattered clusters of information. Unlike the previous situation in this new situation individual participant will know the right link that can generate the maximum reward. The whole supply chain will increase its cost once again and probably we will land up at the stage from which we improved. Thus we have to think about eliminating the chances for the information from becoming future currency. We have to use it in proper direction for the best utilization.