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Green Supply Chain

As the public becomes more aware of environmental issues and global warming, customers will be asking more questions about the products they are purchasing. Companies will have to expect questions about how green their manufacturing processes and supply chain are, how big their carbon footprint is, and how they recycle. Levi’s want their products to be part of a sustainable global movement. That’s why the factories that make their clothes must adhere to their Terms of Engagement. These Terms define labor, health, safety and environmental guidelines to help ensure the safety of apparel workers and communities in which they live and work. They also set out employment standards and specifically address issues of child labor, forced labor, disciplinary practices, working hours, wages and benefits, building integrity, freedom of association, discrimination, and health and safety To form the Better Cotton Initiative, they joined forces with other brands
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Enterprise Resource Planning

Warehouse consists of: Receiving Storage Dispatch  Two types of integration in ERP: Interdepartment Intradepartment IT based transaction processing system for integrated information management and retrieval. It covers strategic, operational requirements of business and it is an approach to plan effective and optimum utilization of resources. It equips management with right information to take timely decisions. It enables organisation to capitalize on information collected during normal course of business and to make informal, far reaching decisions with confidence. It plays a vital role in combating inefficiency; reducing waste and ensuring that workers are better able direct their efforts. 2 ERP packages available:  1.ORACLE   2. SAP- System Application and Products in Data Processing. It is a highly integrated software that can perform common business function. Importance of ERP in a supply chain: The feature-rich working environment of ERP combined with the

Bullwhip Effect and The Importance of Forecasting

BULLWHIP EFFECT It occurs when changes in consumer demand causes the companies in a supply chain to order more goods to meet the new demand. It usually flows up the supply chain, starting with retailer, wholesaler, distributor, manufacturer and then raw material supplier. Can be observed through most supply chains across several industries. An occurrence detected by the supply chain where orders sent to the manufacturer and supplier create larger variance than sales to end customer. These irregular orders in the lower part of the supply chain develop to be more distinct higher up in the supply chain. SIGNIFICANCE OF FORECASTING Businesses have to be on point when it comes to meeting the demand of its customers and ordering the supplies needed to do so. An overestimation or forecasting of demand leads to bloated inventory and high costs. Underestimating demand means many valued customers won't get the products they want. Supply chain management is the process

Drivers of Supply Chain Performance

 To achieve Efficiency and Responsiveness: Logistical drivers Inventory: Inventory can reduce costs by exploiting economies of scale in production, transportation, and purchasing. Inventory can be used to support firm’s competitive strategy. More inventory increases responsiveness, less inventory increases efficiency (reduces cost).   Transportation: Faster transportation allows a supply chain to be more responsive but generally less efficient. Facilities: Facilities either store inventory between supply chain stages (warehouses, Distribution centres, retailers) or transform inventory into another state (Fabrication or assembly plants). Centralization of facilities uses economies of scale to increase supply chain efficiency (fewer locations and less inventory) usually at the expense of responsiveness (distance from customer). Cross functional drivers Information: Information connects various supply chain stages and allows them to coordinate activities. Information

Supply Chain Management

WHAT IS A SUPPLY CHAIN? All activities associated with the flow and transformation of goods from raw materials to end users. It comprises the flow of all information, products, materials and funds between the different stages of creating and selling a product. It includes all functions involved in receiving and filling a customer request. A network of facilities including:   Material flow from suppliers and their UPSTREAM suppliers at all levels. Transformation of materials into semi-finished and finished products ( internal process ). Distribution of products to customers and their DOWNSTREAM customers at all levels. Benefits o    Bridges the gap between suppliers and customers. o    Helps manufacturers in reducing inventories as finished goods are stored nearer to customers. o    Allows firms to conduct operations at an appropriate time and place for benefit of supplier and customer. SUPPLY CHAIN MANAGEMENT It is co-ordination and management of