Supply Chain Management Case Study

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Introduction to Supply Chain Management Supply chain management is a set of approaches required to integrate suppliers, manufacturers, wholesalers and retailers, so that goods produced in right quantity of the right place and in the right quantities, to minimize system wide costs are spread out as satisfactory service -Level requirements. SCM involves five basic processes: planning, procurement, manufacture, supply and return. The following figure shows the typical supply chain interactions between all participants. SCM is both manufacturing and service companies. Supply chain is based on the interactions between suppliers, manufacturers, distributors, retailers to offer a product or service to the customer. The three levels of SCM: • Strategic…show more content…
When push strategy, the company forecasts the demand of customers based on their previous purchase and other factors, it is ordered from the supplier, the same amount and stored them in stores, and if the demand occurs, the company delivers the products to the customer. This strategy has its own advantages and disadvantages. It is producer-centric strategy, sometimes to excess inventories that complements the cost of inventories and the loss to the organization. But push strategy also helps in reducing the cycle time as the inventory is with the memory when the customer needs…show more content…
This enabled the management to monitor every activity goes in a particular business at any time of the day and analyze the procedure. Wal-Mart makes full use of the IT infrastructure in order more supplies in the case of items that customers wanted most, while reducing the total portfolio. Ensured by the use of bar codes and RFID technologies, various processes such as efficient picking, receiving and inventory control the right products and good packaging and enumeration of stocks. Walmart has the "massively parallel processor (MPP)," the most advanced computer system, the goods it easy to track and an inventory level in all distribution centers and stores is possible. The job management and store replenishment of goods is carried out completely with the help of computers by Point of Sale System. Wal-Mart also uses sophisticated algorithm to determine the quantities of each item, will be delivered based on stock in the store. If the goods are unloaded at the store updates the inventory system immediately. Wal-Mart follows "VMI (Vendor Managed Inventory) policy," in the vendor decides the amount of inventory in the store, which ensure that the inventory is always available to help in the stores
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