SUPPLY CHAIN

Logistics and supply chain management assignment

Logistics and supply chain management assignment

Introduction

Supply chain management is the solutions that get used to manage the enterprise supply chain network. Thanks to them, it is possible to synchronize the flow of materials between the cooperating parties, which clearly helps us to adapt to market demand. Deal with the flow of information, products and services. Internal SCM covers issues relevant to procurement, production and distribution. SCM integrates external company with its suppliers and customers. SCM solutions got used primarily in the product design phase, selection of sources of supply, forecasting demand for products, and control their distribution. In fact, contain specialized tools that enable the supervision of individual logistic activities of the company (Mentzer, et al. 2001, 1-25). However, from procurement to distribution, supply chain management seeks to optimize the physical flow within the company in a maximum agreement with its environment, and has been the source of supply to the customer. Thus, optimizing the supply chain means lower costs, increase productivity and quality improvement. With the continued growth of global competition, improving the supply chain is a major challenge to higher productivity. The training modules for this strategic sector will help you improve your management procedures and to provide answers to your questions related (Mentzer, et al. 2001, 1-25).

Discussion

Answer 1).

In the current environment, with more competitive and lower margins, organizations continually seek opportunities for improvement to make them more competitive. In this sense, are becoming more aware of the importance of warehouse management (logistics and general management) as an essential part when it comes to bring more value to their customers and reduce costs. However, the case show various problems faced by Tom Cruise products, as there are some problems aligned with the logistics and supply chain network of the company. Moreover, there are various problems in the overall supply network of business (Halldorsson, et. Al. 2007, 284-296).

However, amongst the major problem, highlighted by the company is the short of inventory. There are various different SKU's offered by the Tom Cruise products, and the problem is that they are unable to manage them properly. Thus, amongst many this is one of the many instruments of logistics management which is VMI (vendor managed inventory), also known as SMI (supplier managed inventory). It means to optimize the supply chain inventory management by the recipient by the manufacturer who determines the time and size of delivery, while ensuring full availability of products. VMI is, therefore, a process where the manufacturer itself generates contracts for a client in accordance with its needs, based on information received from the recipient (Halldorsson, et. Al. 2007, 284-296).

This instrument is best applied to products with easy-to-predict demand, and those for which standard procurement procedure is expensive. This solution relieves the customer from incurring the cost of frozen assets and the risk of seasonal fluctuations. In this situation, but VMI routinely offers a supplementary solution in the form of consignment stock agreements. Start of cooperation on the principles of VMI must be ...