FAIRFAX MOUNTAIN COFFEE MAKER

Case study analysis on Supply Chain Management and ERP for Fairfax Mountain Coffee Maker



Supply Chain Management and ERP for Fairfax Mountain Coffee Maker

Introduction

Supply chain is defined as the organized set of relationships between suppliers of materials and services, which covers the transformation of raw materials into products and services and delivers them to the firm's customers. SCM synchronizes the functions of a company and its suppliers with the material flow, the services and customer needs. Efficient supply chain work better in the demand forecasting and product or service is stable. Examples of competitive priorities are low cost, quality, on time delivery. Responsive Supply Chain The purpose of the supply chain reaction through the ability to respond quickly locate, inventory and market demand, to hedge against demand uncertainty.

Supply chain for the best response when demand is unpredictable, is the continual introduction of new products, high product variety. SCM process tackles the basic business problems of supplying the product to assemble demand in an uncertain and complex world, from the point of vision of the whole supply chain. Smaller product cycles and greater product diversity increased supply-chain costs as well as complexity. The new concept of globalization and outsourcing of business and fragmentation has made it vital that this matter be considered from the perspective of the whole supply chain, rather than the more limited view of individual companies. Advances in information technology contributed to a real-time exchange, coordination and decision-making company (Chopra, 2004).

Discussion

Supply Chain Elements

Among the factors that make the goal of supply chain can be said that both the quantity, quality, time, and cost are driving factors, and coming to depend on demand, and this is not constant, the quality demands Once they are older, delivery times are variable, and also costs vary. This dynamic makes it difficult to manage so it is necessary to use information technology so as to facilitate decision making.

The five elements in a supply chain is:

Suppliers

Transports

The company

Retailing

Customers

The supply chain management is the systematic and strategic coordination of traditional business functions and tactics of these functions within a particular company. The integration of key processes is from the end user through original supplier that supplies products, services and information that add value for customers, and other interested parties (Dooley, 2001).

A product gains value as it passes through the supply chain, this is what is known as a process of "value added" if a party does not add value chain the product of market forces that link annulled, for example, a company buys a product and does nothing and resells at a price more expensive, customers will end up finding the original supplier and buy the product directly to a lower price.

Supply Chain Model

Pull vs. Push supply chain model

By using pull method, the company tries to move its products through the distribution channel by building desire for the product among consumers, thus convincing retailers to respond to this demand by stocking these items Company's attempt to move their products through the distribution ...