Responsiveness In Supply Chain Analysis

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i. iii. Transportation Movement of goods/services throughout the supply chain is done by transportation. The decisions related to mode and speed of transportation have a major influence on responsiveness to the customer and efficiency. High-speed transportation may lead to higher responsiveness with a trade-off of efficiency due to increase in cost. The other way, low-speed transportation may lead to the higher efficiency with a trade-off of low responsiveness. Transportation decisions are mainly based on the firm’s competitive strategy. If competitive strategy targets customers who expect a high level of responsiveness and willing to pay for it, then transportation is used as a key driver to make the supply chain more responsive. A simple…show more content…
iv. Information Information is one of the most important cross-functional drivers of the supply chain. It serves as a link between various stages of a supply chain. It ensures the happening of daily operations of various stages and coordinates the various activities of a supply chain to maximize its overall profitability. Generally, companies invest more in information to respond quickly to their customers. Growth in information technology is an evidence for the importance of information as a driver in improving firm’s performance. As information driver is used to making supply chain, both more responsive and more efficient, there is a less room for the trade-off between responsiveness and efficiency. But we cannot say there is no trade-off at all as it depends on the valuable information in reducing cost and improving responsiveness with the supply chain. Based on the supply chain structure and customer segments, the decision related to the valuable information will vary. The various components of transportation decisions are as follow: •…show more content…
Different types of processes require different types of information, if it is a push process, it requires detailed information on planning and requirements (to avoid unnecessary costs, make the SC more efficient). If it is a pull process the actual demand information should reach the production and supply department quickly through backward flow in the supply chain to meet the demand by its production and distribution (more responsive). • Coordination and Information Sharing Information sharing is essential to the success of a supply chain. Based on the shared information only, overall supply chain profit will be maximized. If coordination lacks among the various stages of supply chain or appropriate information is not shared among the stages, it ends up in loss of profit. For example, in order to start the production of goods, the actual demand information should be shared with the manufacturing stage. If demand is unmet, customers get annoyed. Otherwise, if production is more, inventory storage cost goes up that makes a fall in overall efficiency. • Forecasting and Aggregate
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