It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain. Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.”
3. Inventory management L’Oreal company operation management focusing in this process because it have a huge level of inventory since L’Oreal plant produce different type of product that lead L’Oreal to have a good inventory system to manage this level . L’Oreal Company and its operation management use the just in time system. The just-in-time it is a system that used by L’Oreal that enhance the employee and the operations to manage organization inventory and resource and the workflow and decision that support to have space in its warehouse. This system from the biggest companies has high level of inventory.
STRATERGIC SOURCING/PROCUREMENT Strategic sourcing is the development of relationships between the supplier and the management to acquire goods and services for the needs of the business. In the past SOURCING was termed as PURCHASING. The term SOURCING implies a more complex process suitable for products which are strategically important. Today due to the competition and the emerging new technologies, competitiveness between firms is vastly observed; therefore acquisition of the best available capabilities inclusive or exclusive to the organizations is given vital consideration. In such matters sourcing is not only taken at the level of management but also considered a crucial element of the survival of the business and given high importance.
In this scenario, each body operates in self-interest using available internal information. The other side of the spectrum is a highly interlinked , decision-making and physical flow control approach, in which all information and decisions are used together to attain global system objectives. This research on studying the impact of different combinations of information sharing and coordination mechanisms on the performance of complex real-life supply chains under real demand data including multiple products is well-justified and addresses an important gap in the
To emphasize, inventory is one of the largest businesses’ assets in many industries. In fact, the moment a business is initiated and the inventory levels determined, they essentially become an important factor that is considered in the overall budgeting systems within the business. Therefore, the decisions behind inventory management depend on the balance of holding costs, ordering costs, and the shortage costs. Perhaps more importantly, inventory management comes in handy in meeting unexpected and seasonal demands during instances initiated by an influx of customers (Tamegawa 666). The fact that customers expect to find goods or services from a business when they need them, is a crucial consideration in inventory management.
In this fast moving world, logistics is a also key element of competitiveness in different industries. Logistics is a process to deliver product from one place to other place. It covers all the main factor of an industry included raw material delivery to final product delivery, supplier to production house, production house to warehouse, and warehouse to distribution center to customer. It also involves time frame period, deliver the product at right place at right time also important in logistics. Using of different strategies in logistics also becomes beneficent for
Demand Planning: The first step in Supply Chain planning Demand planning or sales forecasting is one most important aspect of any organization whether it is a services or a manufacturing organization. A services organization would be estimating the demand for the services and thereby gearing itself up to service the demand for its services. A manufacturing organization would be estimating the demand for its manufactured goods and hence would be working towards whole lot of activities like supply of raw materials, production capacity, distribution etc. Demand planning plays a very strategic role in any organization as the planning for whole lot of other activities depends on the accuracy and validity of this exercise. For example Sales and
For instance, some tasks require high processing speeds and may require a great deal of coordination between their processes. Finally, one of the most important distinctive requirements of grid scheduling compared with other scheduling (such
Therefore, Zara’s control over nearly the entire supply chain is a substantial part of its competitive advantage. 4 SUPPLY CHAIN STRATEGY OF ZARA The business strategy of Zara has given the company a long lasting, sustained competitive advantage. In a highly competitive industry like the apparel industry, a company needs to be structured and flexible concurrently, in order to translate its resources into a promissory concept. Even though, one of the key virtues of Zara is its subtle supply chain strategy the company will have to continuously improve its operations. Otherwise, future challenges like the increasing level of global expansion, the rising prices of oil and raw materials or mass competition could lead to the loss of Zara’s superior
Introduction The understanding, knowledge and use of quantitative approach or tools and methodologies for running an effective analysis are highly important in today’s world. Each business, despite its size or industry, has its specific needs and goals, so in order to reach these goals effectively it is important to use such tools and techniques, for example: decision making, linear programming, forecasting, optimization, inventory, simulation and many more. The use of such techniques can help to cut down costs, allocate resources more effectively, and plan production or ordering schedule by analyzing current data. Many businesses are using data analysis for future forecasting and inventory, for example, this tool is highly implemented within