Introduction to Supply Chain Management
Employees will gain an overview of the essential components of Supply Chain Management.
Supply Chain Metrics
In order to measure success and effectiveness in parts of the supply chain, certain metrics will need to be used. Parts of the supply chain, such as inventory, logistics, production and manufacturing, and timelines will all have metrics. These metrics are calculations made from data that has been collected. A few key metrics are:
- Perfect order measurement
- Cash to cash cycle time
- Fill rate
- Supply chain cycle time
- Inventory turnover
Manufacturing & Distribution Strategies
This section will look into the detail of the strategies that can be adopted by manufacturing and distribution. Employees need to learn about different strategies in order to effectively and appropriately manage the manufacturing and distribution to suit the organization’s needs.
Lean vs Agile Supply Chain
A lean supply chain will focus on maintaining lean processes which reduce wastage and costs. An agile supply chain looks to be flexible to adapt to any changes, such as a reduction in demand. Selecting a lean or agile supply chain will depend on several factors such as the volume of goods and whether there are regular promotions which may affect parts of the supply chain.
Supply Chain Collaboration & The Bullwhip effect
The bullwhip effect is a situation that prevents the supply chain processes from running smoothly. Some causes of the bullwhip effect can be: a delay in deliveries, unforeseen discounts in pricing and staff shortages. A delay in completing the supply chain can leave customers without their goods.
Where there are warehouses and machinery in operation there is a chance of fire hazards occurring. As well as incorporating fire safety practises it also important to create an open and transparent supply chain. This will help to show where items have come from and will go and so managers will be aware of the fire hazard of certain goods to act accordingly in event of breach of fire safety.
Handling dangerous goods
When dealing with dangerous goods staff will need to understand the processes involved to ensure safety for those handling the dangerous goods. This can include ensuring accurate records are kept and employees have up to date training.
Sustainable logistics is traditionally associated with losing profits. Sustainability is increasingly important for organisations to consider and one area to reduce costs associated with the logistical processes of the supply chain.