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Submitted To: Dr Akhilesh Barve Submitted By: Swati Tarun chopra Vijendra Singh Vikash choudhary Vivek Khantwal 1

Supply Chain Responsiveness-1

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Page 1: Supply Chain Responsiveness-1

Submitted To:Dr Akhilesh Barve

Submitted By:Swati Tarun chopraVijendra SinghVikash choudharyVivek Khantwal

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Page 2: Supply Chain Responsiveness-1

Supply chain

A supply chain is the process of moving goods from the

customer order through the raw materials stage, supply,

production, and distribution of products to the customer

All organizations have supply chains of varying degrees,

depending upon the size of the organization and the type of

product manufactured

Included in this supply chain process are customer orders,

order processing, inventory, scheduling, transportation,

storage, and customer service

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Page 3: Supply Chain Responsiveness-1

Supply Chain Responsiveness

It includes a supply chain’s ability to do the following –

Respond to a wide ranges of quantities demanded

Meet short lead times

Handle a large variety of products

Build highly innovative products

Meet a high service level

Handle supply uncertainity

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Page 4: Supply Chain Responsiveness-1

SCR: conceptual frameworkDemandanticipationManufacturingflexibility

InventoryProductarchitecture /postponement

Informationintegration

Coordination andresource sharing

Spatial integrationand logistics

Organisationalintegration

Operational factors

Supply chainintegration

Supply Chain Responsiveness

Demanduncertainty

Demandvariability

Control factor:Ability to meetrequirements(delivery reliability& quality)

Externalproduct variety

Lead-time

InternalDeterminants

ExternalRequirements

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Page 5: Supply Chain Responsiveness-1

Supply Chain Agility

Supply Chain Agility is an operational strategy focused on

inducing velocity and flexibility in the supply chain

Speed and flexibility are the keys to the success of an agile

supply chain

To achieve this all physical and logical events within the

supply chain enacted swiftly, accurately, and effectively

The faster parts, information, and decisions flow through an

organization, the faster it can respond to customer needs

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Page 6: Supply Chain Responsiveness-1

Relationship between Responsiveness and Flexiblity

Delivery Vol.

Responsiveness

Response

Uniformity

Range

DimensionInternal External

Others

Program

Expansion

Routing

Operations

Material handling

Machinery

Mix Product

Types of Flexiblity

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Page 7: Supply Chain Responsiveness-1

Role of responsiveness in a supply chain

It increases product availability

It helps in fast movement of inventory

Responsiveness provides quick information

Responsiveness easily matches Demand and Supply

Helps in achieving Strategic Fit

Helps in gaining Competitive advantage

Responsiveness can easily build customer satisfaction

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Page 8: Supply Chain Responsiveness-1

Internal determinants of SCR

Operational factor

Demand anticipation - The accurate anticipation of demand can help supply chains to respond to customer requirements faster

Manufacturing flexibility - Traditional focus of the flexibility and responsiveness discussion . It can directly reduce the production lead-times and change-over times for products in supply chains

Inventory - Can both increase and decrease the responsiveness of supply chains . It often used as buffer against uncertainty and closely linked to the decoupling point, which is a common criterion for classifying supply chain strategies, such as build-to-order supply chains

Product architecture/postponement - Determines to a large extent where the decoupling point can be placed and thus how responsiveness can be achieved . It also determines manufacturability and internal product variety/complexity

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Page 9: Supply Chain Responsiveness-1

Supply Chain Integration

•Information integration - Can help reduce internal demand amplification andeliminate delays due to slow information flowsEliminating unnecessary demand uncertainty andvariability facilitates a better focus on end customerdemand

•Coordination and resource sharing - Removes delays and unnecessary activities in supply chains and leverages synergies

•Organisational integration - Reduces demand variability and uncertainty Can increase the responsiveness and general performance of supply chains in various ways Particularly important impact on trust, which is required For a variety of interactions between supply chain members

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Page 10: Supply Chain Responsiveness-1

Cost – Responsiveness Efficient Frontier Responsiveness High

Low High Low

Cost

This figure is showing the lowest possible cost for a given level of responsiveness

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Page 11: Supply Chain Responsiveness-1

Conclusions Based on our review, we propose that:

1) There are different types of responsiveness, both in terms of the unit of change (product, volume, mix and delivery responsiveness) and in terms of the time horizon affected (short, medium or even long-term responsiveness)

2) A supply chain can (and is even likely to) exhibit different levels

of responsiveness, depending on where in the supply chain its responsiveness is measured

3) One needs to distinguish between factors that require a supply

chain to be responsive and those that enable it to be responsive. This leads to the conclusion that at any point in a supply chain, the supply chain will have a potential and

demonstrated responsiveness

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Page 12: Supply Chain Responsiveness-1

THANK YOU

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