Exam Paper for Distribution Managment

Patricia Mae D. Perez Distribution Management 5. Major concepts related with supply ambit A supply orbit is a net figure of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to nodes. Supply manacles exist in twain serve and manufacturing organizations, although the difficulty of the chain whitethorn vary greatly from industry to industry and firm to firm. It is a driving organization that evolves tout ensemble over condemnation.Indeed, non only do node expect and supplier capabilities change over clock beat, but supply chain relationships alike evolve over fourth dimension. For example, as the clients power increases, on that express is increase pressure drived on manufacturers and suppliers to prove an enormous variety of high- woodland products and to produced customized products. Characteristic of supply chain caution at that place ar add up of characteristics of supply chain. The most pregnant is that the firms defy that their future depends to al arge take on the success of channel and they involved themselves as part of the channel.Relationships atomic number 18 viewed as long term, and the corporate cultures, philosophies, and missions be similar. There is joint provision of products, locations, and quantities of inventory to be kept in the system. Great compete breeding sharing between firms in order to coordinate the efficient rate of flowing of well(p)s. The modern computing and communication technology, much(prenominal) as electronic entropy interchange, is intentd to rapidly provide information within the channel as needed. follow advantages are exploited wherever possible. Other characteristics are Competing destinations and objectives Cost reduction and on time throw iny of goodsDynamic operating conditions fury on responsiveness to design changes Process of supply chain way The externalisening play needs to account for demand and cost parameters variable over time due to the impact of seasonal fluctuations, trends, advertising and promotions, rivals pricing and strategies. The fulfil is make up of the flow of materials, flow of information and divine service and monitoring the get word of this flow, that includes raw materials procurement, fruit, inventory counsel, touch of orders, warehousing, transportation and distribution. Sources http//www. se. ufl. edu/Supplychain/done/Day2/Deshmukh/sld002. htm http//www. referenceforbusiness. com/encyclopedia/Str-The/Supply-Chain-Management. hypertext mark-up language http//lcm. csa. iisc. ernet. in/scm/supply_chain_intro. html 8. signalise concepts related to customer service and performance measurements in the SCM function quaternity methods of developing customer strategy Stay in touch furnish your customers how you honor your business through keeping in touc h with them by sending them updates about your company. give newsletters, individual letters or emails to deliver new matters and products and promotions of the company.You can also send a thank you blood if a customer made a major purchase and regard them for some feedbacks and suggestions. With each(prenominal) of this information you gathered from your customer, you can come up with solutions to the problems and meet their needs. Empower your staff There are some cases where there is no policy and the policy need to be flexed. To do this you select to empower certain people to cod decisions, bend the rules and habituate intelligent judgments. Have them documented these special cases by providing a pad subject of forms and let them input some information to the computer.You can also delimit one person per shift as chief problem-solver. Manage customer relationships Once you have gathered information about your customer, you can pick out them and give them rewards. You can offer the frequent customers discounts for their next purchase and make a follow up c whole to those customers who need repair work. Use the information gathered about the customer to make customer service a science. If you give them forest service and you satisfy them, they pull up stakes enshroud going back to you. Make great service a priorityFor you to serve your customers excellently, you have to train your staff. Because they are the one who faces and interact your customers not you. So train them very well. Always put in sense that customers must always comes first. Start with small things like greeting them courteously and staff must courteously greet anyone who enters the shop. Relationship between customer service and inventory investment Improving the inventory is critical to customer service. despite of whether your company deals b2b or b2C, insufficient inventory wariness mental process will affect customer service and customer satisfaction levels.A successful inventory management anticipates analyses, plans for, and delivers inventory standards which do not salmagundi into customer service disaster. Not only focus on the moderate inventory supply levels, but also the factors in the expertise of the personell who deal with inventory process. The relationship with the suppliers and distributors, as well as those who perform the sustainment functions, and the communication processes utilize to express the current and prospective requirements between both the suppliers, distributors and end users. Sources http//marketing. about. com/od/relationshipmarketing/a/crmtopten. tm http//ezinearticles. com/? Improved-Inventory-Management-ProcessesCritical-to-Customer-Service-Excellence&id=4148576 11. Impact of inventory management on operations Major operational benefits of feed manufacturing systems Lean manufacturing concepts were developed over the last five to six decades, primarily in Japan, particularly for the Toyota payoff system. Th ese concepts met various tests for many many years and passed the test of time very easily. It is defined as an approach to help reduce negate and pass by take in the assemble line at the time of manufacturing the products.By doing it mighty, it helps in reducing the cost and continuous improvement. It eliminates waste by means of identifying non-value added activities which leads to poor product quality in the production process that will not be able to meet the customers expectations in the market place Benefits of Lean Manufacturing are Improvement in the delivery performance Less/ reduced lead times change magnitude in sales revenue Less operating costs and change magnitude profits Improved customer satisfaction and supplier relations step-down in inventory An increased in the employee moral and retention rectify quality Reduced warehouse space Creation of additional work capital for new projects Improvement in supplier relationship In lean manufacturing, the customers c an be able to get what they want. With this, they get slaked and it brings benefits for the employees as they are the very important in the manufacturing line. The system focuses on the improvement of the manufacturing line of the organizations. The companies have been able to eliminate and reduce the additional and looping processes from the organizations. It has made things very easy for the organizations.The tools used in the lean manufacturing can help the organization to find out different problems in the production. Organizational and process considerations involved in implementing lean systems There are some early(a) implementing lean manufacturing tools that an organization can use to get the improvements they want. There is the nourish Streaming and Process Mapping. These two can legally eliminate waste and in implementing lean manufacturing, they can streamline work processes. Value streaming is use to identify opportunities while process mapping use to identify speci fic waste and improvements.Considerations Strategic Flexibility unexpected problems mature to change any plan. Unforeseen opportunities also arise. This is where stragegits excel. The only sure thing is change. Tasks in the future are lesslikely to change than months away. The long term plan sets direction and budgets. The short term tracks specific tasls and accomplishments. Concentration concentrate the supreme force in the smallest vault of heaven Beachhead Stragtegies focuses on small area or a product. All the essentials elements for a self reinforcing, sustainable system are deployed locally.This can happen quickly. The small area become the foothold of lean manufacturing The Kaizen Blitz is a focused implementation that suits a beachhead strategy. It has a strong appeal. It is fast, dramatic and effective. Source http//www. strategosinc. com/mpping0. htm http//www. articlesbase. com/software-articles/10-benefits-of-lean-manufacturing-2475092. html http//www. altiusdirecto ry. com/Business/lean-manufacturing. html http//manufacturelean. com/lean-manufacturing-system/ http//www. leanmanufacturingsecrets. com/blog/2008/03/28/implementing-lean-manufacturing/ ttp//www. strategosinc. com/lean_implementation3. htm 7. Role of SCM and Logistics in the economy and the organization nitty-gritty Quality Management is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. This can be achieved by integrating all quality-related functions and processes throughout the company. It looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement, and quality assurance.It takes into account all quality measures taken at all levels and involving all company employees. For this to work, everyone in the organization has to get involved. This scheme is to work towards using the best processes to offer the best possible products and to produce best customer satisfaction. Supply Chain Management in the management of distribution across organizations. All the members of the channel, from suppliers to end users, coordinate their business activities and process to minimize their sum costs and maximize their effectiveness in the market.The goal is to achieve the coordination and continuity of a vertically integrated channel without centralized ownership of the entires comprising the channel. The firms form along term partenrshipin order to improve service to the ned consumer, reduce channel costs, and create competitive advantage. It has also developed other terms like Just In Time supply chain management. That is to say that a company tries to stock nothing ahead of time and its suppliers will provide what is needed just in time for production or shipping.There are a atomic pile of variables for a good supply chain management like the trustworthiness of suppliers, reliability of shippers, and supply contin gencies for worse case scenarios. Still, business are still trying to fingers breadth how much they need to inventory and how much can be tell as needed. There are some key characteristics of SCM. The most important of all is that the firms involved see themselves as part of the channel and understand that their future depends to titanic extent on the success of the whole channel.The relationships are viewed as long term, and the corporate cultures, philosophies, and missions are similar. Just in time is a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It also has been described as an approach with the objective of producing the right part in the right place at the right time. Waste results from any activity that adds cost without adding value, such as the unnecessary moving of materials, the accumulation of excess inventory, or the use of faulty production methods that create products requiring subsequent rewo rk.JIT should improve profits and restitution on investment by reducing inventory levels, reducing variability, improve product quality, reducing production and delivery lead times, and reducing other costs. In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to put off against problems that whitethorn arise. JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again.The general idea is to establish flow processes by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all inventory buffers toward zero and achieving the ideal lot size of one unit. Sources http//logistics. about. com/od/qualityinthesupplychain/a/TQM. htm http//www. referenceforbusiness. com/encyclopedia/Str-The/Supply-Chain-Managemen t. html http//www. thinkingmanagers. com/business-management/total-quality-management. hp http//personal. ashland. edu/rjacobs/m503jit. html http//hubpages. com/hub/supply-chain-management-definition http//personal. ashland. edu/rjacobs/m503jit. html 2. Organizational issues related to purchasing Purchasing is wherein all significant purchases are monitored for the right authorization of the right item, at the right price, quality and quantity, from the right supplier and terms. Objectives of purchasing 1. Procure the necessary quality and quantity of goods or services in an efficient, timely and cost effective manner, while maintaining the controls necessary for a corporation. . Encourage an open competitive command process practicable for the acquisition of goods and services and equitable treatment of all vendors. 3. Ensure the maximum value of an acquisition is obtained by determining the total cost of performing the intended function over the lifetime of the task. This may inc lude, but not be limited to, acquisition cost, installation, disposal value and cot, training cost, maintenance cost, quality of performance and environmental impact. 4. Procure goods and services with due regard to the preservation of the atural environment and to encourage the use of environmentally friendly products and services. Material management Materials management is part of logistics and refers to the location and case of the physical items or products. There are three main processes associated with materials management spare move, quality control, and inventory management. Materials management is important in large manufacturing and distribution environments, where there are multiple parts, locations, and significant money invested in these items. The first process in materials management is related to spare parts.A detailed business process is required to determine the order point for the spare parts, identify the ideal quantity to order, process receipt of the parts, and so make sure they are in the correct place. Spare parts are integral to the continuing operation of production lines and related equipment. sad management of this process can cause downtime and loss of production. Quality control is a large part of materials management. The creation of material standards, inspections, and returns process is a primary responsibility of the materials management group.All parts and materials must be tested to stop up that a specific level of quality is met. This is typically completed before a purchase order is issued to a supplier, to ensure that the supplier has met the conditions of their contract. It is used to ensure that the company delivers quality products to their customers, and to minimize waste in the production Sources http//www. wdo. ca/files/domain4116/Final%20WDO%20Purchasing%20Policy%20for%20posting. pdf http//www. businessdictionary. com/definition/purchasing. html http//www. wisegeek. com/what-is-materials-management. htm