3.3.2 Supply chain management - Amazon Web Services
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Transcript of 3.3.2 Supply chain management - Amazon Web Services
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3.3Businessoperations
3.3.2Logistics/supplychainmanagement
Keyelementstothistopic
Logistics Supplychainmanagement
Logistics
Aprocesswhichplans,implementsandcontrolsthedistributionandstorageofgoodsandservicesfromwhentheyarereceivedfromthe
suppliertowhentheyaredeliveredtothecustomer.
Logistics isoftenseenasthetransportation ofrawmaterialsandfinishedgoods,butaswithprocurementitisaprocessnotjustasingleactivity.
Logistics
Casestudy
Amazonhasinvestedheavilyintechnologytoimproveitslogistics.
Amazonbelievethatthiswillgiveitacompetitiveadvantageandensurethefuturesuccessofthebusiness.
Doyouagree?Givereasonsforyouranswer
WatchtheClip
Whatisthesupplychain?
Thenetworkoforganisationsthatgetproductstocustomers.
Suppliersofrawmaterials Manufacturers Wholesalers/Retailers Customers
Supplychainmanagement
Ensuresthattherightquantityofgoodsareintherightplaceattherighttimeandtheseareprovidedattherightqualityandataprice thatrepresentsvalueformoney.Thisshouldcreatevalueforthecustomerandprofitforthebusinesseswithinthe
supplychain.
Justaminute
Youhave60secondstolistthebenefitsofeffectivesupplychainmanagement
forAmazon
Benefitsofmanaginganeffectivesupplychain
Increasedefficiencye.g.ordertodespatchtimescanbereduced
Lowerunitcosts;pricescanbenegotiatedwithsupplierstoensurethatabusinessreceivesvalueformoney
Competitiveadvantage– anycostsavingscanbepassedontocustomersintheformoflowerprices;alternativelythebusinesscanenjoyincreasedprofitmarginswhichcouldleadtoimprovementsinefficiencyinthefuturee.g.improvedcustomerdeliverymethods
Improvedflexibility– membersofthesupplychaincanworktogethertomeetdemandtoensureastreamlinedprocessandfastproductiontimes24/7(whenappropriate)
Effectivesupplychainmanagement
Planning Procurement Communication Leanproduction
Changingtransportation
Tobeeffective,systemsneedtobereviewedregularlytomaximiseefficiency
Ensuresalesforecastsareaccuratetoensuretherightquantityofgoodsandservicesare
available
Gettingthebestsupplierswillresultingoodvalueandreliablesuppliesoftheright
quality
Co-ordinationandcommunicationwithsuppliersandlogisticswillensuregoodsarriveontimeanddonotdelayproductionprocesses
Leanproductionorremovalofwastecanresultinastreamlinedprocesswhichisfaster,haslowercosts,improvedqualityandbetterreliability.Inmanufacturingbusinesses,methodssuchastotalqualitymanagement andjustintimecanhelp
Logisticsneedtobeconstantlyreviewed,asnewtransportoptionsbecomeavailableanddifferentdistributionroutesarerequired
Workingwithsuppliers
Quickquestionsfordiscussion
1. Whatismeantbythetermlogistics?2. Whatisasupplychain?3. Givetwo typesofsuppliesforTesco4. Explainhowsuccessfulsupplychain
managementcaninfluenceTesco’sa)Costsb)Efficiency
Whenthingsgowrong
Letusconsidersomeexamples
Workingingroupsof3,studythearticle,identifytheproblemseachbusinessfacedandhoweachresolvedtheseproblems
Whenthingsgowrong
Problem:unexpecteddemandandthreatofstrikeactionfromusualdeliveryfirmSolution:Noalternative,butforstafftodelivertheproductsthemselvestoavoidstockwastage;nowreviewedsystemsandhasowndistributionfleetwhichisusedduringpeaktimes
Problem:newbusinessstart-up;failedtoplanthelevelofdemandforitsproducts;hadnotarrangedcollectionofparcelsfromthebusinessSolution:Hadtotravelto10differentpostofficestoensuresuccessfuldistributionofproductsonthefirstday;arrangedforRoyalMailcollectionfromitsofficeswhichstartedtheverynextday
Problem:supplierissuesmeantthatbusinesswaswithoutthecorrectstock;whenitwasdeliveredtherewereerrorsleadingtocustomercomplaints;theseproblemsreoccurredwiththenextsupplierSolution: nowusesanumberofsupplierstospreadtherisk
LESSONLEARNT:Planning/checkingisthekeytopreventingmistakesfromoccurring!
Potentialproblemsofsupplychainmanagement
Qualitycansufferifcostsaredrivendowntoolowe.g.suppliersmaynotbededicatediftheyarenotpaidafairprice
SophisticatedITsystemstomonitorthesupplychaincanbeexpensivetoimplement
Relianceonothermembersofthesupplychainmeansabusinessdoesnothavefullcontroloveritsoperations
SupplychainsinactionFromcowtoKitKat
Conceptlinks
Effectivesupplychainmanagement
Logistics
Reducedwaste
Costs
Canyoulinktheseconcepts?
Sentencestarter – OnebenefitofNestlehavingeffectivesupplychainmanagementis…
Conceptlinks
Effectivesupplychainmanagement
Logisticsthatjourneysareplannedwhichmeansunderfilledlorriesdonottravel.
Reducedwaste
Costs
Sentencestarter - OnebenefitofNestlehavingeffectivesupplychainmanagementis…
Asaresult,fuelisnotusedonpointlessjourneys.
ThiswillmeanNestlecankeepitsfuelcostsdown,whichthereforewillincreaseitsefficiency.
