Supply Chain Processes
Excellence in supply chain logistics requires the simultaneous achievement of eight key processes. Table 11.2 identifies the eight key processes and provides a brief scription of each. These eight processes have been discussed at various points throughout the first 10 chapters. Although these integrative processes are not the exclusive domains of logistics, some critical elements of logistical performance are integral to a firm achieving high-level operational performance. Therefore, logistics structure, straegy, and continuous operational execution must be focused on achieving and continuosly improving these essential eight processes. Simultaneous operational achievement of these eight processes forms the essence of achieving operational integration and performance excellence.
Supply chain operational planning requires the coordination of a number of the processes identified in Table 11.2. Specifically, demand planning responsiveness, customer relationship collaboration, order fulfillment/service delivery, manufacturing customization, and supplier relationship collaboration must be coordinated to satisfy customers and effectively resources. The system to provide this coordination is the supply chain planning system.
The supply chain planning system and the related information systems seek to integrate information and coordinate overall logistics and supply chain decisions while revognizing the dynamics between other firm functions and processes. The three factors driving planning system development and implementation are
(1) supply chain visibility, (2) simultaneous resource consideration, and (3) resource utilization.
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