Week 12 digitalization

 Supply chain management 

Supply chain ( flow of materials, info, money .. ) —> supply chain visibility (ability of organization within supply chain to access on purchased materials as this material move thru supplier production process and transportation network to receiving dock) —> 

Component supply ( internal, upstream, downstream) 

Flows supply chain [ material flow ( reverse flow) —> information flow —> financial flow] 

5 basic components of supply chain management (plan, sources, make, deliver, return) 

- no plan, fail 

- know your sources, so that have a choice to choose supply 

- make your choice 

- deliver the supply 

- return if not suitable then plan again 

Push and pull model in term mass production/customization 

Push - business pushing product to customer 

Pull - business pull suppliers after receiving customer orders 

Problem along supply chain 

- uncertainty in supplier economies 

- needs to coordinate multiple axtvt 

- demand forecasts ( how many people need within time) 

- bullwhip effect ( fluctuations of supply and demand within time) 

Solution along supply chains (digitization) 

- vertical integration (create others whole new recipes by own in order to cut cost) 

- just in time inventory 

- info sharing 

- vendor managed inventory (VMI)