Exam Paper for Distribution Managment

Patricia Mae D. Perez Distri besidesion counsel 5. study concepts related with supply twine A supply mountain chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into in termediate and holy convergences, and the distribution of these finished products to guests. show chains exist in both renovation and manufacturing validations, although the difficulty of the chain may vary greatly from sedulousness to industry and firm to firm. It is a dynamic system that evolves e re ally dumbfound era.Indeed, not only do client demand and provider capabilities change over time, but supply chain relationships too evolve overtime. For example, as the customers power increases, there is change magnitude pressure placed on manufacturers and suppliers to produce an enormous variety of high- feel products and to produced customized products. Characteristic of supply chain instruction on th at point ar numbers of characteristics of supply chain. The most principal(prenominal) is that the firms understand that their future depends to al arge level on the success of transfer and they knobbed themselves as quality of the channel.Relationships be viewed as long term, and the in corporate cultures, philosophies, and missions atomic number 18 similar. There is joint planning of products, locations, and quantities of broth to be unploughed in the system. Great deal reading sharing between firms in order to coordinate the efficient flow of goods. The modern computing and chat technology, such as electronic data interchange, is used to rapidly go out information within the channel as necessary. Cost advantages ar work wherever possible. Other characteristics argon Competing goals and objectives Cost reduction and on time deli real of goodsDynamic operating conditions Emphasis on responsiveness to devise changes litigate of supply chain heed The planning do need to billet relationship for demand and cost parameters varying over time receivable to the impact of seasonal fluctuations, trends, advertising and promotions, competitors pricing and strategies. The suffice is do up of the flow of materials, flow of information and run and supervise the control of this flow, that includes raw materials procurement, ware, ancestry wariness, processing of orders, warehousing, transportation and distribution. Sources http//www. se. ufl. edu/Supplychain/done/Day2/Deshmukh/sld002. htm http//www. referenceforbusiness. com/ cyclopaedia/Str-The/Supply-Chain-Management. html http//lcm. csa. iisc. ernet. in/scm/supply_chain_intro. html 8. Key concepts related to customer service and performance measurements in the SCM function Four methods of developing customer schema Stay in touch Show your customers how you rate your business finished keeping in touch with them by sending them updates nigh your companion. mathematical function newslett ers, individual letters or emails to deliver new things and products and promotions of the conjunction.You contribute also send a thank you note if a customer made a major purchase and ask them for virtually feedbacks and suggestions. With all of this information you self-collected from your customer, you can come up with solutions to the problems and meet their needs. Empower your rung There are some cases where there is no indemnity and the policy need to be flexed. To do this you begin to empower certain muckle to make decisions, bend the rules and use wise judgments. Have them documented these circumscribed cases by providing a pad paper of forms and let them input some information to the computer.You can also designate one person per transform as chief problem-solver. Manage customer relationships Once you have gathered information about your customer, you can find them and give them rewards. You can passing play the frequent customers discounts for their next purch ase and make a follow up call to those customers who need repair work. Use the information gathered about the customer to make customer service a science. If you give them tonus service and you satisfy them, they will continue going back to you. realize great service a priorityFor you to serve your customers excellently, you have to modernise your staff. Because they are the one who faces and interact your customers not you. So train them genuinely well. Always put in mind that customers must always comes first. bound with small things like greeting them politely and staff must politely greet anyone who enters the shop. Relationship between customer service and inventory investing Improving the inventory is critical to customer service. despite of whether your friendship deals b2b or b2C, insufficient inventory anxiety process will affect customer service and customer satisfaction levels.A successful inventory management anticipates analyses, plans for, and delivers invento ry standards which do not mix into customer service disaster. not only focus on the correct 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 maintenance functions, and the communication processes used to let loose 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-Processes&8212Critical-to-Customer-Service-Excellence&038id=4148576 11. Impact of inventory management on operations Major operational benefits of disposition manufacturing systems Lean manufacturing concepts were developed over the last five to six decades, primarily in Japan, particularly for the Toyota production system. These concepts met various tests for galore(postnominal) many years and passed the test of time very easily. It is defined as an advance to help reduce waste matter and eliminate waste in the assemble line at the time of manufacturing the products.By doing it remedy, it helps in step-down the cost and continual 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 receipts in the delivery performance little/ reduced lead times Increased in sales taxation Less operating be and increased profits Improved customer satisfaction and supplier relations Reduction in inventory An increased in the employee moral and retentionBetter quality Reduced store space Creation of additional working capital for new projects Improvement in supplier relationship In lean manufacturing, the customers can be able to get what they want. With this, they get satisfied 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 judicatures. The companies have been able to eliminate and reduce the redundant 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 other implementing lean manufacturing tools that an organization can use to get the improvements they want. There is the Value Streaming and Process Mapping. These two can effectively 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 specific waste and improvements.Considerations Strategic Flexibility unexpecte d problems arise to change any plan. unanticipated 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 maximum force in the smallest flying field Beachhead Stragtegies focuses on small area or a product. all told the essentials elements for a self reinforcing, sustainable system are deployed locally.This can demote quickly. The small area become the beachhead of lean manufacturing The Kaizen Blitz is a focused implementation that suits a beachhead strategy. It has a strong appeal. It is fast, striking and effective. Source http//www. strategosinc. com/mpping0. htm http//www. articlesbase. com/software-articles/10-benefits-of-lean-manufacturing-2475092. html http//www. altiusdirectory. 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. type of SCM and Logistics in the economy and the organization Total Quality Management is an approach that imageks to improve quality and performance which will meet or fleet customer expectations. This can be achieved by integrating all quality-related functions and processes end-to-end 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 theory is to work towards using the dress hat processes to offer the best possible products and to produce best customer satisfaction. Supply Chain Manageme nt in the management of distribution across organizations. all in all the members of the channel, from suppliers to end users, coordinate their business activities and process to minimize their total 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 on term partenrshipin order to improve service to the ned consumer, reduce channel costs, and constitute competitive advantage. It has also developed other terms like meet 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 lot of variables for a good supply chain management like the trustworthiness of suppliers, reliability of shippers, and planning contingencies for worse case scenarios. Still, business are still t rying to figure how much they need to inventory and how much can be ordered 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 large period 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 establish 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 by rights part in the right place at the right time. raving mad results from any activity that adds cost without adding value, such as the unnecessary paltry of materials, the accumulation of excess inventory, or the use of faulty production methods that wee-wee products requiring subsequent rework.JIT should improve profits and return on investmen t by reducing inventory levels, reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs. In a JIT system, underutilized (excess) susceptibility is used instead of buffer inventories to hedge against problems that may arise. JIT applies primarily to instant manufacturing processes in which the same products and components are produced over and over again.The general caprice is to establish flow processes by linking work centers so that there is an even, balance 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 paragon lot size of one unit. Sources http//logistics. about. com/od/qualityinthesupplychain/a/TQM. htm http//www. referenceforbusiness. com/encyclopedia/Str-The/Supply-Chain-Management. html http//www. thinkingmanagers. com/business-managem ent/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 bidding process practicable for the learning 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 think function over the lifetime of the task. This may include, but not be limited to, acquisition cost, installation, d isposal value and cot, training cost, maintenance cost, quality of performance and environmental impact. 4. Procure goods and services with due regard to the rescue 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 movement of the physical items or products. There are three main processes associated with materials management spare parts, 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 then make sure they are in the correct place. Spare parts ar e integral to the keep operation of production lines and related equipment. Poor 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 fix 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