CASE STUDY

Case Study

Case Study

Introduction

Supply chain business process integration entails collaborative work among buyers and suppliers, joint product development, common systems and information sharing. Operating an integrated supply chain requires continuous information flows, which in turn assist to achieve the best product flows. However, in many companies, management concluded that optimizing the product flows cannot be performed without the introduction of a process approach to business (Harland 2000). Key chain areas are:

• Customer Relationship Management

• Customer Service Management

• Demand Management

• Order fulfillment

• Manufacturing flow management

• Supplier Relationship Management

• Product Development and Commercialization

• Returns Management

One can assume other key critical supply business processes combining these processes, said Lambert, such as:

a. Client Management Services

b. Procurement

c. Product Development and Commercialization

d. Production flow control / support

e. Physical distribution

f. Outsourcing and Partnership

g. Measurement

A) Customer Service Management Process

Customer Relationship Management regards the relations between the organization and its customers. Customer service provides a source of information about customers. It also provides the client with real-time information on promising dates and product availability through interfaces with the production company and distribution operations (Hines 2004). Successful organizations use the following steps to build relationships with customers: (McAdam 2001)

Identify mutually satisfying goals between organization and customers

Establish and maintain client relationships

To produce positive feelings in the organization and customers

B) The Procurement Process

Strategic plans are developed with suppliers to support the management of the production process flow and product development. In firms where operations extend globally, the search should be conducted on a global basis. The desired result is a mutually beneficial partnership, where both parties benefit, and reduce cycle time in design and product development is achieved. (Mentzer 2001)

In addition, the purchase function develops rapid communication systems, such as electronic data interchange (EDI) and internet connection to transfer possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers. This requires the implementation of enterprise resource planning, supply sources, negotiations, order placement, inbound transportation, storage, processing and quality control. (McAdam 2001)

C) Product Development and Commercialization

Here, customers and suppliers should be integrated into the product development process, so as to reduce time to market. As the product life cycle reduction, the products should be developed and launched successfully in increasingly shorter time-schedules to remain competitive. The heads of product development and commercialization process must:

1. Coordinate with customer relationship management to identify customers' articulated needs;

2. Select materials and suppliers in connection with the procurement, and

3. Development of technology in manufacturing flow to produce and integrate the best flow of supplies for the product/market combinations.

D) Manufacturing flow management process

Production processes should be flexible to respond to changing market conditions, and must accommodate mass customization. Orders are processes operating on just-In-Time (JIT) basis in minimum lot sizes (Mentzer 2001). In addition, changes in the production process flow leads to a reduction in cycle time, ...