PLACE AND PROCESS

place and process



place and process

A supply chain has been defined as “three or more organizations (suppliers, the company in question, and customer) linked together by chain of products, services and finance, which may include manufacturing. In other words, a supply chain consists of multiple firms, with each firm engaging in multiple functions in a combined effort to meet common goals, while simultaneously coping with its individual needs to meet its own firm and functional goals. There is a multitude of processes, sub processes, and activities in any supply chain, whether it is made up of large or of small firms. With these and perhaps other issues to deal with, one might ask, “What is the probability that everything will work according to plan in a supply chain?” Having posed this question, when something is not working correctly in a complex supply chain, how can management assess the problem and, equally important, determine a viable solution? Use of one or more of a number of supply chain diagnostic tools that have been developed may be the answer (Camp, 1989, 23).

Now, Sony is focused on bringing upstream efficiencies and savings to our PlayStation 3 component supply chain processes through a project. Sony works with a network of suppliers who each provide components used in the manufacturing of our PlayStation 3 gaming console. With millions of game consoles now shipped, managing the component supply is a critical activity. Furthermore, the PlayStation 3 business model is unique because the gaming console itself is not a profit-making transaction in the first place. So any additional supply chain inefficiencies put further strain on an already unprofitable part of Sony's business (Borghesi,Cavalieri, Meciani, 2005, 198).

A recognized delay in the supply of various components and quality control problems, will mean massive shortages in the stores. ...