SUPPLY CHAIN MANAGEMENT

Supply Chain Management

Supply Chain Management

Introduction

High levels of competition in international markets have led companies to conclusion that to survive and thrive in harsh environments, it is not enough to improve their operations and integrate their internal functions, it is necessary to go beyond the boundaries of relations company and start sharing information, materials and resources with suppliers and customers in a much more integrated, using innovative approaches that benefit, together to all actors in the supply chain. Procter and Gamble is one of the market leaders in FMCG sector and it has a strong supply chain structure which helps P&G to maintain its market position. It follows the supply chain principles that are going to be discussed in the later part (Balachandran, 2005, 1266).

Concept of Supply Chain

A supply chain P&G is a network of facilities and distribution facilities whose function is the procurement of materials, transformation of these materials in intermediate products and completion and distribution of these finished products to consumers. The supply side focuses on how, where and when to get and deliver the materials commodities for manufacturing.

Distribution system in supply chain

Suppose the P&G has a distribution system that is the product passes first through a small store on the ground after one of several regional wineries and is finally delivered to the cellars of the stores that are selling to final consumers (see diagram # 1). I note that stores are not owned by the company that manufactures the product or products, while the wineries themselves are regional ownership (Baggaley,2003, 23).

This case is similar to many companies that manufacture products ranging to final consumers as: personal hygiene products, the household products, clothing, many of the foods, etc. When we find that our restriction was no longer in the plant and concluded it would be in the market, we need ourselves some other questions:

Is the restriction on the market because the company wants it or because we fail in our supply chain?

Do we have flaws in our system of distribution? We do not have the product that the consumer Final wants in the store when you want it.

Do we have the restriction on the market because we often have shortages of raw materials in order to produce on time?

d) Are we letting our final customers change brands for past failures?

These questions can lead us to conclude that our next restriction is not the market but our distribution system or even our supply chain. It is worth analyzing in more depth the problem of distribution or supply chain. Distribution involves only our plant to the end market and supply chain means from our suppliers (or earlier) until our final consumer (Buchel, 2003, 91).

The above objectives appear contradictory, at least when it comes to providing better service less inventory. This statement indicates the presence of an unresolved conflict that is balanced, we do not give perfect service that requires a lot of inventory and have a lot of inventory is bad for our company, and then ...