Question

There have been significant developments that have brought operations and supply chain management to the forefront of manager’s attention. What are some recent developments and the impact they are having on companies regarding their approach to their operations and supply chain.

Answer 1

Some of the recent developments that are having a high impact on the way the companies approach their operations and supply chain models are as follows:

1. The demand for the next cycle is determined at the end of the previous cycle. This would enable the purchase department to place the raw material orders for the next manufacturing cycles. This enables the supply chain to manufacture the products just at the required times. Since the demand is forecasted at the end of the previous cycle, there is optimum supply to the manufacturing line. There is also no over stocking of inventory in the stores. Demand planning is done so that the customer's lead time to receive the finished product is also reduced to a greater extent.
2. The entire operations of a company are more globalized. Any services or technology is available to a manufacturer anywhere in the world at an optimum cost. The companies are locating their facilities at the strategic points so to put to use the best available technologies and services in their manufacturing process. The capacities of the facilities are also maintained in line with the available expertise at their disposal. The distribution channels are also set accordingly to make optimum use of their supply chain models.
3. The competition in the market for any product, has made the companies to take a relook at their supply chain and the operations management. The prices of the product are also another driving criterion that affects the supply chain.
4. The complicated product life cycles are now having a reduced process times, which makes the company develop a better approach towards supply chain.