Question

Logistics - Supply Chain Management

Discuss the impact of the supply chain drivers on supply chain performances. (facilities, inventory, transport, information, sourcing and pricing)

Answer 1

1. FACILITIES:- FACILITIES ARE THE ACTUAL LOCATION IN THE SUPPLY CHAIN NETWORK, WHERE PRODUCTS ARE STORED, ASSEMBLED AND FABRICATED. THE TWO MAJOR TYPE OF FACILITIES ARE PRODUCTION SITS AND STORAGE SITES. THESE FACILITIES HELP THE THE COMPANY TO DELIVER THE PRODUCT IN RIGHT MANNER, TIMELY AND CONVENIENTLY.
2. INVENTORY:- DECISION RELATED TO INVENTORY AND DELIVERY SCHEDULES OF PRODUCTS ARE ONE OF THE VERY IMPORTANT DECISION. THE ADEQUATE AND PROPER AVAILABILITY WILL HELP THE SELLER TO PROVIDE PRODUCT TO CUSTOMERS ON TIME.
3. TRANSPORT:- TRANSPORTATION DECISIONS THAT IS CHOOSING THE MODE OF TRANSPORT TO MOVE THE PRODUCT FROM SELLER TO BUYER IS ALSO PART OF SCM. THE RIGHT CHOICE OF TRANSPORT WILL HELP TO REACH THE PRODUCT TO BUYER AT CONVENIENT MANNER.
4. INFORMATION:- THROUGH SCM YOU CAN GENERATE PERFORMANCE DATA ON OPERATION COSTS AND INVENTORY LEVELS FOR ALL THE FACILITIES IN SUPPLY CHAIN. BY GETTING DIFFERENT TYPES OF INFORMATION REGARDING SUPPLY CHAIN CAN HELP THE SELLERS OR MARKETERS IN MANY DIFFERENT WAYS. THE FUTURE UNPREDICTABLE SITUATION CAN BE HANDLED WITH WIDE INFORMATIONS.
5. SOURCING AND PRICING:- SOURCING IS A SET OF BUSINESS PROCESS REQUIRED TO PURCHASE GOODS AND SERVICES. BY SCM MARKETS CAN COME TO KNOW ABOUT WHICH TYPE OF SOURCING THEY HAVE TO CHOOSE i.e, WHETHER TO OUTSOURCE THE PRODUCT OR CAN PRODUCE WITHIN THE FIRM. PRICING HELPS THE MARKETS TO SET THE PRICE OF THE PRODUCT RIGHTLY AND ACCURATELY. THE SCM HELPS THE MARKETERS TO SET THE PRICE ACCORDING TO THEIR EXPENSES CHARGED FROM THE PRODUCTION OF GOOD TO FINAL SELLING OF PRODUCT.