Supply Chain Management Essay Example for Free

Supply Chain Management EssayStorage has forever and a day been an important aspect of economic development. For manufacturers, strategic w beho employ offered a way to precipitate holding or dwell epoch of materials and parts. On the come forwardbound side of manufacturing, warehouses can be used to create crop assortments for node despatch. An important charge in warehousing is maximum flexibility. Ideally a warehouse leave alone simultaneously provide economic and service well-beings. Warehouses offer many economic benefits for companies.One economic benefit of a warehouse is derived from the ability to consolidate products from a number of proceeds plants into large, consolidated delightments delivered to customers. Also, big shipments from production plants are often broken into weakeneder shipments and arranged for local rescue. Break bulk shipments significantly reduce freight costs. In addition, warehouses allow production to be postponed or delayed until ac tual demand is certain. in one case demand is determined in terms of product type and quantity, minor processing can cursorily make final products avail fit, reducing farm animal requirements.Warehouses also provide buffers for seasonality, improve production efficiency, and support merchandising efforts that often send logistics managers scrambling to meet surges in demand. Economic benefits of warehousing occur when overall logistics costs are reduced. For example, if adding a warehouse in a logistical system reduces overall battery-acid cost by an amount greater than required investment and operational cost, then total cost will be reduced. When total cost reductions are achievable, the warehouse is economically justified.Four blunt material economic benefits are integration and Break-bulk, Sorting, Seasonal stillt in, and Reverse logistics. The economic benefits of consolidation and break-bulk are to reduce transportation cost by using warehouse capability to increase s hipment economies of scale. Consolidation occurs when a warehouse pull together small shipments from a number of sources and combine them into larger, more economical, shipping loads intended for same location. Small, flexible shipment in. Large, economical shipments out.The benefits of consolidation are the lower in transportation cost as goods could be ship full truckload and quicker delivery instead of transporting the products as small shipments from different sources. With larger volume, you are able to get the lower rates, improved service, shorter transit time and little handling of your freight. Economy of scale is achieved by transporting the large shipment from origin to destination. Break-bulk occurs when a warehouse receive bulk shipments and breaking these small shipments for delivery to various customer.Break-bulk warehouse operations are similar to consolidation except there no storage is performed. The long-distance transportation movement is a large shipment, trans port cost is lower and there is less difficulty in tracking. Both consolidation and break-bulk arrangement use warehouse capacity to improve transportation efficiency. Many logistical arrangement involve both consolidation and break-bulk. How do warehouses perform assortment? The basic benefit of sorting is done to reconfigure freight as it flows from origin to destination.There are three types of assortments performed in the warehouses namely Cross docking, Mixing, and Assembly are widely performed in logistical systems. The objective of cross-docking is to combine history from quaternary origins into an assortment for a specific customer. This operation is used by retailers for the fast moving store inventories. The distributor cross dock process consolidates inbound products from different vendor into mixed product pallet, which is delivered to the customer when the final item is received.The transportation cross dock process combines shipments from a number of different carri ers in the less-than-truckload ( LTL ) and small package industries to gain economy of scale. The retail cross dock process involves the receipt of products from multiple vendors and sorting onto outbound trucks for a number of retail stores. The benefits of cross docking is to reduction in cost, as the product no longer requires picking and put away in the warehouse. The reduction in time from production to customer, which helps improve customer satisfaction.The reduction in the need for warehouse space, as there is no requirement to storage of products. The objective of supply mixing is to support manufacturing operations. Products and components are supplied to a mixing warehouse located in close proximity to the manufacturing plant, when requested by the plant, necessary sortation will be carried out and ship to the plant directly. It is a popular strategy to support manufacturing firms with JIT (Just-In-Time) and MRP ( Materials Requirement Planning) system. Mixing is performed at an mediate location between shipment origin and destination.In this process the inbound products are combined with those regularly stored at the warehouse. The net effect is to reduce the overall product storage in a logistical system while achieving customer specific assortment and minimizing transportation cost. Assembly supports manufacturing operations. The components from a sorting of countenance tier suppliers are assembled in a warehouse located close to the manufacturing plant. Products and components are assembled from a variety of second-tier suppliers by a warehouse, often referred to as lead suppliers or tier one suppliers, located in close proximity to the manufacturing plant.While manufacturing organizations have traditionally performed assembly, it has become common to utilize value-added services performed by a lead or tier one supplier or an integrated service provider (ISP) to sort, sequence, and deliver components when needed in manufacturing. Like cross-d ocking and mixing, assembly serves to achieve a process grouping of neckcloth at a precise time and location. The direct economic benefit of storage is to accommodate seasonal production or demand. For example, Santa Clarita storage and toys are typically produced year-round but are sold entirely during a very short marketing period.In contrast, agricultural products are harvested at specific times, with ulterior consumption occurring throughout the year. Both situations require inventory storage to support marketing efforts. Storage provides an inventory buffer, which allows production efficientcies within the constraints imposed by material sources and consumers. Reverse logistics is concerned with controlled and regular inventory. Controlled inventory consists of unassured materials and product recalls that have potential consumer health or environmental considerations.The refilling of controlled inventory must be performed under strict operating scrutiny that prevents impro per garbage disposal. As one might expect, varied political agencies, such as the Consumer Product Safety Commission, Department of Transportation (DOT), the Environmental Protection Agency(EPA), Food and do drugs Administration (FDA), and the Occupational Safety and Health Administration (OSHA), are directly involved in disposal of controlled inventory. A broader perspective includes all relating to logistics activities carried out in source reduction, recycling, substitution, reuse of materials and disposal , Council of Logistics Management.This means that, chase away logistics are basically discarded products, used products, products or parts previously shipped, hazardous and non-hazardous waste from packages and products, information, raw material, in process inventory and finished goods. Currently, reverse logistics deals not only with return processing but also with repair, customer service, parts management, end-of-life manufacturing and order fulfillment. Less attention h as traditionally focused on reclamation of regular inventory.