Activating the Supply Chain : Part 2
Different types of productrequire different supply chain approaches. There is the 'one-time' product wherethe customer knows this is a fashion item and if he wants it, he knows he need to buythere and then as he is unlikely to find it in the shop the next time he goes. There isthe seasonal re-order product where the consumer feels he will be able to go back and buymore, and then there is the perpetually replenished item which he would expect to findalways on the shelf. With each, one needs to continuously review the order frequency,forecasting approach, materials purchasing and stock holding, finished goods stock levels,batch/lot size, lead times, etc, to see where improvements can be made. For any reductionin lead times to be effective one needs to make staged commitments and share the risk,starting with capacity and raw materials. Internet technologies should be used to shareinformation rather than to exchange information as happens with EDI. Co-operation isneeded in the supply complex between partners with complementary skills and this leads tothe need for partnerships.
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