This Guidance is for use by any company potentially sourcing minerals or metals from conflict-affected and high-risk areas. The updated version clarifies that the Guidance provides a framework for detailed due diligence as a basis for responsible supply chain management of minerals, including tin, tantalum, tungsten and gold, as well as all other mineral resources. The Mosi-oa-Tunya Declaration FRadopted on 13 September at the International Conference on Artisanal and Small-scale Mining and Quarrying ASM18called on the national, regional and international private sector to ensure production and sourcing practices do not contribute to adverse human rights or conflict and its financing, through the implementation of instruments such as the OECD Due Diligence Guidance in all mineral supply chains.
Wednesday, October 7, Push or Pull? That is a question every supply chain needs to answer. Understanding what it means depends a whole lot on the context. It also changes the question from push or pull to a question of where should the inflection occur.
Push or Pull as a Business Model: Depending on the number of links in the extended supply chain, the boundary of push and pull processes can be established. Setting up the boundary at 1 represents a fully pull-based supply chain that illustrates that the planning for a product starts when customer places the order and creates firm demand.
Moving this all the way to the last link at 4 represents a full push-based supply chain that illustrates that the products are built, distributed, and ready for the customer demand.
There are two other intermediate positions 2 and 3 that are possible in this illustration with five distinct nodes. These can represent the intermediate scenarios where the final product may be assembled when the customer order is placed to distribution scenarios where products are ready but distributed or shipped in response to demand.
For example, detergent is not the likeliest candidate for a pull-based scenario and luxury yachts would probably not fit the bill for a push-based scenario.
However, understanding the overall supply-chain and analyzing the product and demand characteristics within that context does help companies understand their options and even opens new segments in an industry that may not have existed till then.
Dell is a great example where they identified a niche and developed a pull-based industry supply chain for personal computers where none existed prior to that. The same concept, when seen in the context of a single enterprise supply chain, can be understood more as an inventory-order interface.
Supply chains are modeled as a a series of processes that are connected through inventory buffers. Within a retail supply chain, for example, the supply chain can be simply modeled as shown below. In the case of a conventional brick-and-mortar retailer, the positions 1 and 4 will be impractical -- after all, they must have products physically available in the stores when the customers walk-in.
The inventory-order interface at links 2 and 3 will be perfectly valid as the retailer can either choose to replenish their regional warehouses or their distribution centers or both. However, in the context of Internet based retail operations, order-inventory interface can move to almost any position.
The retailer can choose to fulfill customer orders from the inventories in their own regional warehouses or distribution centers, or, they can choose to fulfill customer orders directly from their suppliers in what is called a drop-ship model.
For supply chains, then the question is not push or pull, but rather where in the supply chain should be inflection occur?
What is the optimal point where the supply chain changes from a push-based supply chain to a pull-based supply chain.
All supply chains must be a combination of push and pull processes -- purely push or purely pull supply chains exist only in theory imagine a purely pull-based supply chain that must start prospecting for minerals to make steel to make automobiles after an order is placed!
Deciding where the inventory-order point must be placed is a matter of analyzing much more than just the supply chain operations. The products, market conditions, demand patterns, competitive and other external market pressures must be understood and analyzed to make such a decision.
The decision affects the operational costs, response times to fulfill demand, agility ability to react to changes in demandas well as flexibility ability to react to changes in product design or demand location, for example.
We will discuss these matrices in this next article on the subject. Want to know more about supply chain processes? How they work and what they afford? You will find every supply chain function described in simple language that makes sense, as well as see its relationship to other functions.The meteoric rise of Dell Computers was largely due to innovations in supply chain and manufacturing, but also due to the implementation of a novel distribution strategy.
By carefully analyzing and making strategic changes in the personal computer value chain, and by seizing on emerging market trends, Dell Inc.
grew to dominate the PC market in. Mission. Supply-Chain Management (SCM), techniques with the aim of coordinating all parts of SC from supplying raw materials to delivering and/or resumption of products, tries to minimize total costs with respect to existing conflicts among the chain plombier-nemours.com example of these conflicts is the interrelation between the sale department desiring to have higher inventory levels to fulfill.
We expect our supply chain partners to meet the same standards we hold ourselves to. Diversity As a member of the Billion Dollar Roundtable, Dell is committed to significant spending with women- and minority-owned business as well as small businesses.
Next in my series on supply chain strategy is the postponement as a strategy. Till now in this series, we have covered the lean and agile as supply chain strategies and this is the third conventional supply chain strategy I will be talking about.
The postponement strategy is based on the following two basic principles of demand forecasting.. The accuracy of the forecast demand decreases with. The definitions of supply chain management indicate that it is a complex undertaking that extends beyond the scope and capabilities of a single organization.
Significant effort is needed to build and maintain a supply chain network. This involves a tremendous action list that requires expertise. It’s a good time to check back in with Dell, the company that pioneered the “direct model” for its personal computers back in the s and in the process became the poster child for supply chain plombier-nemours.com’s make-to-order philosophy once stood out remarkably from the make-to-stock processes of the other computer makers.