Category Archives: Supply Chain Management

How a Quality Initiative Changed -Whirlpool’s Supply Chain

How a Quality Initiative Changed -Whirlpool's Supply Chain For over 30 years, Stanley Engineering Components (SEC), a division of the Stanley Works, had been manufacturing oven-door-latching mechanisms for the range-appliance industry. (The oven-door-latching mechanism locks an oven door during the self-cleaning cycle in both gas and electric ranges.) Its customers viewed SEC as a low-cost supplier of customer

The Impact of Technology

The Impact of Technology State-or-the-art software has had a significant impact on the overall management of the supply chain. These software packages. in combination with network linkage- proxy indeed by the Internet; allow each of the organizations within a supply chain to share information on a real-rime basis. Knowing the actual demand a-, it occurs allows each of the firms in the' chain to operate leaner w


TRUCKS KEEP INVENTORIES ROLLING PAST WAREHOUSES TO PRODUCTION LINES It seems warehouses have grown wheels  Called "rolling inventories, n trucks have become the place of choice for just-in-time stockpiles. Eighteen wheelers  pull-up to factory loading docks to deliver parts go almost immediately onto production lines, bypassing  the warehouses ",'Companies now precisely plan their need of inventory so that [

The Role of Logistics in the Supply Chain

The Role of Logistics in the Supply Chain The continued emphasis on globalization with respect to both suppliers and customers ha caused the supply chain to become longer in terms of time and distance, As a consequence, the logistics associated with both the delivery of raw material and component to the company and the delivery of finished goods to its customers have taken on added importance.  However, the leng


VOLKSWAGEN BUILDS  A DIFFERENT KIND OF ASSEMBLY PLANT IN BRAZIL In November 1996, Volkswagen began operations at its new truck and bus assembly plant in Re•sende, Brazil. Unlike any other automotive assembly plant in the world,  this facility has suppliers' personnel working side by side with VW's workers. This latest advancement in supply chain management is the concept of Jose Ignacio Lopez de Arriortua, wh

Requirements for a Successful Supply Chain

Requirements for a Successful Supply Chain Several elements are mandatory for the successful implementation of a supply chain management program. These elements often overlap and often are dependent on each other. Trust A primary ingredient in the establishment of a successful relationship between vendor and customer is the element of trust. Without trust, none of the other factors is possible. Trust allows vend

Advances in Technology

Advances in Technology Technology continues to have a significant impact on the supply chain-E.UL(.electronif  data interchange e) provides a direct link between a manufacturer's database and that of its vendors. In addition, the increased use of personal computers allows customers to communicate directly with their vendors' systems. For example, FedEx customers can order a  pickup and track the delivery of thei

Increase in Consignment Inventories

Increase in Consignment Inventories In r cent years. there ha been increased emphasis on the management of a tirm ‘s assets. as m eured by the rate of return on as. ets. and the bon use of many managers are directly related to thi. measure. Ina. much a inventories arc: view ed a an asset on a firm ‘s balance -he t. the less inventory that i,>on hand, the better the return on a sets. To reduce invc

Factors Impacting the Supply Chain

Reduced Number of Suppliers Companies. as part of their supply chain programs. have significantly reduced the number of vendors they buy from. Managers currently believe in establishing long-term relationships with a few, highly reliable vendors rather than haying multiple sources for every purchased item. As seen in Exhibit 13.3, the reduction in the number of suppliers has been significant in recent years, an


FIRE AT TOYOTA'S SUPPLIER STOPSPRODUCTION A1sin Seiki provides 99 percent of the brake valves that Toyota uses in the assembly of its automobiles. BecauseToyota uses a just-in-time (JIT) system with its vendor , it maintains only a four-hour supply of brake valves at each of its assembly plants. Consequently, when a fire destroyed Aisin Sekei's manufacturing facility on February 1, 1997 Toyota was forced to shu