What is efficient supply chain and responsive supply chain?
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What is efficient supply chain and responsive supply chain?
Efficient supply chains are able to deliver products at a low cost, while responsive supply chains are capable of responding quickly to changing con- sumer needs.
What is responsive supply chain example?
A responsive supply chain is one that is sensitive to meeting customer requirements. For example, an online computer hardware assembler may update their product range every 90 days, when the new models, which may have increased performance, will be at lower prices than the models they replaced.
What are the efficiency and responsiveness in the context of supply chain management and how are they achieved?
A firms ability to satisfy customer requirements in a timely manner is referred to as Responsiveness, while efficiency is a firm’s ability to deliver goods in accordance with the customer’s expectations with least wastage in terms of raw materials, labour and cost.
What is efficient ideal responsive supply chain?
At its most basic level, a responsive supply chain will be nimble and agile enough to be responsive to your customer’s needs while still serving as a solidly efficient model for a particular company. Indeed, the demands of a responsive supply chain are similar to that of a value chain model that champions efficiency.
Can a supply chain be both efficient and responsive?
Yes, a supply chain can and should be both efficient and responsive. A supply chain can be efficient by making optimal use of its resources while at the same time remaining responsive to market forces and customer demands.
Is Amazon supply chain responsive or efficient?
To start with, Amazon’s SCM has a strategic fit with its competitive strategy of being the retailer of choice for its customers. In other words, by segregating its inventory, Amazon is able to be responsive to the customers as well as cut costs or cut slack where it is needed (Kotler, 2012, 65).
What is efficiency in supply chain?
An efficient supply chain is one that can make the most optimum use of its resources including financial, human, technological or physical. This results in reducing operational costs for materials and packaging and reduces time wastage. However,it may be inefficient if that product or service was not delivered on time.
How can supply chain be responsive?
4 Ways to Develop a Demand-Responsive Supply Chain
- Utilize ‘Range Forecasting’
- Establish Flexible Supplier Contracts.
- Implement Strategic Multi-Sourcing.
- Automate Supply Capacity Visibility and Analysis.
- Conclusion.
How does Walmart supply chain work?
Under a Walmart’s supply chain initiative – called Vendor Managed Inventory (VMI) – manufacturers became responsible for managing their products in Walmart’s warehouses. As a result, Walmart was able to expect close to 100\% order fulfillment on merchandise.
How can supply chain be efficient?
5 Tips for Efficient Supply Chain Management
- Find Dependable Suppliers. One cannot emphasize enough the importance of finding the right suppliers.
- Invest in Employee Development.
- Continuous Improvement.
- Leverage New Technologies.
- Improve Returns Management.
What is an example of a responsive supply chain?
For example, when goods are delivered, payment is automatically released. Plus, sharing sales and inventory data and shipment information erases stoppages and uncertainty, which equals a more efficient responsive supply chain.
What is the difference between efficiency and responsiveness in supply chain?
Responsiveness Vs Efficiency in Supply Chain Management. A firms ability to satisfy customer requirements in a timely manner is referred to as Responsiveness, while efficiency is a firm’s ability to deliver goods in accordance with the customer’s expectations with least wastage in terms of raw materials, labour and cost.
What are the downsides of the efficiency-oriented supply chain?
The efficiency-oriented supply chain models have several benefits, but they also have a few downsides, such as: May lead to an excess or overstocked inventory. This is not the most cost-effective model in all cases. Responsiveness driven models are ideal for “on-demand” situations when there is uncertainty in product manufacturing.
What are the different types of supply chain models?
There are six common supply chain models to choose from but largely all of these models focus on two key areas – Responsiveness and Efficiency. Of these six, one group is oriented towards efficiency and the other towards responsiveness.