Page 109 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes
Did u know? The latest generation of e-procurement software is done with an application
that incorporates features for supply management and complex auction procedures.
When companies integrate e-procurement into their business model, operational efficiencies
multiply through cost savings, cost comparisons, ease of access, quicker turnaround times, and
ease of use of the system. Organizations that use e-procurement can automate the procurement
work steps. They can control inventories, cut down on purchasing costs, improve delivery
schedules, and generally become more efficiency.
E-commerce and e-procurement are gaining widespread use as businesses realize the greater
efficiency of these systems. Inefficiencies due to paper processing, and internal inconsistencies
in procurement procedures are diminished or cut out altogether. Digital broadcasters is there to
help you put these efficient processes to work for your company so you can start realizing gains
from improved efficiency.

Self Assessment

State whether the following statements are true or false:

5. Both procurement process and sourcing strategy are not one and same.
6. Sourcing is a standard and formal process that does not incorporates ongoing analysis to
evaluate the right mix of tools and technologies.

7. A middleman could be a broker, a freight forwarder, Shippers’ Association.
8. Transportation provider gets product from point A to point B and could be believed a 2PL.

5.3 Manufacturing

Since the Industrial Revolution, when we exchanged handmade manufactured goods for machine-
made, the changing nature of manufacturing has been apparent, and its evolution continues
today. Such new developments as micro and nano manufacturing, computer-aided manufacturing,
and innovative supply chain management are only a few of the current advances in a long
history of manufacturing innovations. Manufacturing is an important part in corporate success
and manufacturing strategy is linked to manufacturing success which is linked to business
success. Manufacturing has become familiar as an important element of corporate strategy.
Integration in different aspects has become a key issue and must be replicated in manufacturing
strategy.

Concept of lean production has taken birth from Japan; the changes in the economic and
competitive climate in Japan led the manufacturing organisations to devise innovative and cost-
effective production methods. And, this encouraged the organisations to look for a revision of
the production models as well as the Japanese management system. While the overall Japanese
economy has suffered; some well organised Japanese manufacturing companies such as Toyota,
Honda, and Canon still remain competitive in the global market. JIT production, TQM and
concurrent engineering are considered as the main strengths of the Japanese manufacturers,
besides their techNnological advantages. After World War II when Japanese manufacturers
realised that they could not afford the expense to build facilities like the USA, they concentrated
on lean concept. They began the process of developing and refining the process of manufacturing
with a view to minimise waste.

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