Adding Value In Supply Chain Management Commerce Essay

Adding Value In Supply Chain Management Commerce Essay This chapter reviews the relevant literature and starts with discussion on Adding Value in supply chain management with special focus on pharmaceutical industry and to understanding firms supply chain management and competitive advantages. With involved four major points those are Challenges, Collaboration and Planning High performance delivery, Integration Implementation. Following there is a discussion on theoretical framework on supply chain management, role of top management and overview of latest supply chain management systems. In the last this chapter conclude with summary. 2.1 Adding Value in supply chain management: First question arise that what is Value adding in supply chain? Base on literature review value adding is the difference between input cost and output value (Hines, 2004, p.224). Value added along supply chain takes the form of tangible goods added and intangible services supplied (Hines, 2004). Value added notify to any additional value created at a particular stage of service by key service factors including; tangible value added through material transformation, labour and captical goods and intangible value added through capital and building of collaborative relationships. Firms can add value in many ways, like improve supply method from current level to higher level which is also part of add value in supply chain. Value adding resources within a supply chain are the tangible (processes). Intangible capabilities of a firm (firm attributes, firm controlled information, knowledge and collaborative relationships) enhance efficiency and effectiveness (Cunningham, 1995). By reviewing literature, the value chain concept was developed and popularized in 1985 by Michael Porter in Competitive Advantage. Porter defined value as the amount buyers or customers are willing to pay for what a firm provides, and he visualized the value chain as the arrangement of nine basic values to customers. Porter linked up the value chains between firms to form what he mentioned a value system; now in present era of globalisation and collaboration the link between two firms creating value process called the value chain. As value chain name involves the interpedently processes that generate value of products and the resulting demand and funds flows that are created. According to the Martin Christopher value chain activities can be categorized into two types primary activities (Inbound logistics, operations, outbound logistics, marketing and sales and services) and support activities (Infrastructure, human resource management, technology development and procurement) (Christo pher, 2005). From the literature review, author suggests that first, we need to understand the physical resources that are required within a supply chain to create and deliver a finished service to a customer. Second, we must understand the exchange relationship between particular supply chain resources and the flow of revenue in the value chain. Third, we must also understand what it is about the ownership and control of particular supply chain resources that allows certain resources to command more of the flow of value than others. In understanding this, the process of analytically mapping the properties of power within supply and value chains can commence. To deliver a value, product category and availability is also play important role in supply chain management. By reviewing literature, author understand that alternative perspective of viewing supply chains as value chains identifies economic value as being added through coordinated management of the flow of physical goods and information at each stage of the chain (Davis Stewart, 2004). The theoretical basis for supply chains, Handfield and Nichol (2002, p8), define them as including all organisation and activities associated with the flow and transformation of goods from the materials stage, through to the end user, as well as the associated information flows Information sharing is identified as a key driver for improving supply chain performance and enhancing competitive advantage (Zhang, 2006). Additionally supply chains can be characterised as value system and are defined as a connected series of organisations, resources and knowledge streams involved in the creation and delivery of value to the end customer(Handfield Nichols, 2002, P11). 2.1.2 Companys supply chain management and competitive advantage: Definition of supply chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services delivered to the ultimate consumer (Christopher 1992). In other words, a supply chain consists of multiple firms, both upstream (i.e., supply) and downstream (i.e., distribution), and the ultimate consumer (John T. Mentzer, 2001). The philosophy behind supply-chain management has changed. Previously the central concept was to manage an inventory that acted as a buffer between a limited production capacity and variable customer demands. The scope of the task was interpreted as managing warehouses and transport operations. The current priority is to engineer the supply chain as a seamless whole, breaking down the barriers that have existed between purchasing, production, distribution and sales. These issues are particularly relevant to the pharmaceutical industry. Functions have traditionally operated independently and there has been a consequent sub optimization of the supply chain by fragmenting it along functional lines. In its new form, supply-chain management is a corporate-level task on which several strategic objectives depend, not least ensuring a satisfactory return on capital employed while ensuring the supply of goods and services to designated markets at the service levels demanded. To achieve this, even at a national level, using local facilities to supply local markets is a challenge, requiring close integration of the supply chain and subjugation of functional/ departmental objectives to the needs of the supply chain as a whole. To achieve it globally is much more difficult (Booth, 1996). 2.1.3 Contemporary approaches to achieve competitive advantage: One of the first ideas about theoretical framework for understanding firms performance is Porter (1980). He introduces a strategic and analytical approach to understanding competitive strategy, and said that Every firm competing in an industry has a competitive strategy, whether open or hidden (Porter, 1980). He proposes a framework for analysis industries and competitors and describes three generic strategies, cost leadership, differentiation and focus. He postulates that if a firm is able to do well in any of these strategic fields, It will gain competitive advantage. Porters concept is portraying in below figure. Competitive Advantage of a Firm Generic Competitive strategies Overall cost leadership Differentiation Focus Figure: 2-1: Strategies to achieve competitive advantage: source Porter (1980). -Cost Leadership is most important in competitive pharmaceutical distribution chain, efficient-scale facilities, pursuit of cost reductions, and cost minimization in all areas of the firm. This action can increase companys profit. -Differentiation of product like, different one medicine in different brand (Ports and Blister pack) or service differentiation including design and brand image, customer service, and distribution or dealer network. This action can help increase customer loyalty and ensure often purchase. -Focus on markets, buyers or product line (new line of medicine with its generics version) can help to achieve competitive advantage. The framework of Porter, in fig 2-1 shows, that the proficient strategies can provide competitive advantage. Porter (1980) also argues that competitive advantage comes from the many separate activities a firm achieve in designing, storage, marketing, delivering and creating owns products. Each of this processing contributes to a firms relative cost to position and creates a basis for differentiation. This is the Pharmaceutical logistic value chain, and a firm has to recollection its strategically relevant activities in order to understand the behaviour of costs and the existing and potential sources of differentiation. A company gains competitive advantage by performing these strategically important activities better than its competitors (Porter, 1985). The general value chain concept, and Sigmas existing concept is illustrated in figure 2-2. Supply chain advance Marketing Leadership Advance Primary Activities Profit Margin Support Activities Inbound Sigma House Picking and Customer Marketing Logistics (Warehouse) Assembling Service Tele-sales Procurement Human Resource Management Technology service Development Firm (Sigmas) Infrastructure and Platform Services Figure 2-2: The value chain and Theoretical Framework to achieve competitive Advantage (Adapted from Porter 1985). The definition of supply chain including all basic activities, therefore sales, marketing and customer service activities can be construed as part of the supply chain approach show in the above figure. In company, Tele-sales and marketing processes, such as demand management, order processing and customer relationship building management are included in the internal processes shown in the figure and in the supply chain literature review. However, sales and marketing activity, such as sales calls, advertising and some post delivery support processes are excluded from supply chain activity. This is consistent with the approach taken by the supply chain model it uses to measure supply chain activity (Supply chain council, 2007). There is various types of approaches to achieve competitive advantage, strategic approach, 2.1.4 The strategic Planning approach: In important of porter (1980) approaches, a strategic planning approach that is companys competitive advantage can be planned for this. This includes planning for differentiation in the delivering a value in supply chain, low cost leadership and focus. Strategy is always the product of a complex and unexpected interplay between basic information, personalities and aspiration according to Hamel (1998). What this implies is that one does not gain for obvious solution and strategies but should look at alternatives, challenge assumptions, and look at new ways of delivering superior customer value and firm performance. 2.1.5 Marketing strategy approach: The marketing capabilities approach introduces the concept of capabilities of a market driven organization and explores the links between capabilities and a firms performance and market success (Day, 1999). A firms competitive advantage comes from two sources: Assets or resources, which are acquired over time and distinct capabilities, which are the glue that holds these assets together. Examples are DHLs secure delivery across the globe and Walmarts logistic systems. Such capabilities provide competitive advantage and help organization to deliver a value to its every customer. Other Proponents of the marketing capability approach are cool and Derrick (1989), Aaker (1989), caves and Gale (1987). The concept of capabilities is not new and was proposed much earlier by penrose in 1959. However, this has been popularized as the concept of core competencies of the corporation that can lead to a firms success by Hamel and Prahalad in 1990. They actually propose some tests to measure the st rength and success of core competencies. An example of Federal expresses its packaging and delivery process. The product differentiation approach by Trout (2000), states that what matters is differentiation of product or service, that are too many choice in todays world, and only differentiation provides competitive advantage. In Pharmaceutical business there many manufacture produce a medicine under different choice, keeping all different sort of product and supplying on time will be better advantage over the competitive. 2.1.6 The Introduction of the supply chain approach: In the competitive market of the early decade, there has been a change in management action, resulting for searching strategies that provide superior value to customers. As a result in the supply chain approach to gaining competitive advantage has moved into the frontline of business strategies, especially in developed countries. This approach has its introduced from historical military campaigns (Britannica, 1999) and recently from porter of value chain, with its importance on inbound and outbound logistics, and production operation. In a discussion on marketing logistics thinking argue that logistics has major impact on customer satisfaction, success and costs. They recommend that a firm manage its entire supply chain and that such an approach will add value in existing supply chain within the organization and will help to gain competitive advantage over rival. 2.2 Supply chain Management and factors: 2.2.1 Definition of supply chain and management: It will be helpful to go through some basic definitions of supply chain and management: Supply chain is all inter linked resources and activities needed to create and deliver products and service to customers (Hakanson, 1999). Supply chain management goes advance and including managing supply and demand, resourcing, assembling and packing, distribution across the globe and delivery to the every customer (Supply chain council, 2009). A more on supply chain management is a network of relationships, with the goal to deliver superior value, the management of upper level and lower level relationships with suppliers and customers to deliver best value in services at effective cost to the supply chain as a whole (Christopher, 1998). This definition is a key part of this dissertation in terms of gaining competitive advantage or delivering best value to sigma pharmaceutical customers. 2.2.2 Key areas of Supply chain management system: References Literature Review 1. Christopher, M. (2005). Logistic and supply chain managment. London: FT prentice Hall. 2. Handfield, R. B. Nichols, E. L. (2002) Supply Chain Redesign: Transforming Supply Chains into Integrated Value systems, U.S.A: Prentice Hall. 3. Zhang, C. (2006). Secure Information sharing in Internet-based supply chain management systerms. Coumputer Information Systems , 18-24. 4.

The Thankyou Letter :: essays papers

The Thankyou Letter I doubt that the format of this letter brings any true romance to what I am about to say, as typed words and printed letters are harsh and unfeeling. In this day and age, however, I suppose that this is a faster and easier way than paper and ink, a letter scratched out lovingly by hand. Don’t read it as such†¦as sterile and unfeeling. For the words I put down here are the same, if more fluid, than those of anything I could possibly write using the more traditional methods. And please don’t be daunted by the flowery prose that I am using, as presently I am in a strange, floating mood that leaves the room for nothing but softness and exaggeration of expression in what I feel. I’m sitting here at home looking through what seems like a whole other lifetime of â€Å"stuff† and I’m thinking of you. I’m thinking of you and I like what is running through my head. My heart is presently jumbled; anxious, ill suited for simply sitting around with nothing to do. I want a change somehow, and I do not know where, or how, or why. All I know is I’m worried and the thought of you can no longer make it better. To say that things in my life are changing would be an understatement. To say that they are constantly doing so would be a bit of a lie. As there have been times when I have been stuck in the same rut, floating about in a sea of ennui and non-movement. Still, I’m afraid of change, to be honest with myself and with you. I’m terrified of it. I’m a creature of habit and though on the surface I can appear chaotic and unpredictable, I find solace and comfort in that which is stable, that which does not rock the boat, as it were. But paradoxically, that same comfort is what kills me, what rips apart my creativity and dulls every sense I lay claim to. You changed that and I was and am no longer sitting still, I’m moving forward, sometimes moving in to something unknown and wonderful, sometimes being shoved so fast into it I can’t quite see what’s around me. It was beautiful, the feeling.

Marlow Lie Essay

Victorian  viewpoint,  and  often  paints  them  as being  the  embodiment  of  the  more  pure  and  gentle  aspects  of  human  nature. Conrad  makes many  references  to  a  belief  that  women  live  in  an  ideal  world  which  is  separated  from  the  evil side  of  human  nature  explored  in  the  story,  emphasizing  that  they  must  be  protected  from  this darkness  at  all  costs. This  theme  can  be  justified  by  many  details  within  {em  The  Heart  of Darkness},  but  at  the  same  time  there  are  a  number  of  points  in  the  story  which  stand  in  stark contrast  to  this  portrayal  of  women  as  noble  and  exalted  creatures. One  of  the  first  incident  where  Conrad  discusses  women  in  an  idealized  manner  occurs  in  the very  beginning  of  {em  The  Heart  of  Darkness},  as  Marlow  is  about  to  depart  for  Africa. During his  final  meeting  with  his  aunt,  she  talks  to  him  of  how  noble  she  feels  the  Company’s  attempts to  civilize  the  African  natives  are:  an  opinion  which  makes  her  nephew  rather  uncomfortable. â€Å"It’s  queer,†Ã‚  he  says,  Ã¢â‚¬Å"how  out  of  touch  with  truth  women  are. They  live  in  a  world  of  their  own, and  there  has  never  been  anything  like  it,  and  never  can  be. It  is  too  beautiful  altogether,  and  if they  were  to  set  it  up  it  would  go  to  pieces  before  the  first  sunset. †Ã‚  Marlow  believes  that  women cannot  perceive  the  horrors  that  men  are  capable  of  because  they  are  so  distant  from  them  by virtue  of  their  sex. Another  graphic  example  of  this  attitude  comes  when  Marlow  makes  a reference  to  Kurtz’s  fiancee,  known  as  his  Intended. He  says  of  her:  Ã¢â‚¬Å"Oh,  she  is  out  of it ­Ã‚ ­Ã‚ ­completely. They ­Ã‚ ­Ã‚ ­the  women,  I  mean ­Ã‚ ­Ã‚ ­are  out  of  it ­Ã‚ ­Ã‚ ­should  be  out  of  it. We  must  help  them

Technology Overused By Children - 1740 Words

Technology: Overused by Children â€Å"Our children’s digital lives are turning them into much different creatures from us – and not necessarily for the better.† – Dalton Conley, Time Magazine Imagine a world without technology. It is almost impossible to do and might even cause the average Millennial some major anxiety. Every day we use it whether it is our cars, phones, shopping, games and most importantly in the education of students. Homework, class assignments and grades are accessed via blackboard for students as early as kindergarten. Most elementary aged children have no idea what is like to do research the â€Å"good old fashioned way† with books from a library that they found using a card catalog. The days where children came home did†¦show more content†¦This consumption can lead to lack of exercise and time physically active. According to The National Center for Education Center, most students spend an average of 6  ½ hours at school each day with 45 minutes to 1 hour of P.E (physical education) (2008). That is a lot of time spent sitting down using digital devices. It is quite remarkable but is leading our children down a familiar path to a sedentary life. Childhood obesity has reached epidemic proportions in the United States (US) – approximately 17% of children ages 6-11 and 21% of children ages 12-17 years old are obese ((Taverno Ross, Dowda, Dishman, Pate, 2016, p. 352). We are asking our children to be confined to classroom glaring at a screen all day which can cause deterioration of eye health. It is mainly attributing it to sitting for hours in front of a computer screen. 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