What is the difference between an efficient and a responsive supply chain?
We characterize supply chains as efficient or responsive. 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.
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.03-Jan-2018
What is responsive supply chain?
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.
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.
What is an example of efficient supply chain?
Six effective supply chain examples. For efficient supply chains, Amazon is the company that first comes to mind for many people. Amazon is one of the largest internet-based retailers in the world, with the headquarters in Seattle Washington, Amazon also currently operates from thirty other country-specific sites.12-Feb-2018
The primary purpose of the supply chain is to fulfill demand, drive customer value, improve responsiveness, facilitate financial success and build a good network. Most primary goals of efficient supply chain management should be – faster delivery, Higher efficiency, and an accelerated cash flow.
What does supply responsiveness mean?
We define a responsive supply chain as one that has flexibility to evolve with the expected and to react quickly to the unexpected.22-Sept-2020
“Responsiveness usually results to effectiveness and efficiency”. It is true that responsiveness will results to effectiveness and efficiency, because for the corporation to meet the stakeholders need, the corporation is required to be responsive to the stakeholders need and demand in a reasonable timeframe.
Is Apple a responsive supply chain?
Strong Supplier Relationships By focusing on maintaining strong relationships with its supply chain partners, Apple can provide great flexibility in response to demand surges. This, paired with Apple's large production capacity, allows them to provide products when and where customers want them.30-Jun-2020
5 Ways to Build a Responsive Supply Chain
How can I make my supply chain responsive?
4 Ways to Develop a Demand-Responsive Supply Chain
Supply chain responsiveness has also been described as the capabilities of the supply chain to efficiently and effectively respond to the dynamics that affect the customers of an organisation by reacting swiftly to the market requirements that keep on changing (Gunasekaran et al., 2008).16-Feb-2021
What company has an efficient supply chain?
Walmart's supply chain is often touted as one of the most effective in the world.24-Sept-2021
DOS is the most common KPI used by managers in measuring the efficiency in supply chain. It is calculated by dividing the average inventory on hand (as value) by the average monthly demand (as value) and then multiplying it by thirty, when measuring on a monthly basis.13-Aug-2019
How can supply chain performance be improved in terms of responsiveness and efficiency?
How to improve supply chain efficiency in 7 steps
The typical workflow within Coca-Cola supply chain: The Coca-Cola Company headquarters in Atlanta manufacture the concentrated syrup and sell it to Coca-Cola Enterprises (CCE) or another bottling partner, which is responsible for selling the product in North America and Canada.11-Dec-2018
What type of supply chain does Apple use?
How does Apple run its supply chain operations? In a nutshell, Apple purchases components and materials from various suppliers, then gets them shipped to the assembling plant in China. From there, products are shipped directly to consumers (via UPS/Fedex) who bought from Apple's Online Store.15-Apr-2020
Apple has a number of exclusive long-term agreements with its key suppliers and uses prepayments to negotiate favourable pricing terms, secure strategic raw materials and guarantee high volumes of production. Apple has also diversified its supply chain to include new manufacturing partners in China and Taiwan.
What is responsive business model?
The responsivebusiness model seeks to reduce or eliminate forecast reliance by joint planning and rapid exchange ofinformation between supply chain participants (Bowersox, Closs and Cooper, n,d,). Managers shareinformation to improve forecasting accuracy.
The Gartner Top 25 Supply Chain Companies for 2021
Is Amazon a supply chain?
Now, however, Amazon is one of the fastest-growing companies with one of the best supply chain operations in the world. Amazon's current supply chain model is similar to the model back in 1995 when the company only sold books online.23-Feb-2021
What is the difference between an efficient and a responsive supply chain?