service requirements and profitability of the customer segments identified (Moore, n.d). Third party company normally refer as Outsourcing and normally to provide organization a competitive advantage by delegating business process to external agencies and benefits of low labour, better quality and improved innovation. However, possible disadvantages often dwelled upon: ? Loss of control over a company’s business processes and loss of core knowledge (Bucki, 2018). ? Problems related to quality and turnaround time. ? Sluggish response times and slow issue resolutions especially during reverse supply chain. It is important to listen market demand data from trading partners in order to avoid unnecessary stock. Generally, this principle holds true; but not many enterprises do, only Walmart is actively sharing the demand data with trading partners (Walmart, n.d.). I agree with Demand planning is association with Forecasting. The intention of doing business is to make profit. We do feasibility study to check demand viability/availability. Overstock will be definitely happened if lack of attentive to sales forecast cum production forecast for products manufacturing. Therefore, sales and operations planning (S;OP) must span the entire chain to detect early warning signals of changing demand in ordering patterns. For example, if demand data is not shared, speculation will be emerged. According to below diagram, the retailer just demands for 100 units, but each player tends to keep stock more and more at every step of the way. This results in higher costs for everyone in the same supply chain. When information is shared from retailer down to supplier, everyone doesn’t have to keep stock that much. The result is cost saving for everyone. Companies nowadays no longer can afford to stockpile inventory to compensate for possible forecasting errors. Instead, they need to postpone product differentiation in the manufacturing process closer to actual consumer demand (Muzumdar, Colehower, Pernat & Matthews, 2003). In my working experience, I have learnt that some engine makers customised the engines based on customers’ specification. The engine makers do keep components or spare parts for about seven years and assembles them only after a customer places the order so that to increase the product variety; regardless the engine model has been changed. The principle of Differentiate Products Close to Customer is true, but, there is another principle that we should consider which is “standardization”. For example, some cosmetics manufacturers formulate products and choose a packaging and labelling that complies with the regulations of multiple countries in one cluster location, such as Asia. Perhaps, they only make one stock keeping unit (SKU) that can be sold in 15 countries instead of one SKU per Country. By standardizing product appropriately, manufacturers can drive the cost down drastically due to the economy of scale. Therefore, standardization is something that we should consider. Information Technology (IT) provides a powerful set of tools and depending on its utilization as it can lead to failure or success of supply chain process. The competitive advantage for IT provide inventory solutions and offer a methodological framework that could address a wider spectrum of strategic SCM related problems and lead to quick solutions for ideal decision making. This allows information sharing not just within the functional divisions of a company but also upstream and downstream of the supply chain. In my opinion, there are strengths and weaknesses of IT support, for examples: The strengths can be automated process in Manufacturing and Inventory System, however, it could be also lack of communication between departments for the useful stocks because of poor management. The pyramid diagram that created by Andersen (Exhibit 4 in the Article), the processes might be aligned with requirement, however, the entire process could be very complex. If the operation such as purchasing and transaction management are not established, it could be causing inefficiency and low improvement level. Hence, the IT infrastructure is supported by advanced technologies limited to internal supply chain management, but it may be useful for a bigger business environment in order to obtain better results. SCM has become an important management model. But, uncertainties in SCM arises as the internal data is unknown to the suppliers, regarding the sales patterns, stock levels, and planned deliveries. Even when the demand is stable, random factors also tend to make the demand to be more cyclical and variation. This phenomenon, in which orders to the supplier tend to have larger variance than sales to the buyer and the distortion circulates upstream in an amplified form is called the bullwhip effect, for example, the manufacturer incurs excess raw materials costs or material shortages due to poor forecasting; incur additional manufacturing expenses by excess capacity; inefficient utilization and overtime or excess warehousing expenses due to high stock levels. Therefore, segmentation strategies shall apply to reduces demand uncertainty and to improve the reliability of customer service while increasing profitability across company product range. JIT is widely applicable in Purchasing and Integrated Logistics; Inventory Planning and Control. It is ensuring that when inventory level is running low, materials shall be available for production in order to cut down wastage; by supplying necessary parts only as and when the production required them. Safety stock is required and standby for contingency use. In order to stay competitive advantage, develop IT infrastructure for supporting critical role in facilitating timely sharing of planning, production and purchasing information; capturing and analysing production, distribution and sales data. Make use of the integrating tool that convert data into meaningful information of business processes. Outsourcing offers the potential business advantages but usually not outsource the company’s core competence. In order to get the utmost from any outsourcing plan, organization must prepare for the challenges by assessing its outsource maturity. The applying of Seven Principles of Supply Chain Management is necessary for the effective design and execution of supply chain systems. By actively pursuing only a subset of the principles, companies will not likely succeed in achieving expected supply chain performance improvements. Business processes and rules must be tailored to the specific


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