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7 Principles of SCM.

1. Businesses should segment customers and adapt supply chains based on customer needs, which may not always be clear. Customers should also be anticipated. 2. When segmenting customers, logistics networks also need to be customized to better serve customer segments. 3. While information sharing is important, in reality only some companies like Walmart actively share demand data with partners. Standardization can help save costs but differentiation is also important.

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Grace Uy
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136 views

7 Principles of SCM.

1. Businesses should segment customers and adapt supply chains based on customer needs, which may not always be clear. Customers should also be anticipated. 2. When segmenting customers, logistics networks also need to be customized to better serve customer segments. 3. While information sharing is important, in reality only some companies like Walmart actively share demand data with partners. Standardization can help save costs but differentiation is also important.

Uploaded by

Grace Uy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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7 PRINCIPLES OF

SUPPLY
CHAIN
MANAGENT
7 PRINCIPLES
1. ADAPT SUPPLY CHAIN TO
CUSTOMER'S NEEDS

• Segmentation is the process of putting people into different groups to learn more
about them. ABC analysis is used in inventory management to divide people into
groups based on how much they sell or how profitable they are. Anderson et al.
said that customers are divided into groups based on their service needs, such as
sales and merchandising and order fulfillment needs. However, customers may
not know what they need until their rivals offer something different. This lesson
is that businesses should also try to anticipate what the customer wants.
2. CUSTOMIZE
LOGISTICS NETWORK
• When you segment customers by service need, you have to
modify several logistic networks. This can help businesses better
understand their customer base and cater to their needs.
3. ALIGN DEMAND
PLANNING ACROSS
SUPPLY CHAIN
• People who work in the supply chain are taught to share demand
information with trade partners so that no one has to keep extra
inventory. This rule is true most of the time. But in real life, only
Walmart actively shares demand data with trading partners.
4. DIFFERENTIATE
PRODUCTS CLOSE TO
CUSTOMER
• "Standardization" is opposing "Differentiation". For instance, some cosmetics
manufacturers design goods and choose packaging and labeling that comply
with many Asian nations' standards. They only create one SKU that can be sold
in 15 countries instead of one per country. They can save purchasing costs and
improve international business operations by standardizing products.
Standardization is also important.
5. OUTSOURCE
STRATEGICALLY
• This idea has been shown to be true over time. Avoid
outsourcing your main skill. The infographic "7 Pitfalls of
OUtsourcing and How to Avoid Them" provides further
information about outsourcing.
6. DEVELOP IT THAT SUPPORT
MULTILEVEL DECISION
MAKING
• Business process reengineering should not be done in isolation and
should be done before an IT project. This will help you figure out
what kind of technology you need by giving you a clear picture of
any flaws in the process.
7. ADOPT BOTH SERVICE
AND FINANCIAL METRICS
• Activity-based costing (ABC) was recommended by
Anderson et. al. to be adopted to calculate the
profitability of your customers. ABC notion does have
an intriguing twist, through.
THANK YOU!

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