Supply Chain Strategy For a Specific Product

[SUPPLY CHAIN STRATEGY FOR A SPECIFIC PRODUCT]
Demand Generation for the Product Seco Herrerano and the Product Supply Chain Using Fisher´s and Lo Articles.
Demand Generation for the ProductSeco Herrerano and the Product Supply Chain Using Fisher´s and Lo Articles.
Description of the Demand Information Generation and how it flows into the Supply Chain.
- Statistics Data &Holydays Calendar
Demand is predictable so it is not depend:
- The product life cycle is up to ten years
- Lower contribution margin (p-cv)/p
- It’s one category of product
- Has a low averagemargin of error in the forecast at the time
- Production is not committed
- Low average stockout rate
- Does not present product markdowns due to seasonability.
- Has a wide range for leadtimes.
The following graphic describes how each node deal with customer orders:
Product supply chain strategy:
- Functional: The Company creates a scheduling for assembling, production anddistribution allows reducing the inventory and maximizing the production efficiency.
- Physical Efficient: the primary purpose of the efficient supply chain strategy is to supply predictabledemand efficiently at the lowest possible cost.
The manufacturing focus is to maintain high average utilization rate with high turns minimizing inventory. Achieving the objectives mentioned ispossible to reach shorten lead times.
Group Position: The group describes this product as functional with an efficient SC Strategy, just adding that due to the globalization trends mostfunctional products have had to implement responsive SC characteristics not only reducing costs but increasing quality with speed and flexibility responding quickly to unpredictable demands. We thinkLo´s investigations results that companies are using hybrid supply chain strategies are due to technological tools, nowadays, allow firms to hear customer´s voice to achieve competitiveness.