Surviving Supply Chain Integration Strategies for Small Manufacturers (2000) / Chapter Skim
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6 Quality, Cost, Service, and Delivery
6 Quality, Cost, Service, and Delivery
Pages 50-58
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From page 50... ...
They are still the cornerstones of integrated supply chain requirements for SME participation, although some aspects of these requirements are changing as integration levels increase. QUALITY Customer expectations are rising, and to remain competitive, OEMs are demanding higher quality from their suppliers.
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From page 51... ...
Thus, SMEs may reap benefits by exceeding the quality levels required by supply chains. Most integrated supply chains require that participants have a carefully reasoned and executed quality plan that includes concerted efforts to provide levels of quality appropriate to the market being served.
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From page 52... ...
Recommendation. In response to the requirements of integrated supply chains for improved quality, small and medium-sized manufacturing enterprises should adopt quality as a competitive strategy and consider implementing techniques, such as six sigma, ISO certification, and statistical process controls, to comply with customer demands, improve overall business performance, and provide a common language for communication on quality issues.
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From page 53... ...
Several companies have sprung up to conduct online auctions that pair worldwide buyers and sellers. FreeMarkets, for example, which conducts structured bidding events for industrial products, brokered more then $500 million worth of goods in 1998 and expects to handle three times as much in 1999.
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From page 54... ...
ABC assigns job costs based on the actual use of resources, enabling firms to price their products appropriately, determine in which markets they can compete effectively, make better capital allocation decisions, and calculate the incremental costs associated with potential courses of action. The implementation of ABC requires the following steps: · creation of a conceptual outline of the firm's cost-flow patterns · development of a day-to-day activity-based cost accounting system that collects the costs associated with each product or process · construction of a computer-based cost accumulation model that simulates the activity-based cost flows
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From page 55... ...
This practice can be used to reduce inventory levels and the probability of obsolete inventories. Other supply chains have succeeded in redeploying, consolidating, or sharing warehouse space and inventories among participants to reduce overall costs to the chain.
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From page 56... ...
Manufacturing supply chains can benefit from integration with logistics providers/carriers, many of whom offer services that can reduce supply chain costs and increase overall performance. Reduced transportation costs, shorter in-transit times, and value-added services can be major factors in improving the competitive position of the supply chain.
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From page 57... ...
SERVICE Customer expectations for timely service before, during, and after a sale continue to increase and, aided by the Internet and modern transportation methods, suppliers are responding to these demands. Web sites are being used to post all manner of nonproprietary information, including maintenance manuals, service bulletins, and responses to frequently asked questions.
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From page 58... ...
Recommendation. In response to increasing customer expectations for service and support, small and medium-sized manufacturing enterprises (SMEs)
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