Effectiveness First and Efficiency Next. Organizations have to be effective and efficient simultaneously. Processes have to be effective and efficient simultaneously. Operations have to be effective and efficient simultaneously.
Lesson 167 of Industrial Engineering ONLINE Course.
Lesson 166 Supply Chain Industrial Engineering and Cost Reduction - Productivity - Quality Management
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Supply Chain Efficiency - Supply Chain Waste Elimination
Defining supply chain efficiency
Labs (2010):
Supply chain efficiency must ensure that it upholds the promise to the customer while eliminating
non-value-add or waste in the process. Supply chain efficiency, therefore, is the measure of getting
the right quality product to the right place at the right time at the least cost.
Stephen Halula, CDC Software’s manager-supply chain consulting
Providing the right product in the right quantity to a customer when desired, at a fair price with a
fair margin, adapting to market changes, remaining flexible enough to accommodate problems as
they are encountered, and providing adequate information to all parties (customer, management,
manufacturing).
Jim Stollberg, VP Strategy and Business Development, HK Systems:
“Supply chain efficiency must ensure that it upholds the promise to the customer while eliminating non-value-add or waste in the process”.
Pettersson (2008)
“The most efficient supply chain has the lowest possible cost and at the same time meets the customer’s expectations on service like delivery precision and lead time.”
Collin (2003) “Success of supply chains are composed of customer service, Capital employed, Total cost.”
Beamon (1999)
“Efficiency is the measure of how well the resources are utilized.”
Christopher (1998) “The future market leaders will be the ones that have achieved cost and service leadership.”
Dornier (1998) , “The overall objective of any logistics system is to maximize profitability.”
Bowersox and Closs (1996) “the relationship between customer services level and the cost is important.”
Supply chain efficiency has to be defined for a given service level. Effectiveness is the first performance dimension for any managerial activity. The performance level has to satisfy the customers of a target segment of a product or service. Then the efficiency dimension related to resource usage comes. If the effectiveness is not there, then sales will not happen in the target segment, the activity is a complete waste. If effectiveness is there, then efficiency engineers, industrial engineers can make efforts to redesign engineering elements to increase efficiency without affecting the current effectiveness.
Inventory reduction in the supply chain will increase productivity of the supply chain inventory and therefore increases supply chain efficiency.
Identifying Inventory Barriers to Flow. Value Stream Mapping - Origins - Evolution and Applications
Articles and Papers Related to Supply Chain Efficiency Improvement - Supply Chain Waste Elimination
2022
Intralogistics: are they the ultimate efficiency lever in supply chain management?
Intralogistics: an often overlooked aspect of the supply chain
Intralogistics is best defined as the logistic processes within a factory, including warehousing, material flow, transportation, as well as the picking and commissioning of final products for customers. Providing the material for production and assembly is critical for meeting manufacturing schedules and driving an efficient production unit. The shorter product lifecycles caused by the changing consumer behaviors and the individualization of demand have a severe impact on production processes and structures. Thus, production and assembly lines must be more adaptable to cope with smaller production lots and frequent changes in production schedules.
Intralogistics — especially the provision of material and parts for production — must adapt to these changes to provide smooth deliveries to the production and/or assembly line.
By Stephan Zimmermann, Global Head of Incubator Portfolio Industry Manufacturing
Posted on: January 17 2022
2021
A Simpler Way to Modernize Your Supply Chain: How to spend less and accomplish more
by David Simchi-Levi and Kris Timmermans
From the HBR Magazine (September–October 2021)
Segmented strategies involving either responsivess or efficiencies or hybrid with bias are proposed in this paper.
Sep 13, 2021
Three Ways IT Leaders Can Help Boost Supply Chain Efficiency
Deb Gildersleeve, Forbes Councils Member
Innovation
CIO at Quickbase, overseeing IT strategy and working to build businesses that can outpace change with lasting digital transformation.
https://www.forbes.com/sites/forbestechcouncil/2021/09/13/three-ways-it-leaders-can-help-boost-supply-chain-efficiency/
Supply chain efficiency framework to improve business performance in a competitive era
Saurav Negi
Abstract
Purpose
The main aim of this paper is to develop a supply chain efficiency framework to improve overall business performance in the competitive era. This paper offers a critical literature review on supply chain efficiency that aims to reveal the basic research that has been carried out, the problem areas and requirements for the efficiency in the new era of the supply chain.
Design/methodology/approach
The methodology followed during this research involves beginning with a wide base of articles lying at the supply chain intersection, performance measurement topics, and then screening the list to concentrate on supply chain efficiency.
Findings
Findings show that supply chain efficiency in the modern era remains an open research field. This research contributes to the supply chain literature by clarifying the supply chain efficiency definition, defining key measurements and variables for supply chain efficiency and developing a supply chain efficiency framework to improve overall performance.
Management Research Review
Volume 44 Issue 3, 2021
Feb 10, 2021
(650 views) for comparison
Tap Your Supply Chain For Cost Savings And Efficiency
Paul L. Gunn, Jr.Forbes Councils Member
Founder & CEO of KUOG Corporation which specializes in Logistics for the DoD and private sector for MRO, PPE and material support.
https://www.forbes.com/sites/forbesbusinesscouncil/2021/02/10/tap-your-supply-chain-for-cost-savings-and-efficiency/
Cutting costs top operational challenge for manufacturers
Will Green, News editor of Supply Management
31 July 2020
The rising cost of raw materials and components is the main economic challenge for manufacturers in the UK. A report by consultants Delaware said a survey showed a third of firms (33%) identified rising costs as the key challenge, followed by the rising cost of shipping goods (22%). The survey found a quarter (26%) of firms said reducing operating costs was among the top operational challenges they faced in their supply chain, followed by getting products or services to market quicker (22%) and improving product quality (21%). The research took place in January and February, ahead of the full coronavirus pandemic.
Supply chain challenges - cost reduction remains a high priority
We recently surveyed companies who advised that in both the current time frame and the five-year outlook, the key focus is cost reduction.
The supply chain has a disproportionate influence on product profitability, since sourcing options, handling characteristics and customer behaviours all build to erode gross margin, yielding a far lower net margin than expected. Often the real drivers of cost in the supply chain are not really visible, and true costs not considered within commercial pricing decisions.
Coordinating a Supply Chain When Manufacturer Makes Cost Reduction Investment in Supplier
Shilei Huang, Hong Fu, and Yongkai Ma
School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, Sichuan 611731, China
Correspondence should be addressed to Hong Fu; hongfu (at) uestc.edu.cn
Accepted 11 May 2016
Hindawi Publishing Corporation
Discrete Dynamics in Nature and Society, Volume 2016, Article ID 4762397, 8 pages
http://dx.doi.org/10.1155/2016/4762397
Posted in 2012
Supply Chain Efficiency - Concept and Measures
Exploring Efficiency and Effectiveness in the Supply Chain - Conceptual Analysis
http://impgroup.org/uploads/papers/4670.pdf
Measurement of Efficiency in a Supply Chain'
Doctoral Thesis
http://pure.ltu.se/portal/files/2331159/LTU-LIC-0851-SE.pdf
Supply Chain Responsiveness and Efficiency – Complementing or Contradicting Each Other?
http://www.systemdynamics.org/conferences/2006/proceed/papers/MINNI308.pdf
Measuring Supply Chain Efficiency - DEA Approach
Indian Pharma Industry - 2012 paper
http://www.joscm.com.br/download/JOSCM_VOL5_NUMBER1_4.pdf
Ilsuk Kim, Hokey Min, (2011) "Measuring supply chain efficiency from a green perspective", Management Research Review, Vol. 34 Iss: 11, pp.1169 - 1189
http://www.emeraldinsight.com/journals.htm?articleid=1959373
Measuring Supply Chain Efficiency and Congestion - DEA approach - Shipping
2003
http://www.engineeringletters.com/issues_v18/issue_4/EL_18_4_08.pdf
How SCOR Model Enhances Global Supply Chain Efficiency and Effectiveness
http://ihome.ust.hk/~al_mtm/files/How_SCOR_Model_Enhance_Global_Supply_Chain_Efficiency_Effectiveness.pdf
An Approach towards Overall Supply Chain Efficiency - MS Thesis 2002
https://gupea.ub.gu.se/bitstream/2077/2360/1/gbs_thesis_2002_29.pdf
Lean Supply Chain
Lean supply chain. The aim is to reduce the total cost of the supply chain-removing waste and creating the most value for the customer.
Improving Supply Chain Efficiency
Combining Lean and Agile Supply Chain - 2011 Paper
http://www.academicjournals.org/ajbm/PDF/pdf2011/4Sept/Banihashemi.pdf
Supply Chain Cost Reduction - Book by Amacom
http://nraomtr.blogspot.in/2011/11/supply-chain-cost-reduction.html
Lean Supply Chain - Concept, Development and Design
Lean Thinking for the Supply Chain
Tompkins
http://www.tompkinsinc.com/article/2004/lean-thinking-supply-chain/
Seven Steps to Building a Lean Supply Chain
Mandyam M. Srinivasan
Mandyam M. Srinivasan is The Ball Corporation Distinguished Professor of Business at the University of Tennessee. He is the author of the book, Streamlined: 14 Principles for Building and Managing the Lean Supply Chain.
http://www.industryweek.com/planning-amp-forecasting/goal-lean-supply-chain
From Lean Manufacturing to Lean Supply Chain: A Foundation for Change
2004 Paper by Lawson, USA
http://swe.lawson.com/www/resource.nsf/pub/Lawson_Whitepaper_2_A4_LowRes.pdf/$FILE/Lawson_Whitepaper_2_A4_LowRes.pdf
Understanding the Lean Supply Chain - Beginning the Journey
2005 Report on Lean Practices in Supply Chain
APICS - ORACLE - Georgia Southern University
http://coba.georgiasouthern.edu/centers/lit/oracle_WP_supply_chain_r6.pdf
Lean practices in the supply Chain - 2008 Survey
Jones Long LaSalle Report - with participation of APICS, Georgia Tech, and Supply Chain Visions
http://www.joneslanglasalle.com/Documents/JLL-LeanPracticesInSupplyChain.pdf
Lean in Supply Chain Planning - 2011 Report
Cap Gemini
http://www.capgemini.com/m/en/tl/Lean_in_Supply_Chain_Planning.pdf
Lean Supply Chain Road Map - Book Chapter - McGraw-Hill - 2011
http://www.mhprofessional.com/downloads/products/0071771212/0071771212_ch01.pdf
http://logistics.about.com/od/supplychainintroduction/a/Lean_SCM.htm
Webinars by Georgia Tech
Becoming a Lean Supply Chain Professional - Episode 1
Becoming a Lean Supply Chain Professional - Episode 2
https://www.scl.gatech.edu/resources/whitepapers
https://logistics.gatech.pa/en/education/courses#warehouse-layout
Analytics and Risk Management for Supply Chain Efficiency
http://www.verisk.com/Verisk-Review/Articles/Analytics-and-Risk-Management-for-Supply-Chain-Efficiency.html
From Supply to Demand Chain Management: Efficiency and Customer Satisifaction
2002 - JOM article
http://info.cba.ksu.edu/sheu/MANGT662/MT662_SC%20Reading/Demand%20chain%20Heikkila.pdf
USING SUPPLY CHAIN EFFICIENCY IN PORTFOLIO SELECTION
http://asbbs.org/files/2011/ASBBS2011v1/PDF/F/Farahbod.pdf
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Supply Chain Efficiency - Company News and Reports
Unilever supply chain efficiency, 2009
http://www.logisticsit.com/articles/2009/05/05/4342-unilever-supply-chain
Ud 28.5.2022, 8.2.2022, 1.2.2022, 17.10.2021, 2020
Pub 11.10.2012
Thanks for including me! Those are all blogs that I read regularly too.lean manufacturing certification
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Great information...!! and you must need to know the The Importance Of TMS In Green Supply Chain
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