What Is The Right Supply Chain For Your Product?

What is the right Supply Chain for your product?

1. – SUMMARY CASE

At the time, several tools have been implemented for a better use of the supply chain, reconsidering to technology and the creativity, but this has not been sufficient, the inefficiency in the supply chain lies in the inability to detect the nature of the demand for their products, it can be understood that the parties involving the supply chain, from its manufacture, storage and logistics in general, as a whole.

Thus, there are several strategies to attend the vulnerabilities of the supply chain. The classification of the products in functional and innovative it is also important to understand, the relationship of these with the value chain is so essential, in the sense that if it is determined the suitable product more adequate chain would lead the success of the supply chain.

The functional product is one that meets the basic needs and that there is always a place nearby to buy, among other features this: demand is predictable, greater control of stock, its competitive sector is higher. However the same market demand innovation in design, functions etc. , which gives a competitive advantage to the company and in turn high risks, and may fall into a big problem as the inability to produce the market with your product or production in turn in excess forcing rebates and discounts of the goods of difficult sale.

The functional product supplying the basic needs and there is always a place nearby to purchase this product, another characteristic is: demand is predictable; control of stock, its sector is more competitive, generating low marginal contribution. However, the same market demands innovation in design, function, etc ., which gives a competitive advantage to the company and in turn high risks, so it’s possible to fall into a big problem as the inability to supply the market with the product or excess production, losing earnings.

The supply chain has two functions: physical and market mediation function. The first consist in crossing for each stage of the supply chain. In contrast, the second is a role reciprocated, to determine consumer interests. Your costs include selling excess production at a lower cost and the opportunity costs because they do not have product to supply the market leading consumer dissatisfaction.

In the case of functional products its mediation of market is easier because you can predict the demand; its central objective is to reduce costs with the help of planning and synchronization of activities that represent the supply chain considering competitive market prices. For the innovative products, have fragile demands increases the costs, but to a greater measure the costs of market mediation, so must to be alert in the external information that transmits the market.

According to the study correct mixing would be innovative products with response processes. But in some cases there may be a mixed game, when for the increase of competitors, the supply also increases and new products appear, it becomes the best measure to take, becoming some of the innovative products in functional products. However, this produced more, because there was no supply chain focused on the market. Another conclusion based take experimentation, is that the discounts work well to attract demand, but too much can become a karma.

As we have seen the reaction of demand is a challenge for managers forcing the development of new instruments. These can be summarized as:

• accept that uncertainty is inherent in these kinds of products",

• Reduce uncertainty

• Avoid uncertainty

2. - RELATION WITH THE TOPICS COVERED IN CLASS

The importance of logistics in the supply chain is not overrated, as well says one of his hypothesis, "logistics is a key issue for the company", as it must

...