To Achieve Success Such as Reducing Operating Costs,improving Asset Productivity

question 34

Essay

To achieve success such as reducing operating costs,improving asset productivity and compressing order cycle time,an organisation should follow the seven principles of SCM.These seven principles run counter to previous built-in functional thinking of how companies organise,operate and serve customers.Old concepts of supply chains are typified by discrete manufacturing,linear structure and a focus on buy-sell transactions ('I buy from my suppliers;I sell to my customers').Because the traditional supply chain is spread out linearly,some suppliers are removed from the end customer.Collaboration adds the value of visibility for these companies.What are the seven new principles of SCM that organisations should follow?

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Definitions:

Common Assumptions

widely held beliefs or premises that are often accepted without evidence or questioning.

Rule Changing

The process of modifying the guidelines, policies, or laws that govern behavior within an organization or society.

Final Application

The ultimate or last step in a process or series of actions, typically involving the practical or concrete use of a concept, tool, or product.

New Product

A product that has been recently developed or introduced to the market, offering new or enhanced features.