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| | | Real-time supply chain
To deal with the driving trends, companies are forced to
change the way they handle the supply chain. In the real-time supply
chain, order data are shared among supply chain partners using integrated
information systems and high-speed communication infrastructure. The
parallel access to the order data allows collaboration and coordination of
supply chain activities. |
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| In the figure above (from S. Boyson, T. Corsi, eCourse;
Managing the real-time supply chain, introduction module), the sequential
manner of doing business is made clear. Two situations are possible. In a
made-to-stock supply chain the order proceeds directly to the warehouse
for fulfillment. The order will be picked from the stock and prepared for
transport. Now the production factory will be notified of the change in
stock and in result replenishment is necessary. In the situation of
made-to-order the order goes to the production facility. Production
planners need to check raw material inventory and possibly contact
suppliers to procure additional material. Every time period the forecast
is adjusted based on actual demand and suppliers receive the new forecast
to adjust theirs. The finished products are finely shipped to the
customer. |
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The figure above gives an image of the real-time supply
chain. After the customer submits the order all parties are informed
parallel. Due to integrated information systems and high-speed
communication infrastructure, the inefficiencies will be addressed. In a
real-time supply chain, the customer will order via an Internet web site.
Automatically manufacturing and production systems are triggered to
inventories, and a prediction is made when the product can be ready. The
direct communication goes beyond the focal company to suppliers for
automatic reordering and possible alternative suppliers are contacted. The
forecasts are adjusted immediately on the actual orders. The customer is
provided with up-to-date information about the status of the order.
By
effective coordinating and communicating, all supply chain partners will
benefit from real-time supply chain management. This new approach is
enabled by new technologies. The combined innovations in telecommunication
and applications have allowed the emergence of real-time supply chains.
The motivation behind the real-time supply chain is to let the supply
chain serve the customer. |
| Literature
Boyson, S., T. Corsi, M. Dresner and L. Harrington,
Logistics and the Extended Enterprise: Benchmarks and Best Practices
for the Manufacturing Professional, John Wiley & Sons,
1999.
Boyson, S., L. Harrington, and T. Corsi, In Real Time :
Managing the New Supply Chain, Praeger Publishers, 2004.
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