The Role of Technology in Supply Chains - Free Essay Example

Sample details Pages: 8 Words: 2280 Downloads: 5 Date added: 2017/06/26 Category Business Essay Type Analytical essay Level High school Did you like this example? Introduction This short paper aims to describe the role of technology in supply chains and assess its advantages and disadvantages. Supply chain management comprises the active management of organisational procurement, logistics, production and distribution activities for the maximisation of customer value and achievement of competitive advantage (Carter Rogers, 2008). It concerns the effective and optimal management of goods from the procurement of raw materials from basic suppliers to the delivery of products to ultimate consumers, and even beyond in terms of the return or the consumption or disposal of such goods (Carter Rogers, 2008). Don’t waste time! Our writers will create an original "The Role of Technology in Supply Chains" essay for you Create order Several developments in recent years have however resulted in significant changes in organisational attitudes towards supply chains, sharply enhanced focus upon the area, and efforts for increasing the effectiveness of the SCM function (Chopra Meindl, 2012). Various geopolitical and socioeconomic developments like the growth of a unipolar global order, the dominance of market-oriented economic activity, globalisation, economic liberalisation, and tremendous advances in transportation and communication technology, have resulted in enormous expansion of markets and the dispersal of production and manufacturing centres (Chopra Meindl, 2012) With organisations engaging in sourcing of raw materials, production, research and development and sales and marketing in geographically distant locations, modern firms are placing great stress upon optimising the efficiencies and cost effectiveness of their SCM functions (Ghorban, 2011). Such organisational focus on enhancement of SCM effect iveness has also led to constant efforts for technological up-gradation and introduction of new technologies for optimisation of supply chain and enhancement of organisational competitiveness (Kremian, 2013). This paper describes and discusses some of these modern SCM technologies, the reasons for their induction and their merits and demerits. It attempts to detail the advantages and disadvantages of new technological introductions in SCM, making use of theory as well as several practical applications, especially in the area of warehouse management. Introduction of New Technologies in SCM Activities and Processes Ghorban (2011) stated that technology has crept into SCM in a gradual and progressive manner, commencing with actions like electronic invoicing, computerised tracking and shipping and automated notifications and moving on to diverse and numerous other applications. Such incorporation of new technologies is being driven by diverse forces, like increasing customer expectations, intensification of competition, increasing fuel costs and greater demand for inventory control and Just in Time (JIT) management (Faze, 1997). It is important to appreciate that contemporary technology has extensive capabilities, with regard to ensuring organisational production in line with schedules, the anticipation and correction of mistakes and the making of modifications for guaranteeing top quality products (Intermec Technologies Corporation, 2007). Each and every link in a supply chain can be simultaneously monitored and automated notification systems can be used for sending messages to diverse play ers through different channels (Intermec Technologies Corporation, 2007). Some of the top trends and technologies impacting supply chain operations, spanning production, distribution, retailing and remote servicing include (1) comprehensive connectivity, (2) voice and GPS communication integrated to rugged computers, (3) speech recognition, (4) digital imaging, (5) portable printing, (6) bar-coding advances, (7) remote management and (8) wireless and device security (Cohen Roussel, 2013). Taking up the case of voice and GPS communication, leading cellular carriers have certified the utility of rugged hand held computers, which facilitate voice communication, data connection and cell phone functionality through one device (Cohen Roussel, 2013). Stanley Steemer, a carpet cleaning franchisee made use of GPS and real time two-way communication to improve efficiencies, which resulted in the elimination of a fulltime despatch official at each of its branches and greatly reduced the time required for completion of process paper work (Chopra Meindl, 2012). Software programme and cloud computing have significantly improved material and product tracking, with real time updates of status now available without difficulty (Vella, 2012). These programmes furthermore allow business firms to adjust production schedules and inventory levels on a real time basis (Vella, 2012). With companies appreciating the advantages of technology incorporation in SCM, several multinational corporations have taken the lead and stand out as pioneers in the area(Intermec Technologies Corporation, 2007). The John Deere Company made use of sophisticated logistics management software to enhance its onetime shipments to dealers from 60 to 92 percent, even as it reduced its inventory by 1 billion USD(Intermec Technologies Corporation, 2007). Nike worked with DHL Supply Chain to implement radio based product monitoring for warehouse and distribution purposes and real time delivery notificatio ns, thereby reducing costs and increasing efficiencies(Ghorban, 2011). Walmart, the largest global retailer, has long been known for its SCM processes(Ghorban, 2011). The company is constantly engaged in using modern technology and network systems for predicting demand, tracking inventory levels and planning efficient transport routes(Ghorban, 2011). It is important, in this context to appreciate that the introduction of new technologies has resulted in significant alterations in the conduct of specific SCM functions, like warehouse management (Halldorsson et al., 2007)). Searching for enhancements in efficiency and profitability, modern organisations have adopted various new technologies that have resulted in significant transformations in the management of warehousing functions(Carter Rogers, 2008). The introduction of wireless technology and mobility has resulted in the development of a range of new products for enhancement of organisational productivity and profitability(Cart er Rogers, 2008). Some of these technological innovations are detailed below: Warehouse Management Systems Developments in warehouse management systems are being used to assist business firms in controlling the movement and storage of materials within warehouses (Simchi-Levi et al., 2007). Such systems are being used for diverse warehouse management functions like inventory management, including transactions like receiving, picking, packing and shipping, real-time monitoring of stocks, progression of products through warehouses and ensuring the elimination of obsolescence(Intermec Technologies Corporation, 2007). Barcode Labels and Scanners Barcode scanners, which were developed soon after the introduction of wireless technology, have become a common element of warehouse equipment (Vella, 2012). Barcode scanners are hardware devices that enable users to read barcodes, printout labels or product information and log products into the database of the warehouse management system (Vella, 2012). They are available in various types and come with different utilities (Poirier Quinn, 2006). Barcode label printers are used by warehouse managers for printing product labels, shipping labels and bin labels(Reinertsen, 2009). Easy to use and cost effective, these devices help business firms to enhance the accessibility of management and data and augment productivity(Reinertsen, 2009). Voice Hardware Voice technology has recently been introduced in the area of warehouse management (Poirier Quinn, 2006). These devices are now being used by firms to determine and finalise the amount of goods to be picked up (Vella, 2012). Voice hardware devices are fastened to wireless computers, with the data being transmitted to the device at the time of picking an order to ensure that the picker knows the product and the amount of items to be picked (Simchi-Levi et al., 2007). Several companies have started incorporating voice hardware, despite its costs, in order to save time(Ghorban, 2011). Mobile Computers Mobile computers are basically barcode scanners with their own display screens and operating systems(Reinertsen, 2009). The hardware for these products has been designed to ensure that they can function like portable PCs with barcode scanning capabilities(Ghorban, 2011). With mobility becoming increasingly desirable, organisations are adopting mobile warehouse management solutions(Ghorban, 2011). Such devices are proving to be extremely beneficial for organisations wishing to enhance accessibility to real time data and employee productivity (Poirier Quinn, 2006). Advantages and Disadvantages of Introduction of New Technology in Supply Chain Management There is little doubt of the various advantages that can arise for companies from the adoption of new technology (Poirier Quinn, 2006). Several firms have been able to achieve significant reductions in costs through the use of barcodes, advanced picking and other technologies in order to leverage their warehouse and transportation management systems (Poirier Quinn, 2006). Several organisations have made use of advanced planning and scheduling systems for bringing about dramatic reductions in inventory levels and improving customer service (Poirier Quinn, 2006). Pujawan (2004) stated that the introduction of new technology was likely to result in enhanced costs, disruption of work and the need to learn new things and eliminate old practices. He furthermore stated that modern businesses have, despite these challenges, been able to apply technology to convert their supply chain into profit generators through the reduction of costs and inventory levels and the enhancement of custome r service (Pujawan, 2004). Coke, for example, upgraded its demand planning and collaboration capabilities into 2005 through the introduction of new inventory management processes, supported by software(Ghorban, 2011). This enabled the firm to improve fill rates by 15% and reduce inventory levels by 50%(Ghorban, 2011). The organisation was able to simultaneously absorb a 300% increase in product offerings, which resulted in a surge in profits through the reduction of assets and the support in enhancement of revenues through greater product availability(Ghorban, 2011). The introduction of new technologies in SCM must however be carried out with great care and thought and in accordance with organisational requirements (Pujawan, 2004). New devices and system are expensive to purchase and install (Pujawan, 2004). Their utilisation furthermore calls for significant training and haphazard and unplanned implementation can result in a number of organisational problems(Carter Rogers, 2008) . Investigation into the problems and disadvantages of introduction of new technology into SCM revealed that several organisations have faced different types of problems on this account(Carter Rogers, 2008). A retailer specialising in childrens toys, for example, exceeded both the time schedule and the budget in the implementation of a new fulfilment system(Carter Rogers, 2008). The occurrence of the Christmas demand spike before the completion of the fulfilment system led to severe challenges in the processing of orders (Sharma, 2010). Whilst organisational employees worked for 50 days at a stretch without holidays to satisfy customers, the firm was forced to delay deliveries till after Christmas to thousands of their buyers(Carter Rogers, 2008). SCM experts have stated that the width and scope of common SCM processes, like, for example, warehousing or transportation, are so extensive that the introduction of new technology was likely to involve significant costs, time and ch allenges associated with organisational change(Simchi-Levi et al., 2007). The majority of new technologies comprisedboth hardware and software and are expensive to purchase and install (Simchi-Levi et al., 2007). Organisations with limited operations and funds may thus not be able to obtain commensurate benefits from the implementation of such technologies by way of cost reduction or enhanced business (Sharma, 2010). Many of these new systems are furthermore complex in nature and take time to install and operate(Carter Rogers, 2008). With such installation likely to disrupt existing organisational operations, the managers of firms introducing new technologies have to plan their strategies in this regard with great care to ensure minimisation of operational disruption and customer dissatisfaction(Carter Rogers, 2008). It is also important to keep in mind that the introduction of new technologies is bound to result in significant changes in operational activities and possibly to re dundancy of labour, both of which could result in change resistance amongst employees and to opposition to organisational plans in this regard (Simchi-Levi et al., 2007). Conclusions The study reveals that whilst the introduction of new technologies in organisational SCM processes can result in several types of organisational benefits by way of (a) reduction of costs, (b) lowering of time, (c) reduction in inventory, (d) elimination of people and (e) enhancement of volumes amongst others, such introduction was likely to be expensive, complex and demanding in nature(Carter Rogers, 2008). Organisational managements should, in such circumstances, introduce new technologies only after ascertaining the benefits from such actions for their organisations (Poirier Quinn, 2006). Great care should also be taken in the planning, implementation and installation of these technologies, with particular regard to operational disruption and organisational change (Poirier Quinn, 2006). It has for example been explained earlier that the introduction of new technologies could help in reduction of costs through elimination of people. Such redundancies could however result in e mployee dissatisfaction and organisational strife. Organisational managements must, when introducing new technologies, take care to consider the various aspects and consequences of such actions and take appropriate actions. Lack of thought and care in these areas could result in inadequate and inappropriate implementation and extremely adverse organisational consequences (Poirier Quinn, 2006). References Carter, C., Rogers, D., (2008), A framework of sustainable supply chain management: moving toward new theory, International Journal of Physical Distribution Logistics Management, Vol. 38, Iss (5): pp.360 387. Chopra, S., Meindl, P., (2012), Supply Chain Management, 5th edition, NJ: Prentice Hall. Cohen, S., Roussel, J., (2013), Strategic Supply Chain Management: The Five Core Disciplines for Top Performance, Second Edition, NY: McGraw Hill Education. Faze, F., (1997), A comparative analysis of Inventory costs of JIT and EOQ purchasing, International Journal of Physical Distribution Logistics Management, Vol. 27, Iss (8): pp. 496 504. Ghorban, M., (2011), How Technology Can Ease Supply Chain Management and Mitigate Risk, Available at: https://www.supplychainbrain.com/content/general-scm/sc-analysis-consulting/single-article-page/article/how-technology-can-ease-supply-chain-management-and-mitigate-risk/(accessed May 27, 2015). Halldorsson, A., Kotzab, H., Mikkola, J. H., Skjoett-Larsen, T., (2007), Complementary theories to supply chain management, Supply Chain Management: An International Journal, Vol.12, Issue 4, 284-296. Intermec Technologies Corporation, (2007), Top 10 Supply Chain Technology Trends, Available at: https://www.mirnah.com/images/White_Papers/Trends_SupplyChain/Top10Tech_wp.pdf Kremian, Z., (2013), X Does it Right: Apples Supply Chain Management Secrets, Available at: https://www.supplytimes.com/inventory-management/x-does-it-right-apples-supply-chain-management-secrets/?mode=featured Poirier, C., Quinn, F., (2006), Solid Gains, Supply Chain Management Review, Vol. 10, Iss (1): pp. 35-41. Pujawan, I. N., (2004), Assessing supply chain flexibility: a conceptual framework and case study, International Journal of Integrated Supply Management, Vol. 1, Iss (1): pp. 79-97. Reinertsen, D., (2009), The Principles of Product Development Flow: Second Generation Lean Product Development, UK: Celeritas Publishing. Sharm a, S., (2010), Supply Chain Management- Concepts, Practices and Implementation, Oxford: Oxford University Press. Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., (2007), Designing and managing the supply chain, New York: McGraw Hill. Vella, D., (2012), Using technology to improve supply chain management, Available at: https://globalpurchasing.com/supply-chain/using-technology-improve-supply-chain-management

Lung Cancer The Leading Cause Of Death Caused By Cancer

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Lenovo Strategic Plan free essay sample

This thesis practices the baud five powers model theory, the value chain theory, the core competition theory and the SWOT analysis theory to analyze and study the inner and outer surroundings of Lenovo group. Company background Lenovo Group was established in 1984 in the Chinese Beijing, the company mainly produces desktop computer, notebook computer, server, printer, palmtop computer, motherboards, mobile phone and other electronic products. Is a leading global PC business, the original Lenovo and IBMs personal computer division and combination. Lenovo reelected since 1997 Chinas domestic market sales of the first, in 1994 and listed in Hongkong. Corporate positioning Associations engaged in the development, manufacture and sales of the most reliable, secure and easy-to-use technology products. Their success is the result of tireless efforts to help customers improve productivity, enhance the quality of life. Core values Customer success we are dedicated to the satisfaction and success of every customer. Innovation we pursue innovation that matters to our customers and the company, at the same time, quickly and efficiently to promote its implementation. Integrity we always trust, honesty and sense of responsibility, whether internal or external. Multiple win-wins: we promote mutual understanding, value diversity, and global perspective to look at our culture. PESTEL analysis The political environment Lenovo has strong political background and he national support. Lenovo Group was founded by Chinese Academy of science and technology investment in computing science and technology research, and the Hongkong Lenovo Inc by the Chinese Institute of science and technology of Lenovo Group and Hongkong joint venture founded. Economic environment Good economic environment, economic environment consists of factors affect consumer purchasing power and spending patterns, analysis of Chinas current economic environment, we draw the following conclusion: the financial crisis led to the economic environment of tightening, but the computer industry chain to maintain good growth trend. Social environment The social demand for products, China and the world is still great purchasing power, once the enterprise in orbit, the value of the enterprise is reflected. Technology environment Lenovo Group was founded by Chinese Academy of science and technology investment in computing science and technology research, and the Hongkong Lenovo Inc by the Chinese Institute of science and technology of Lenovo Group and Hongkong joint venture founded. Chinese Academy of Sciences, computing has more than 1800 kinds of computer professionals, strong technical strength, in the field of computer technology on behalf of the state to the highest level, known as the birthplace of China computer technology. Legal environment analysis The domestic legal support, perfect legal system Nature environment analysis. China is rich in natural resources, is conducive to the development of the manufacturing industry, traffic facilities are perfect, manufacturing centralized distribution Five powers model theory Industry potential the threat of new entrants The first is the foreign digital giants to enter the Chinese market The second is now do downstream products suppliers and retailers The third is a self-contained entrepreneurship in China PC Market The competition in the industry Industry concentration is high, growth speed, with the progress of technology, cost and not too much change All products have a clear positioning; the user is usually on the transformation of existing products. To improve the productivity of the industry The computer industry is a high profit and high risk Substitute product After Chinas entry into the WTO, foreign market to improve participation will increase the threat of substitutes for the existing professional business enterprise. The extensive use of mobile phone (Internet), reduce computer sales to a certain extent. Bargaining ability with suppliers PC is a sophisticated instrument, major CPU vendors only two, AMDINTEL, PC hard drive manufacturers have Samsung, patriotic and other main business for PC manufacturers, has weakened the bargaining power of manufacturers. Overall, most of the PC hardware are provided by the suppliers, not by the manufacturers, strong ability of PC manufacturers bargaining. But many suppliers in foreign countries, for the China PC market, local brands have obvious advantages. Bargaining ability with buyers The products’ price is cheaper, customer bargaining ability are stronger, just as Chinese domestic computer, small profits but quick turnover, the price as a competitive advantage. When it comes to high-priced products, customer bargaining ability is weak, is a price taker, but will be improved in performance and other aspects of satisfaction. SWOT analysis The strength It had gained large-scale production, reduce the cost Computer quality is high Ensure that each computer novel style, complete function Localization of strong, to adapt to market changes Has a strong sales network Excellent after sale service, high brand awareness The weakness No core technology, keep up with the trend of INTER The staff overall quality to be improved, The huge gap between the capital and the channel with the opponent Marketing means is too single, Lenovo cuts Acquisition of the IBM, the business was not fully integrated The opportunity More and more consumers buy Computer Brand computer will become fashion Home appliances to the countryside Competition, some lack of operational capacity of the manufacturers will be eliminated Application of AMD series CPU, will give the computer market live into new nourishment Application of digital technology The threat Foreign well-known computer manufacturers to establish a base in China, the competition will be more intense Acers rise Manufacturers cut one anothers throats frequent price wars The new brand computer, cause market turbulence Open market after WTO, a Foreign Company, in our country Analysis of Lenovo’s advantage novo Group has three production bases, which are located in the Beijing Shangdi, Shanghai Pudong, Guangdong Huiyang, annual production scale of 5000000 computer, realize large-scale production, reduce the cost, can resist the price war. At room temperature, high temperature test test procedures in strict accordance with the standards and technical parameters, to ensure that each factory product quality and excellent quality of computer. A huge R D syst em, ensure that every computer novel style, complete function. Localization of business to Lenovo to better understand consumer demand, adapt to market changes Has a strong sales network, and further strengthen the terminal control. By virtue of high-tech, information technology industry leading, provide cover pre-sales, sale, after sale service throughout the professional IT product service brand for its. Service to the customer to the sunlight warm, thoughtful, meticulous, omnipresent. Have a higher brand awareness. Analysis of the disadvantages of Lenovo No core technology, keep up with the trend of INTER. Company staff is numerous, the staff overall quality to be improved. Funds compared with channels and foreign competitors, there is a huge gap Marketing means is too single, difficult to move forward in the international market. Lenovo Lenovo headquarters layoffs, although that is given adjustment, but in the industry view, the profit is too low is the fundamental reason. Although the merger and acquisition of IBMs PC business, but no full integration, promote the whole development of Lenovo is not too large. Lenovo opportunity analysis The development of the domestic computer market rapidly, more and more consumers buy computer. With the improvement of peoples living level, the brand of computer will become fashion, gradually replacing assembling machine. In 2009 the government launched the home appliances to the countryside activities Competition, some lack of operational capacity of the manufacturers will be eliminated. Application of AMD series CPU, will give the computer market live into new nourishment. Application of digital technology, will be more to stimulate consumer buying computer and computer replacement Lenovo threat analysis Foreign well-known computer manufacturers (such as HP, Dell) to establish a base in China, the competition will be more intense. Acer Taiwan enterprises rise Domestic manufacturers to cut one anothers throats price war frequently cause the computer to the industry average profit rate, market price system disorder; foreign manufacturers have also joined the ranks of lower prices, has been close to the domestic manufacturers of the price, the market competition further intensified. A large number of new brand computer manufacturers have caused confusion in the market. With Chinas accession to the WTO, the market gradually opening up, foreign companies are more likely to enter the Chinese market. The policy response For Lenovo notebook product layout confusion, consumption and lack of innovation in. Lenovo notebook should integrate the ThinkPad business and Ideapad consumption in the production line, have a clear positioning, in different market increase innovation, improve the two production lines after sale service. Lenovo notebook to seize market share, blind prices reduce corporate profits, damages the high-end business machine brand awareness. Therefore Lenovo notebook with reasonable profit maximization as the goal, business and consumer the market subdivision, differentiated pricing. In order to meet the different channels, Lenovo notebook for large customer industry can build customer department, take a similar way of direct marketing Sales promotion is not enough, advertising heavily made ineffective, negative effects of two public relations crisis. So in the advertisement marketing: ThinkPad to refined style, Idea pad taken at the bombing of popularizing strategy. And to strengthen the governments relationship marketing, manufacturing media event marketing, to eliminate the negative effects of. As long as the association to cope with the market requirements, and make positive and effective countermeasures, Lenovos future will give better.