A Journey Towards Excellence: Perfect Shift of Supply Chain Management Model to the Internet World

Topics: Supply chain management, Supply chain, Logistics Pages: 13 (3660 words) Published: October 9, 2010
A JOURNEY TOWARDS EXCELLENCE: Perfect shift of Supply Chain Management model to the Internet world

Melange of Internet and Lean supply chain techniques


The word “TRADE OFF” is always positive for any supply chain member because it has been experienced that all the supply chain models in the past and present are added more value to the chain but its negative consequences are also more outweigh than its positives. This title is cited with how the supply chain models have been transformed during last 4 decades, which is from Mass Production to Mass Customization in the different product verticals. Also, Depicted influence of strategic alliance between two corporate and its positive results as well as challenges. Described how the Japanese Auto industry is used the lean technique Just In Time (JIT) to differentiate itself from American manufacturers. This paper portray the importance of Build–To-Order manufacturing method and in this Internet era, how the Electronic Supply Chain Management (e-SCM) is enabled with Pyramid Supply Chain Model (PSC) and then Hour Glass Supply Chain model (HGSC)


2Mass Production System
3Strategic Alliance among corporate
4Decide: Whether PUSH or PUSH System
5Lean Technique: Just In Time
6A Paragon: Dell Supply Chain Model
6.1Mass Customization in order fulfilment
6.2Direct Sales to the Consumer
6.3Inventory Aggregation
6.4Postponement: Delayed Differentiation
7Logistics Management and Third Party Logistics
8Manufacturing Methods: Built-To-Order (BTO) and Built-To-Stock (BTS) 9E-Supply Chain Management
9.1Pyramid Supply Chain Model (PSC)
9.2Hour Glass Supply Chain Model (HGSC)
9.3Comparison of Traditional SC, PSC and HGSC
10 Conclusion



The organizational complexity appears in corporate supply chain by adding a second tier of suppliers and more distribution centres and customers. External to the company is the extended supply chain; this includes various suppliers, the suppliers’ suppliers, the company’s distribution network, the company’s customers and the customers’ customers. Internet technologies include everything from online ordering to gathering customer information and transferring data. Integrating practices involve the fundamental sharing of relevant information, benefits, and consequences of actions with partners. The goal of all supply chain technology is supply chain coordination, in which each stage of the supply chain works to maximize overall profitability rather than focussing solely on its own profitability. This goal is possible only when each member of the chain has access to the same information. IT has also enable a fundamental shift in manufacturing philosophy from push to pull. E-Business is not simply purchasing and running Internet Software. To provide true benefits of e-business, such as accurate delivery quotes, faster fulfilment, lowered inventory, and a single source of data for all channels, the firm will need to create tightly integrated business systems. However, this paper is discussing about achieving integrated business system by e-supply chain models: Pyramid Supply Chain (PSC) and Hour Glass Supply Chain (HGSC)

2 Mass Production System

Mass Production has been dominant paradigm of the 20th century. The objective is to reduce cost of production with large volumes of standard products. The key to mass production is producing interchangeable parts. Ford is pioneer in developing mass production technique and this manufacturing methodology was then followed by other auto makers General Motors, Chrysler Corp etc. Later, Mass production method was strained due to rapidly changing consumer tastes and specific needs.

3Strategic Alliance among corporate

Strategic Relationships lie in the middle of a spectrum of business relationships. At one end of the spectrum (shown in exhibit 3.1) is the traditional purchasing relationship, or “buy on...
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