King customer rules the supply chain

At first glance, the supply chains of fast-moving consumer goods all look the same; the companies and their customers are similar and so are the product features, setting aside the distinction between frozen and fresh products. Most companies still aim to maximize their lot sizes instead of tailorin...

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Veröffentlicht in:Logistics and Transport Focus 2008-08, Vol.10 (8), p.53
Hauptverfasser: Großpietsch, Jochen, Kupper, Jörn, Sänger, Frank
Format: Artikel
Sprache:eng
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Zusammenfassung:At first glance, the supply chains of fast-moving consumer goods all look the same; the companies and their customers are similar and so are the product features, setting aside the distinction between frozen and fresh products. Most companies still aim to maximize their lot sizes instead of tailoring their production better to customer demand, the consequences are often inventory shortages and supplies of up to 50%, it turned out recently at one manufacturer that the volatility in its production was three times greater than those in customer demand. Generally, by consumer goods companies no longer seeing their operational processes as a simple necessity -- that is, cost -- but as a strategic tool for further growth. Production locations have to be optimally aligned with the distribution network -- network design. A constantly changing market environment demands an organization that permanently further develops customer-oriented business structures, processes, systems, and capabilities in order to maintain and improve performance.
ISSN:1466-836X