barcode using vb.net Core Discipline 1: View Your Supply Chain as a Strategic Asset in Software

Printer Data Matrix ECC200 in Software Core Discipline 1: View Your Supply Chain as a Strategic Asset

CHAPTER 1 Core Discipline 1: View Your Supply Chain as a Strategic Asset
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created an NPI-focused supply chain that delivers spectacular results for the company and its investors.
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Companies that compete on quality are known for the premium nature of their products and services, as well as consistent and reliable performance. Quality products include well-known names such as Lexus automobiles, Maytag appliances, and Tropicana juices. Product development is obviously critical to quality, but so are key supply chain processes such as manufacturing, sourcing, quality assurance, and return. And if a product is perishable or fragile, transportation and storage play an integral role. One key supply chain attribute relative to quality is traceability the ability to trace a product back to its point of origin a growing requirement in a number of industries. Concerns about food safety and the booming market for organic and ethical products mean that consumers want to be able to trace a product from farm to plate. In the U.S. tire market, for example, traceability back to the point of manufacture is a legal requirement. Moreover, counterfeiting has emerged in a growing number of sectors, such as luxury goods, entertainment, and pharmaceuticals. To offset this risk, manufacturers increasingly use special tags, such as RFID (radio frequency identification), that identify merchandise as genuine and closely control product flows to consumers. The example of Barlean s Organic Oils shows how a supply chain strategy can deliver quality as a basis of competition. One key supply chain Barlean s is a $22 million family-owned company that sells health supplements. The attribute relative to company s flagship product, flaxseed oil, quality is outsells the competition 20 to 1. Freshness makes the difference. Barlean s oil carries traceability the a four-month expiration date, compared with other oils that can be up to five ability to trace a months old before they even hit store product back to its shelves. Barlean s manufacturing and distribution processes give the company its point of origin a edge. Conventional manufacturing tech- growing requirement niques expose flax seeds to heat, light, air, and overpressing, all of which compromise in a number of quality. Barlean s designed a manufactur- industries. ing process that protects its seeds from the
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Strategic Supply Chain Management
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elements. The company doesn t even press the seeds until an order comes in a press-to-order production method. Barlean s also uses Express Mail to ship orders so that they arrive faster and fresher a more expensive choice, but one that further supports the company s commitment to quality. In the crowded health supplements market, Barlean s uses the supply chain to deliver on its commitment to quality, profitably growing sales every year by 40 percent since 1999.9
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Companies that compete on service tailor their offerings to their customers specific needs and are known for exceptional customer service. These companies customize their products and services to build customer loyalty and lock in repeat sales. To excel at service, all of a company s customer-touching processes and information systems such as order capture, order fulfillment, and invoicing must be fast, consistent, and troublefree. The ability to integrate internal processes and systems with those of key customers is a core skill. Our research shows that best-in-class deliver companies those with exceptional order-fulfillment processes overall are more than 20 percent more profitable than average companies and are growing their top-line sales 25 percent faster.10 Why does better service lead to such striking financial gains On a basic level, companies with superior customer service processes avoid the costs related to expediting and the short-term churn that other, less adept companies face. On a more strategic level, companies that excel at customer service develop the ability to segment their customers. They understand the relationship between cost to serve and profitability and can assess the cost of offering customized services. As a result, they avoid offering customized services to customers who don t meet hard business criteria. They also tend to focus on the higher-value segments of an industry and on developing relationships with their priority customers, resulting in lower account turnover and a decrease in customer retention costs all of which add to the bottom line. A case in point is Shell Chemical. It offers its manufacturing customers an inventory-management solution called SIMON (supplier inventory management order network) that simplifies their purchasing process and cuts costs from the supply chain at the same time. With Shell s automated replenishment system, customers no longer place orders, run out of inventory, or build safety cushions of stock. Instead, they ve integrated their information technology (IT) systems with Shell s so that they can
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