Causes of the Bullwhip effect
1.Delays in transmitting orders and receiving merchandise
•Even when retailers can forecast sales accurately, there are delays in getting orders to the vendor and receiving those orders from the vendor.
•In an uncoordinated supply chain, retailers might not know how fast they can get the merchandise, and thus they overorderto prevent stockouts.
Causes of the Bullwhip effect
2.Ordering in batches
•Rather than generating a number of small orders, retailers wait and place larger orders to reduce order processing and transportation costs and take advantage of quantity discounts.
Causes of the Bullwhip effect
3.Overreacting to shortages
•When retailers find it difficult to get the merchandise they want, they begin to play the shortage game.
•They order more than they need to prevent stockouts, hoping they will receive a larger partial shipment.
•So, on average, the vendor ships more than the retailer really needs.
Benefits of Coordination
•Four approaches for coordinating supply chain activities, in order of the level of collaboration, are
1.using EDI;
2.exchanging information;
3.using vendor-managed inventory; and
4.employing collaborative planning, forecasting, and replenishment.
Using EDI
•The use of EDI to transmit purchase order information reduces the time it takes for retailers to place orders and for vendors to acknowledge the receipt of orders and communicate delivery information about those orders.
Sharing Information
•One of the major factors causing excessive inventory in the supply chain is the inability of vendors to know what the actual level of retail sales are.
•Sharing sales data with vendors is an important first step in improving supply chain efficiency.
•With the sales data, vendors can improve their sales forecasts, improve production efficiency, and reduce the need for excessive backup inventory.
Vendor-Managed Inventory (VMI)
•Vendor-managed inventory (VMI) is an approach for improving supply chain efficiency in which the vendor is responsible for maintaining the retailer’s inventory levels.
•The vendor determines a reorder point—a level of inventory at which more merchandise is ordered.
•The retailer shares sales and inventory data with the vendor via EDI.
•When inventory drops to the order point, the vendor generates the order and delivers the merchandise.
•In ideal conditions, the vendor replenishes inventories in quantities that meet the retailer’s immediate demand and reduce stockoutswith minimal inventory.
•In addition to better matching retail demand to supply, VMI can reduce the vendor’s and the retailer’s costs.
•Vendor salespeople no longer need to spend time generating orders on items that are already in the stores, and their role shifts to selling new items and maintaining relationships.
•Retail buyers and planners no longer need to monitor inventory levels and place orders.
Collaborative Planning, Forecasting, and Replenishment (CPFR)
•CPFR is the sharing of forecasts and related business information and collaborative planning between retailers and vendors to improve supply chain efficiency and product replenishment.
•Although retailers share sales and inventory data when using a VMI approach, the vendor remains responsible for managing the inventory.
•In contrast, CPFR is a more advanced form of retailer-vendor collaboration that involves sharing proprietary information such as business strategies, promotion plans, new product developments and introductions, production schedules, and lead-time information.
Causes of the Bullwhip effect1.Delays in transmitting orders and receiving merchandise•Even when retailers can forecast sales accurately, there are delays in getting orders to the vendor and receiving those orders from the vendor.•In an uncoordinated supply chain, retailers might not know how fast they can get the merchandise, and thus they overorderto prevent stockouts.Causes of the Bullwhip effect2.Ordering in batches•Rather than generating a number of small orders, retailers wait and place larger orders to reduce order processing and transportation costs and take advantage of quantity discounts.Causes of the Bullwhip effect3.Overreacting to shortages•When retailers find it difficult to get the merchandise they want, they begin to play the shortage game.•They order more than they need to prevent stockouts, hoping they will receive a larger partial shipment.•So, on average, the vendor ships more than the retailer really needs.Benefits of Coordination•Four approaches for coordinating supply chain activities, in order of the level of collaboration, are1.using EDI;2.exchanging information;3.using vendor-managed inventory; and4.employing collaborative planning, forecasting, and replenishment.Using EDI•The use of EDI to transmit purchase order information reduces the time it takes for retailers to place orders and for vendors to acknowledge the receipt of orders and communicate delivery information about those orders.Sharing Information•One of the major factors causing excessive inventory in the supply chain is the inability of vendors to know what the actual level of retail sales are.•Sharing sales data with vendors is an important first step in improving supply chain efficiency.•With the sales data, vendors can improve their sales forecasts, improve production efficiency, and reduce the need for excessive backup inventory.Vendor-Managed Inventory (VMI)•Vendor-managed inventory (VMI) is an approach for improving supply chain efficiency in which the vendor is responsible for maintaining the retailer’s inventory levels.•The vendor determines a reorder point—a level of inventory at which more merchandise is ordered.•The retailer shares sales and inventory data with the vendor via EDI.•When inventory drops to the order point, the vendor generates the order and delivers the merchandise.•In ideal conditions, the vendor replenishes inventories in quantities that meet the retailer’s immediate demand and reduce stockoutswith minimal inventory.•In addition to better matching retail demand to supply, VMI can reduce the vendor’s and the retailer’s costs.•Vendor salespeople no longer need to spend time generating orders on items that are already in the stores, and their role shifts to selling new items and maintaining relationships.•Retail buyers and planners no longer need to monitor inventory levels and place orders.ร่วมกันวางแผน คาดการณ์ และเติม (เติมเต็มสินค้า)•CPFR คือ ใช้คาดการณ์ และข้อมูลทางธุรกิจที่เกี่ยวข้อง และวางแผนร่วมกันระหว่างร้านค้าปลีกและผู้จัดจำหน่ายเพื่อปรับปรุงประสิทธิภาพของห่วงโซ่อุปทานและเติมผลิตภัณฑ์ร้านค้าปลีก •Although แบ่งขาย และสินค้าคงคลังข้อมูลเมื่อใช้วิธี VMI ผู้จัดจำหน่ายยังคงรับผิดชอบในการจัดการสินค้าคงคลัง•In ความคมชัด เติมเต็มสินค้าเป็นรูปแบบอื่น ๆ ของความร่วมมือผู้จัดจำหน่ายผู้ค้าปลีกที่เกี่ยวข้องกับการแบ่งปันข้อมูลที่เป็นกรรมสิทธิ์เช่นกลยุทธ์ทางธุรกิจ แผนโปรโมชั่น พัฒนาผลิตภัณฑ์ใหม่เปิดตัว กำหนดการผลิต และข้อมูล lead-time
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