Essay: Supply chain

Supply chain is the movement of materials from the source to the end user. Supply Chain element includes supplying, manufacturing, warehousing, transportation, and customers. It is made up of the information, product, and resources involved in moving a product from its supplier to customer.
The supply chain is the heart of any business. Most people think that supply chain lead by a large corporation, but every organization has a supply chain. You have suppliers, production, warehousing, distribution, and customers. The end element of every supply chain is always customers. The drawback with any supply chain is it is only as strong as the links in the chain. If a one link is weak then your supply chain breaks down. This impact on customers can negatively impact the business.
Supply chain and technology
Two decades ago it was easy to hide a breakdown in the supply chain from the customers. You could make up for the slowdown in production by speeding up shipping or increasing the acceptable rate of failure on products and making up for it on warranty. Customers in general moved at a slower pace than today and were used to doing business at a slower pace that today.
Technology today has seriously impacted the supply chain process and the way it interact with customers. Customers want answers, they want product now, and they do not want to wait. They expect you to have the updated information about tracking number and estimated shipment to arrive within minutes of placing an order. Telling customer it might take up to 15 business days is not acceptable.
Technology has made supply chain more transparent, it has also improved the links between elements in the chain. Retailers for example are completely link together through information technology. They own advertising management systems that estimate what products should advertise based on trends. They also have inventory control software that will systematically monitor inventory levels, and make purchase suggestion based on forecast demands. This application is most likely fixed to their digital purchase order system where the category manager can approve the purchase via their PC or smart mobile phone. Technology dramatically increases the ability to manage the supply chain process more accurately.
Technology
EDI
It’s a network through which it can reduce the time and effort it will allow for the supply chain to be faster and more efficient also gives the ability to improve the supply chain in this modern technology where there are no leaves it on the computer with constant contact with the active members of the Supply Chain
Example: A company wants to know what can it do in the transfer of goods to the seller as they have no information that this technique lets them know they are carriers of the least expensive and fastest
RFID
Radio Frequency Identification (RFID) refers to a wireless system comprised of two components: tags and readers. The reader is a device that has one or more antennas that emit radio waves and receive signals back from the RFID tag. Tags, which use radio waves to communicate their identity and other information to nearby readers, can be passive or active. Passive RFID tags are powered by the reader and do not have a battery. Active RFID tags are powered by batteries.
Many electronics companies of strategic plans in the supply chain
Such as Samsung and Apple Inc.
These two companies have plans in the chain of supply, which distinguishes them from others
For example, they are always on the customer’s expectations that they will present their goods to the customer on time
They are using technology in the supply chain
They have programs and have a tracking tools such as RFID technology
This technique allows them to track their products and find out if they have been sold or not
Also possible to use this technique to find out where their wares are located with respect to transportation
For example, Apple want to know that its cargo had arrived in the Middle East can know where is their wares so they can serve their customers in a timely manner
Also can from this technique to develop the supply chain of information that come from administration
For example their goods in Japan always go to the Middle East so they decide to open the largest market for the Middle East for less than the cost to themselves and their clients .
Samsung
The supply chain for consumer electronics products like digital cameras, TVs, and mobile phones video and games is very complex. Goods are then moved to special organization providers for packaging, transport and delivery to warehouses of retail, where they are then divided before being displayed on store shelves.
Supply chain has a lot of complexity and one of the wide varieties of very valuable items shipped, many with small sizes. The small size makes electronic products much more easer to theft and loss.
In the start of the RFID test project that call i.trace (The Italian Consumer Electronics RFID Application) Samsung selected 89 types of products, including televisions, and phones digital cameras, that represented a large number of products distributed through DHL. In total, more than 14,000 pieces were tagged with RFID.
RFID start when DHL receives products from Samsung at two warehouse locations that serve as expensive storage areas. In these areas, products are inspected, wrapped and stocked.
Larger products like televisions are stored in a traditional area. The products labeled by DHL with an RFID tag. RFID tags are activated by connecting the tag serial number (SN) to the product.
The tags allow the electronics products to be tracked at each step which that stockpiling, picking and shipment preparation.
The products pass through a door that has a scanner and RFID antennae that control the exit of goods from the storage area. After the products leave the storage area, the boxes are placed on the exit platform. Every product is traced and monitor from the picking process, to the loading into the vehicle and to the retail.
When products arrive at the retail, the shipment passes through a door equipped with scanner and RFID antennae that automatically track the incoming goods. At the store, a second RFID door between the warehouse and the sales floor monitor the individual serial numbers (SN) that are moved to the shelves.
The i.trace way resulted in decrease in preparation time for ordering and shipping, due to a reduction of time spent performing shipment logistics. Samsung achieved a 30% reduction in preparation times, shipments and reduction of shipment inspection time. RFID added increase security to the supply chain and greatly decrease errors.
RFID allowed Samsung to decrease stock in transit and to have the best visibility into sell out information. Products arrive at the retail with less time and make it to the store shelves faster, and that is major element in electronic products that have short life cycle.
The store increased efficiency in receiving operations with regards to the warehouse stock and the display area of the retail. Products with RFID enable to reduce self-service product stock out and the possibility of obsolescence. RFID has allowed the retailers to move employee from tracking to use them in making sales.
In conclusion
We saw the importance of modern technology in the supply chain and its impact in improving the functioning of the supply chain management in terms of reducing the time and increase efficiency and improve the links between the factory and the seller and the customer.
That modern technology has brought improvements to the supply chain and will make future improvements to the supply chain.
Internet and tracking tools we talked about it and its importance to the development of companies in the supply chain and the companies that characterized the like Samsung.
We expect that this new technology occur further progress in the efficiency of the supply chain at all levels and will be so pleased with the customer in order to achieve his full satisfaction with the services companies in terms of time and efficiency