Name : Mery Bermdez P.

WHAT IS THE RIGHT SUPPLY CHAIN FOR YOU PRODUCT?

In this article said what is the adequate supply chain that the company should have
for the products because in this generation are new concepts such as quick
response, efficient consumer response, accurate response , mass customization,
lean manufacturing and agile manufacturing that offer models for applying the new
technology to improve performance.
The article defines two basic products: functional and innovative products.
Functional products is that people buy in a wide range of retails outlets such as
grocery and gas station that the product satisfy basic needs have predictable
demand and long life cycles. Innovative products show an unpredictable demand,
and the life cycle can be as short as a few months and achieve higher profit
margins. The major differentiating factor between them is the uncertainty of
demand.
The supply chain is divide by response like Physically Efficient Process, which can
supply a specified amount of products at the lowest cost possible and are the cost
of production, transportation and inventory storage. Market-Responsive Process,
which focuses on quick adaptability towards changing market needs and cost
arisen when supply chain exceeds demand.
As a conclusion we have a mix match that help us to stablish the ideal supply chain
that define the type of your products and adapt the supply chain accordingly but
there are many other factors which have to influence an effective and efficient
supply chain design as well. The first must determine whether their products are
functional or innovative .Most managers have sense of which products are
predictable and unpredictable demand because the unpredictable demand
generates supply headaches.
As a example I think MI COMISARIATO and SUPERMAXI grocery because they
always compete, they sells basic needs so they have to make strategies weekly to
rotate they products and not have stock outs of products, in December is the
month that people buy more because of Christmas and most of the grocery not
have stock of Christmas dinner so they lost a lot of money. They have to have
more suppliers to satisfy the demand on Christmas Eve