You are on page 1of 10

Question number: 1 We know that push strategy in the supply

chain refers to the amount of work done “in anticipation of

Order Fulfillment and


demand,” also known as “speculative strategy.” Simultaneously, the pull supply chain strategy
is considered “customers’ order-driven strategy,” also known as “reactive strategy.” There is
always a push and pull boundary that separates the push from the pull.

Customer Services
As a supply chain specialist, please give five (05) different and unique examples from industry or
real life to demonstrate the “push and pull boundary.”

Answer:
Every successful business relies heavily on efficient supply chain management to run its
Final Paper
everyday operations. Some of the most successful companies in Pakistan, like Engro, Fauji
fertilizer and Amreli Steels, rely heavily on new and sophisticated techniques in supply chain
Submission date: August 7, 2021
logistics to run their operations. Hence, this is a very active space that sees a lot of innovation in
all aspects of the chain. Let’s take a look at the Push and Pull strategies in supply chain
management and see which approach works for which business
Push-pull boundary helps in managing the demand and supply of the product effectively. Five
examples can be considered where the boundary is demonstrated. Firstly, the paint industry,
where the paint color is mixed and supplied based on customer demand, the textile industry
where fabric is manufactured and supplied based on customer demand. A PC / Laptop /
Computer manufacturer can also be considered where inventory is managed on the forecast but
the final assembly is based on customer demand. In Steel industry, The Sizes of steels bars are
made based on high customer demand and utilized the push-pull strategy by keeping warehouses
for their stock. Finally, the furniture industry also utilizes this boundary as the product is
produced with a pull strategy whereas the flow of distribution changes to a push strategy as it
saves shipment costs.

Submitted by: explanation


Step-by-step Waleed Akhtar
Seat Number: EP-19543179
Generally, supply
Lorem Ipsumchains contain both the push and pull systems. The medium between the stages
| STU-123456
of the push and pull-based systems are considered as the push-pull boundary. This boundary
Lorem
Instructor: ipsum
Dr. Waqar dolor
Ahmed
helps in matching the supply and demand effectively. Here are some examples that demonstrate
the boundary:
Mr.KUBS
Program: John Dillon
MBAcanSCM-2.5
1. The paint industry be referred to as one of the best examples of the push-pull
boundary. Instead of mixing the colors at their large plants. Paint companies are
providing facilities to the retailers to mix the color as per the demand of the customer
instead of mixing it themselves. Hence, the retailer pushes out the paint color based on
the pulling of the customer demand regarding the availability of the paint color. It
becomes a win-win for both retailers as they save inventory costs and customers who are
happy to get their required paint color.

2. In the South Asian textile industry, the fabric manufacturer outsources its yarn based
on the forecast and tends to weave based on the requisite customer demand. This is an
example of the interface of the push-pull boundary, where the initial stage of the supply
chain focuses on push whereas the final stage operates on a pull system. The initial part
of the supply chain which started before the weaving is 'push' whereas the pull is where
the weaving is started based on the customer demand.

3. When a PC manufacturer is considered, they build stock and make all their decisions
regarding production and distribution based on their forecast. This is their pull system
where their component inventory is managed based on the forecast but the final assembly
of their PC is based on the response to the customer's request. This is their pull part
where the supply chain starts with the assembly based on the actual demand of the
customer. This helps them to match their supply according to the demand effectively.

4. The Steel Industry can be considered as another example where the flow of goods
changes in push-pull. Steels companies produces Steel bars of standard length based on a
pull system and hold the bars in warehouse. The cuts the lengths of steel bars on
customer requirements and they all mold the steel bars from straight to U-band and D-
band on customer request. The inventory of the stock was based on the push strategy of
long-term forecast but the demand of the customer was the pull strategy based on the
individual request they got as customer demand. They created an evolution by changing
the type of bars in their supply chain strategy from just push to push-pull.

5. Furniture Industry can be another instance of this flow in the supply chain, where the
push and pull strategy is utilized. The companies utilize pull strategy when it comes to
their production units as it is tough to make production decisions on long-term
predictions. whereas their distribution enjoys economies of scale based on its push-based
strategy because it helps in reducing shipment costs.
.

Question number: 2 Nowadays, in the context of the prevailing situation of COVID 19,
the business environment is filled with uncertainty. Keeping the firm’s logistics free from
disruption is one of the biggest challenges for supply chain decision-makers. Consider
that you are working as a logistics manager for any manufacturing company. What
challenges you can face in order to ensure the continuous flow of material throughout the
supply chain. Also, recommend some actions in response to those challenges.

Answer:

COVID-19 has disrupted global activities across all economic sectors and industries. The
disruptions are largely due to the lockdown measures adopted and implemented by countries
globally as a health strategy to mitigate the impact of the pandemic’s spread on the human
population. Production halts, movement restrictions of people and goods, border closures,
logistical constraints, as well as the slowdown of trade and business activities are fall-outs of the
COVID-19 lockdown measures.
As a manager of Amreli Steels I am facing following challenges during flow of material through
supply chain.

Challenge # 1
Poor Visibility, Routing of parts and raw material.
Poor Visibility and Routing of parts and raw material results in delays to Steel industry and steel
manufacturing. The process of steel manufacturing contains following items for steel bars
manufacturing:
1. Zinc Dust
2. Oxygen
3. Nitrogen
4. Gas for Fire
5. Raw material
6. Water
7. Electricity

Each of above items are either imported or sourced from a third - party provider. A delay in just
one section of the supply chain can slow down the manufacture and distribution of critical
components, resulting in the production line getting shut down. As Steels industry and brands
move towards just - in - time manufacturing, any impact on the smooth construction and
distribution of steels bars means inventory shortages and revenue loss. It’s vital that Steels
industry supply chain managers can work well with thousands of manufacturers and suppliers to
streamline parts manufacture and distribution.
Solution # 1:
Optimize productions items Visibility, Inventory Management and Routing Through the Supply
Chain and building of warehouse to have enough of reserve of these items for bad time.

Challenge # 2

Delivering and logistics


When the products are ready to be sent out from the manufacturing facility, the Manager has to
decide where to send the goods, how much to send and through which channels the goods should
be shipped and delivered to minimize the delivery and logistics costs and to maximize sales.
Currently due to COVID-19 and lockdown scenario, it is difficult to transport finish goods from
one place to other and to customers.
Solution # 2:
We can overcome this challenge by optimizing the supply chain through data, information and
using automated processes to make decisions. If the information flow right from the
manufacturing facility to sales is automated and centralized, this problem can be solved to a
greater extent. When you have real-time information, you don’t have to wait for the information
to come in manually and then make the decision. You just make the decision instantly on the
basis of the information available.
Question number: 3 Transportation is the movement of material from one place to another. In
supply chain management, the material usually travels from various place through various
organizations and aimed to reach at the right time, to the right place, in the right quantity with the
right condition and paperwork, etc.

What are the different purposes and uses of tracking and tracing the goods and services while
managing the supply chain? Provide examples to endorse your answer.

Answer:

Tracking and Tracing are location service tools they are powerful, that much is true. The real
focus on directions, however, should be on the vast number of benefits the technology can offer.

1. Improved Fleet Management.


Fleet management is the most important part of logistics, it's possible to manage your
fleet in real time via location data. Think of it as a direct line of communication between
you and your fleet, where you can make adjustments to improve efficiencies, arrival
times, and more.
2. Increased Driver Safety and Performance.
Safety, performance, and behaviors are paramount to a successful business. If a driver
falls asleep at the wheel, veers off the road, and causes a massive accident, it's going to be
costly for your business. Goods will be lost, the company's reputation will be tarnished,
and both equipment and resources will be damaged.
A constant tracker encourages drivers to be safe and responsible, and when they're not,
you'll have the opportunity to remind them. You can also create a loyalty system that
incentivizes good driving because you have more oversight as to who's driving well or
poorly.
3. Better Security.
In transportation, distribution, and logistics, there's a lot at stake. If a vehicle, whole
shipment, or even part of a shipment is stolen, the losses amount to more than just
material items and their value. Your business' reputation suffers, your customers and
clients lose money, and in some cases, your drivers or personnel may even be in danger.
Advanced location systems can be used to monitor your fleet and so much more. They
can also be programmed to send alerts when something strange is going on, which gives
you ample time to check in with a driver or take action if something is wrong. The faster
you react to a potential threat or attack; the less damage you take.
4. Enhanced Operational Efficiency.
For the most part, modern location systems and their related software tools are heavily
automated. You don't have to monitor them constantly, instead you'll receive notifications
when something requires your attention. This setup eliminates the need to hover over all
operations constantly but at the same time affords direct micro-management opportunities
that are more informed and stated.
This technology improves efficiency and experiences for the drivers too. They can see
information about their routes, such as congestion areas, accidents, and detour sites. It's
an essential tool for optimizing the way they drive.
Additionally, less administrative resources are needed, as the vehicle-tracking tools
provide precisely what information and stats office workers would be tasked with
reporting.
5. Boosted Customer Service.
Of course, increased efficiency, faster arrival times, and safe driving habits all contribute
to improved customer service. When it comes to deliveries, they're always on time,
maybe even faster. When it comes to providing clients with information about their
shipments, you have more control and can report more as well, including accurate
delivery schedules. You can also enable new solutions. A freight courier, for instance,
could locate a particular shipment and allow antsy clients to pick it up, on the move, by
meeting the driver somewhere. You can also identify incorrectly shipped or stowed
packages and make faster decisions, like swapping couriers or destinations as necessary.

6. More Detailed Cost Analysis.


Fuel costs can be incredible, especially with today's prices, so it's essential to mitigate the
use of company vehicles to cut down on consumption. You don't want drivers taking their
work or business vehicle out for a personal trip, for instance. When they're on the open
road, you also want them to make the most efficient route possible to reduce the amount
of fuel they use and cut down on refueling costs along the way.
Vehicle-tracking tools can help you do precisely this. You can monitor bad habits, fuel
mileage, and costs and make adjustments to meet specific goals.

Question number: 4 We know that providing appropriate service quality to the customer for any
order fulfillment system is crucial for the firm’s sustainability and profitability. Critically review
any situation where you had a positive or negative experience with services of any firm in view
of “extended service model.”

Answer:

The extended service model is the way to figure the 6 gaps that how to figure out the way to
understand what going on supplier point of view or customer as well. I this model I am share the
experience in metro cash and carry Dine Inn services (in the branch (S.I.T.E Area - KHI –
METRO CASH and CARRY Pakistan) in the Dine Inn services customer order the pizza name is
chicken fajita pizza with Extra topping then the all process is start.

1. Customer Expectation–Management Perception Gap

i) In this step the key point is the knowledge gap which mean the service that the
customer expects and the level of the service that supplier thinks that the wants.
ii) In this scenario customer try to explain the what the desire product that they want
example of customer explain the chicken fajita pizza order with extra topping in that
time but the supplier did not understand the real customer requirement that the point
where problem is start or generate.

2. Management Perception–Service Standard Gap:

i) That is the second gap it is called the management perception which mean that step is
to pizza department start to work in customer requirement pizza but extra topping but
not properly define or we say that but no translate to design.

3. Service Standard–Service Delivery Gap:

i) It was the three step which mean that difference between the actual services or metro
food shop or what that they provide services.
ii) In that time day to day performance is not better that why customer is not satisfying
but we having the potential to do but we are not doing.

4. Service Delivery–External Communication Gap

i) It was the four steps of extended services model. In this step the issue or deliver to
toward the customer exaptation toward the ground reality.
ii) Also, the external communication to customer like marketing have the best pizza
services or o promote toward their side to engage the customer like best pizza
services or etc.
iii) Misunderstanding to the communication
iv) Over the ordered issue face the customer.

5. Actual Service–Perceived Service Gap

i) It’s the five steps in which is what the supplier provided the pizza like metro food
department make the pizza and also what the customer thinking what they received
the pizza with extra topping.
ii) In term of metro food and customer thing both are meaning services in the different
way its self-customer thinking is that pizza is come up with the extra topping and
what they delivery it is not.

6. Perceived Services- Expected Service Gaps

i) In this step customer feel the which the customer perceived services and what try to
expected the series they are provided them the expected service is high but perceived
services is very low which mean not meet the desire of the customer

Question Number 05 - In the course of supply chain, we have studied two basic supply chain
strategies. Now, using examples, compare and contrast the characteristics of an efficient supply
chain and a responsive supply chain.

Answer:
An efficient supply chain gets your products to their destinations in the most cost-effective way.
In today's global marketplace, this is essential. Your supply chain costs are a major part of your
overhead, which are expressed in the prices you ultimately offer to your customers. If your
supply chain adds unnecessary expenses to your end products, then your ability to successfully
compete with others companies offering the same products is effectively hobbled.
It's as simple as this:
if your competitors have more efficient supply chains than you, they will be able to offer the
same products for less.
An efficient supply chain has:
i) Optimization. This can include optimized shipping routes, warehouse locations,
personnel and even your computer network to get the best and fullest use out of your
existing infrastructure. Half empty trucks, unused warehouses and redundant computer
systems are simply a waste of your assets.

ii) High quality partners. Your third party logistics partners need to be the best of class.
Your 3PL should have state-of-the-art technologies at their disposal, have a policy of
transparency, and have a proven track record.

iii) Inventory management. Too much inventory is costly to purchase, handle, store and
track. Too little inventory can be costly, as well. It can mean lost production time,
expensive last minute orders and even angry customers. An efficient supply chain finds
the right balance when it comes to inventory.

iv) Customer satisfaction. Supply chain efficiency is directly linked to customer


satisfaction. It gets your products into the hands of the people who need them quickly and
at the best price.

The Responsive Supply Chain


A responsive supply chain has to do two things: it has to be responsive to your needs, and it has
to be responsive to the needs of your customers.

i) Order-fill accuracy. In today's highly competitive market, a guarantee of quick deliver is


a real selling point. If that order arrives quickly but is inaccurate or incomplete, then
you've wasted time and money and may have lost a customer as well.

ii) Scalable fulfillment. All businesses experience ups and downs. Sales can be affected by
the season, the weather and the economy. A responsive supply chain is one that can
accommodate changing sales volumes.
iii) Communication. When you or your customers have questions, problems or concerns, it's
vital that there be open lines of communication.

iv) Customer satisfaction. People can sometimes throw a monkey wrench into to the best
supply chain. They order the wrong thing. They change their minds. They need
something sooner, not later. This is when a responsive supply chain really shines. It is
flexible enough to handle returns, for instance, and offers high-quality customer service.
Customers who feel that their specific needs are being met, and who can reach out for
help when there is a problem to be solved, are satisfied customers.

You might also like