Professional Documents
Culture Documents
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.