Fundamentals of Business

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Fundamentals of Business

Activities/functions

Strategic
√ Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities.
√ Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third party logistics.
√ Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management.
√ Information Technology infrastructure, to support supply chain operations.
√ Where to make and what to make or buy decisions.
√ Align overall organizational strategy with supply strategy.


Tactical
√ Sourcing contracts and other purchasing decisions.
√ Production decisions, including contracting, locations, scheduling, and planning process definition.
√ Inventory decisions, including quantity, location, and quality of inventory.
√ Transportation strategy, including frequency, routes, and contracting.
√ Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise.
√ Milestone payments


Operational
Daily production and distribution planning, including all nodes in the supply chain.
√ Production scheduling for each manufacturing facility in the supply chain (minute by minute).
√ Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers.
√ Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers.
√ Inbound operations, including transportation from suppliers and receiving inventory.
√ Production operations, including the consumption of materials and flow of finished goods.
√ Outbound operations, including all fulfillment activities and transportation to customers.
Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers.

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