Operations management has become very reliant upon well designed and efficient supply chains. The global economy has forced both manufacturing and services based operations to pay closer attention to their supply chains. This is primarily driven by consumer demand for lower costs and investor demand for higher profits. In order to remain competitive, operations are incorporating new management designs and models, such as Lean Six Sigma. Competitive advantages can be gained from tactical and strategic supply chain design, distribution, and transportation models developed by innovative organizations. These well designed and managed supply chains can have a profound impact on the way organizations are managing their operations, efficiencies, and customers needs.
The development of strategies for the design of supply chains must be innovative in nature and consider a multitude of constantly changing variables such as shifting demographics, wars, natural disasters, host country infrastructure and stability, as well as supplier availability.
Distribution and logistics operations should be considered as both a tactical and strategic application. As you know, tactical application refers to the annual operations of a company (or organization) and strategic application refers to operations three to five years into the future.
In a 1-3 page paper consider and respond to the following questions:
Why does designing a supply chain (for a specific organization of your choice) determine quality, cost, and delivery?
How do supply chains differ in manufacturing and services operations?
What role does transportation play in a supply chain?
When we talk logistics in the operations world, what does this encompass?
How does Lean Six Sigma apply in supply chain design and management?