Supply chain Essay Example for Free

Supply chain EssayIn a deed business the turn in chain is one of the most crucial components to ensure smooth operation. In the retail and FMCG industry, the business is only about an excellent supply chain. The quality of the product is actually secondary. But the concept is now also applicable for softw atomic number 18 industry as well, because now softwares are outsourced and delivery is also crucial.But how do we identify whether the supply chain is performing optimally. For a production line, the effect will be immediately unmingled from the hourly production rate. A minor change or alteration in the supply chain, will affect the entire production line. The rate per hour will get hampered and the work will get slowed down. In this situation one needs to identify the point where the supply chain is acquire hampered. erst it is done, the job is to streamline it and bring it to its optimal efficiency by SWOT (Strength, Weakness, Opportunity and Threat) analysis.This will also reduce the cost and time will be saved. However, for a FMCG or retail sector, the identification is not immediate, because buffer stocks are kept. Hence, the shortage or the inefficiency is not easily identified. When you feel the shortage or superannuated of stocks you can understand the scenario that the supply chain is not functioning properly. Another key indicator is the reduction in sales figure.The sales will require a hit, if the goods does not arrive at the right time, stocks are few and the demand is either not getting fulfilled or the supply is to a greater extent than the demand. In this scenario the best option or rectification is to shift to JIT concept of supply cycle. This JIT (Just in Time) concept is very effective, because neither are you over-stocking nor under-stocking. Also, the cost is getting reduced along with optimization of time.The software sector is very new to this concept, but an early understanding will be of great benefit in the future. Ident ify the lacuna and structure an efficient supply chain.