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NYK Logistics understands that the ultimate
goal of supply chain management is to completely ' synchronize'
every supply chain cycle with the customer's final demands.
In reality, however, the goal is difficult to meet.
Most customers face two business environment challenges,
the 'globalization' of the world economy and the emergence
of the "customer economy".
Globalization of the world economy has resulted in extending
supply chains, as customers seek comparative advantage
and access to new markets. The emergence of the Customer
Economy has changed the way businesses respond to demand.
Product life cycles are shrinking, R&D timelines are
shortening and the demand for a greater variety of product
choices is growing.
NYK Logistics recognizes that the efficient management
of the flow of goods, services and information along
a supply chain - from the procurement of raw materials,
through suppliers, manufacturers, and distributors,
to consumers and end-users - is becoming increasingly
critical.
Our focus on order-fulfillment and demand satisfaction
allows us to deliver value through service excellence.
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SCM GOAL: "Synchronization" |
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SCM Challenge: Impact
of Globalization |
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Globalization results in new SCM challenges |
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- Further distances and longer lead times
to manage
- More complicated transportation routes and distribution
patterns
- Increasingly larger number of participants in supply
chain
- Increased risk of the Bullwhip effect due to number
of additional trading partners
- More difficult to respond to Consumer demand in a
timely fashion
- Greater chance for weather or natural disasters to
impact plans
- Communication and coordination problems increase |
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SCM Challenge: Emergence
of the Customer Economy |
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- Increasingly more demanding Customers
- Decreasing product life cycles and time for Research
and Development
- Increase in variety of products demanded - from mass
production of small items, to small production
runs of many items
- More important to produce what customers want, when
they want, as much as they want, and in the
proper locations.
- Effective coordination among supply chain partners
is increasingly important. |
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Customer Economy presents SCM challenges
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- Customers increasingly want to work
with a single provider who can manage the flow
of product and information throughout their entire
demand/supply chain
- Difficulty in forecasting Customer demand
- Coordination is required throughout supply chain
- Communication among multiple partners with varying
technologies
- Local optimization at different stages within the
supply chain
- Reacting to changes and problems in an extended supply
chain
- Information distortion and variability within supply
chain
- Effective communication and cooperation among supply
chain partners |
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