Comments on Classes and Article 9.

Hello. My interest in the previous lecture of The Supply Chain Systems was really great as in the past I was purchase manager and cooperated with a companies, operating such a systems. I can't say that I learned a lot of new things from this class, but I would like to leave some comments instead. The problem of such systems (from my personal experience) as that they are firm and can not be manipulated easily. Sometimes it is very hard for the employee to change the product price in the system or to add some additional comments, which should be seen on the freight documents. These systems do not include legislation differences and when country goes abroad it becomes a huge problem - the minor change in the shipment document required by the payer takes several days and if it is ignored it results in paying extra and pretty big amount during customs clearance. And the response you get from the supplier is - "Sorry. It's our system. We can't change anything".

Article 9. Supply Chain Integration Solutions
http://www.scmnews.com/scmnews-66-20061013SupplyChainIntegrationSolutions.html

It does not matter if you are a vendor, supplier, manufacturer, dealer, service supplier or customer, the cost of freight either impacts the amount you charge, the amount you are reimbursed or the price you pay. And this is the most important part of Supply Chain, which should be always carefully analyzed and improved.

The article above gives us short history overview of Supply Chain improvements and current situation. And it is very interesting to realize that the following development improved the performance of Supply Management Systems:

1) The famous Pony Express operating from April 1860 to November 1861.

2) Electromagnet, telegraph and telephone discovery.

3) Introduction of Consolidated Freight, Low Rates and Speed principle.

The historical development of them brought us to the modern Supply Chain Integration Systems, which are focused not on moving products more quickly, or choosing the most economical method of transportation, or the geography, but on the task for business to move items less. Next generation of Supply Chain Integration utilizes network connectivity with multiple vendors to reduce freight, transportation, geographical boundaries and in some cases ownership. IT development is focused on integrating partners in collective, secure and collaborative networks for shared visibility and planning. Data is moved more effectively and efficiently than products, parts or parcels. Ownership transfers when orders transmit, and inventory is managed in a manner that mitigates movement. Vendor Managed Inventory can be achieved simultaneously with multiple vendors and numerous customer partners through sophisticated impartial third party integrators. The exchange of products and purchases can be replaced by a data exchange, creating total cost reductions that benefit the bottom line.

The best example of the company, which implements such a Supply Chain Integration System is E-Bay, procuring supply in direct proportion to demand. I believe that this alternative approach has a profound base and should be used in future for all the companies. It allows not only to save resources for the exact company, but the whole society in general.

P.S. Sorry. I know that this post is very long, but I intentionally leave it like it is. I like this topic and would like to show you my opinion.