LSCH_C06.QXD 12/11/04 12:05 pm Page 204
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Summary The key to supply chain responsiveness is synchronization. Synchronization implies that each entity in the network is closely connected to the others and that they share the same information. In the past there was often limited visibility, either upstream or downstream, meaning that organizations were forced to act independently, making their own forecasts, and, as a result, inevitably relying upon a ‘push’ rather than a ‘pull’ philosophy. Underpinning successful supply chain synchronization is, firstly, the information systems capability to capture data on supply and demand and, secondly, a spirit of co-operation across the so-called ‘extended enterprise’. In practice it is the latter issue that tends to limit the extent to which synchronization can be achieved. Nevertheless, as more examples of the financial benefits of ideas like quick response and Vendor Managed Inventory come to be publicised, the likelihood is that supply chain synchronization will come to be more widely practised. References 1. Rayport, J.F. and Sviokla, J.J., ‘Managing in the Marketspace’, Harvard Business Review, November–December 1994. 2. Chandrashekar, A. and Schary, P., ‘The Virtual Web-Based Supply Chain’, in Franke, U. (ed.), Managing Virtual Web Organizations in the 21st Century, Idea Group Publishing, 2002. 3. Heinrich, C., Adapt or Die: Transforming your Supply Chain into an Adaptive Business Network, John Wiley & Sons, 2003. 4. Lowson, R., King, R. and Hunter, A., Quick Response: Managing the Supply Chain to Meet Consumer Demand, John Wiley & Sons, 1999. 5. Lei, D. and Goldhars, J.D., ‘Computer-Integrated Manufacturing: Redefining the Manufacturing Firm into a Global Service Business’, International Journal of Operations & Production Management, Vol. 11, No. 10, 1991. 6. Forrester, J., Industrial Dynamics, MIT Press, 1961. 7. Abraham, M.M. and Lodish, L.M., ‘Getting the Most out of Advertising and Promotion’, Harvard Business Review, May–June 1990.
204