printed_1751223
.pdf
keyboard_arrow_up
School
Florida Atlantic University *
*We aren’t endorsed by this school
Course
6026
Subject
Business
Date
May 2, 2024
Type
Pages
11
Uploaded by UltraMusic14179 on coursehero.com
1. 2. A key to our success is matching the stream of orders to our production and
purchasing schedules. We try to avoid excess inventory of parts, and yet we
need to have enough parts on hand to fulfill orders. We need to link the
demand for our products to the purchasing of parts and supplies. Do you
have any ideas on how we can match our purchasing of supplies to the stream
of incoming orders?
You can suggest here that most supply chain management systems are linked to
the order entry system. Based on incoming orders, SCMs will produce data that is
fed into the production system, which, in turn, results in a list of parts needed and
schedule requirements. Because this position is closely linked to SCM, you
should do research on SCM systems to understand their functionality.
3. We’d like to use social media as a way to enhance communications with our
suppliers. Do you have any suggestions about how we might build a social
network to support our supply chain?
Here you can talk about your experience with LinkedIn, Facebook and Twitter,
especially about how business firms can use these platforms to build a social
community of vendors and manufacturers. The process of building a social
network for vendors is very similar to building a social network of customers. Use
of video, blogs, comments, newsfeeds, and posts can be very valuable in creating
a community of vendors.
4. We are trying to reduce costs of our supplies by participating in a number of
B2B e-commerce marketplaces where vendors compete with one another on
price and quality to become one of our suppliers. What do you know about
B2B e-commerce marketplaces and how they might be helpful for us?
You might point out here the different kinds of B2B e-commerce marketplaces.
The firm should use e-distributors, such as Amazon Business or eBay Business,
to obtain the lowest cost for indirect supplies. The firm could also participate in
an e-procurement network such as SAP Ariba to obtain competitive quotations
for supplies and direct inputs.
5. We are trying to integrate our vendors more closely into our business
planning and even the design of new products. We’re looking for a
collaborative effort from our suppliers and greater visibility into our supply
chain both for our purposes and our vendors’ purposes. What do you know
12.7 Case Study
Elemica: Cooperation, Collaboration, and Community
Elemica is a B2B cloud-based, digital supply chain platform aiming to revolutionize the
entire supply chain of the chemical, plastics, rubber, energy, pharmaceuticals, food and
beverage, and other process manufacturing industries worldwide. Its mission is not just to
foster cooperation on a one-to-one, inter-firm basis or collaboration on multi-firm
projects, but instead to lift all boats on an industry tide by providing an inter-firm
platform for communicating B2B information, and thereby making all firms more
efficient.
about collaborative commerce? What have you learned about supply chain
visibility?
You could refer to private B2B networks composed of a single manufacturing firm
that owns the network and the group of suppliers that work with the
manufacturer to design and build component parts, similar to that created by
Procter & Gamble. In this kind of collaborative effort, both the vendors and the
ultimate buyer of components work together to create and design inputs, and
both benefit from the results.
12.7-6 Full Alternative Text
Elemica today processes more than $1 trillion in annual transactions across more than
7,500 process manufacturing industry trading partners; 16,000 network participants
around the world, including more than 100 of the largest global process manufacturers;
thousands of their direct material suppliers; more than 500 logistics service suppliers; as
well as thousands of end customers. Clients include AkzoNobel, BASF, Bayer, BP,
Campbell’s, Continental, Dow, DuPont, ExxonMobil, Goodyear, Levi’s, Pepsico, Pirelli,
and Westinghouse.
Elemica was an early example of a B2B e-commerce industry consortium. In the late
1990s, senior leaders at some of the larger chemical companies began to focus on
changes in technology that made the adoption of information technology and the tools of
e-commerce more appealing. The questions were how to best use these advances to
benefit their businesses and how to establish industry standards for electronic
transactions to make them accessible and attainable for all.
Unlike the automobile industry or the airline industry, where a few companies dominate,
the global chemical industry is made up of many companies of all sizes. In addition,
unlike many other industries, chemical companies often buy the output from other
chemical companies to use as raw materials for their products. Thus, chemical companies
are often customers of one another as well as competitors.
Leaders from companies such as Dow and DuPont determined that a cooperative alliance
would be the most efficient way to move forward. They were met with initial skepticism
by marketing and sales staff, who worried that online procurement would negatively
affect relationships. Senior corporate leadership wasn’t sure that e-commerce would be
useful for the chemical industry. And companies were cautious about the expense of
investing in the infrastructure necessary for e-commerce.
However, there were compelling opportunities that were impossible to dismiss, including
lowering costs, creating closer connections with customers and suppliers, and
differentiating companies on something other than price. At the same time, new startups
were making traditional chemical companies nervous. What would happen if their efforts
to use information technology to streamline an inefficient supply chain helped them
capture market share? In other words, if the more traditional companies didn’t move
forward, they might end up losing the revenue race.
When Dow began looking at startups that were using e-commerce and talking to their
customers, they found that customers were concerned about making an investment to
establish online connections with multiple firms. Dow and DuPont decided that the best
and most economically efficient option was to offer customers the choice of a neutral
one-to-one link. This would remove the obstacle of multiple connections. A strong, third-
party network addressed the community concern about loss of control. The two
companies decided to create and invest in a neutral e-commerce company, partnering
with other companies to create the critical mass needed to make it viable. All participants
shared the common goal of creating a neutral platform to facilitate inter-company
transactions and enhance business processes. Ultimately, 22 leading companies in the
chemical industry (including oil and natural gases) were involved in the launch of Elemica
in 2000. In succeeding years, Elemica has expanded far beyond chemicals to encompass
other major process manufacturing industries.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Identify the concepts and their corresponding description, obtained from the survey of a construction company: In the context of a construction company, it is required to maintain the organization of different works that the company carries out. Our client is in the habit of organizing a set of tasks into what is called a batch. Items are used as units of work intermediate level, to which a limited amount of material can be assigned to fulfill the tasks that compose them. It is necessary to distinguish the suppliers and the prices of each material, even if there is only one supplier for each material. Although rare, tasks can have an associated machine; but generally, they have more than one. The machines are not related to the work other than by the tasks and the items; and only operators with category “A” can operate them. All workers are paid according to their category and the hours worked, regardless of the work. ➢ Carry out the definition of the types of objects found. ➢ Develop…
arrow_forward
Your Corporation manufactures four products that use the same raw material and production machine. Your Company is experiencing a shortage of pounds of the raw material. Information related to the four products are shown below.
Products
A
B
C
D
Selling price
$40
$32
$35
$65
Variable cots
$34
$22
$27
50
Machine hours per unit
6
8
5
7
Pounds per unit
18
20
28
38
To maximize profit next month, in what order would it be best to schedule production (first to last)?
a. A, B, C, D
b. A, D, B, C
c. B, D, A, C
d. D, A, C, B
arrow_forward
Essentially, the planning of the purchasing and supply chain function entailsmanaging the function for the future. Outline the purpose of the three levels of management within the context of the purchasing and supply chain function. (10)
arrow_forward
Explain in detail IKEA’s major outputs of order management, how they are measured, and how their financial impacts on buyers and sellers are calculated.
arrow_forward
What role does inventory accuracy play in the effectiveness of Manufacturing Resource Planning?
arrow_forward
Prior to accepting a customer’s order, a company should verify the amount of inventory on hand. Which of the following is not a reason to do this?
Determine whether inventory records are accurate.
Ensure accuracy of inventory records by reducing the amount by items order.
Identify which products should be ordered from suppliers.
Communicate to the customer when shipment will be sent.
arrow_forward
What is a typical Web services-based order entry system?
arrow_forward
The following two diagrams represent different inventory and cash payment policies. Please use whatever real-life business you believe is suitable to explain the differences between the two types of business models. Make sure you elaborate on each of the four cardinalities below.
arrow_forward
CRM systems do benefit the companies.
Argue against or in support of the above statement.
arrow_forward
Green Gardens' owner has asked your advice about a possible problem at his business. Over the last 6 months the large-sized lawn and garden inventory (ie, tables, chairs, planters, etc.) has appeared to be short. The inventory records that employees use to determine what is on hand show that more inventory is available than can actually be located. This has cause frustration and mis-trust in the inventory records for the sales employees. The owner realizes that the problem is bigger than just frustrated employees. He is afraid that inventory is being stolen, a problem he didn't think possible given that these are large items that are not easily moved.
Requirements:
Provide the owner with two internal controls that he could implement to reduce the likelihood of theft of the lawn and garden inventory.
arrow_forward
Recognise the fundamental components of buying databases and ERP systems.
arrow_forward
When thinking about the future of supply chain management, what do you think analytics will be responsible for?
arrow_forward
Which of the following is NOT an objective of sales and operations planning?
Establish greater accountability for individual plans developed by the various functional groups.
Coordinate supply chain partners.
Develop a maximum cost strategy for effectively meeting demands.
Establish communication among various stakeholders, including finance, marketing, production, and suppliers.
arrow_forward
how business information system gives a deeper understanding of the product in demand.
arrow_forward
As a logistics specialist, you are responsible for meeting customer demand. One of your customers places orders for you to supply four products by the end of October. You have limited capacity for raw material and other facilities. You are required to satisfy customer demand by manufacturing the products and/or buying from a supplier. After consulting with the production department, you obtained the following information.
Product A
Product B
Product C
Product D
Order quantity
2000
3500
1500
2500
Hours required on machine X per unit
2
4
5
3
Hours required on machine Y per unit
4
3
6
2
Raw material in kilos
5
1
4
6
Time needed for Packaging per unit
36 minutes
30 minutes
45 minutes
24 minutes
Available monthly hours per month: 8,000 on machine X, 6000 on machine Y, and 3,000 hours for packaging. Purchased items from your supplier are already packaged.
Available raw material per month: 5,000 kilos…
arrow_forward
The task I am struggling with:
A manufacturing company producing medical devices reported $60 000 000 in sales over the last year. At the end of the same year the company had $ 20 000 000 worth of inventory of ready-to-ship devices.a) Assuming that units in inventory are valued (based on COGS) at $1000 per unit and are sold for $2000 per unit, how fast does the company turn its inventory? The company uses a 25% per year cost of inventory. That is for the hypothetical case that one unit of $1000 would sit exactly one year in inventory, the company charges its operations division a $250 inventory cost.b) What in absolute terms is the per unit inventory cost for a product that costs $1000?
Thank you very much for your help.
arrow_forward
Your head of division has asked you to evaluate the alternatives for producing newly designed jig on milling machine. He gives you the following facts: An old milling machine valued at RM 150,000 exists in the warehouse that can be modified for the new jig. The production line supervisor has given an estimate of RM 25,000 to modify this machine. It is hoped that the milling machine will be able to meet production requirements at full capacity. Another vendor, CARE Sdn Bhd, has produced the machine five years ago and can easily do the same modifications for RM45,000. The cooling system used for this machine is not environmentally safe and would require some disposal costs. CARE Sdn Bhd has offered to build a new milling machine to be more environmental friendly and a higher capacity for a price RM250,00. For this scenario: (a) Define the problem statement. (b) Explain ONE (1) key assumption. (c) Explain THREE (3) alternatives available.
arrow_forward
1. How can information produced by a job order costing system assist managers in operating their firms more efficiently?
arrow_forward
This involves proper purchasing of raw material, handling, storing and recording.
arrow_forward
What is a customer order decoupling point? Why is it important?
arrow_forward
You just took over as chef of a restaurant with a poor handle on inventory control. Cooks are for the most part good at executing standardized recipes and careful minimizing waste during production, but there's either too much product going bad in the storage areas, or not enough product ordered to meet production needs. Storage areas are poorly organized, and cooks and servers are walking in and getting what they need without any tracking, Food costs are high because of this, and customers are complaining when their favorite items are 86'd. What would your first actions be to get a handle on the problem during your first week? What actions might you have to wait on, and why?
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
![Text book image](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Related Questions
- Identify the concepts and their corresponding description, obtained from the survey of a construction company: In the context of a construction company, it is required to maintain the organization of different works that the company carries out. Our client is in the habit of organizing a set of tasks into what is called a batch. Items are used as units of work intermediate level, to which a limited amount of material can be assigned to fulfill the tasks that compose them. It is necessary to distinguish the suppliers and the prices of each material, even if there is only one supplier for each material. Although rare, tasks can have an associated machine; but generally, they have more than one. The machines are not related to the work other than by the tasks and the items; and only operators with category “A” can operate them. All workers are paid according to their category and the hours worked, regardless of the work. ➢ Carry out the definition of the types of objects found. ➢ Develop…arrow_forwardYour Corporation manufactures four products that use the same raw material and production machine. Your Company is experiencing a shortage of pounds of the raw material. Information related to the four products are shown below. Products A B C D Selling price $40 $32 $35 $65 Variable cots $34 $22 $27 50 Machine hours per unit 6 8 5 7 Pounds per unit 18 20 28 38 To maximize profit next month, in what order would it be best to schedule production (first to last)? a. A, B, C, D b. A, D, B, C c. B, D, A, C d. D, A, C, Barrow_forwardEssentially, the planning of the purchasing and supply chain function entailsmanaging the function for the future. Outline the purpose of the three levels of management within the context of the purchasing and supply chain function. (10)arrow_forward
- Explain in detail IKEA’s major outputs of order management, how they are measured, and how their financial impacts on buyers and sellers are calculated.arrow_forwardWhat role does inventory accuracy play in the effectiveness of Manufacturing Resource Planning?arrow_forwardPrior to accepting a customer’s order, a company should verify the amount of inventory on hand. Which of the following is not a reason to do this? Determine whether inventory records are accurate. Ensure accuracy of inventory records by reducing the amount by items order. Identify which products should be ordered from suppliers. Communicate to the customer when shipment will be sent.arrow_forward
- What is a typical Web services-based order entry system?arrow_forwardThe following two diagrams represent different inventory and cash payment policies. Please use whatever real-life business you believe is suitable to explain the differences between the two types of business models. Make sure you elaborate on each of the four cardinalities below.arrow_forwardCRM systems do benefit the companies. Argue against or in support of the above statement.arrow_forward
- Green Gardens' owner has asked your advice about a possible problem at his business. Over the last 6 months the large-sized lawn and garden inventory (ie, tables, chairs, planters, etc.) has appeared to be short. The inventory records that employees use to determine what is on hand show that more inventory is available than can actually be located. This has cause frustration and mis-trust in the inventory records for the sales employees. The owner realizes that the problem is bigger than just frustrated employees. He is afraid that inventory is being stolen, a problem he didn't think possible given that these are large items that are not easily moved. Requirements: Provide the owner with two internal controls that he could implement to reduce the likelihood of theft of the lawn and garden inventory.arrow_forwardRecognise the fundamental components of buying databases and ERP systems.arrow_forwardWhen thinking about the future of supply chain management, what do you think analytics will be responsible for?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning