Besides capturing the physical costs of rolling out a new product, other costs should be built for a true comparison of the total cost of the product rollout. Some of the costs discussed here may be applicable:1. Obsolescence CostThe obsolescence cost of the product to be phased out should be part of the budget cycle. This should...
What is the right supply chain for the company? Is there a right supply chain in the first place? How do we match the effective supply chain to the right product? - These are just some of the questions that practitioners and academics are trying to answer. Are we missing the whole picture when we start to ask such questions?Let's...
Most organization rushed into launching a new product with all the excitement and glamour without considering the risk of the launch. So what are the challenges facing the launch of a product? There were numerous challenges spanning across all the company functions but for this discussion here we will focus on the impact on supply...
There is often the excitement that accompanied the launch of a new product. It's like holding a newborn baby in your hands and introducing him or her to the whole of relatives and friends. It's a proud moment for the company too. The pains of all the hard work in getting the product to the market are suddenly forgotten. What...
The term re-engineering invokes a negative reaction from most of us. After all, isn't this another way of saying cost cutting or reduction? It may not necessarily be so. On the other hand, whenever there is a change in corporate leadership, this process seems to follow thereafter where there is a change of key personnel in order...
The realization that company processes are interdependent on each other is the pre-requisite to view how the product moves through the company. No man is an island and in this case each process is intricately related to each other. Trade offs and compromises are made each function adds value to the product as it is transformed from the...
There are several ways to describe some archetypes of system thinking. In essence, system thinking is a holistic approach of viewing a problem in its entirety and in doing so, counter the defragmented way of solving problem by parts. This will bring about solving a problem at its root and not just treating the symptoms of a...
Many barriers are created internally sometimes with the best of intention. For eg, the distribution functional group may want the lowest inventory possible to service the customers but the sales force will want a high inventory in order to avoid backlog. However does having infinite amount of inventory will result in higher order...
A supply chain is more than just a flow of materials from one end to another. It is also a system by itself of supply via a network with many touch points. Besides the flow of materials, information is transmitted along the chain. Therefore there is more than just information exchange. There is a system in which all these...
Many organisations started to realise the value of being customer centric. The pull factor of growing with a customer was too good to miss. The customer centric organization focused on winning customers instead of just pushing products. As the organization understood more of the customer's needs, this called for a...
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