Tut 3
After reading the article about ElectroParts Pte Ltd, I think that their current sourcing strategies of using global sourcing and usage of the Internet are good in a sense that the strategies enables them to have access to a wide supplier base and to find 'wanted' products fast and accurately. However, as a result of global sourcing, ElectroParts need to take into consideration the increased lead time and shipping costs as their suppliers are located around the globe.
I think that EletroParts' practice of using Order Point Order Quantity (OPOQ) for the fast moving products is a good idea as OPOQ is able to calculate and replenish the stock to a safe level if stock level falls below a certain point. However, I think that the practice of forecasting quarterly customer demands should be replaced by Vendor Managed Inventory (VMI) so as to see the actual customer demand and to overcome the bull-whip effect.
EletroParts' practice of shipping in bulk, although may lower transportation costs and the cost of a unit of each product, may result in the need for more storage space and cost and the problem of having excess inventory.Labels: LSCM
;ride up my life;.
11/18/2006 08:50:00 PM